Leadership Styles and Ethical Responsibilities of Amazon

This document discusses the different leadership styles, such as autocratic, transformational, delegative, and participative, and analyzes the leadership style of Amazon. It also explores the ethical and social responsibilities of Amazon, including their CSR programs and initiatives for supporting local communities, educating and empowering workers, and promoting gender equality and minority rights.

Context of Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ..............................................................................................................................................3
P1) PESTLE and SWOT analysis...............................................................................................3
P2) Relation between SWOT and PESTLE analysis:.................................................................4
P3) Different Leadership styles:..................................................................................................6
P4) Leadership style of Amazon.................................................................................................7
P5) Ethical and social Responsibilities of Amazon....................................................................7
P6) Reflection..............................................................................................................................9
CONCLUSION .............................................................................................................................10
REFRENCES.................................................................................................................................12
Books and Journal.....................................................................................................................12

INTRODUCTION
Organisation has many factors that effected their operations and functions. Those factors
can be external and internal so it is very important for the organisation that they can make their
strategies and leadership style flexible (Salovaara and Bathurst, 2018). It is very well known that
businesses have dynamic environment in which any factors effects the organisation operations
and functions. Leadership is the only way that helps to cope up with unpredicted happenings.
Leadership is the style in which leader performs the functions that motivate and encourage the
employees to achieve organisational goals and targets. In this context, Amazon is undertaken for
analysing the internal and external factors that effects the organisation function and operations.
Amazon is the organisation that trade in e-commerce business, it is the American multinational
company has headquartered in Washington. This report covers the leadership style in which brief
explanation and most suitable leadership style is given. It also covers corporate social
responsibility of the company that shows their detail knowledge.
MAIN BODY
TASK
P1) PESTLE and SWOT analysis
PESTLE is the tool that helps to analyse the macro or external environmental factors
which effects the organisational operations and functions. A brief explanation of external or
macro environmental factors are mentioned below:
Political Factors- It is the factor that include the political stability of country that effects
the organisation functions positively or negatively. Amazon is the organisation that operates their
work in their parent country i.e. America. America is the country that have strong political
stability which directly positively effects the Amazon functions. They already support them
because of encouraging and promoting e-commerce business.
Social Factors- It include the factors that are related to the socio cultural factors which
shows different type of religions and traditions that effects the organisation products and services
(Mareus and et. al., 2019). It impacts positively if Amazon fulfil all demand of their audience
and vice-versa.
Economical Factors- It include the individual income that controlling the purchasing
power of the person. Amazon is the American company, in which country has already developed

nation that have strong economical conditions. So it positively impacts the organisational
functions and operations.
Technological Factors- In this factors Amazon takes care for their technology because
they operate their business online which needs up graded technology. It negatively impacts
because technology very frequently obsolete.
Legal factors- It include all important laws and regulations that effect the organisation
functions. Amazon is the multinational organisation in which all important laws should be
followed, if not followed then they get negatively impact in the business organisation.
Ecological Factors- It is the important factors that effect the organisation CSR policy of
the company. Amazon get affected by the ecological factors in which they have to fulfil CSR
policy, it can be done through providing best quality of goods and services.
Another important tool i.e. SWOT analysis which directly identifying and analysing
internal factors of the company. Amazon's SWOT analysis is mentioned in the below table:
STRENGTHS WEAKNESSES
 Amazon biggest strength is their
pricing strategy, they use low pricing
strategy.
 They provide a wide range of products
and service to the customers (Benefiel
and Abbott, 2019).
 Their margins is reduced because of
free delivery.
 They has very less physical stores that
reduce their profits.
OPPORTUNITIES THREATS
 They make their privacy and security
tighter so that customers can easily
trust on online payments.
 They should develop more and more
physical stores.
 Another threats is their success that
inspire another competitors.
 Nowadays cybercrime is increasing at
very high rate that become the threat of
the company.
P2) Relation between SWOT and PESTLE analysis:
Almost all person knows that SWOT and PESTLE analysis are opposites each other.
Because PESTLE analysis identify and analysis the external environmental factors that influence
the business externally and unpredictably. Whereas SWOT analysis identify the factors that

internally influence the organisation functions and operations. So that's why it is founded that
they are opposite to each other. Both factors are very important for the success and growth of the
business (Yan, 2018).
PESTLE analysis is the tool in which all important factors are explained. It actually gives
the possible outcomes that can be effect the organisation functions. They are unpredictable so
that's why it is very necessary to understand these factors (Bolden, Gulati and Edwards, 2019).
Political is one of the important factors that shows the political stability of country that effects
the organisation functions. It can be positively or negatively affects the business operations. For
example, if the political stability is not good then the taxation policy can change very frequently
that raise the cost of accountant. So in this way it effects the organisation. Economical factors is
the factor in which organisation needs to decide their prices of products and service that effects
purchasing power of individual. As it affects by the economical condition of the country.
Amazon is the multinational company that operates their work in the different countries which
effect by the economic conditions. There are many social factors that effects the organisation
because of various category of cultures and traditions. Technological factors effect the Amazon
because they doing their work in online basis that require very wide knowledge of technologies.
They also serve electric items that should be up graded so that they can serve best quality of
goods and service to the customers. Another two factors are also very important because the
nature of business environment is dynamic that can be create any type of problems.
SWOT is the another tool that focuses in internal factors that affects the business
operations and functions (Aina and Verma, 2017). It is the important factor in which strengths
and weaknesses are evaluated so that they can handle all the external factors. Threats and
opportunities are very important factors that awakening organisation regarding any type of
internal problems They are very important because with the help of information related to threats
and opportunities Amazon can improve their weaknesses and make stronger their strengths.
Almost all people though that both tools are different from each other. Their thinking is
correct but it is also right that they are interconnected or closely related to each other. Pestle is
very closely related to the 'T' of SWOT analysis because the threats are actually the external
environment factors. There is big interrelation in both tools that are threats and external factors.
PESTLE focuses on external environment whereas SWOT focuses on both internal and external
environment factors. It is very obvious that if the company wants to do PESTLE analysis then

they should go for SWOT analysis. Because SWOT gives the detail information of internal and
external factors (Sarwar and et. al., 2020). SWOT gives the knowledge of strengths and
weaknesses that helps to overcome and deal with the external environment factors. Whereas
threats gives the exact information of external environmental factors that influence organisation
functions. Opportunities are the important factor that can give the chances to organisation to
change their threats into opportunities with the correct use of their strengths. So in this way,
PESTLE influence SWOT analysis tool.
From the above discussion it is analysed that PESTLE and SWOT are interconnected
with each other. PESTLE influence SWOT because it is the only tool that deal with external
environment. In this case, both tool are important and interrelated that gives the crucial
information to the company.
P3) Different Leadership styles:
Leadership is the activity in which the companies' leader can take necessary corrective
action that helps to encourage and motivate the employees towards organisational goals and
objectives (Ardianti and Inggrid, 2018). There are many leadership styles that can be adopted by
the leaders depend on the situation. Various types of leadership styles are mentioned below:
Autocratic Leadership Style: It is the style where the organisational leaders impose
command and direct the goals to the subordinate level. In this type of theory, subordinates are the
person who have clear information regarding goals and objectives of the company that helps to
accomplish their goals effectively. This style is suited on those organisation who adopts
hierarchy culture in which the information is transferred from top level to subordinate level. It is
not suited for those one's who have informal structure of organisation.
Transformational leadership style: In this style leader act as a role model that creates
the vision and inspires other people for accomplishing their goals and targets so that they also
became like that. It is the most effective approach that adopted by Amazon and became the
reason of their success and growth (Owie, 2017). It is not suited for the organisation in which
there is no role model or the person is already doing wrong things.
Delegative Leadership Style: It is suited to the large organisation because they have lots
of work that can be delegated by the leader into small task. It is very helpful for the organisation
to accomplish their large task by converting into smaller one. It is not suited for the small
organisation because they already have small tasks.

Participative Leadership Style: The name already tells the meaning that it suited on
those organisations who have main focus on inclusive growth that means they wanted
contribution of all people. It is the style in which the organisations wants to include the
participation of all members (Tetteh and Brenyah, 2016).
P4) Leadership style of Amazon
Amazon has a giant working environment and there are pool of operation which is
perform into every store. For which its a necessity for the organisation to manage their functions
effectively. Amazon workforce is highly professional and talented which make them adaptable
into dynamic environment through efforts of respective leaders. These are those individuals who
are behind the performance of organisation workforce, as employees work on behalf of their
orders and guided way. For that purpose, Amazon is accountable for performing effective and
best leadership style amongst all (Kljajić-Dervić and Dervić, 2017). The founder of Amazon, Jeff
Bezos is highly influenced by the transformational leadership style which evaluates their main
motive towards customer demand the put their preferences on the top of their target.
This theory enable the leaders to have capabilities of conveying their ideas and get a
positive response over it. Which reflects the work has been performing according to their
guidance also, employees are in ease to understand and courage commands. This theory focus
on make changes and innovation into their working environment. This leadership style
encourages the creativity and innovation around the business operation, as the leaders guide in
such a way that tends to build high critical thinking and preferable ideas. Employees are entitled
to enhance their knowledge and personal development will automatically could achieve.
Transformational leaders perform as a inspiration for their employees, as all the ideas and
performance is shown as a replica of their creative thoughts. Apart from this leadership, Amazon
could also choose pragmatist leadership style in order to setting up company standards by
indulging efficient workforce and motivate them towards making the company the best out in all
aspect (Simba and Thai, 2019). This leadership style is the best way to upgrade company
position and brand image into he market.
P5) Ethical and social Responsibilities of Amazon
As far as concerned about Amazon customer satisfaction, the company maintain their
ethics and values towards committees and society in order to make their variance contribution
towards benefits of general public (Egel and Fry, 2017). Amazon has their separate CSR

programmes in consideration with 2014 which is managed by senior executive Kara Hartnett,
under their management various programmes has been running in Amazon which are mentioned
below:
 Amazon Supporting Local communities: In the situation of Covid-19, the company
has made various policies for their customers as well as employees. They not only
operated for profit making criteria but has concerned with individual problems. For
which, the company has launches various programmes and relief funds by contribution
25 million USD towards welfare for delivery partners who are providing service by
making their own life at risk during the pandemic. The company also contribute via
donation to local and national small institutions in order to survive into the complex
market and also enhance motivation of stake holders to deal with the impact of Covid-19.
The company has also regulates programs for girls to accompany their knowledge
through education (Han, Harold and Cheong, 2019).
 Amazon educating and empowering workers: Amazon is focusing on employee
development by promoting learning and educating opportunities by paying a minimum
cost of tuition fees. Amazon contribute 95% of the amount through their funds towards
employee education. 90% of employees take initiative to be a part of these programmes
and enhance their knowledge . Along with this, the company also provide facilities of
working from home which shows its immense concern towards the crises and
maintaining their employee welfare. They also provide an offer regarding exit the job by
launching innovative thinking criteria after making their development. This gives
employees a feeling of moving towards new job which they are likely to do.
 Amazon Gender equalities and Minorities: The company does not encourage any
discrimination activity into organisation whether in terms of gender, caste, pay or
promotion. For this instance, company regulate programmes for women empowerment
and in order to make their engagement into their department by launching a group named
HER project. They also provide minimum wage to low key workers so that they could
survive three meals a day in the inflated country.
 Waste reduction by amazon: The company took initiative towards reduction of wastage
elements from the society by using recycling programme and make use of effective
machinery which provide polluted free operations. This has made its efforts towards

packaging. It developed source of secondary packaging which provide free delivery to
customer in contact free packages at the time of Covid-19. The company has achieving
and celebrated its packaging policies over 650000 tons in 2017. the company also
promotes eco-freindliy production at their stores through environment supported
mechanism and it exclude negative process which could cause high amount to society.
 Carbon Emission by Amazon: The company involve footprint upgradation of around
4440 millions tons, for this the company evaluate campaign towards achievement of
workforce by the the future times. Which has launch its zero carbon shipment of products
to from 40% to 50% (Azeem and Mataruna, 2019). Moreover, the company also graded
innovative electric vehicles which makes fast and efficient delivery aroiund the globe.
 Water Consumption by Amazon: The company process their production by making
use of rainwater so that it could be properly utilised by saving it into water tanks, also it
also conduct evaporation process in order to cool down their manufacturing plant from
the heat which cause pollution through chimneys into environment. Also proper
consumption of water has utilised in order to make use of electric energy. These policies
will make the contribution towards well and water tanks.
P6) Reflection
This report has given me a valuable and surprised experience about learning those
outcomes which has impacting on business growth. I analysed that running an organisation is not
an easy task, it indulge various factors like internal and external which has its great affect
towards business productivity and profitability. The PESTLE analyses has shown impact of
outside environment of political and legal factors has proven me by understanding regulatory
boundations over the business. Also, I understand the significance of leadership style in order to
perform and manage employees simultaneously. Through understanding the behaviour of
management and its various aspect. I came to a point where I need to use management in my
own life so hat I could manage my daily routine and obey the orders of my leaders who shown
me the right path towards learning. This report has given me a motivation towards self
development by evaluating critical skills and knowledge so that I could look forward at my
future in doing successful business and achieving my leadership goals. So that I could be a good
leader and a motivator to convey my knowledge to other individual and be a inspiration for them.
This report has shown my importance of CSR programmes looking towards the society and

employee well well-being. I have analysed that an organisation could only be successful when it
will work together with society and people. So that, it has to maintain there social ethics and
culture to be an essential function for their operations. In this pandemic situation, these CSR
programmes has made a positive change and became helpful for many people and for
government also. All these functions has shown me the immense strength of the organisation as
the company, is established various funds and programmes which has results in their strengths by
being positive influencer towards society.
There are various leadership style which we have studied in this report. All these styles
are effective and provide prominent functioning towards organisation behaviour. As these styles
are universal applicable in order to grow a business successfully. This could be better
understand by the example of the world leading sector of coffee supply chain named Starbucks.
The company is scattered into all the area of globe with large customer fan base, the company
has established its giant position into market and getting high competitive advantage regarding
their competitors. This has become possible because of its high skilled employee engagement
and effective leadership approach. They promotes high accuracy and quality into their services
so that it could maintain their high standards. Transformational and pragmatist leadership style is
mostly been using by the company from several years through which is has attain high quality
standards and leading growth into the market. Also it has established effective CSR programmes
with the aim to reduce poverty in labour force and try to attain sustainable position into market.
This example is an another inspiration for me to analyse the significance of these factors.
CONCLUSION
The report has genuinely cover all the area of business elements by acknowledging
PESTLE and SWOT analysis that has reflected the impact of political, environmental and legal
conditions thoroughly so that organisation could undertake its operations followed by those
regulations. Along with this, many leadership styles has its own importance as per the size and
motive of the organisation. In terms of the chosen company, transformational leadership style
has taken a high growth in maintaining their standards. Also, it is well analysed that CSR
programmes could make initiative contribution towards economic growth as well as business
culture and ethics.

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