Amazon's Unethical Practices and Business Ethics: A Case Study Report

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AI Summary
This report delves into the unethical practices of Amazon, focusing on the company's treatment of employees and its impact on health and safety. The report examines the perspectives of various stakeholders, including customers, employees, the CEO, and health and safety officers, to determine whether ethics should be a primary concern for the organization. It analyzes the company's prioritization of profit over employee well-being, highlighting issues such as poor working conditions, excessive overtime, and the use of hazardous materials. The report concludes by emphasizing the importance of ethical practices for long-term business sustainability and recommends specific actions Amazon can take to improve its ethical standing, including prioritizing ethical practices, improving working conditions, and investing in corporate social responsibility initiatives.
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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 that ethical
practices need to be provided priority or not in the organisation. Finally provide a
recommendation about the way ethics can be promoted in the firm for effective achievement of
goals.
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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
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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
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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
customers and environment. So, it can be analysed that CEO has always prioritised its
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
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will be more motivated and inspired to work for organisation that give priority to ensure health
and safety of various individual such as employees, customers rather than increasing
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
officer despite of having various information about unethical practices which have 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.
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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.
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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
directly influence to preferred Amazon products as compared to another
(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.
Health and safety officer need to conduct analysis and evaluation of working
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.
Company in order to meet customers’ needs have to ensure that products are
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.
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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, K and et.al., 2018, April. A data-driven analysis of workers' earnings on Amazon
Mechanical Turk. In Proceedings 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. Accounting Students Ethics Education and Ethical Behavior in the
Workplace: A CaseStudy (Doctoral dissertation, Northcentral University).
Tavani, H. T., 2016. Ethics and technology. Wiley.
Westermarck, E., 2017. Ethical relativity. Routledge.
Online
Amazon com. Inc, 2019, [Online]. Available Through
<https://www.ethicalconsumer.org/company-profile/amazoncom-inc>.
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