Ethical Dilemma Analysis: Amazon's Tax Practices and Business Ethics

This case study examines the ethical dilemma faced by Jeff Bezos, the CEO of Amazon, concerning the company's tax avoidance practices. The assignment analyzes whether Amazon's actions, which involve utilizing tax credits and exemptions to minimize its tax obligations, are ethically justifiable. The analysis employs Kantian ethics, evaluating the morality of the actions based on the principles of goodwill and moral law. The paper argues that, from a Kantian perspective, Amazon's avoidance of federal income tax, despite generating significant profits, is morally questionable because it goes against the principle of contributing to the welfare of society, which is supported by tax revenues. The study references relevant sources and highlights the conflict between legal tax avoidance and ethical responsibilities, particularly in the context of corporate social responsibility.

Running head: ETHICAL DILEMMA
ETHICAL DILEMMA
Name of the Student
Name of the University
Author Note

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Ethics can be considered to be a primary aspect of the business and all the corporate
leaders of the twenty first century are at some point of time faced by an ethical dilemma. Hence,
in relation to this, it can be understood that, they are answerable to the different members of the
society and hence, they must try to take the right decision. The discussion is based on the ethical
dilemma faced by Jeff Bezos, the CEO of Amazon and the revenue which the company earns
(Hiddenphilosophy.com ,2018). Recently, the morality of the leader has been under question and
this is due to the tax avoidance scenario. It can be considered to be an ethical issue because a
business runs for the welfare of the society and it is through these taxes that the government
tends to run the welfare programs of the different members of the society and tax evasion is an
ethical crime.
To make a judgement whether the decision which has been taken by Bezos is ethical or
not, the Kantian moral ethical theory will be made use of. According to the Kant`s theory, a
good action can be considered to be the one which is based upon goodwill and is not motivated
by the external rewards or the pleasures (Velasquez & Velazquez, 2002). In line with this, as per
the Kantian ethics, an action is deemed to be good if the motivation behind it is done on the basis
of the moral law. Jeff Bezos made a profit of $5.6 billion in 2017 and did not pay income tax.
The company made use of a variety of tax credits and the tax exemptions in a manner such that
they could get into the U.S Federal Tax code. Moreover, various advantages in the line of the
Supreme Court cases have prevented the states from collecting the sales tax from various e-
commerce companies.
Most of the tax exemptions can be understood to be legal in nature but their moral
connotation remains unclear. According to the Kant theory, this is incorrect as 325.7 million
people paid the federal income tax and so could the firm. This is for the overall benefit of the

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country and hence, based on the Kant`s perspective, Amazon`s avoidance of the tax can be
considered to be wrong.

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References
Hiddenphilosophy.com (2018). Is Jeff Bezos acting morally [online]. Available at:
https://hiddenphilosophy.com/2018/07/08/is-jeff-bezos-acting-morally/ (Retrieved on: 17
Aug. 2019).
Velasquez, M. G., & Velazquez, M. (2002). Business ethics: Concepts and cases (Vol. 111).
Upper Saddle River, NJ: Prentice Hall.