Comparative Business Ethics and Social Responsibility

This report analyzes the legal and ethical issues faced by Amazon Company while delivering the employee compensation plans to employees. The GMB union announced that it is taking legal action on behalf of members working for three delivery firms used by Amazon, arguing that the companies wrongly classed them as self-employed.

RUNNING HEAD: Comparative Business Ethics and Social Responsibility
Comparative Business Ethics and Social Responsibility

Comparative Business Ethics and Social Responsibility 1
Table of Contents
Introduction.................................................................................................................................................1
Ethical issue in business and decision making.............................................................................................1
Ethical theory..............................................................................................................................................2
Ethical decision making framework.............................................................................................................2
Conclusion...................................................................................................................................................4
References...................................................................................................................................................5
Amazon delivery firms face legal action over workers' rights............................................7
Amazon accused of treating UK warehouse staff like robots................................................8

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Introduction
With the ramified economics changes and complex business structure, each and every
organization needs to follow proper ethical and legal compliance program which may increase
the overall outcomes and efficiency of the business at large. The ethical and legal business
practice are undertaken by the organization which assists in strengthen the posting impact on the
stakeholders of the organization. The company uses different culture and values to define ethics
for the organization. Ethical issue when the act taken by the employees breach the moral and
ethical concern in the present busienss environment (Amazon, 2018). The CSR activities are the
method which assists organization to run the business sustainably in the society with a view to
increase the overall satisfaction of the clients. In this report, new article from the Australian
financial review have been selected for the analysis of the ethical issues. This article reveals the
legal and ethical issues faced by Amazon Company while delivering the employee compensation
plans to employees. Amazon Company is international company indulged in online selling of
electronic commerce and cloud computing company based in Seattle. This company has faced
the ethical and legal issues in determining whether asking legal action on behalf of members
working for three delivery firms used by Amazon have been wrongly classed as self-employed
work program. This program was related to providing the employment benefit plan to
employees and the legal policy frameworks prepared by the Amazon for the employees who
deliver its goods to the clients around the globe (Crane, and Matten, 2016).
Ethical issue in business and decision making
It is analyzed that each and every organization needs to take initiative in such a way
which will ultimately increase the overall outcomes and efficiency of the busienss at large.
Company should stagnate to its value and commitment with respect to strengthen the customer’s
satisfaction (Den Hond, de Bakker, and Neergaard, 2016).
This essay reflects the unethical act of the Amazon implemented in the society which may
directly and indirectly affect the employees at large. In this ethical issue, GMB union announced

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that it is taking legal action on behalf of the employees so that they could get the benefits. It is
analyzed that latest in a string of gig economy legal disputes have shown
the challenging what unions say is bogus self-employment among
couriers and other drivers. It is noted that the Wesfarmers Company
has been claimed that all the drivers who were working as contract
basis should be treated as employees of the Amazon Company. It is
analyzed that all the employees who are indulged in the working of
the Amazon are not free to take their independent decisions and they
directly and indirectly affected by the orders given by amazon (Sabag,
and Schmitt, 2016).
Ethical theory
There are several ethical theories which could be undertaken by
the Amazon Company such as corporate social responsibilities
program, triple bottom line and long term sustainable program which
needs to be assessed by company before undertaking decisions. It is
required from the Amazon Company needs to take decisions in the
best interest of the employee which could add value for the better
value creation in business. The ethical theory needs to be assessed by
the Amazon Company to evaluate the potential of giving employee
benefits to employees for the betterment of the organization. the
ethical consideration emphasis’s upon fact that the GMB union
announced on Monday that it is taking legal action on behalf of
members working for three delivery firms used by Amazon, arguing
that the companies wrongly classed them as self-employed.
In the given case, it is analyzed that so many drivers of the Amazon
were facing issue related to less amount of payment and loss of their
own busienss which may directly and indirectly impact their working.

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One of the drivers had to stay for his job till the mid night as he was
asked to meet the target and if he fails to do so then he will be
penalized for the same (Saeidi, et al., 2015).
Ethical decision making framework
The ethical decision frameworks of the Amazon should be based on the collected
information and the undertaken framework which are given as below. This ethical decision
makes the process use of the moral philosophies and ethical and consideration which needs to be
taken into consideration.
Identification of the ethical issue- In this process, Amazon needs to analysis all the ethical issues
that are related to the breachment of the ethical rules and guidelines. It is analyzed that Amazon
needs to give all the employees related benefits to the employees who could add value to their
economic development (Amartya, 2017).
Gathering of information: After identifying the case, Amazon needs to collect the required data
which could assist in developing a good strategic plan to solve the issues and problem faced by
the employees and Amazon. This will be used to develop mutually agreed understanding
between employees and employers (Amazon. 2018).
Analysis of data: After collection of the data, Amazon needs to analysis the gathered data with
the assistance of the regulators and banking authorities. However, it requires high amount of
compliance program which needs to be assessed on the basis of existing rules and regulations.
Consideration of Alternative: This process requires official consideration of the negative and
positive impact of the ethical issues which have been faced by Amazon Company. It will require
Amazon to evaluate the employees work program and compliance structure which needs to be
made for the effective resolving of the queries. There are several alternatives which could be
undertaken by the Amazon such as undertaking particular action plan, setting new objectives and
goals and undertaking the proper work program for the better satisfaction of employees.
Make a decision: Afterward undertaken decisions will be undertaken which will assist in taking
the business decisions such as considering drivers as regular employees, determining the benefits

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plans which will be given to them and assessing the issues and problem areas which will add
value to the better satisfaction of employees at large (Trevino, and Nelson, 2016). The decision
to undertake employees as normal employee and rendering the employee benefit program require
proper analysis program and implemented actions.
In this case, justice theory will be used to assessed on the basis of the decision making process.
As per the justice theory, company will have to treat all these employees as regular employees
and they should be given all the employees benefits (Vaughn, 2015).
All the decisions taken by the Amazon should be taken in the best interest of the organization so
that it could add value to the society. Company needs to give back more to its society what it has
been taking for running its busienss effectively (Biller-Andorno, and Capron, 2016).
Implementation of decision: After analyzing all the details and case study program, it is analyzed
that company needs to assess whether the internal and external factors will have the negative and
positive indicators on the busienss. The mangers needs to analysis that drivers are putting efforts
in the best interest of the organization and it is responsibilities of the company to give the best
employee benefits to them for their best interest. It will also establishment nexus between the
organization development and their employee development (Martinov-Bennie, and Mladenovic,
2015).
Conclusion
After evaluating all the cases related to legal and ethical issues, it could be inferred that
all the employees who are indulged in discharging the assigned work should be treated as
employees of the Amazon. Thus, in the limelight of the given case study, these employees should
be given all the employee benefits plans which are given to other regular employees. It is
explained that Company like Amazon cannot easily take the decision to give zero benefits to
their contract based employees and absorb all the benefits from them what they actually take
from employees. Now in the end, it could be inferred that reason of occurring of this event and
the way in which company had taken the decision have legal and ethical issues. These issues are
required to be solved to overcome the problems in long run. It is assessed that different ethical

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theory and implemented action plan will assists in implementing the work program and
delivering the best possible benefits to employees at large.

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References
Amartya, S., 2017. What do we want from a theory of justice?. In Theories of Justice (pp. 27-
50). Routledge.
Amazon ., 2018., Amazon delivery firms face legal action over workers' rights, GMB union is
demanding gig economy drivers get sick pay and national minimum wage [online]. Available
from < https://www.theguardian.com/technology/2018/jun/04/amazon-delivery-firms-face-legal-
action-over-workers-rights>., Accessed on 25 May 2018.
Biller-Andorno, N. and Capron, A.M., 2016. Ethical issues in governing biobanks: global
perspectives. Routledge.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Den Hond, F., de Bakker, F.G. and Neergaard, P., 2016. Introduction to managing corporate
social responsibility in action: Talking, doing and measuring. In Managing Corporate Social
Responsibility in Action (pp. 15-26). Routledge.
Martinov-Bennie, N. and Mladenovic, R., 2015. Investigation of the impact of an ethical
framework and an integrated ethics education on accounting students’ ethical sensitivity and
judgment. Journal of Business Ethics, 127(1), pp.189-203.
Sabag, Ḳ. and Schmitt, M. eds., 2016. Handbook of social justice theory and research (pp. 10-
14). New York, NY: Springer.
Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P. and Saaeidi, S.A., 2015. How does corporate
social responsibility contribute to firm financial performance? The mediating role of competitive
advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), pp.341-
350.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.

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Vaughn, L., 2015. Doing ethics: Moral reasoning and contemporary issues. WW Norton &
Company.

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Appendices
Amazon delivery firms face legal
action over workers' rights
GMB union is demanding gig economy drivers get sick pay
and national minimum wage
The GMB says delivery drivers are treated like employees and should get the same benefits.
Photograph: Tony Margiocchi/Barcroft Images
Drivers delivering goods for Amazon are to fight for better employment
rights, including sick pay, holiday pay and the national minimum wage.
The GMB union announced on Monday that it is taking legal action on
behalf of members working for three delivery firms used by Amazon,
arguing that the companies wrongly classed them as self-employed.

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A statement from the union, which represents professional drivers, said:
“The drivers were required to attend scheduled shifts that were controlled
by Amazon, meaning they did not have the flexibility that is integral to being
self-employed. In this situation, the couriers were treated like employees in
terms of their working hours and the GMB union contends they should be
treated as employees in terms of their rights too.”
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The case is the latest in a string of gig economy legal disputes challenging
what unions say is bogus self-employment among couriers and other
drivers. The GMB won a landmark judgment against Uber in 2016 and
others, including Deliveroo, Addison Lee and CityLink, are all involved in
ongoing legal action.
The case is being handled by solicitors Leigh Day. Partner Nigel Mackay, a
specialist in employment and discrimination law, said seven drivers –
including two who had been dismissed – were involved in the claim at this
stage and he expected that number would grow.
One of the drivers described his experience of leaving the house at 6am, not
returning until 11pm at night and as a “thank you” for his hard work, had
£1 per undelivered parcel deducted from his wages. On more than one
occasion he was told by the company that he would not be paid if he did not
complete a route and had sometimes driven when “half asleep at the wheel”
in order to ensure he got paid.
Two of the members are also claiming that they were dismissed because of
whistleblowing, claiming their roles were terminated because they raised
concerns about working practice. These included that the number of parcels
allocated to drivers resulted in excessive hours and/or driving unsafely to
meet targets, and that drivers were expected to wait a significant time to
load their vans, extending their working hours.
Amazon accused of treating UK
warehouse staff like robots
Read more

Comparative Business Ethics and Social Responsibility 11
GMB’s general secretary, Tim Roache, said: “The day to day reality for
many of our members who deliver packages for Amazon is unrealistic
targets, slogging their guts out only to have deductions made from their pay
when those targets aren’t met and being told they’re self-employed without
the freedom that affords.”
“Companies like Amazon and their delivery companies can’t have it both
ways – they can’t decide they want all of the benefits of having an employee,
but refuse to give those employees the pay and rights they’re entitled to.”
“Guaranteed hours, holiday pay, sick pay, pension contributions are not
privileges companies can dish out when they fancy. They are the legal right
of all UK workers, and that’s what we’re asking the courts to rule on.”
An Amazon spokesman said delivery providers are contractually obligated
to ensure drivers they engage receive the National Living Wage and are
expected to pay a minimum of £12 per hour, follow all applicable laws and
driving regulations and drive safely. “Allegations to the contrary do not
represent the great work done by around 100 small businesses generating
thousands of work opportunities for delivery drivers across the UK,” he
said.
He added: “Amazon is proud to offer a wide variety of work opportunities
across Britain – full-time or part-time employment, or be your own boss.
Last year we created 5,000 new permanent jobs on top of thousands of
opportunities for people to work independently with the choice and
flexibility of being their own boss – either through Amazon Logistics,
Amazon Flex, or Amazon Marketplace.”
In April, the delivery company Hermes, which delivers packages for
retailers such as Next, Asos, John Lewis, Topshop and River Island, began a
legal battle with eight of its own drivers. It is under pressure to settle after
rival delivery firm DPD offered all its drivers sick pay and holiday pay as
part of wholesale reforms to its gig working model sparked by the death of a
driver it charged for attending a medical appointment to treat his diabetes
and who later collapsed and died.
In 2016 the ride-hailing firm Uber was told its drivers should be classed as
workers with minimum-wage rights.
Uber, which says its drivers are self-employed, lost its appeal against the
decision last year but said it would appeal again. The case could end up in
the supreme court this year.

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