MGM Resorts International: Responsibility versus Profitability

Name: MGM Resorts International: Responsibility versus Profitability (English version)
SKU: W24930

Won-Yong Oh, Jinsuh Tark

Product #:W24930

Supplier:Ivey

Discipline:Strategy, Sustainability

Setting:United States, 2020

Details:Case (PDF) • 12 pages • 2021-10-19

Subjects:

Leadership and managing people Strategy Management

Geography:

North America United States

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$9.71

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MGM Resorts International (MGM), a global hospitality and entertainment company operating in various locations, including Las Vegas, faced a choice between profitability and responsibility. The company needed to attract as many customers to its casinos as possible to increase its profits from gambling. However, MGM had also been advancing an image of an ethical corporation by promoting its responsible gambling program, which was meant to discourage overspending on gaming activities. Should MGM choose to profit by attracting more customers who are willing to spend money at its casinos, or should it profile its image as an ethical company and promote its responsible gambling program? Was there a way to do both?

Learning Objectives

This case is suitable for courses on business ethics, marketing strategy, and strategic management, at both the undergraduate and graduate levels. The case allows students to analyze the ethical challenges facing a controversial industry and recommend an appropriate solution to deal with these challenges. After working through the case and assignment questions, students will be able to

assess the trade-off between profitability and social responsibility;
understand the ethical or moral challenges in a controversial industry;
evaluate the benefits and costs of a company’s corporate social responsibility programs; and
recommend an appropriate solution to overcome the ethical dilemma.