Ethical Theories in Context of Technological Breakthrough and Amazon

This report reviews the ethics of Amazon in context of mega trend of technological breakthroughs. Corporate social responsibility approaches and ethical theories are applied in this report to effectively review business ethics of Amazon and proposed recommendations on improving ethical response of the company to the mega trend.

Report
Assessment
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.EXECUTIVE SUMARRY
Amazon is affected by the mega-trend of technological breakthroughs which also
introduce ethical challenges for the company. The purpose of this report is to review ethical
theories in context of technological breakthrough and Amazon. Application and evaluation of
ethical theories and suitable commendation is provided in this report.
Ethics of Amazon
The international growth of Amazon has been supported by the consumer oriented ethics
of the company. Amazon has created mission and vision statement which helps the company
focus primarily on consumer satisfaction and beat rivals by providing consumers higher quality
experience. The consumer centric nature of the company is reflected in its core values as
Amazon focuses on achieving high standards and thinking out of the box. Amazon engages in
corporate social responsibility by
Mega-trend: Technological breakthrough
Technological breakthroughs have supported Amazon in achieving global success and are
the main factor supporting continuous growth of the company in different international markets
and industries. Consumers prefer digitized shopping experience and Amazon has been able to
optimally utilize digital technologies to deliver best online experience to consumers. This
involves speeding up logistics through digital technology and using digital technology to offer
safer shopping experience.
Application and evaluation of ethical theories
It can be understood from application of ethical theories such as stakeholder and social
construct theory that Amazon is not completely ethical business. On the basis of company data
from past three years, it is evident that Amazon has only benefited investors and failed to deliver
value to other stakeholders such as environment. In addition to this, application of social
construct theory on past three year performance of Amazon has revealed that the company
supports both negative and positive business practices.
The community support given by Amazon to workers is an example of ethical business
practice while the carbon emission released by the company is an example of unethical business
practice. Similarly evaluation of ethical theories in case of Amazon showcases that there is huge
scope for improvement in case of supporting ethical business activities.
Recommendation
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It is suggested that Amazon utilizes digital technologies to improve sustainability. This is
suitable action as it helps reduce negative environmental impact of the company. In addition to
this, Amazon also needs to use corporate governance and utilitarianism as the guiding ethical
theories to improve ethical nature of the company. This is beneficial for Amazon as it will help
the firm identify and eliminate any unethical business practice.
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Contents
. EXECUTIVE SUMARRY ...........................................................................................................2
INTRODUCTION ........................................................................................................................5
MAIN BODY ................................................................................................................................5
Description of the organization and its ethics .......................................................................5
Discussion on mega trend ......................................................................................................6
Application of ethical theories to understand actions taken by Amazon ..............................8
Critical evaluation of ethical theories of Amazon using ethical theories ............................10
Recommendations ...............................................................................................................11
CONCLUSION ............................................................................................................................13
REFRENCES................................................................................................................................14
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INTRODUCTION
Business ethics is an area of business management which focuses on ethical dilemmas
and concepts which by businesses (Adeleye and et. al., 2020). The area of business ethics
evaluates ethical principles including moral or ethical problems which can arise in a professional
environment (Ermasova, 2021). This report is based on the ethical areas related to mega trend
technological breakthroughs. The business form selected for this report is American technology
company Amazon which has grown to become the largest commerce company in the world.
Amazon was founded in the year 1994 and has invested in different international markets and
industries such as streaming space travel cloud computing and artificial intelligence. This report
reviews the ethics of Amazon in context of mega trend of technological breakthroughs.
Corporate social responsibility approaches and ethical theories are applied in this report to
effectively review business ethics of Amazon and proposed recommendations on improving
ethical response of the company to the mega trend.
MAIN BODY
Description of the organization and its ethics
The mega trend of technological breakthroughs is now being utilized by small and
medium size enterprises to facilitate growth and support competitive business practice (Candelo,
Casalegno and Civera, 2021). Amazon has been able to develop technological infrastructure on
an international level which cannot be compared to any medium or small size organization and
supports the company in offering consumers exceptional online shopping experiences.
Corporate social responsibility covers a wide area of activities which help the company
self regulate an contribute to philanthropic and societal areas supporting ethical practices (Ferrell
and et. al., 2019). The two copies social responsibility approaches followed at Amazon are
environmental responsibility approach to corporate social responsibility and societal approach to
corporate social responsibility.
Societal Approach to CSR: The E commerce giant accomplish its societal approach to
corporate social responsibility by implementing community outreach programs which focus on
resolving the most pressing issues of society including housing food insecurity educational
support and COVID-19 relief.
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Environmental Approach to CSR: In context of environmental approach to corporate social
responsibility Amazon has implemented various policies which support the company in
increasing sustainability across supply chain. This involves a number of ongoing initiatives
including adoption of 100% renewable energy programs by 2025 and ensuring 50% of all
treatments reach net zero carbon by 2030 (Amazon Corporate Social Responsibility (CSR) and
Sustainability, 2022).
Code of Conduct
The code of conduct an business ethics implemented at Amazon focus on ensuring that
employees always act lawfully ethically and with the best interests of the company. The code of
conduct at Amazon includes various elements including avoiding conflict of interests and
following legal procedure upon conflict of interests faced by employees (Code of Business
Conduct and Ethics, 2022).
Mission Statement
The mission statement of Amazon is focused on continually raising the bar of consumer
experience by using Internet and technology to help consumers find discover and buy according
to their requirements so that consumers and sellers are empowered to maximise their success
(Our Mission , 2022).
Values
Amazon has developed 14 core values which are followed by every employee at the
company. This includes consumer obsession, ownership invention and simplification, strong
judgement, curiosity, developing talent, achieving high standards, thinking out of the box, bias
for action, trust, frugality, attention to detail, commitment and focus on results (14 Core Values
of Amazon and Their Mission & Vision Statement, 2021).
Discussion on mega trend
The mega-trend of technological breakthrough has affected businesses across sectors and
industries (Ramazanov and et. al., 2021). According to the report by Euromonitor in 2018 78%
and 65% of households in developed and emerging markets possessed smartphone but the rates
are expected to exceed 90% by 2028. Increased connectivity along with rise in usage of digital
technologies by both consumers and businesses has increased the importance of has increased
the transformation across industries. Amazon has taken steps to improve safety of delivery
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personnel and consumers so that their online shopping experience can become less risky in
context of health.
On an international 54% of consumers use internet and are connected with technology in
the year 2019 (5 Key Traits Defining Connected Consumers, 2019). This has give rise to
adoption of digital technologies such as scan as you go. Multinational retail chains have already
adopted scan as you go or checkout digital technology so that payment services can be made
contactless.
Checkout experiences which utilise advanced technology are being integrated in retail
store formats such as convenience stores which showcases that this concept is likely to receive
long term boost from the pandemic as both consumers and businesses have understood the
advantages of contactless shopping experience (Tupikovskaja-Omovie and Tyler, 2021).
Amazon has been able to attain high profits even in the time of pandemic because the company
offered the most affordable and safe way of purchasing products online.
In context of the retail industry delivery and logistics are now the main factors which
support businesses in remaining competitive. This is because of the rise in E commerce and
increasing last might delivery cost which negatively affect profit margin of retailers (Ishfaq,
Davis‐Sramek and Gibson, 2021). The success of Amazon during the pandemic can be attributed
to its efficient distribution channel and the usage of digital technologies to continuously improve
delivery speed and experience of consumers.
The adoption of robot technology along with artificial intelligence can also be attributed
to COVID-19 as businesses have been exploring the use of humanoid robots more recently to
eliminate human to human contact in transactions (Zhu and Gao, 2019). Amazon has been a
significant investor in robotics AI and digital technology. The company has an entire subsidiary
called Amazon robotics which offers consumers mobile robotic fulfilment systems.
Consumers are utilising mobile application to purchase daily use products such as
groceries during the pandemic as it helped them fulfil their daily requirements without coming in
contact with external environment contaminated with the COVID-19 virus (Pantano and
Vannucci, 2019). Looking at online purchase channels 31% of global connected consumers buy
food or beverages on a smartphone 21% on a computer 12% on a tablet 7% on another electric
device. in addition to this the payment of food and beverages products is completed through
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online applications by 50% of global consumers (Five Key Insights on Connected Consumers
and Digital Shopping Behaviour During Coronavirus, 2020).
Amazon website and application have been developed by the company to offer
consumers from different regions the best experience and personalised touch. Amazon
neutralises technological breakthroughs such as big data analytics and artificial intelligence to
ensure that user experience in their application and website along with streaming services
provides users content according to their demand.
Application of ethical theories to understand actions taken by Amazon
Stakeholder theory of Business ethics
As per the stakeholder theory of business ethics do this interconnected relationship
between business its consumers suppliers employees investors and communities which get
impacted by the activities of the organization. According to this theory it is important for a
company to offer value to each stakeholders and not just limit value creation to shareholders
through attaining financial profitability (Sroka and Szántó, 2018). In context of Amazon the
company has succeeded in several aspects of the stakeholders divide there are also some
criticisms of Amazon’s regarding fulfilling demands of various stakeholders. In the last three
years Amazon has contributed positively towards investors and shareholders of the organization
with the overall sales of the company rising annually end offering high growth margins to
stakeholders. this can be seen by reviewing last three years financial performance of the
company as net income growth of the company increased from 15% in the year 2019 two
57.79% in the year 2021 (Amazon.com Inc., 2022). In context of delivering value to other
stakeholders such as employees Amazon has not been able to perform effectively. The company
has face charges related to treating employees unethically end creating a hostile working
environment for lower level employees working in Amazon fulfilment centres. It is important
for Amazon to make improvements in area of delivering value to employees by adopting
corporate social responsibility initiatives which help improve employee satisfaction mental and
physical health.
Social Contract theory of business ethics
The social contract theory of business ethics states that businesses exist with permission
of the society and always need to act in a way which provides advantages to the society.
Decision-making at businesses need to be completed so that the society gains the maximum
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benefit from business activities (Trevino and Nelson, 2021). In the last three years a big example
of Amazon taking action to benefit the society was relief actions implemented by Amazon to
help communities employees end areas affected by COVID-19 virus. The company generated
15,000 new jobs to help with rising unemployment during COVID-19. In addition to this the
company also set up a Relief Fund which focused on supporting independent delivery partners
who are at high risk of contracting the virus (A roundup of actions Amazon has taken to reduce
the spread of the coronavirus while supporting those directly and indirectly impacted by
COVID-19, 2022). The area of criticism when it comes to application of social contract theory in
context of Amazon include the inability of Amazon to lower carbon impact even during the
pandemic and cause environmental damage at last scale because of global business operations. It
is important that Amazon embraces the concept of corporate citizenship and understands the
social cultural and environmental responsibilities which need to be completed by the company
towards the communities affected by its business activities. This concept can help Amazon
understand its environmental responsibilities so that the negative environmental impact caused
by Amazon can be lowered.
Corporate social Responsibility
Amazon has invested in corporate social responsibility initiatives which support growth
of the communities impacted by amazon and contributes to betterment of environment.
Fulfilment by Amazon donations is one such example of Amazon supporting Corporate social
responsibility and supporting social growth. Fulfilment by Amazon donations is a CSR initiative
by Amazon which involves donating the eligible overstock and returned products to those I need
instead od sending such usable items to recycling plants or landfills. Amazon was able to
implement this CSR initiative by adjust their logistics network to automate donation process.
This CSR imitative was implemented in the year 2017 and since than Amazon has made
tremendous growth in positively impacting communities in need in UK, Czech republic, Poland,
France, Germany, Italy and US. In context of US, the charity partner of Amazon Good360 has
stated that the donations made by the company during the time of COVID-19 supported the local
community in surviving the global pandemic (Every day, we donate 50,000 items to help people
in need, 2020). This CSR initiative of Amazon can be linked to the social contract theory of
business ethics as Amazon was able to fulfil its social obligations and provide benefit to the
society and local communities through its profits.
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Corporate citizenship
Amazon has adhered to the concept of corporate social responsibility and ensures that the
economic, legal and ethical standards of business are met in every international market. An
example of Amazon fulfilling its ethical, economic and legal standards and accomplishing duties
of corporate citizenship are the disaster relief and response efforts of Amazon. This business
process utilize the logistics capabilities of the company to donate survival items to places
affected by natural disasters as soon as possible. This action of Amazon helps the company
utilize its economic power ethical and complete its social obligations as corporate citizen. This
initiative has had significant positive impact in the last three years as Amazon has donated more
than 15 million relief items to support people impacted by 70 natural disasters around the world
(Disaster Relief and Response, 2022). The actions taken by Amazon to fulfil social obligations as
corporate citizen can be linked with stakeholder theory of business ethics. Amazon offers its
investors and shareholders value by improve boarding of the company and provides consumers
value by enabling responsible shopping. In addition to this Amazon delivers social and
environmental value by helping communities rebuild their regions affected by natural disaster. In
this way Amazon delivers value to all stakeholders.
Critical evaluation of ethical theories of Amazon using ethical theories
Review of Amazon achievements
Amazon has been able to successfully implement various CSR activities which support
the company in improving sustainable and supporting battle against against climate change.
These actions of Amazon align with its code of conduct as the company is able to fulfil its
environmental and social responsibility. The company has pledged to use 100 percent renewable
energy by 2030 and to become carbon-neutral by 2040. Amazon has ordered 100,000 electric
delivery vehicles to improve attainability in the company (Donating $10 billion isn’t the best
way for Jeff Bezos to fight climate change, 2020). These actions help the respective organization
fulfil its ethical obligations and can be linked with different ethical theories and concepts.
Corporate social responsibility of Amazon s enhanced because of its efforts to enhance
sustainability. Business ethics efforts of Amazon in context of sustainability has also supported
the company in completing goals related corporate citizenship. In addition to this the theory of
social context can also be applied to Amazon in context of its sustainability initiatives as the
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respective company fulfils its social contract by supporting development and adopting of
sustainable technology in exchange of growth and profitability.
There are various criticisms of Amazon when it comes to business ethics which mainly
includes the treatment of employees at the company along with anti union activities. The
company has faced allegation in different markets regarding actions against employee unions and
creating intolerable environment for employees. An example of Amazon treating its employees
is the investigative report which disclosed that Amazon has unfairly treated its workers during
the pandemic including short-charging employee pay-checks, stopping disability payments and
mistaken firings due to faulty programmes (A Hard-Hitting Investigative Report Into Amazon
Shows That Workers’ Needs Were Neglected In Favor Of Getting Goods Delivered Quickly,
2021). This is strictly against the code of conduct of Amazon as it promoted inequality in the
workplace and encourages unlawful payment practices. An example of Amazon actions against
unionisation is the decision appeal to national labour relations board of Amazon to rerun
unionisation vote at its Staten Island Warehouse (Amazon Wants Do Over Of Union Vote After
Accusing NLRB Of Bungling Election, 2022). This action goes against the code of conduct of
Amazon as it does bot consider the interest of employees during opposing unionising actions at
Staten Island Warehouse.
Limitation of assessment
The main limitation of this assessment is that it primarily utilizes concepts such as social
contract theory and corporate citizenship to view the ethical position of Amazon. These theories
consider the immediate business impact of business activities and can negatively affect the
assessment of a business (Jahn and Brühl, 2018). This is because the specific action may lead to
unethical results in the presence but can positively impact society and community in the future.
For example the anti-union action of Amazon has current negative impact but can enable the
company to offer better solutions to employees for their concerns.
Recommendations
 It is recommended that the respective company utilizes digital technology to enhance its
sustainability and invest in global supply chain technological advancement to lower carbon
emission of business operations. This is suitable recommendation as it is associated with
CSR (Ford and Stohl, 2019). The company will be able to use its innovative working
environment to give back to society while also attaining profits.
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 It is suggested that Amazon applies the concept of corporate citizenship to understand the
impact of activities on external parties and appropriate action is taken to ensure every
community associated with the company gains value.
 The business ethics theory which can be used by Amazon for improving ethical performance
is utilitarianism. As per this business ethics theory business conduct should take into account
the consequences that would benefit the largest amount of people (Ramboarisata and
Gendron, 2019). This is a suitable theory for Amazon as it can help the company ensure that
strategic actions have positive implications for communities and environment while also
looking after shareholders and investors who require return in profits.
 It is recommended that Amazon support creation of direct feedback channels between lower
level employees and leaders so that their concerns are solved in an innovative manner. This
recommendation is in line wit the stakeholders theory of business ethics as each stakeholder
of Amazon gains value. Workers gain better working environment, investors gain better
output due to satisfied workers and consumers gain better value.
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CONCLUSION
From the above report it is determined that the mega trend of technological
breakthroughs has affected business forms and change the way businesses handle the concept of
business ethics. It is important to apply business ethics study suggests social contract theory in
order to understand and evaluate the ethical position of an organization. This can help the
company move further with growth provided by mega trend of technological breakthrough
without abandoning ethical values of the company. In addition to this concepts such as corporate
citizenship and corporate social responsibility can help the company fulfil its ethical
responsibilities in a practical manner which benefits both society and company.
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REFRENCES
Books and Journals
Adeleye and et. al., 2020. Business ethics in Africa: the role of institutional context, social
relevance, and development challenges. Journal of business ethics, 161(4). pp.717-729.
Ferrell and et. al., 2019. Business ethics, corporate social responsibility, and brand attitudes: An
exploratory study. Journal of Business Research, 95, pp.491-501.
Ford, B. R. and Stohl, C., 2019. Does CSR Matter? A longitudinal analysis of product reviews
for CSR-associated brands. Journal of Brand Management, 26(1). pp.60-70.
Ishfaq, R., Davis‐Sramek, B. and Gibson, B., 2021. Digital supply chains in omnichannel retail:
A conceptual framework. Journal of Business Logistics.
Jahn, J. and Brühl, R., 2018. How Friedman’s view on individual freedom relates to stakeholder
theory and social contract theory. Journal of Business Ethics, 153(1). pp.41-52.
Pantano, E. and Vannucci, V., 2019. Who is innovating? An exploratory research of digital
technologies diffusion in retail industry. Journal of Retailing and Consumer Services,
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Ramboarisata, L. and Gendron, C., 2019. Beyond moral righteousness: The challenges of non-
utilitarian ethics, CSR, and sustainability education. The International Journal of
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Sroka, W. and Szántó, R., 2018. Corporate social responsibility and business ethics in
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Management and Innovation, 14(3). pp.111-126.
Trevino, L. K. and Nelson, K. A., 2021. Managing business ethics: Straight talk about how to do
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Zhu, G. and Gao, X., 2019. Precision retail marketing strategy based on digital marketing model.
Science Journal of Business and Management, 7(1). pp.33-37.
Ermasova, N., 2021. Cross-cultural issues in business ethics: A review and research
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Candelo, E., Casalegno, C. G. and Civera, C., 2021. Digital transformation or analogic
relationships? A dilemma for small retailer entrepreneurs and its resolution. Journal of
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Ramazanov and et. al., 2021. Retail transformation under the influence of digitalisation and
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into-amazon-shows-that-workers-needs-were-neglected-in-favor-of-getting-goods-
delivered-quickly/?sh=35d1718051f5>
A roundup of actions Amazon has taken to reduce the spread of the coronavirus while
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