MOD003325: Amazon Ethics Report - Business Ethics and Management

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This report provides a comprehensive analysis of Amazon's business ethics, exploring the company's practices and their impact on various stakeholders. It begins with an introduction to business ethics and its significance, followed by a case study focusing on Amazon's operations. The report examines the perspectives of Amazon's CEO, employees, politicians, and consumers regarding the importance of ethics in the workplace. It highlights issues such as tax avoidance, employee working conditions, and environmental concerns. The main body delves into whether ethics should be a primary organizational priority, evaluating the viewpoints of each stakeholder group. The conclusion synthesizes the findings, emphasizing the critical role of ethical practices in business success and sustainability. The report concludes with recommendations for improving ethical conduct within Amazon, addressing areas such as consumer awareness, government regulations, and corporate responsibility.
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AMAZON ETHICS
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Executive Summary
The report developed below is over business ethics and management that is introducing a brief
introduction of business ethics and its importance in an organisation. A case study is used in the
report for identifying and evaluating the opinion of leaders, employers, politicians and customers
in relation to the priority and importance of ethics in workplace. Moreover, conclusion is
presented along with few recommendation as per the analysis conducted and suggesting the
promotion of ethical working within the company.
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Table of Contents
Executive Summary .......................................................................................................................2
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................5
DISCUSS WHETHER ETHICS SHOULD BE THE MAIN PRIORITY OF AN
ORGANISATION...........................................................................................................................5
Whether the CEO of Amazon thinks ethics should be the main priority of an organisation. 5
Whether the workers think ethics should be the main priority of an organisation.................6
Whether politicians think ethics should be the main priority of an organisation...................6
Whether consumers think ethics should be the main priority of an organisation..................7
CONCLUSION ...............................................................................................................................7
RECOMMENDATIONS.................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
Business ethics is defined a process of implying and applying respective business policies
and practices within the work environment and over controversial subjects and areas of work.
Factors or issues which are discussed over in the business ethics module are insider trading,
corporate governance, social and fiduciary responsibilities, discrimination and bribery. Business
ethics are important and essential for organisations and in workplace as it improves reputation of
business and leaving a long lasting impression over the public and in minds of customers.
Moreover, business ethics or ethical working renders best work environment to staff resulting in
employee retention (Trevino and Nelson, 2016).
The report is based on a case study of Amazon and its ethical practices. This is an
American multinational technology company that is operating with devices and technologies
focusing their operations on e-commerce, cloud computing, digital streaming and artificial
intelligence (AI). Amazon.com, Inc. commonly known as Amazon was founded in 1994 by Jeff
Bezos who is its CEO, Chairman and President, a public sector organisation which is
headquartered in Seattle, U.S.
The case study highlights over business ethics and working practices of Jeff, while
operating and managing the company. Through the case study reflects that amazon leader, CEO,
Chairman or President Jeff do not work ethically. As there are several laws and social regulation
violations performed while conducting operations. In many counties company has been involved
in tax avoidance charges and ill practices followed while working and managing workforce. Jeff
have created enemies due to tax avoidances and poor treatment of employees y making them
work long hours for fulfilling targets.
The report is developed over business law and ethics discussing over the practices used
by leader of Amazon Jeff Bezos and priority level of ethical working. Moreover, workers,
politicians and customers point of views are also evaluated in relation with amazon and its ethics.
Furthermore, at the end of the report after analysis few suggestions are provided in relation with
ethics, its importance and promoting ethical workings in organisation (Ciulla, 2020).
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MAIN BODY
DISCUSS WHETHER ETHICS SHOULD BE THE MAIN PRIORITY OF
AN ORGANISATION.
Whether the CEO of Amazon thinks ethics should be the main priority of an organisation.
The CEO of Amazon is Jeff Bezos, worlds richest man who established Amazon in 1994
in Washington. Amazon is a arch tax avoider and is boycotted by many ethical consumers. From
many researches and investigation it has been identifies that Amazon is the world's largest
revenue generating online retail store but paying the lowest taxes. Jeff the CEO, perform these
tax avoidances by funnelling money from its holing organisation in a tax haven Luxembourg
(Maniora, 2017).
Through researches many ethical issues of Amazon are determined and highlighted in
front of public. Accordingly, to these investigations it has been very evident that the CEO, Jeff
Bezos of Amazon do not believe in working ethically and ethics are not the main priority of
organisation. No ethics are followed in relation to several aspects of working such as:
People who are employees are facing long hours of working, unhealthy and unsafe work
environment and unfair wage or salary issues as well. Hundreds of ambulance call out,
even many pregnant women were forced to work by standing for 10 hours, bending,
stretching which caused miscarriages (Crane and et. al., 2019).
Animals are also harmed and injured, no policy made for materials being used in clothes
such as far, silk, wool and angora. Company do not prohibit the sale of such materials or
clothes made of them. On the other hand, Amazon's production involves killing and
exploitation of animals. This caused losing a whole mark in the Animal Rights category
by Amazon.
Environment, as well where Amazon have violated ethical practices and business ethics.
No records are present in company's sustainability report about the impacts it causes over
environment and society from it textile production and electronic goods. Moreover, no
information about the use of toxic chemicals in production despite it is a mandate for a
manufacturing brand to release several hazardous substances used in operations and
production which can have negative impact on environment and nature.
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Whether the workers think ethics should be the main priority of an organisation.
Another concerning issue which is highlighted in the case study about Amazon is poor
policies for workers, their wages and salaries, working condition and procedures. Workers are
the internal stakeholder of an organisation, executing all plans and strategies developed by
management into action and rendering prescribed outcomes to the company.
In Amazon workers are unhappy and unsatisfied with their pay, working conditions and
attitude of management towards them. Workers at all levels are facing such issues due to
unethical working practices carried out. Employees are not given appropriate pay according to
study, when Jeff was receiving Axel Springer Award 2018 for business innovation and social
responsibilities at the same time workers from Amazon was protesting outside for unfair working
polices and conditions followed in the workplace (Dierksmeier and Seele, 2018).
The protest and aggressive reactions of workers shows exactly their favour in ethical
business practices and working with the ethics and regulatory laws. It is the priority of workers
to have a safe, healthy and happy working environment in the manufacturing and office of
Amazon. People are protesting for overtime for which they are forced to work for meeting with
targets. Delivery staff is also suffering from the same problems of working in very low wages as
compared to industry averages. Even pregnant women are also forced to work more than 10
house by standing and bending again and again. Many female staff who were having babies have
to leave the job as few miscarriages took place.
Whether politicians think ethics should be the main priority of an organisation.
Government make rules and regulations for different industries flourishing in the market
and for businesses for the reason to have smooth running economy and growing significantly.
The politicians are the representatives of particular government who with their knowledge and
expertise makes rules by analysing the environment and other factors of the economy.
Therefore, it is apparent that politicians priority is that organisations work ethically and
efficiently as it automatically turn out to be good for the governments directly increasing revenue
generation through taxed paid by the business owners. Amazon is not working ethically as it is
one many large organisations who practice tax avoidance where they operates (Tormo-Carbó and
et. al, 2016).
Amazon's working actions are illegal and unethical, in 2016 company generated earning
of £24 million and paid taxes of £7.4 million. In the very next year, that is 2017 huge growth in
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figures shows up where they earned £72 million and tax payment reduced to £4.6 million.
Politicians called a boycott movement for Amazon products in 2012, company earned huge
amount of money and their tax payments were regularly decreasing. Amazon was lowering their
tax amounts by paying employees in shares and changing their income into a expense which
were later offset against corporation tax.
Whether consumers think ethics should be the main priority of an organisation.
Major stakeholder of a retail organisation is their customers who renders the success,
growth or failure to firm by choosing or neglecting their offerings. Consumers plays a vital role
in revenue generation and earnings of a company. Amazon has a large customer base dealing in
several large markets with most potentials and holding a unique competitive edge in the market
of cost leadership. The organisational policy of Amazon of being a cost leader and serving
customer the most satisfactory services and products in lowest prices have been affecting its
operational policies (Barry, 2016).
Company is creating enemies in countries they operate by not working with ethics and
tax avoiding and their employees are not happy as well as they are facing the worst conditions in
workplace while working. This has caused two categories of customers opinion over Amazon
and their priority for business ethics and practice. First group is of those who are in favour of
Amazon and their working styles as they are receiving goods in the cheapest price and fulfilling
their needs. On the contrary, there are those in public who have boycotted Amazon like
government due to their unfair practices and trade.
Consumers are spreading awareness in public who are in favour of company about the
lack of business ethics and action undertaken by Amazon. Customers preferences and
perceptions about company is changing. Their main priority is becoming to make purchases from
those brand which are operating sustainability and ethically rather than making decision by cost
factors (Werhane, 2019).
CONCLUSION
The above report is developed on business ethics and practices of organisation in relation
to the same concluding that ethics and ethical practices are must in today's world and scenarios.
Business ethics plays a major role in earnings, profits and revenue generation of the brand also
their sustainability of an organisation also depends upon it. Business ethics are the rules and
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regulations of entities which are integrated with laws developed by the government for running
the operations in specific market and an effective manner. In the report stakeholder prospective
analysis is conducted. At first the CEO's priority evaluation is performed concluding that the
management of the particular organisation do not focus over ethical practices. On the same side
workers and politicians analysis clearly stated their priority for ethical business laws and
operations. Moreover, lastly a major stakeholder that is customers evaluation is conducted where
mixed results are gathered few consumers entirely boycotted the products and service of
organisation but others are still attracted due to a mail element is cost and service satisfaction.
RECOMMENDATIONS
Business ethics is must to be followed by the organisations dealing in market for the
benefits of all stakeholders and for company as well. Amazon is not working ethically, its CEO,
Jeff Bezos also do not consider healthy and ethically working should be the priority of
organisation. But through researches and studies it is identified that ethically working practice
are essential to be followed by businesses in order to be efficient fulfil their goals and objectives.
Few recommendations are as follows:
To Customers- It is becoming essential for consumers to be aware and gain knowledge
about the brands before making their purchase decisions. Because in unethical practices
of Amazon its customer base was somewhere supporting it. These practices needs to be
stopped, people are required to be informed and kept informed. Even consumers have to
take initiatives themselves to do so and have to be ethical enough to think about the staff
who is suffering for keeping them satisfied and complete their needs (Abend, 2016) .
To Government- Another stakeholder who can make a difference is government and
politicians. They are the one responsible for developing new laws and regulations which
are ethical and in favour to all the parties business, customers, employees, suppliers and
other third parties as well. Politicians and government officials have to take strict actions
against Amazon's practices and the harm it is causing to mental and physical heath of
employees, to the environment and to the economy as well.
To Employees- Workers who are actually suffering both physical and mental torture
were operational level staff, the managerial staff was suffering through the metal pressure
of meeting the targets. It is the obligation and sense of responsibility of higher level
executives and managerial personnels to oppose against these unethical and unfair
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policies of Amazon. The higher staff needs to raise their voice and work for bringing a
change in company and its practices and most importantly working conditions which are
provided to workers at the lower level (Hicks, 2018)).
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REFERENCES
Books and Journals
Abend, G., 2016. The moral background: An inquiry into the history of business ethics (Vol. 60).
Princeton University Press.
Barry, N., 2016. Business ethics. Springer.
Ciulla, J. B., 2020. The importance of leadership in shaping business values. In The Search for
Ethics in Leadership, Business,
Crane, A. and et. al., 2019. Business ethics: Managing corporate citizenship and sustainability in
the age of globalization. Oxford University Press, USA.
Dierksmeier, C. and Seele, P., 2018. Cryptocurrencies and business ethics. Journal of Business
Ethics. 152(1). pp.1-14.
Hicks, S. R., 2018. Ayn Rand and contemporary business ethics. Perspectives on Ayn Rand's
Contributions to Economic and Business Thought, p.239.
Maniora, J., 2017. Is integrated reporting really the superior mechanism for the integration of
ethics into the core business model? An empirical analysis. Journal of Business Ethics.
140(4). pp.755-786.
Tormo-Carbó, G. and et. al, 2016. How effective are business ethics/CRS courses in higher
education?. Procedia-Social and Behavioral Sciences. 228. pp.567-574.
Trevino, L. K. and Nelson, K. A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Werhane, P. H., 2019. The normative/descriptive distinction in methodologies of business ethics.
In Systems Thinking and Moral Imagination (pp. 21-25). Springer, Cham.
Online:
Amazon.com. Inc, 2020. [Online] Available Through:
<https://www.ethicalconsumer.org/company-profile/amazoncom-inc/>
Amazon could give the world a gift on its 25th birthday – by paying more tax, 2020. [Online]
Available Through: <https://www.theguardian.com/business/2019/jul/07/amazon-25th-
birthday-jeff-bezos/>
Jeff Bezos responded to reports of poor working conditions at Amazon — here's what he said,
2018.[Online] Available Through: <https://amp.businessinsider.com/jeff-bezos-
responded-to-reports-on-amazon-warehouse-working-conditions-2018-4/>
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