This report examines the business practices and ethical concerns of Amazon, including worker conditions, tax evasion, and customer perceptions. It highlights the importance of ethical conduct and provides recommendations for improvement.
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Amazon and ethics
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EXECUTIVE SUMMARY Amazon is operating their business operations as multinational and leading company and was established in the year 1994 by Jeff Bezos. In this present report significant discussions has been duly undertaken upon the concept of business practices as well as ethics of company. It has been determined from various report and workers statements that in organisational workplace structure there were unethical business practices in being implemented which lead towards creating bad working conditions for employees. In this both consumers as well as employees agreed upon the fact that main priority of employees must be ethical business practices. In this report formative recommendations has been given to organisation in order to have better payment tax obligations and promotion of ethical promotional concerns.
Table of Contents INTRODUCTION...........................................................................................................................1 ANALYSIS......................................................................................................................................1 Amazon Ethics and CEO............................................................................................................2 Amazon Ethics and Workers.......................................................................................................2 Amazon Ethics and Customers...................................................................................................3 CONCLUSION................................................................................................................................4 RECOMMENDATIONS.................................................................................................................4 CONCLUSION................................................................................................................................6 REFERENCES................................................................................................................................7
INTRODUCTION Business ethics is defined a set of principles as well as values that duly governs that duly governs organisations to perform their business operations in ethical and standard manner. It is essential for all the entities in every sector to conduct their business operations as well as activities in ethical manner (Sharma and Banati, 2020). It will allow organisations to have positive influence upon government, employees, community, customers and society. With the assistance of this, organisation can ensure their long term sustainability and can also make their employees work in positive and healthy workplace environment that facilitate higher growth and productivity. Further it has been evaluated that by having maximum emphasise upon ethical operations business organisations can develop their positive image and relationships with customers or society. Along with this, ethical business operations also ensure government support that develop more confidence among customers towards products as well as services of company. Present case study has been concluded upon unethical as well as ethical practices of Amazon by emphasising upon various factors like safety and illness, poor working conditions, tax-evasion and more. It has been evaluated that company is facing with the criticism of funnelling of funds in order to escape from heavy tax obligations despite of high revenue earning. In entity warehouse near Birmingham, there were 118 ambulance call-outs in a period of three years competitively warehouse nearby owned by TESCO Ltd. which had only 8 ambulance call-outs. In this report formative discussions has been made upon various perspective of employees, management and consumers on effectiveness of business ethics as main priority of company. Along with this report also include recommendations to entity as to make significant improvement in their ethical conduct. ANALYSIS Amazon is operating their business operations as global leader in retail industrial sector, being a world class company, respective organisation is having maximum impact and influence upon society and community. Thus, it becomes essential for Amazon to conduct their business operations in ethical manner. For this entity is required to ensure that all the employees are conducting their roles and responsibilities in coordinating and cooperative manner. With the help of this company can create a workplace environment in which all the employees get air 1
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treatment. In order to develop positive image and goodwill among society and customers it is important for company to effectively emphasise upon ethical business practices. In this report discussions has been undertaken on various stakeholders perceptions of Amazon that include company consumers, top-management and employees. Amazon Ethics and CEO This is an essential aspect in which it is essential to effectively effectively evaluate that Amazon CEO is practising business ethics as most important priority. It has been determined that CEO of respective companyJeff Bezos emerged out as an wealthiest man by working towards customers interests (Filatov, 2020). As per according to the evaluation it has been analysed that according to CEO of company main vision of company is to serve their customers, for this entity aim towards having customer centric approach in order to strengthen their worldwide presence (Kundu and Chakraborti, 2020). Further this is being duly identified thatJeff Bezos said that, consumers only have till they are serving with high quality services and products. However, it has been determined that unethical working culture practices has been duly condemned byJeff Bezos which he further described as ‘callous management’ result. In order to overcome this issue respective CEO undertaken many practices and measures in order to remove these errors in a significant way. While if it is talked about tax evasion, it has been said out by Jeff Bezosthat critics of company have wrong perceptions as all the ethical practices has been adhered by organisation in an effective manner. Along with this, on the case of bad working conditions Jeff Bezosstated that entity is offering healthy as well as positive workplace environment to their employees and there is no work pressure upon them. Thus, according to the above mentioned discussion it has been analysed that CEO of respective organisation is not regard business ethics as their most important and major priority (Aydinliyim,2020). It as been signified that consumer- centricity duly taken more importance than business ethics. Amazon Ethics and Workers Employees are most important source of revenue generation for company, thus it is essential for large organisations like Amazon to consider ethical measures of employees. It is essential for respective entity to duly focus upon existing criticism from various attributes. In accordingwithemployeesperspectivesithasbeenevaluatedthatAmazonfactoryand warehouses had uneven work time, high targets which is negatively impacting upon business ethical standards. As per the worker statement it has been identified that respective organisation 2
is having unnecessary work hours, miserable working conditions and unfair distribution of payments. In addition to this, according to the evaluation workers of company alleged company with offering extremely low level of wages as well as compensations which does not even fulfil their standard of living. In addition to this, it has been evaluated that award that has been presented to Jeff Bezos for having social responsibility and innovation get backlashed by certain group of employees, they said that company does not have any kind of concern as well as empathy towards individuals those who are operation their functions within entity. Thus, it is essential for respective entity to stay committed to their vision and have utmost priority towards their employees (Milano, Taddeo and Floridi, 2020). For this they are required to make sure that there is no unethical practices get prevailed in workplace structure which is affecting interest of employees. It is essential for multinational organisation like Amazon to take use ethical business practices in order to ensure proper work balance, balanced health condition, job satisfaction and job security of employees. Amazon Ethics and Customers It is essential for an organisation to consider customers while formulating business ethics plans and procedures. This has been evaluated that for any organisation customers acts as their primary stakeholders thus, it is essential for entity to prioritize them. In order to maintain their trust and loyalty towards company, it is essential for entity to operate their roles as well as responsibilities in ethical standards. In addition to this, organisation is also required to develop strategies and measures as per according to needs and demand of customers, for this they are required to effectively analyse all the informations and their actual needs. As per according to the evaluation it has been analysed that consumers are however, satisfied with the Amazon products but have duly noticed unethical business practices, this makes them loosing their loyalty as well as trust towards company. In addition to this, it has been evaluated that with the increase in labour cases company reputation has been severely affected. Despite of having higher revenue company evade tax that convinced customers about Amazon practises of unethical measures. During a survey, only 41% of the customers of the company felt that Amazon shares its values, only 39% of the respondents felt that the company adopts a fair compensation scheme and treats the employees in an ethical manner and only 19% of the respondents felt that Amazon contributes to solving and addressing important social issues such as global warming, climate change, animal rights protection, gender rights, affluence of chemical hazards etc. further it has 3
been evaluated that large base of consumers are having believe that entity those who abide business ethical standards effectively fulfil requirements, wants and needs of customers in a well defined and effective manner. Thus, it essential for organisation to prioritize ethical business practices while conducting their operations as well as activities in order to ensure long term sustainability. CONCLUSION According to the above mentioned evaluation, it has been concluded that it is essential for an organisation to perform their roles and responsibilities in ethical standards in order to ensure long term sustainability and maximum level of consumer satisfaction. It is essential for an organisation to emphasize upon this concept as negligence of this may lead entity towards building negative image among customers. It will further lead entity to have low level of productivity as well as profitability. Thus, it becomes essential for an organisation to take advantage of more ethical measures as well as practices in order to conduct their business operations in more effective and efficient manner (Nadeem and Al-Imamy, 2020). Unethical practices lead entity to have higher number of conflicts that will decrease satisfaction level among stakeholders and employees. Business ethics is having tendency to increase overall workplaceproductivityandprofitabilityoforganisation.Inadditiontothis,ithasbeen determined that ethical practices and measures significantly allow organisation to increase their goodwill in marketplace. RECOMMENDATIONS In order to effectively promote ethics as well as fair set standards there are different types of factors that are required to be consider by Amazon management as to execute all the activities in a well defined and effective manner. Mentioned below some of the certain recommendations are being offered to respective company management: ï‚·In order to firstly promote ethical standards in business operations it is essential for Amazon CEO or management to ensure and safeguard employees interests. For this company is required to develop formative principles as well as guidelines that which does not promote unethical for of behaviour in any manner. In addition to this, respective company is also recommended to develop giver authority of control and monitor to 4
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leaders in order to make sure that there is no unethical practices is being prevailing in workplace structure and set ethical guidelines are being duly abiding by all individuals. ï‚·Amazonmanagementisalsorecommendtomakeimprovementintheirworking conditions in their factories as well as warehouses, along with this they are also required to promote ethical business practices in order to make their employees work in positive workplace environment. In addition to this, entity is also recommended to engage their employees in the process of decision-making process, as with the help of this overall productivity of employees can be effectively increased. In addition to this engagement of employees also increase loyalty among them towards company. Along with this entity is also recommended to eliminate uneven as well as long working hours in order to reduce stress and frustrations among employees. Furthermore, management Amazon is also recommended to improve their compensation system and make sure that each and every employees is treated in a fair and equal manner. ï‚·In order to develop their positive image among public and in marketplace it is essential for Amazon management to make significant improvement in their current tax-evasion as well as funnelling practices as well policies. With the help of this entity can allow themselves to have good image among public with the help of this entity can increase their overall productivity and profitability in a well defined and effective manner. In addition to this management of company is also being recommended to have transparent as well as ethical process in order to have tax obligations, it will significantly increase organisation capability to generate higher revenue. 5
REFERENCES Books and Journal Sharma,A.andBanati,H.,2020.BuildingaTrustworthyEthicalApproachtoCloud Computing. InData Communication and Networks(pp. 159-181). Springer, Singapore. Milano,S.,Taddeo,M.andFloridi,L.,2020.Recommendersystemsandtheirethical challenges.AI & SOCIETY, pp.1-11. Nadeem, W. and Al-Imamy, S., 2020. Do ethics drive value co-creation on digital sharing economy platforms?.Journal of Retailing and Consumer Services,55, p.102095. Filatov, A.A., 2020. Sovereign Bureaucrats vs. Global Tech Companies: Ethical and Regulatory Challenges. InChallenges and Opportunities of Corporate Governance Transformation in the Digital Era(pp. 192-202). IGI Global. Harney, B. and Dundon, T., 2020. Amazon: HRM and change in the house of neo-liberalism. InCase Studies in Work, Employment and Human Resource Management. Edward Elgar Publishing. Aydinliyim, L.E., 2020. The Case for Ethical Non-Compete Agreements: Executives versus Sandwich-makers.Journal of Business Ethics, pp.1-18. Kundu, S. and Chakraborti, S., 2020. A comparative study of online consumer reviews of Apple iPhoneacrossAmazon,TwitterandMouthShutplatforms.ElectronicCommerce Research, pp.1-26. Ogunmola,G.A.andKumar,V.,2020.WebAnalyticsandOnlineRetail:Ethical Perspective.International Journal of Technoethics (IJT),11(2), pp.18-33. 6