Report on Ethical Issues and Risks Faced by Amazon, ISY3001

This report delves into the ethical dilemmas and potential risks Amazon encounters while implementing its eCRM system. It examines the ethical considerations surrounding the storage and usage of customer data, emphasizing principles such as customer consent, data access, and deletion policies. The report highlights the importance of data security and privacy, referencing the need for restricted access and adherence to regulations. Furthermore, it explores the risks associated with eCRM implementation, including difficulties in implementation due to planning failures and data distribution, high costs, and the potential for over-automation. The report concludes by emphasizing the need for companies like Amazon to carefully consider these ethical issues and risks to ensure responsible and effective eCRM practices.

Ethical issues and risks faced by Amazon 1
Ethical issues and risks faced by Amazon
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Ethical issues and risks faced by Amazon 2
Ethical issues that Amazon may have faced while implementing the eCRM
Storage of CRM data
When customer’s personal data is saved in the company’s database, it’s ethical for the
companies to follow the four principles in relation to data storage (Aggarwal, 2018, p.56).
Aggarwal, (2018), states these principles as follows, first the storage of data happens only under
customers agreement, secondly, customers need to have access to their data, alter it or ask for it
to be altered on their behave. Thirdly, leaving from the program ought to be possible at customer
will and such leaving leads to the deletion of their data from the system. Therefore, the ethics
here is that data belongs to the buyer and the buyer has authority over his data.
Usage of CRM Data
Because of the sensitivity of customers’ data, companies that are ethical like Amazon
have to ensure that customer’s data is stored privately and is highly secured (Fang, Wen, George,
and Prybutok, 2016, p.116). Fang et. al (2016) explains that for this to be realized, data stored in
companies has to be under high security where it is not easily accessible. Reference to the data
should only be made when there is an important need for the accomplishment of eCRM duty,
and only limited to the workers that can do private data handling in completing the actions that
are in a position of accessing the data. Fang et. al, further states that in scenarios where the sub-
suppliers want to use the data, they have to adhere to the regulations similar to CRM company
regulations.
CRM data organizing

Ethical issues and risks faced by Amazon 3
Due to the fact that customers are in a position to leave the CRM program, and because
their information is deleted, there is a required procedure of data destruction when it’s no longer
needed (Lima, and Pacheco, 2019, p. 26). Because erasing the data from the database is good
because it leaves the database secure, but data on the equipment that changes status is at risk
(Lima, and Pacheco, 2019, p. 26). This becomes an ethical issue and therefore an ethical
company like Amazon has to have methods and ways of tracking and doing away with such type
of information and maintain correct recording for such activities.
Risks that Amazon may have faced while implementing the eCRM
Not easy to implementation
Rainer et. al, (2013) explains that electronic customer relationship management systems
are capable of being difficult to put into operation. This is influenced by various factors. This
consists of; failure to plan and have a good thought on CRM initiative (Rainer, Cegielski,
Splettstoesser-Hogeterp, and Sanchez-Rodriguez, 2013, P. 42). According to Rainer et. al,
(2013), data needed to do the implementation is distributed widely across different formats
which is hard to get. The efforts of getting the needed system incorporated are blogged down and
also technological infrastructure requirements are undervalued.
It incurs high cost
It’s cannot be doubted that that eCRM requires its reputation for being costly to put into
operation and retain (Moorthy et. al, 2015, p.74). According to Moorthy et. al, (2015), It doesn't
matter if an organization develops its own solution, or by what it regards as the best-of type
applications from different dealers, expenditure can easily rise to many hundreds or thousands of

Ethical issues and risks faced by Amazon 4
dollars. Therefore a lot of preparations inform of planning and researching lower a lot of costs.
Due to this risk, Amazon might have suffered cost in the implementing of eCRM system.
Risk of Over-automation
Systems for self response, self-service websites, and other innovative technologies are at a major
progression (Turban, et. al, 2017, p.78). Nevertheless, CRM’s objective is bringing the
organizations nearer to the clients and never to distance them. Sometimes calling and talking to
the sociable voice of a salesperson are some of the customer’s needs in purchasing a product.
Therefore, the organizations that are employing CRM approach and facilitating technological
advancement ought to be alert in applying technology to a level where it gives back negative
feedback. Therefore, this becomes a risk to the company that is implementing eCRM system in
their business and in this case Amazon.

Ethical issues and risks faced by Amazon 5
List of References
Aggarwal, A.K., 2018. Next Generation Computing Applications in Business. P. 56
Fang, J., Wen, C., George, B. and Prybutok, V.R., 2016. Consumer heterogeneity, perceived
value, and repurchase decision-making in online shopping: the role of gender,
age, and shopping motives. Journal of Electronic Commerce Research, 17(2), p.116.
Lima, A. and Pacheco, J., 2019. New Trends and Tools for Customer Relationship: Challenges in
Digital Transformation. In Educational and Social Dimensions of Digital Transformation
in Organizations (pp. 1-26). IGI Global.
Rainer, R.K., Cegielski, C.G., Splettstoesser-Hogeterp, I. and Sanchez-Rodriguez, C.,
2013. Introduction to information systems. John Wiley & Sons, P. 42.
Moorthy, J., Lahiri, R., Biswas, N., Sanyal, D., Ranjan, J., Nanath, K. and Ghosh, P., 2015. Big
data: Prospects and challenges. Vikalpa, 40(1), pp.74-96.
Turban, E., Outland, J., King, D., Lee, J.K., Liang, T.P. and Turban, D.C., 2017. Electronic
commerce 2018: a managerial and social networks perspective. Springer, p.78.