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The Ethical Issues Of Fan Duel Business Operation

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Fan Duel has recently come under the radar because of some ethical issues that have made their ways of operating the business questionable. The major issues that I want to focus on are the false advertisement/claims and the unclarity regarding the winning chances. To move forward as a responsible business, they should focus on changing their marketing. In this essay, I will explain in detail the ethical issues that stand out to me, the relevant stakeholders and the actions I recommend that are essential to change the way Fan Duel operates.

First of all, though as a business, Fan Duel is currently operating in a manner to generate maximum profits, there are ethical issues being brought up. The ones that are quite visible are dishonesty by using false advertisements, defrauding their customers by very low winning chances, lack of concern for customers addicted to gambling and many more. There may be different views on these issues in terms of responsibility towards business or towards customers.

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Secondly, the relevant stakeholders, in this case, are the customers, employees, and shareholders. The customers choose to play with Fan Duel in hopes of winning and in the end, are the people helping Fan Duel make profits. Their interest is to receive fair chances at winning. The other relevant stakeholder, in my opinion, is the employees. Nowadays, people want to work with companies that are responsible and can offer them a sense of security but in this situation, if Fan Duel don’t change their ways, they might lose their employees. Lastly, there is a huge risk for shareholders because of unclarity of whether it is gambling or not and how is it going to affect the shares.

Lastly, I would recommend Fan Duel to modify their marketing as it covers a lot of areas. One of the main components of marketing that they need to focus is on television commercials. Using phrases such as “win daily”, “play free”, “we are only an entertainment product”, is dishonesty and it ruins the reputation of the company. To promote themselves, they should advertise the prize money that the winner will win but at the same time make it clear the probability of winning. This will result in solving the issue of false advertisement as well as partially solve their issue of deceiving their customers.

To support my view, I would like to use Kant’s moral theory. Keeping this theory in mind, we can say the maxim of Fan Duel is to make profits even if it is by lying or fraud. Now, if the customers find a way to fraud Fan Duel, they will lose a lot of money. In this case, Fan Duel is then not able to achieve their maxim, therefore failing the principle of universality. Also, as mentioned above, they don’t have concerns for their clients and treat them as mere means to an end.

In conclusion, even though it looks like Fan Duel follows a shareholder approach, under which profit maximization is the main concern, it will not benefit them in the long run. People are going to start realizing their tactics and slowly they might lose their customers, employees, and shareholders. With a few changes, they will not only save themselves from legal issues but also gain customer loyalty and will be able to emerge as a responsible business.


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