Evaluating Amazon's Approach to Corporate Social Responsibility

This report provides a comprehensive analysis of Amazon's corporate social responsibility (CSR) initiatives, focusing on the differences between financial and social accounting, the social and environmental challenges faced by the company, and Amazon's responses to these challenges. It details Amazon's environmental sustainability programs, including The Climate Pledge and investments in renewable energy, electric delivery vehicles, and reforestation projects. The report also examines Amazon's efforts to ensure supply chain transparency, worker hiring and training programs, and community outreach initiatives, such as addressing housing and food insecurity and providing COVID-19 relief. Furthermore, it discusses criticisms and scrutiny faced by Amazon regarding work conditions and environmental sustainability rules, highlighting the company's efforts to minimize its carbon footprint and improve worker safety. The report concludes that CSR is essential for all businesses and that enterprises should contribute to education, health, and other basic needs of society.

Corporate social
responsibility

Table of Contents
INTRODUCTION ............................................................................................................................3
Compare the financial accounting and social accounting.............................................................3
Social and environmental challenges in business..........................................................................4
Responses of business organisation to social and environmental challenges...............................5
Corporate social responsibility of the organisation.......................................................................6
CONCLUSION .................................................................................................................................8
REFERENCES.................................................................................................................................10

INTRODUCTION
The corporate social responsibility are described as ethical roles of corporation in the
society. Main aim of the CSR is to enhance profitability for long term and trust of the shareholder
through the high ethical standards and positive public relation to reduce their business by legal
risk. For this, the organisation takes responsibilities for the corporate actions (Bacinello, Tontini
and Alberton, 2020). The firm selected in this report is Amazon that is founded by Jeff Bezos in
1994. it is a technology company in worldwide and focuses on the e commerce, digital streaming,
cloud computing and the artificial intelligence. This report will include the difference between
financial and social accounting with their importance, social and environmental challenges in the
organisation, business responses towards social and environmental challenges and social
responsibility of the organisation.
Compare the financial accounting and social accounting
Basis Financial accounting- Social accounting-
Meaning It is a specific brand of the
accounting that involve a
process of the recording,
summarizing and reporting of
transaction resulting from the
business operational activities
during a time period.
It is an activity of
communicating the
environmental and social
effects of the economic action
of organisation to specific
interested groups of people sin
a society.
Purpose It assist the business to track
its income and expenditure,
make sure statutory
compliance, provide investors,
government and management
with a quantitative financial
information that can be used to
Its purpose is to honer the
rights of stakeholders to
information, responsibility and
balance power, enhance the
organisational transparency by
identifying environmental and
social cost of the traditional

make the business decisions. success.
Scope Recording the transaction,
analysing information,
summarise information,
reporting the given information
and present theses essential
information for use.
It measure adverse and the
beneficial impact of the
business activities on both the
firm and those impacted by the
company (España, Bik and
Overbeek, 2019).
Example Ageing of the accounts
receivable status of the account
payable, inventory payable
and monthly sales etc.
Construction of hospital in
local area, recycle the waste
paper and other etc.
Social and environmental challenges in business.
The social and environmental challenges are big hurdles for the small and medium sized
business as these components effect a business vastly. The social factor impact a business in term
of health, lifestyle, customer behaviour and the environmental comment impact the business in
term of climate changes, environmental crisis and many more. There are some environmental and
social challenges that are faced by the small organisation mentioned below:
Social challenges
 Beliefs and religion- The small and medium business can get impacted by the belief and
religion of society. In a society all individual are belong from different religion or belief
they have different opinion due to which they can stand against each other or business.
This factor has a long standing approaches to the business ethics. The business should
taken account that their any advertising or any action do not hurt the religion of nay
individual (Gunarathne, 2019).
 Customer changing behaviour- Nowadays customers behaviour are changing
continuously in the society. These is a change in customer's taste and preference. The rapid
changes in this trend is a big challenges for the small and medium business. It become

difficult for the small business to analyse these changes and adopt new changes. With this
changing trend the business has to face many challenges.
Environmental challenges
 Demographic displacement- It is top environmental elements that threaten the business
organisation as usual. The marketing department contain flexibility to follow their target
market from urban to rural, north to south. But the vast migrations of individuals in inland
cities might be difficult in case if these are not impossible to track. The natural disaster
could causes a disintegration of the small and medium business organisational client base.
 Climate changes- The uncertainty in climate change is most powerful way the
surroundings will impact a business. With industry and business unable to minimize their
greenhouse gas emissions to that level which slow down the climate change significantly.
It create high demand for the energy because temperature get more warmer and due to this,
there is high demand for the air conditioning uses. It increase the overall cost of the
business organisation.
 Environmental crisis- The environmental components that are impacting small and
medium business and will continue to impact production and economy. These issues
include such as loss of resources, scarcity of water and food, storm etc. are serious
detriments. These scarcity of resources has huge impact on the business as it will influence
the company's production function an they have to face many challenges (PARVIN,
2018).
Responses of business organisation to social and environmental challenges
The business are facing many challenges in the society and environment due to which it
become essential for them to resolve all these barriers. There are some methods by which a
business can overcome from all these challenges.
 Aware about market trend- The small and medium business have to aware about the
current market trend in the society as there is a rapid change in customers behaviour
regarding the status and fashion. The business need to gather information about all these
scenario in order to overcome from the social challenges ( Poddar, Narula and Zutshi,
2019).
 Uses e co friendly products- To overcome form the issue of environment the business
should use those product or technology which are e co friendly and not harm the

environment as people are become more health conscious. So the company should
minimize the pollution and use those tools which are more effective for their use sand
protect the environment from any type of negative elements (Priceand Sun, 2017).
(Purbawangsa, and et. al., 2019).
 Innovation- The innovation is most effective way to overcome form any challenge as it
make enable the small and medium sized business to produce good quality product and it
can serve an effective services to the society. All the organisation need to remain up to
date with latest and innovative technologies in order to gaining competitive advantages.
Corporate social responsibility of the organisation
The corporate social responsibility refers to the efforts to improve business organisational
e co- friendliness and enhance their social impacts. A company can deploy the CSR efforts as the
stand-alone program and part of the broader campaign ( Song, Fisher and Kwoh,2019). The
business are creating more CSR programs which include every par of their business with
dedicated staff members or resources for the CSR. The corporate social responsibility include non
profit groups like by supplying the volunteer, money donation and local food banks. It offer the
job training to those people who in need. In this, the company focus on shrinking their carbon
footprint by improving their supply chain efficiency. In context of Amazon, the corporate social
responsibility is discussed below:
Amazon is world's biggest technol9ogy company and it continues to lead way in the online retail,
artificial intelligence, digital streaming services and loud computing. This company has
positioned itself very rapidly as a dominant player with e commerce landscape.
Amazon's environmental suitability programs
It has launched a major CSR program that is The Climate Pledge in 2019. it introduce e
this program in partnership with the global optimising to accomplish net zero yearly carbon
emission by 2040. in order to promote this initiative further, it committees around $ 2 billion
during 2020 which hep the businesses develop innovation and product to support and also sustain
low carbon economy. Amazon establish a Right Now Climate Fund and contribute around $ 100

million t the finance reforestation projects. Along with all the above financial investment, it also
initiatives in other program which are given below:
 Around 100% renewable energy program also adopted by the Amazon till 2025.
 By 2030, it placing around 100000 of the electric delivery vehicles on road.
 50% shipments are ensured by the Amazon to reach the net zero carbon.
Supply chain transparency of Amazon
Amazon work continuously to build a equitable and transparent global supply chain
during 2020. the company has expanded their firm policies that govern its supply chain standard
and procedure to include rigorous and comprehensive requirements. All these changes in company
reflect a decisive and clear directed purpose at protecting vendor transparency, gender equality,
workers safety and an environmental sustainability (Uhlig, Mainardes,and Nossa, 2020).
To safeguard against the environmental and labour violation, Amazon conduct the regular
independent third party assessments to make sure that supply chain partner partners follow
recognised practices and standard at world wide. In 2020, for responding to the public pressure for
a greater transparency the respective company took exploratory steps in order to disclose main
supply chain stakeholders and partners to investigate any abuse and resolve them.
Amazon's workers hiring and the training programs
The respective company seek out applicants from the institutions and schools serving an
ethically diverse grouping as well as the organisation to promote the minorities in tech.
Additionally, Amazon continuously expand the employment opportunities for individual with
abroad and disabilities at home. CSR of the respective company commit to the employees to
include number of the ongoing educational and training opportunity for non technical and
technical position. A mount of around $ 700 million was allocated for the educational ranting
over the time period of next six years. Amazon also provide a reimbursement for approximately
95% of the tuition and employee's fees to gain and expand the in demand skills. It offer free online
education to 100000 students globally in 2020.
Community Outreach Program of Amazon

This program of respective company focus on the resolving most pressing problems or
issues including educational support, food insecurity, housing and the COVID 19 reliefs.
 Housing and food insecurity- In order to help the homeless people, Amazon invested
around $ 100 million for establishing new homeless centre which is located in its down
town Seattle campus. In 2020, the company laid groundwork for their new Housing Equity
Fund in order to promote some more affordable housing in while country. By this fund,
Amazon allocated around $ 2 billion to create 20000 homes in Nashville TN, Puget Sound
WA and Arlington VA.
By understanding that food and housing insecurity frequently go hand in hand, the respective
company partnered with the local schools and food banks to deliver around 12 million food across
the world.
 COVID 19 Relief- in 2020, Amazon invested around $ 4 million during COVID 19to
help both the community and company's workers at large. To avoid the risk of pandemic,
the company advised all of world employees to work from home for a certain time period.
Social and environmental challenges and impact of the performance of Amazon.
 When the Amazon has made a substantial investment for the corporate social
responsibility, criticism and critiques have surfaced with negative report in relation o the
work condition at respective company's warhorses at the time of COVID 19 crisis. Due to
this criticism two employees get fired for demanding some more adequate safety or
protection for the employees of warehouse during pandemic ( Xiao, Liand Xu, 2019).
 Amazon continuously face the considerable scrutiny related to environmental
sustainability rules with workers and a special interest groups demanding more aggressive
approaches. The respective company has hired more than 200 engineers, product designer
and scientists to help minimize their carbon imprint.

CONCLUSION
From the above report it is concluded that, the social and environmental challenges affect
all the short term and long term adversely. The business uses various strategies and method s to
overcome from the challenges. The corporate social responsibility are very essential for every
business. The enterprise should contribute in education, health and other basic need of the people
in society. They has some moral responsibility toward the society. In order to run an enterprise
smoothly and efficiently it is essential for every business to fulfil their corporates social
responsibility.

REFERENCES
Books and Journals
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España, S., Bik, N. and Overbeek, S., 2019, May. Model-driven engineering support for social and
environmental accounting. In 2019 13th International Conference on Research
Challenges in Information Science (RCIS) (pp. 1-12). IEEE.
Gunarathne, N., 2019. Sustainable innovation measurement: Approaches and challenges. In
Innovation for sustainability (pp. 233-251). Palgrave Macmillan, Cham.
PARVIN, K.K., 2018. CORPORATE SOCIAL RESPONSIBILITY: DIMENSIONS AND
CHALLENGES IN SELECTED SOFTWARE COMPANIES IN INDIA. CLEAR
International Journal of Research in Commerce & Management. 9(2).
Poddar, A., Narula, S.A. and Zutshi, A., 2019. A study of corporate social responsibility practices
of the top Bombay Stock Exchange 500 companies in India and their alignment with the
Sustainable Development Goal s. Corporate Social Responsibility and Environmental
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Price, J.M. and Sun, W., 2017. Doing good and doing bad: The impact of corporate social
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Purbawangsa, I.B.A. and et. al., 2019. Corporate governance, corporate profitability toward
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Song, M., Fisher, R. and Kwoh, Y., 2019. Technological challenges of green innovation and
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Uhlig, M.R.H., Mainardes, E.W. and Nossa, V., 2020. Corporate social responsibility and
consumer's relationship intention. Corporate Social Responsibility and Environmental
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Xiao, J., Li, J. and Xu, Z., 2019. Challenges to future development of spent lithium ion batteries
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