Ethical Issues Faced by Amazon: Tax Avoidance and Unhealthy Working Conditions

This assignment discusses the ethical issues faced by Amazon, including tax avoidance and unhealthy working conditions. It explores the impact of these issues on the brand image, sales, and profitability of the company. Recommendations are provided to address these issues and prioritize business ethics.

Academic and
Professional Skills
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EXECUTIVE SUMMARY
Business ethics is the study of how business should perform in the face of ethical
predicaments and divisive conditions. It is a broad areas as there are several kind of topics that
within its umbrella. It can be values, customs, beliefs, principles and guidelines of operating and
conducting a business in a particular business sector. This assignment is based on ethical issues
that are based by Amazon in its business regarding tax avoidance, unhealthy and unfair working
conditions. Cause of these complexities, the brand image, marketing position, sales, productivity
and profitability of firm affect in unfavourable manner.
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Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................5
CONCLUSION................................................................................................................................7
RECOMMONDATIONS................................................................................................................8
REFERENCES................................................................................................................................8
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INTRODUCTION
Business ethics refers to the examination of effective business policies and activities
towards potentially divisive subjects considering corporate governance, insider trading,
corruption, discrimination, corporate social accountability and fiduciary accountabilities. The
law often guides business ethics, but at other times business ethics offer a basic guideline that
business can select to follow to earn public approval (Heustis and et. al., 2019). Business ethics
assure that a certain basic level of trust exists among target audiences and several forms market
contributors with businesses. Business ethics goes away from just a moral code of right and
wrong, it tries to settle what organisations must of lawfully versus managing a rivalry benefit
over other businesses. Business ethics is beneficial in organisation as with the help of it,
employees make effective determinations in less time. It increases productivity and overall
workers morale and when manpower accomplishes work in a form that is supported on honesty
and integrity, the entire firm advantageous.
This written report is based on Amazon which is the world’s biggest retail sector company
and operates its business globally. The success of the business is contaminated by the reputation
of CEO of Amazon Jeff Bezos. The business activities of person have been making enemies of
the nations in which the firm runs cause of tax avoidance and manpower due to treating poorly
and until currently paying below the living wage. The respective establishment is one of many
large organisations who practice tax avoidance in nations where they exist. Tax avoidance is not
illegal but several include it to be unethical. Other complexity of serious concern is the
dangerous working situation of Amazon warehouse employees regarding heath issues and
injuries. For this, within the three year period there were 118 ambulance call outs whereas Tesco
also has its warehouse nearby it and within the same time duration there were 8 call outs
(Beagon, 2018). The main of the report is implement business ethics and law so that organisation
operates effective by offering good working condition to employees.
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MAIN BODY
Business ethics indicates to the system of moral principles and regulations of the conduct
applied to business. It refers to those practices that are used and implement in the business for the
effective, ethical and legal operations of enterprise. In Amazon, there are several issues like tax
avoidance and unhealthy working conditions etc. faced by the firm due to lack of business ethics.
By following and implementing effective business laws and ethical considerations, the venture
can operate its business in better form and offering healthy and fair workplace to manpower.
In Amazon, the CEO of the company has spent half of his life inventing and revolutionising
e-commerce. In 2018, the respective venture faced several issues that affect the business of the
firm and influence its image (Keevy, 2020). Tax avoidance is one of the main issues which is
faced by the firm in term of making profit maximisation. Taxes are crucial and when the ultra
wealthy are not paying them, they are even more essential. In US Amazon also hardly pays any
federal income tax both through neglecting booking any profits for years, instead investing
everything back into the business and through aggressive tax planning. These kinds of
complexities will affect the business of organisation in term of depriving the enterprise from
government benefits and paying the charges for this unethical activity. This negatively affects the
brand image and reducing sales as well as affecting economic condition of establishment. Bezos
is a good business leader and operate the business of respective firm in effective manner so the
person should also consider ethics as major priority of enterprise in term of performing its
business activities and operations in crucial manner. It will also assist in reducing conflict and
also assist in offering or providing governmental support. Among public allegation that have
been levelled against CEO are those that the individual has skirted sales taxes while concurrently
gathering billions in findings from the US Post office and there are not off the mark. For
effective brand image and long term business sustainability, the person should take decision and
frame ethical policies in term of paying tax. This venture operate its business globally so Bezos
think about ethics of firm and prioritise them so the organisation can operate in successful
manner by having large customer base, loyal employees and customers (Wozniak, 2019). BY
making focus on business policies, the CEO can make development and progress in the business
of Amazon.
Along with this, the company face another issue of unethical and unfair working condition.
Due to this complexity the employees of respective venture influence unfavourably. Despite
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being a large retail company with a CEO who is literally the richest man in the world, in the US
Amazon also ranks greatly on the list of employers with large number of warehouse employees
joined in SNAP. The workers are suffering with the issues of dangerous working situations,
health and injuries problems, low wages, more working hours and unreasonable delivery target
etc. The respective enterprise has not policy and plan on living wage and devises no mention of
wages being enough to cover employees’ basic needs and requirements in their provider code. In
2018, when the respective firm announced that it would finally be increasing wages for
warehouse employees, there are still several problems for those who take these obs. Numerous
reports can be identified that manpower pressed to accomplish high targets, subjected to severe
breaks and a frightening working atmospheres, determined automatically and worried that not
meeting targets will outcome in instantly losing their employments (Beagon, Niall and Ní
Fhloinn, 2019). Individual talk about peeing on bottles out of fear of being regimented or
terminated for wasting time going to the toilet, to the point where workers purposely determine
not to drink water so they do not have to pee during working.
This kind of unhealthy working situation affect employees unfavourably in term of
illness, health issues and may more. The employees of respective company are in favour of
making and framing effective laws and polices for employees regarding working hours, wages,
health and safety and good or effective working condition. If the management of respective
venture priorities ethical considerations in business then employees can make their better
execution in term of performing business activities and operations. In term of employees’
treatment, the enterprise should consider employment law, equality, law health and safety law in
term of offering a healthy workplace where manpower can use their all efforts and effectiveness
so that they can make their appropriate contribution in growth and development of business.
Due to these kinds of issues and ethical complexities, politicians like Jeremy Corbyn and
Donald Trump also viewed that the company has come under attack for tax avoidance form both
sides of the political spectrum with criticism. If the management of respective venture will not
consider business ethics then it will negatively affect the establishment operations in local and
global business environment. The venture will pay fine or penalty for these kinds of activities
and actions. Along with this, the CEO takes decision regarding that rules and policies which
prioritise business ethics and offering a good workplace to manpower so that they will not face
any kind of issues in warehouse during product packaging and delivering of them (Tan and
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Laswad, 2018). They should offer safe and healthy workplaces follow diversity ad inclusion,
offer equal opportunity, freely chosen employment and employee communication. This will help
in offering a good marketing position and improving brand image of enterprise in business
environment.
There are number of aspects and components play an important part in making a business
profitable, considering expert administration groups, dedicated and productive manpower,
consistent target audiences need and a careful watch over the bottom line. Along with this, these
well known business activities, enterprises that implement an administration philosophy that
relies heavily on business ethics are proven to be more successful than those that run in an
unethical form. Amazon has wide range of consumer and a strong customer base. The target
audiences think that business ethics should be main priority of business and enterprise as if the
firm operate its business in ethical and regulative form then the productivity of the firm will
improve (Smith and et. al., 2019). The employee will make their effective involvement in
producing products and services as per consumers needs. If the establishment will not offer good
wages and safety and security, healthy workplace then working and productivity of manpower
will influence in unfavourable manner and the organisation will not be able to satisfy consumer’s
needs. It will create unfavourable impact over sales, customer base, profit, productivity as well
economic condition of company. If the enterprise will not consider business ethics the business
performance will also influence in negative manner. These all points are making focus on the
adoptability and acceptance of business ethics in Amazon in term of effective business position,
growth, sustainability and survival etc.
CONCLUSION
This has been summarised from the above defined data that business ethics refers to those
laws and regulations that are followed and adopted by a business enterprise for the effective
running and business operations of company. Because by following or implementing appropriate
policies, it can operate in better manner. It is crucial for healthy working environment,
development in business, retaining employees and motivating them so that they can execute their
assigned work in better form and make improvement in business operations and sustainability.
Business ethics help in defining the right and wrong in business operations and gaining
competitive benefits.
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RECOMMONDATIONS
As per motioned content, it can be acknowledged that there are several kinds of complexities
related to business and working conditions are faced by Amazon. The company face problem of
tax avoidance, unethical working circumstance, unfair and unhealthy workplace, and wages
related issues etc. These types of complexities affect the business of business respective
enterprise in unfavourable manner in form of employees’ turnover, reducing sales and
profitability. In context of it, there are some recommendations and suggestions that can help in
overcoming these issues. The description of them as under:
 To deal with tax avoidance issues, the management of organisation should provide clear
information of rules of tax evasion to all staff. Along with the firm also plan an effective
tax planning structure and encourages manpower to report any suspicion of tax evasion or
other fiscal issues.
 By following effective components of employment law like equality act, health & safety
act, wage act, discrimination act and many more to create a healthy and friendly working
environment to employees.
 Flexible working option is also an effective option that can be provided to manpower as it
helps in encouraging workforce and they execute their task per them. It will also assist in
improving productivity of enterprise.
 By offering medical facilities to workers like life, health and disability insurance, medical
check-ups, sick leaves and many more will help in retaining employees and make their
effective contribution in growth and success of business venture.
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REFERENCES
Books & Journals
Heustis, R.J. and et. al., 2019. Embedding academic and professional skills training with
experimental-design chalk talks. Nature Biotechnology, 37(12), pp.1523-1527.
Beagon, U., 2018. The Academic Perspective: A Study of Academic Conceptions of the
Importance of Professional Skills in Engineering Programmes in Ireland.
Keevy, M., 2020. Core subjects in accounting academic programmes: Development of pervasive
skills. South African Journal of Accounting Research, pp.1-21.
Wozniak, S., 2019. ENGLISH FOR ACADEMIC PURPOSES AND THE ENHANCEMENT
OF FRENCH TRAINEE CONTENT TEACHERS’PROFESSIONAL SKILLS. Journal of
Teaching English for Specific and Academic Purposes, pp.341-352.
Beagon, Ú., Niall, D. and Ní Fhloinn, E., 2019. Problem-based learning: student perceptions of
its value in developing professional skills for engineering practice. European Journal of
Engineering Education, 44(6), pp.850-865.
Tan, L.M. and Laswad, F., 2018. Professional skills required of accountants: what do job
advertisements tell us?. Accounting Education, 27(4), pp.403-432.
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Smith, K. and et. al., 2019. The relationship of academic indicators and professional disposition
to teaching skills: A secondary data analysis. Administrative Issues Journal: Connecting
Education, Practice, and Research, 8(2), pp.106-118.
El Tantawi, M., Sadaf, S. and AlHumaid, J., 2018. Using gamification to develop academic
writing skills in dental undergraduate students. European Journal of Dental Education, 22(1),
pp.15-22.
Aslam, M., 2018. Current trends and issues affecting academic libraries and leadership
skills. Library Management.
Sarapaivanich, N. and et. al., 2019. Factors Affecting the Need to have Accounting Technical
Competence, Professional Skills and Professional Values, Ethics, and Attitudes–The Case of
Thailand. AJBA, 12(1), pp.71-96.
Online
Amazon.com Inc. 2020. [Online]. Available Through:
<https://www.ethicalconsumer.org/company-profile/amazoncom-inc>.
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