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ethics and moral values are central to any organization which determines the organization
vision and values. Investors will be interested in the organization which will
follow ethics and moral values. Business ethics can also be defined as a culture which is practiced
within a business which enables a business to make decisions and actions which
are according to the principles of an organization. Business ethics are
important as they define the morals and behaviors of an organization
(Nieuwenhuizen and Oosthuizen T.F.J. (ed) 2014:93).

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this discussion, I am evaluating about a company on how it violated business
ethics and morals. Micro-Games America Entertainment Inc. (MGA
Entertainment) is an American manufacturer of children’s toys and
entertainment products founded in 1979.


June 2016, Isaac Larian CEO of MGA Entertainment Inc. watched viral videos of
kids unboxing toys on YouTube. After watching toy videos Larian challenged his
team to come up with an idea. Five months later MGA released L.O.L surprise a
small plastic sphere concealing a

doll and its accessories. Toy which made up 50 bundle tiny items which kids can

has landed at the top of many 2017 best toy lists. This toy sold at both Toys
“R” Us and


Larian took a decision to shift away from running spots during kids’ TV and
cable programming and instead he wanted MGA products into the hands of kid influencers
on YouTube. Board members was unhappy with this decision and they were under

that Larian is wasting money and time by this kind of decisions. But decision
that took by

to have MGA’s marketing go 90 percent digital which created hits for Bratz and

dolls. Larian thinking about continuing shift of toy-age from traditional kid’s

to social media, where kids can view and share with friends about the videos

the toys they want and according to Larian since 2012 kid influencers on
YouTube have

captivated their peers by posting videos of themselves unboxing, reviewing and

with toys.


to Neilsen reports 53 percentage of kids who fall under age group from 6-11

Disney Channel in 2017 cable season than in 2008, and 54 percent fewer watched


Meanwhile 32 percent of kids said they prefer watching videos on a non-TV
device in 2016.  There was a time when
companies used to put product on TV so that kids watch these videos and
companies can make money out of it. Based on these analysis Larian decided not
to waste any money with TV anymore rather he wants to go with digital
influencers viral marketing. That shift has provided a bonanza for YouTube
reviewers among them a family know

kidToyTesters. This group is of five siblings have made videos featuring toys including
Mattel Inc., Habro Inc. and MGA. This group also produced sponsored videos for
17 brands including Nitendo, Spin Master and wicked Cool toys.


article states that company is not following ethics and morals. Stakeholders of
this company didn’t follow any vendor conduct Principles (Cachon. G and
Terwiesch) and they violated utilitarian rule (Mauresan A and Borza A) which is
very important for any company which want to produce the greatest goods to
customers. These days’ kids are very attractive to YouTube channels to see
rhymes and cartoon stuff, by looking into the analytics data KidToyTester came
to idea to create videos of toy and release on YouTube so that children will
share videos with parents to buy these toys. This thinking from KidToyTester
group was obstructionist approach. Lee (founder of KidToyTester) believe that
company will make 70% percent of their annual revenue over the holiday season
as companies promote their toys.





G and Terwiesch. C (2017). Operations Management New York, NY


Mauresan A and Borza A (2010). p448-p452.5p.


Nieuwenhuizen C & Oosthuizen. TFJ Business Management
a contemporary compilation 2nd Edition

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