Amazon Business Ethics: Unethical Practices and Recommendations

This study examines the unethical practices of Amazon, such as tax avoidance, unfair wages, and dangerous working conditions. It highlights the negative effects of these practices on the company's reputation and employee morale. The study recommends implementing health and safety measures, fair wage policies, and transparency in tax payments to promote business ethics.

Academic and
Professional Skills
1

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Amazon ethics case study............................................................................................................3
CONCLUSION................................................................................................................................7
RECOMMENDATIONS.................................................................................................................7
REFERENCES................................................................................................................................9
2

INTRODUCTION
Business ethics can be defined as some business related policies and practices which give
a direction to employees and employers of performing functions and perform right acts (Crane
and et.al., 2019). Business ethics play an important role in operating business functions and
running business as it allows companies in taking best decision, retaining their customers,
employees, improving workplace condition and preventing themselves against law-suit. This
present study is based on Amazon business ethics in which CEO of Amazon is called the
wealthiest person alive and has developed its business but some of other countries businesses and
politicians claimed that this company is unethical because of its tax avoidance. Not paying
employee fair wages, having poor working conditions and all are some examples of its unethical
practices which has tainted its reputation.
This present study is going to show about the difference between the right conduct and the wrong
conducts as well as what is legal but unethical. It is going to show that how tax avoidance is
unethical but not illegal as it is the duty of employers and businessmen to pay tax as per the rules
and what they have to pay as per their income. It will also show other ways of unethical conduct
in which Amazon and many other companies do not provide safe working environment to their
employees and because of being in the competition and achieving goals they put pressure to their
employees for over time and working for longer hours under hazardous working condition.
Further, it will discuss some ways by which companies can solve all these problems and without
hurting others and their goals they can perform business activities.
MAIN BODY
Amazon ethics case study
Aim: In the case study of Amazon it can be said that the main aim is to promote business ethics
at workplace and making employers as well as employees aware about importance of promoting
business ethics and conducting all business activities in an ethical manner. There are several
disadvantages of unethical behaviours and one of the main effects which it has on reputation of
the company.
In the above case of Amazon it is found that this largest online retailer has developed its business
and also generated revenue but still there are some areas in which it is not good and require
improvement in order to accomplish goals and having a good image in the eyes of employees
3

and customers as well. There are some unethical behaviour is being identified which Amazon
perform such as: tax avoidation, ineffective and poor working environment, paying to employees
below the living wage, unfair working conditions and increasing ambulance calls out. All these
unethical behaviours are affecting employees’ performance and also de-motivating them at
workplace so, it is important and vital for Amazon to focus on business ethics. Each unethical
business practice has done by Amazon have several disadvantages such as:
Paying below the living wage: In the context of Amazon it is identified that it is the
largest online retailer and also CEO, Jeff Bezoz in known the wealthiest person alive with having
around but its business success is tainted by it poor reputation. In this context it is analysed that
one of the main reasons of it is CEO and employers of this company treat their employees poorly
and also do not pay them fairly (Wile, 2017). It affecting their performance and also can become
reason of staff turnover. It is believed that skilled workforce is the main key of the success of any
business and paying them lower is one of the main unethical behaviour. So, for reducing all these
negative effects of unethical behaviour it can be said that company require providing fair wage to
their employees in order to motivate them towards accomplishing goals and also for encouraging
them to retain with the company for the long run. Some positive effects which Amazon can get
by performing functions and codes of ethics such as: improving performance, increasing staff
retention, increasing trust and relation with employees and improving reputation in the market.
When employees are treated poorly then it lowers their values and self-esteem and do not stay
with the company for the long run.
On the other hand, unethical practice of not paying fair wage and treating employees
poorly can have several negative effects on it such as:
 Companies can become uncompetitive because when they provide lower pay then
employees are less likely to focus on their tasks which affect quality.
 It can also affect overall productivity and sales of the company.
 It affects brand and reputation of the company which can snatch several external
opportunities from them.
Tax avoidation: There are several organizations that avoid tax and do not pay the exact amount
of tax which they have to pay. In this regard it is stated that tax avoidance is not an illegal act but
as per the ethics is it nit right and companies have knowledge about identifying the difference
between the right and the wrong. Tax is beneficial for country and people as it helps needy
4

people and also help in improving economy of all companies pay the actual amount of tax. In
addition, it is also found that in the year of 2016 Amazon individually earned around £24 million
and in the year of 2017 it is increased to around £72 million. After this increment in revenue, t is
identified that it paid only £7.4 million tax in the year of 2016 and £4.6 million in the year of
2017. After increasing too much profit in the year of 2017, it paid only £4.6 million tax and as
compare to 2016, tax rate was low. Due to this reason, Amazon come under attack for tax
avoidance by politicians named: Jeremy Corbyn and Donald Trump. So, in this context it can be
said that it is the main unethical act and it is exploitation of human rights and also can affect
economy of the country in which company operates (Payne and Raiborn, 2018). By making
wrong financial entries, omitting income and false entries in books and records are some ways of
paying lower amount of tax. It is important for Amazon to pay actual amount of tax for
improving economy of the country and supporting needy people and it is one of the ethical
practice which all companies should do. By doing so company can take several advantages like
support of politics, political stability, attracting customers to the great range as it improve image
of the company.
Unfair and dangerous working conditions: It is one of the other main unethical business
practices because health is must for performing function in an effective manner. Nowadays,
people are concerned with their heath and prefer to work with companies who have safety tools,
effective working environment and also implement health and safety act at workplace. It makes
employees feel valued and safe at workplace (Thuy, 2018). But in the context of Amazon it is
found that warehouse workers of this online retailer company endure reported in the guardian in
May 2018. After investigation it is found that in one-three year around 118 ambulance calls out
which means around 118 cases of injury and dangerous hazard is being recorded and employees
got injured. There is a nearby warehouse of Tesco where this ambulance calls out was only 8 and
as compare to Amazon this number is very low. Tesco’s warehouse is also of same size of
Amazon. So, by this comparison it can clearly be said that working condition of warehouse of
Amazon is not safe at all and also workers are being pressured to work overtime in order to reach
to their pre-determined goals. This unethical business practices can affect health of employees
and can also put them in danger. So, it is important for Amazon to focus on improving working
conditions for making their practices ethics, becoming sustainable, increasing staff retention rate
and having good image in the eyes of customers and employees as well. There are some benefits
5

which company can get of it implements safety act at workplace and also allow all employees to
wear safety tools and preventing themselves at workplace such as: Making feel employees safe
and secure at workplace which improve their performance and productivity, improving brand
image and increasing sales as well. Some negative effects of this ineffective working
environment unethical practice can have included:
 Negative health effects on employees who can lower productivity and performance.
 Company can face problems of law-suit, penalty and compensation which can affect their
image.
 Lower sales and increasing rate of staff turnover which affect quality of products and
services.
6

CONCLUSION
From the above study, it has been summarized that business ethics played a vital role as it
allows companies to identify the different between the right and the wrong and by conducting
codes of ethics and performing all functions accordingly they can accomplish their goals without
hurting others and getting hurt as well. Further, it has discussed some unethical behaviour which
some companies and big online retailer like Amazon do which affects their image and reputation
as well. Some unethical behaviour which this study has discussed include: tax avoidance, paying
below the living wage, dangerous working condition, getting work done from employees over
time and without paying extra wage. It has also shown that how all these unethical practices
affect performance of the company along with strategies of solving them. Lastly, it has shown
some strategies and ways by which company can perform their business activities ethically such
as: implementation of safety tools and legislation, acts related to wages, rewards to employees
and others.
RECOMMENDATIONS
On the basis of above case study of Amazon related to ethics and it is analysed that
unethical behaviour affect performance and brand image of the company and also de-motivate
employees. So, it is important for all companies including the largest online retailer Amazon to
promote ethics at workplace. On the basis of above case study and one of the main issues of
unethical behaviour is dangerous and ineffective working condition due to which many of
workers of Amazon got injured. So, in this regard it can be recommended that company should
focus on implementing health and safety act 2005. This act consists of some rights for both
employees and employers welfare and safety and also employers have to pay penalty to
employees in case of breaches of health and safety act (Keown and et.al., 2016). By doing so,
Amazon can protect itself against law-suit, increase staff retention rate and also improve its
reputation. They should also make sure that all employees are wearing safety tools and also
taking care of themselves at workplace.
7

Other main unethical issue which is being discussed in above study is tax avoidance and
in this regard it can be recommended that company should hire skilled and experience finance
solution provider and end corporate tax secrecy. As per the End corporate tax secrecy,
governments make sure that all companies are publishing their financial information each year
for their country in which they operate. They allow public to view and see if all companies are
paying fair share of tax on their country. If the government and public find companies that dodge
taxes then they should not be given a single dollar of overseas aid money.
Lower wage to employee and getting work done from them overtime and also not
providing them enough and fair wage is other unethical act which not only affect their
performance and image but also increase staff turnover rate. When employees do not get enough
pay and work overtime then it makes them feel frustrated because they find difficulties in sparing
time for their family (Burauel and et.al., 2017). So, in this context, it can be recommended that
company should focus on implementing fair wage act at workplace which shows minimums
wage and also pay for overtime. It can also be said that company should provide rewards and
training to employees as by getting training employees can work productively and by getting
rewards employees are more likely to support company in meeting their goals.
8

REFERENCES
Books and journals
Burauel, P. and et.al., 2017. Minimum wage not yet for everyone: on the compensation of
eligible workers before and after the minimum wage reform from the perspective of
employees. DIW Economic Bulletin. 7(49). pp.509-522.
Crane, A. and et.al., 2019. Business ethics: Managing corporate citizenship and sustainability in
the age of globalization. Oxford University Press, USA.
Keown, P. and et.al., 2016. Too much detention? Street Triage and detentions under Section 136
Mental Health Act in the North-East of England: a descriptive study of the effects of a
Street Triage intervention. BMJ open. 6(11).
Payne, D.M. and Raiborn, C.A., 2018. Aggressive tax avoidance: A conundrum for stakeholders,
governments, and morality. Journal of Business Ethics. 147(3). pp.469-487.
Thuy, N.T., 2018. Ineffective internal communication of importing process in Srithai Limited
Company.
Wile, D., 2017. Employer-sponsored Healthcare Coverage across Wage Groups. Spotlight on
Statistics.
9