The report discusses the unethical practices of Amazon and their negative impact on society. It analyzes the perspectives of various stakeholders and provides recommendations for promoting ethics in the organization.
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Unethical practice of Amazon
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Executive summary The report is based on a case study of Amazon that has incorporated unethical practices that have negatively impacted on society. It has discussed and analysed about perspective of various people such as customers, employee, CEO and health and safety officer thatethical practicesneedtobeprovidedpriorityornotintheorganisation.Finallyprovidea recommendation about the way ethics can be promoted in the firm for effective achievement of goals.
TABLE OF CONTENTS INTRODUCTION...........................................................................................................................4 MAIN BODY..................................................................................................................................4 Analysis...........................................................................................................................................4 Whether CEO of Amazon organisation thinks that ethics should be main priority of firm........4 Worker of Amazon think ethics should be priority of organisation............................................5 Health and Safety officer think that ethics should be main priority of firm................................6 Consumers also think ethics should be most important aim of organisation..............................6 CONCLUSION................................................................................................................................7 RECOMMENDATION...................................................................................................................8 REFERENCES................................................................................................................................9
INTRODUCTION Business Ethics are moral values, principle that guide and assist individual about activities that are right and wrong so that no harm can be caused to other person living in society or interest stakeholders. Business in order to build and maintain strong brand image in market have to follow ethical principle and moral values so that wants of all interested stakeholders can be fulfilled in best possible manner. Unethical practices of business have an adverse impact on satisfaction level of customers as well as employees that may create lot of challenges on effective operation of business. Business ethics is also important as it helps in attracting existing as well as new customers to prefer specific company rather than other competitors thus contribute in effective growth and success of enterprise. This report is about unethical practices of Amazon whose founder is Jeff Bezos that is richest man in world. It have put lot of pressure on employees regarding time delivery of large number of products and services that has adversely impacted overall health and well being of employees. Company has put insufficient efforts for health and safety or wellbeing of employees as there were 118 ambulance call in three year period. On the other hand Tesco is another one of the huge retailer company that have similar warehouse despite that there were only 8 call outs so it can be stated that Tesco have emphasis more on well-being of individual as compared to Amazon. So, it can be stated that main aim of report is to understand about importance of ethical practices in growth and sustainability of business for longer period of time. In this report discuss about whether ethics should be main priority of organisation or not thus on the basis of that suggest few steps that can be taken by top level management for growth and success of enterprise. MAIN BODY Analysis Whether CEO of Amazon organisation thinks that ethics should be main priority of firm It can be critically analysed and evaluated from above case study that CEO of Amazon has not taken crucial steps to ensure that ethical practices have been followed by enterprise or not. Despite of so many case and ambulance call within organisation founder of Amazon that is Jeff Bezos have not taken crucial safety measure for health and safety of people. Employees of company are suffering from poor treatment and injuries that lead to more and more labour turnover and chance of absentees (Sutrop and Lõuk, 2020). The founder has only focused on 4
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increasing profit margin, market share and brand image of firm rather than health and safety of employees. It can also be stated that company in order to reduce its overall cost, increase its production so that wants of diverse individual can be meet it have forced employees to work overtime. Standard working condition was not provided by CEO Amazon that leads to number of death and injuries to employees. Company have recruited Chinese worker on temporary basis and forced them to work for it for more than 100 hours per month which was illegal as per law. There were many miscarriage and pregnancy issue in firm that were ignored by CEO of Amazon in order to achieved organisational objectives. Therefore place of work is most dangerous for employees to work despite knowing all such situation Jeff have not taken any initiative for better health and safety as it main aim was to increase profitability of firm (Aifuwa, Embele and Saidu, 2018). It can also be stated that firm have used toxic chemical and hazardous substance in manufacturing of products and services which have negatively impacted on health and safety of customersandenvironment.So, it canbe analysedthatCEOhasalwaysprioritisedits profitability rather than ethical practices that have reduced overall employees and customer satisfaction within firm. Worker of Amazon think ethics should be priority of organisation Yes, it can be illustrated from case study of Amazon that employees thinks that ethics should be prioritised by company in order to grow and expand its business for longer period of time. Many workers because of unethical practices of company have to suffer from injuries and poor treatment that have impacted on satisfaction level of individual. Many of talent, skilled and qualified employees have left Amazon because they were pressurised to work for 10 hours per day which was against the rule of law. At the same time they were not given payment for overtime which have effected on their motivation and satisfaction level to put best efforts for growth and expansion of company. Managers have never encouraged employees to share their respective problem, ideas thus most of the employees feel dissatisfied and unhappy to work with firm (Westermarck, 2017). They are always forced to do more work than their capabilities or actual salary at the same time were given poor working environment so they does not feel secured and motivated to being a part of such a huge company. Therefore as per perspective of employees or workers of Amazon it needs to take active part in implementation of ethical practices within firm so that no harm can be caused to employees. Company by incorporating ethical practices can increase in overall output and level of customers satisfaction as employees 5
will be more motivated and inspired to work for organisation that give priority to ensure health andsafetyofvariousindividualsuchasemployees,customersratherthanincreasing profitability. It can also contributed in decreasing overall cost to recruit or hired new employees for performance of task as maximum number of people will like to work with firm that provide safe, friendly and healthy environment to work (Ibiricu and van der Made, 2020). So, it can be stated from above analysis that as per workers organisation need to focus on ethical practices to retain employees and customers loyalty within firm. Health and Safety officer think that ethics should be main priority of firm The above case illustrated that health and officer have not take enough safety measure for employees that can protect form vulnerable situation to them within organisation. Negligence of health and safety officer related to safety precaution and well-being of individual have lead to more than 118 ambulance call that was much more higher as compared to other retailer super stores. Health and safety officer despite knowing that worker are forced to work overtime that is more than 10 hours would adversely impact on their overall health have not take any steps to eradiate or remove problem. Many workers are forced to work in bad working environment or given poor treatment which has impacted on physical and their mental health (Hara and et.al., 2018). There are various toxic chemical have been used in manufacturing of clothes that impacted adversely on environment and health and safety of individual. Thus, health and safety officerdespite of havingvariousinformationabout unethicalpracticeswhichhave been promoted in firm have not taken crucial measures which shows that it ethics should not be priority of firm. But as so many cases and health and safety issue to employees that work in Amazon the health and officer stated that company in order to retained employees and brand image in competitive market have to implement or plan strategies to provide safe and secure working environment to employees. Unethical practice and present of toxic material in products and services of Amazon have decreased customer’s satisfaction. Therefore health and officer thinks that company in order to grow and survive its business have to incorporate ethical values and safety, security of individuals. Consumers also think ethics should be most important aim of organisation Consumers are most important for any organisation as it perform different functions, activities to satisfy their respective needs in order to earn specific amount of profit margin. 6
Amazon have large number of customers that are living across country having different level of education, taste, culture, preference and interest. Due to digital technology and use of social media both consumer and government are aware about increasing number of unethical practices that impacted on overall society and growth of economy. There are many large firms which in order to earn profit exploit worker to work overtime so that it can enjoy maximum amount of profitability and market share. So, most of the customers like to prefer companies that operates its function while considering various ethical practices so that no harm can be caused to other people living in society (Tavani, 2016). People by knowing unethical practice of Amazon have reduce their purchasing form company as it have not followed ethical steps that have impacted on employees and individual well-being. Customers that follow ethical principle criticized activities of Amazon as vulnerable and curial as company have not pay attention for health and safety of employees and have forced them to work overtime for personal gains. People by knowing that company have not provided good working environment and forced them to work more time in limited or less amounted of wages have changed their preference regarding purchased to be made with Amazon (Amazon com. Inc,2019). As per most of people Amazon need to give respect, recognition, appropriate wages and ensure health and safety of employees while operating its different function. It should not use materials that are harmful to environment as they indirectly affect on health and safety of various individuals. Therefore customers thinks that company need to prioritise ethical practices in order to grow its business operation and attract more individual to be a part of company. CONCLUSION It can be concluded from above analysis and discussion that ethical are moral values which need to be followed by every enterprise to retained satisfaction level and loyalty of large number of individuals. Amazon have followed unethical practices such as payment of less wages to workers, offering poor working environment and less safety measure were taken for employees in order to increasing profitability of organisation. So, it can be stated that Amazon for its personal gain have caused threat to life of number of people which is not correct therefore in order to sustain its business and gain customers satisfaction it need to follow ethical practices. Company have to investment its capital in Corporate social responsibilities as well as make changes in its operation for better well-being and health and safety of employees and customers. 7
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RECOMMENDATION On basis of various ethical issue of Amazon discussed above some of the suggestion or recommendation can be illustrated below for effective growth of enterprise and increasing in profit margin. Such as: Jeff Bezos need to take prioritized ethical practice rather than increasing profitability of company as if it focused on ethical value and moral principle than most of the customers directlyinfluencetopreferredAmazonproductsascomparedtoanother (Swisher,2018). On the other hand if company continuous to use toxic material and exploit people than it will create threat on long term growth and success of firm. As per worker company need to improve its infrastructure of warehouse or provide open and safe, secure place where they can work effectively. It should also provide attractive incentives, bonus for over time and equal wages to employees for their hard work. At the same time it should reduce amount of work pressure so that they can be work with organisation for longer period of time. Healthandsafetyofficerneedtoconductanalysisandevaluationofworking environment and number of cases so that solution or remedies can be founded to avoid injuries or any crucial accidents within firm. Various safety measure need to be taken and working hour need to be fixed so that employees cannot be exploited to work more than 8 hours in a day for better mental and physical health. Companyinordertomeetcustomers’needshavetoensurethatproductsare manufactured with no or minimum use of toxic material that cause harm to them as well as resources of environment (Porcena, Parboteeah and Mero, 2020). At the same time it need to value and respect employees of company as unhealthy condition provide to them lead to injuries or death so such bad practice need to be removed to retained customers loyalty for long run. 8
REFERENCES Books and Journals Aifuwa, H.O., Embele, K. and Saidu, M., 2018. Ethical accounting practices and financial reporting quality.EPRA Journal of Multidisciplinary Research,4(12).pp.31-44. Hara, Kand et.al.,2018, April. A data-driven analysis of workers' earnings on Amazon Mechanical Turk. InProceedings of the 2018 CHI Conference on Human Factors in Computing Systems(pp. 1-14). Ibiricu, B. and van der Made, M.L., 2020. Ethics by design: a code of ethics for the digital age.Records Management Journal. Porcena, Y.R., Parboteeah, K.P. and Mero, N.P., 2020. Diversity and firm performance: role of corporate ethics.Management Decision. Sutrop, M. and Lõuk, K., 2020. Informed Consent and Ethical Research.Handbook of Research Ethics and Scientific Integrity, pp.213-232. Swisher,K.,2018.AccountingStudentsEthicsEducationandEthicalBehaviorinthe Workplace: A CaseStudy(Doctoral dissertation, Northcentral University). Tavani, H.T., 2016.Ethics and technology. Wiley. Westermarck, E., 2017.Ethical relativity. Routledge. Online Amazoncom.Inc,2019,[Online].AvailableThrough <https://www.ethicalconsumer.org/company-profile/amazoncom-inc>. 9