Unethical Practices at Amazon

This report discusses the unethical practices at Amazon, including tax avoidance, exploitation of workers, and unfair treatment of sellers. It explores the impact on stakeholders and provides suggestions to avoid unethical practices.

BUSINESS ETHICS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
Explain wrong conduct with suitable reasons and two appropriate SDGs targets......................3
TASK 2............................................................................................................................................5
Discuss various factors that contribute to the unethical practice at different level of
organisation along with ethical theory and model of moral disengagement...............................5
TASK3.............................................................................................................................................8
Explain stakeholder attributions of power, legitimacy and urgency along with the reason of
unethical management.................................................................................................................8
TASK 4............................................................................................................................................9
Give necessary suggestions to avoid unethical practices of company .......................................9
CONCLUSION: ............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Management ethics is a function that is related to social responsibilities of a business
entity. It is an application that indicate wrong, right, good and bad activities within organization.
Moral duty and obligations, responsibilities of managers towards stakeholder of business also a
part of Ethics. It is a wide concept that also affect the legal structure of company. Management
ethics comprises ample of principles, believes, moral obligations that need to be apply within
organization in order to avoid conflict & disputes (Acadia, 2016). The present report is about
ethical practices of Amazon. It is a multinational company that concentrates on e-commerce
business, digital facilities and artificial intelligencies. Amazon has its headquarter in US and was
founded in the year of 1994 by Jeff Bezos. The report focuses on ethical approaches of
management that is followed by company during crisis . Further it includes Sustainable
development goals of entity with appropriate targets. Three level model along with ethical
theories and model of moral disengagement have been also discussed in the report. In addition, it
enlighten on stakeholders analysis of organization with appropriate tools. At the end necessary
suggestions are given for the further improvements. Moreover, it renders an overall prospective
regarding management ethics within business entity in an efficient manner.
TASK1
Explain wrong conduct with suitable reasons and two appropriate SDGs targets
Sustainable development goals:
It refers to a framework that comprise 17 goals that are interrelated to each other. This
tool is formulated to for the overall economic development. It is apply by all members of United
Nations in 2015 with the aim of remove poverty and facilitate prosperity of citizens of various
countries. It moreover includes all dimensions of development such as social, economic,
environment and so on (Cai, Li and Tang, 2020). The main focus of this framework is to
improve economic conditions of country and eradicate various problems such as poverty,
unemployment, inequality and many more. It is being used worldwide for the development of
different nations. All the goals are interrelated with each other and change in any one area will
also affect others. Thus, it is essential to maintain an effective balance between various
dimensions of growth. For this, it is essential to be creative, innovative, adopt new and evolve
techniques to achieve these goals of sustainability development. Countries ned to make efficient

utilization of available financial, technical and human resources in order to attain predefined
objectives. It will play a vital role in overall development of country and help them to sustain.
This approach has been adopted to provide a bright and sustainable future to people. Thus,it
focuses on various global challenges such as climate change, inequality, environmental
degradation and so on ( Howe, 2019). In case of Amazon, it is essential for company to give part
in development of country. So, it has determine some goals to ensure sustainability for a longer
period of time. AS it is an multinational company and significantly affect the economic activities
of nation thus it is vital for business entity to ensure growth and development of nation. Mangers
of company have been aligned their work with predefined goals in an efficient manner. Two
important objectives of sustainability for company are mentioned below:
Decent work and economic growth: it is essential for a country to maintain equality and
efficient work practices. Countries impose different taxes such as direct and indirect taxes on
citizen in order to receive appropriate amount for development and growth. It helps to develop
infrastructure and provide better services to citizens in order to enhance their standards of living.
So, it is the responsibility of companies to pay necessary tax fro their income to government. It is
analysed that Amazon it is doing tax aversion, they are not paying appropriate tax. Amazon is
getting huge tax incentives in order to provide job opportunities and undertake necessary
activities for the overall economic development. There is no improvements in economy as well
as job conditions has been witnessed after that. It avoids various taxes such as federal, sales tax
and so on (Krause, 2018). Apart from that, it is also monitored that there is high pressure on
employees to meet with the extremely high targets. Company is not paying justified salary to
ware house workers . Thus they are not able to meet with the sustainable goal of decent work and
economic growth in an efficient manner. Although it is an e-commerce giant and play a vital role
in overall economic development but the practices of tax aversion is creating constraint in
growth and sustainability.
Peace Justice and strong institution: It is a crucial sustainable development goal that
states that there should be peace, justice within organization. For this, all the employees are
working in company need to be satisfied within work practices, rules and regulations. Although,
Amazon has strong presence at market place and it contributes a huge part in economic
development. On the another side it has also allegation of exploitation of employees. Managers
of company often do mass recruitment in peak time and then fire workers even without a notice.

Apart from this, they maintain very high pressure on human resources, they are not allowed to
take breaks in between. They have extensive long working hours that crates a toxic environment
at work place and create a lot of mental pressure on human resources. There is often a threat for
existing or old employees to get replace with new human resources. Due to this company is not
able to maintain an environment of peace and justice at work place. Thus, Amazon should create
positive working conditions in order to achieve the sustainable goal of peace, justice and strong
institution (Thomas, 2018).
TASK 2
Discuss various factors that contribute to the unethical practice at different level of organisation
along with ethical theory and model of moral disengagement
Identify and discuss aspects and factors that contributed to the wrongdoing at micro,
meso, and macro levels. Use ethical theory and the model of moral disengagement.
(social, economical, political level)
Tax Avoidance
( group and in organisation level)
warehouse abuses
( individual level)
exploitation of sellers
there are the various factors and aspects which shows to the wrongdoing of amazon at
micro, meso, and macro level such as tax avoidances, exploitation of temporary workers,
Macro level
wrongdoing
Meso level
wrongdoing
Micro level
wrongdoing

warehouse abuses, exploitation of Chinese workers, toxic stressful worke environment,
sort term contracts (gig economy), exploitation of sellers those who sell on amazon and
those who buy.
Macro level wrongdoing
Macro level means interaction at broadest level ( interaction at social, political, economical
level), there was a various ethical issues happened with amazon. In social , political, economical
level the worst mistake done by amazon is tax avoidances, amazon is a one of serial tax avoider,
as it known that tax is very important use by government for the distribution of different services
to the citizens of the country.
Micro level wrongdoing
Micro level means interaction at (individual level), wrongdoing done by the amazon at micro
level involves the various factors such as exploitation of sellers those who sell on amazon and
those who buy from amazon. Other than the employs amazon also find a way to hurt the people
those who sell one amazon and who buy from it, site algorithm is built in a specific way so that
when customers search on amazon for any product they directed towards the product which is
only from the amazon or from the sellers who pay for amazon services, even when the similar in-
expensive product is present in the profile of other competitors selling on this same site.
Meso level wrongdoing
Meso level means interaction at (group and organisation level) there are various aspects of
wrongdoing done by the amazon, this includes, exploitation of workers, warehouse abuses,
exploitation of temporary workers, toxic stressful work environment, gig economy for delivery
drivers.
 Warehouse abuses: amazon pay lower wages in compression to the other workers
getting from other warehouses, for e.g. at waltmart makes just under $40,000 annually,
while at amazon workers makes $24,300 annually.
 Exploitation of temporary workers: amazon hire staff from external companies (amazon
outsource), for the extra work created around the holidays at peak season and then after
the work completed on that peak time company make those staff let go shortly after
with minimal notice.

 Toxic stressful work environment: by analysing the various reports and articles it is
define that the employs of amazon is facing highest level of work stress. The work
environment of amazon is pictured as 'unreasonably high' standard and ridiculous
working hours for e.g. work email arriving after midnight, marathon conference calls
on Easter Sunday, work lode during weekends.
 Gig economy providing to delivery drivers: amazon employs there delivery drivers
through a gig economy (sort term contract and freelancing)
Ethical Theory:
Ethics are the applications that demonstrates right and wrong conduct in business
environment. Whereas ethical theories are considerer as a formal ways that describes moral
obligations, duties, principals of mangers within organization. It helps managers to face various
disputes as well as ethical dilemmas in an efficient manner ( Kuepers and Gunnlaugson, 2016).
There are four theories such as deontology, rights, virtues, and utilitarianism that comprises
various duties, responsibilities of managers that need to perform by them while performing
business operations. It renders a wide prospective to mangers of Amazon and assists them adopt
appropriate behaviour to deal with different situations that may arise at work place.
Model of moral disengagement:
It refers to the situation in which individual ned to analyse that they need to follow ethical
standards or not. It is often based on situational aspects where people do not behave as per
predefined ethics. This model is based on uncertain circumstances as well as contingencies that
give rise to a particular behaviour of person. Individual reacts as per the occur situation
sometimes it is related to internal standers that can be predefined. In case of Amazon, sometimes
disputes occurs due to some unexpected circumstances that are beyond the control of managers
as well employees. These kind of situations need to be handle in an efficient manner in order to
maintain good relationship at work place (Lee, 2020).

TASK3
Explain stakeholder attributions of power, legitimacy and urgency along with the reason of
unethical management
Stakeholder Mapping:
Stakeholders comprises both internal as well as external parties who get affected from
business operations. There are various stakeholders such as employees, customers, managers,
investors, suppliers and so on (Leiva, Ferrero and Calderón, 2016). Amazon is the biggest online
retail company at global level. It has various stakeholders who influence business as well as get
affected with its operations. Organization undertake a detailed analysis of stakeholders on the
basis of different attributes such as power, legitimacy,urgency in the following manner:
Power: Power is an important component that demonstrates authorities of stakeholders to
influence overall business performance. As per this approach organization need to concentrate
on those stakeholder who posses high power and can affect business functions. For instance,
investors are the key persons they invest money in project and may take back their money. In
case of Amazon they major stakeholders such as investors, managers posses the high power to
affect the business operations. As investors look for higher profit margins and thus they avoid tax
in order to save money. Along with this, managers have control over employees and various
business functions (Molwus, Erdogan and Ogunlana, 2017). It is analysed that there is higher
employee exploitation in company. Temporally employees do not get paid as per their services.
There is no work life balance as higher authorities keep a lot of pressure over human resources to
achieve predefined business targets. Main concentration of organization is to earn maximum
profits so that they can render high dividends to investors. Apart from this, managers are key
persons of a business entity and they have also share in overall profit margin. These both
stakeholders posses exponential power that can affect operations of amazon. Thus, company
averse tax and increase revenue & profitability in order to meet with the expectations of two
integral stakeholders.
Legitimacy: It depicts the interest of stakeholders in an activity that is undertake by
business entity. Legitimacy is crucial for the success of overall business function. An
organization need to pay attention to these stakeholders. Employees are crucial and have great
interest in overall business operations. They put their efforts for the successes of business entity
and to achieve predefined goals. Human resources of amazon has the zeal and enthusiasm to

work. Managers make misuse of this, they assign higher targets to human resources and
minimize break hours. Warehouse workers do not get a proper environment and expose with
critical medical condition. In addition, they are treating staff members in unethical way
( Pritchard and Englehardt, 2020). Human resources are the key stakeholders but Amazon is not
treating them in an efficient way. Mangers of organization need to take care workforce but they
are exploiting employees by overburden them. There are not healthy work environment at work
place where human resources can grow and prosper. Thus, employees are the most crucial and
direct stakeholders who are being treated in an unethical manner by business entity.
Urgency: It refers immediate action to satisfy stakeholder and receive their supports.
Customers, employees, managers, investors all are key persons of an organization. There is
different expectations of different stakeholders. Customers wish to get quality products and
services, managers and shareholders work associate with company for profit whereas employees
work to enhance their knowledge and skills. Amazon, take advantage of customers need and
requirement. Its algorithm work in such a manner that exploit consumers. For some products
they demonstrates that they are not charging any shipping cost but they do charge. And end users
are not aware with this fact. It earning higher profits by removing third party seller from their
website. Thus, due to retain and increase in number of consumers, it adopts unethical practices.
TASK 4
Give necessary suggestions to avoid unethical practices of company
Amazon face so may ethical issues in order to affect the brand image of company which
impacts on the company culture and working environment. Organisation responsible to provide
effective working environment so employees work in efficient manner and also impact on
productivity. It helps to improves performance of company and increasing profitability of
company. In context of organisation, faces improper ethical management which affects overall
company operations so provides such recommendation or suggestion to company which helps to
improve ethical issues.
Firstly, company provide effective safe and secure working environment so leads to
improve performance and grape market opportunities which are available at market place.
Company set high standards and expectation towards employees so incurred heavy work load so

it is difficult to achieved for employees (Rendtorff, 2019). Responsibility of mangers to divide a
work in proper manner and developing team spirit among employees. It also conduct some
motivational activities which customer more focused towards the works. HR manger organised
employment engagement programmes so developing consistency between the employees.
Secondly organisation provides employees work life balance, it is very important aspect
because without that company cannot survive long time and employees also. It includes superiors
gives target to employees in order to manageable pressures so it effectively managed
organisation culture, encouraged and motivated subordinates to erase work life boundaries.
Organisation set that kind of policy and strategies which relieves form work where spending
hours working from home at nights and on the weekends. They superior relieve form work on
weekends so also focused on their personal life and spend time with family members. On the
other hand, avoid employees exploitation due to this it creates big issues they are working non-
stop on weekend and come office time so companies must be planned the leaves for employees
and also provides vacation tour so it employees enjoy work with new energy and job makes more
interesting (Rhodes, 2016)
Third suggestion about equality because each every individual treated equally and cannot
biased to each other. It is responsibility of manager avoid unfair ranking system because where
mangers discuss and determines subordinates ranking. It includes review begin with the
discussion of lower-level of employees in front of higher-level of managers. It treated fairly not
biased on the basis on Caste system, colour and complexion so top level of management prepare
effective policy in order to avoid unfair treatment between the employees. Other large companies
such as utilise effective management like Microsoft, Apple and Accenture all are developed
policy, rules and regulation and conduct proper management. It involves controlled and
monitored by top management (Saiz and Donald, 2017).
Fourthly, does not developed unhealthy competition among co-workers because
competition is good between employees but cannot degrades other employees also it impact
performance of company and highly demotivated. It developing sound working culture and must
be create transparency among workers if those employees perform well so also arrange reward
system. Manager encouraged employees towards the work and perform well in future does not
create difference between them. It motivated towards worked completed with teammates and
collaborates to each other.

CONCLUSION:
With the above report it can be concluded that ethical practices is essential to adopt by
mangers in order to ensure smooth functioning of company. Sustainable development goals has
been formulated for the overall economic development of a country that need to be consider by
an organization while undertaking different business operations. Moreover, it discussed
regarding the impact of unethical practices adopt by company that may harm its existing brand
value at market place.

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