Case Study for Ethics: Amazon Limited PDF

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Case Study for Ethics: Amazon.
It includes the working environment of Amazon workers during the pandemic. The legal action taken by the government....

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Case Study: Amazon

Introduction: Ethics is extremely important not just abiding by the law; thus, it comprises values that influences an organisation in their decision making. Amazon.com Inc is the largest ecommerce establishment founded in the US in 1994, by Jeff Bezos. The company focuses on online retail shopping, technology services, and digital distribution. Although, it began as a bookseller and now, has a net worth of $1.7 trillion (Lerma, 2021) empire providing cloud computing and artificial intelligence. The purpose of this essay is to show the society how multinational businesses operate unethically and treat their employees behind the scenes.

Analysis: During the Covid-19 pandemic, Amazon has been subject to negligence to meet numerous ethical standards which incorporate terrible working conditions and their treatment of their employees. Although, it has increased with the ongoing pandemic in which the demand for Amazon’s delivery services figures has skyrocketed and forcing their drivers to work unrealistic hours with little compensation (Lotz, 2020). Furthermore, the ethical dilemma faced by Amazon is whether to focus on large amounts of criticism or lawsuits received over their treatment of warehouse workers. In 2020, 1,500 workers signed a petition calling for better treatment such as to offer subsidies and improve working conditions through providing enough hand sanitizers and consolidating breaks (Sainato, 2020). Moreover, Amazon has been condemned for implementing punitive targets on workers and if they are not achieved it will result in dismissal. One Lawsuit stated that Amazon is accused of prioritizing productivity over heath safety measures such as social distancing requirements and hand sanitization (Stemple, 2020). Two ethical principles which are relevant to Amazon’s ethical issue are Integrity and Professional Behaviour. Amazon’s scandals in warehouses have put pressure on stakeholders with the integrity and values of corporations called into question, what does Amazon value more: their efficiency or wellbeing of their employees? Amazon must obey the requirements of the Occupational Safety and Health Act by providing enough sanitizers and face masks, if not it will be a disgrace to the image of their brand. The key stakeholders that were impacted by the ethical issue are shareholders and employees. Throughout the pandemic, Amazon’s stock price had fallen by 7.6% as their demand continues to cultivate so do their expenses which led to their quarterly earning reporting under the projected amount (Lee Yohn, 2020). In addition, Amazon’s employed around 175,000 new employees to accommodate the rise in demand for online retail services (Savitz, 2020). However, it caused a negative impact on shareholders as it has branded them as apathetic and devilish while making misleading public statements about actions taken in response to the pandemic. Amazon’s possible decline has enforced media to broadcast the growing concerns over the welfare of their employees it gives an opportunity for the enterprise to refocus on their reputation in the eyes of their shareholders. Furthermore, Employees at Amazon are being fired if they speak to the media about workplace conditions. The warehouse workers are immensely impacted by the ethical issue as Amazon continues to overlook government social distancing rules, not providing enough hand sanitizers which led to eight death (BBC News 2020). Moreover, to meet its demand the company treats its workforces as robots in the appellation of efficiency and has contradicted offering paid sick

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leave or grant compensation to the employee if he/she perishes from coronavirus. As a result, these ethical issues impact employee productivity and workplace culture. Moreover, the poor working conditions have negatively impacted Amazon as the media continues to publish public statements of them violating social distancing rules, low wages, and no access to Sanitizers or face masks which have resulted in numerous deaths. In addition, Amazon, officials made claims that they are following government social distancing guidelines, paying employees overtime wages, and sanitizing the warehouse. However, these claims were proven wrong by the workers as they informed the media of the truth which triggered Amazon to fire several workers which instigated employees in heated strikes. This event has negatively impacted the business reputation and increased scrutiny into its workforce management which might cause and put concerns on the future and current labour force. In response to the criticism, Amazon has implemented over 150 substantial transformations such as setting up testing stations, sanitizing its locations, and increasing employee pay. This initiative has positively impacted customers' perception and purchase decisions as now to some extent the company acknowledges their employees with flexibility and empathy. Nevertheless, this decision has positively impacted the company’s ability to retain existing employees and attract new ones. To some extent, I believe the correct decision was made by the business however we cannot ignore the negative impact on their workforce. Furthermore, Amazon officials need to demonstrate leadership skills in a manner that engages its workforce through fixed surveys and solicit feedback from employees. They can develop an integrated employee experience that addresses their physiological, financial, and social needs (Weinstein B. 2020). Teleological theories focus on the results that come from decisions and be perceived in the ethical and utilitarian egoism approach. The executives of Amazon are perceived to be acting out of their own self-interest in the pursuit of maximizing wealth, irrespective of the effect on their employee’s security (Birt, 2014). Amazon’s claims to value their warehouse and frontline workers, however, could be false claims as we have seen Amazon's officials lying about the working conditions. Under Teleological ethics, the consequences of Amazon’s intense working conditions were not effectively considered at the beginning of the pandemic (Palmer,2020). Ethics is fundamental to business operations because it achieves superior performance and competitive advantage through retaining productive employees. Furthermore, ethics leadership executed by the company’s administration tends to improve conscientiousness and promote positive business culture. Also, ethics improve profitability through loyalty which increases sales and improves branding. Moreover, ethics has a greater focus on companies because it increases productivity through integrity which benefits the business. Also, companies are becoming ethical as the area of ethical investing is growing which fascinates investors and improves their reputation among society.

Conclusion: Throughout the pandemic, Amazon has always been engrossed in their sales instead of social and ethical concerns which has drawn media attention through several ethical scandals involving poor working environment in the warehouses such as lack of supply for face masks, sanitizers, and disregarding social distancing guidelines. Moreover, there have been numerous lawsuits filed against Amazon which has caused their stock prices falling, employees quitting and their reputation is ruined and its shows how Amazon operate ACCG1000 S1

unethically. Although, Amazon has a choice on whether to provide a remedy for their ethical scandals or continue in the same direction of oppressing their workers.

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Amazon [Online]. Fast Company. Available: https://www.fastcompany.com/company/amazon [Accessed 23/4/2021]. Patriot Act with Hasan Minhaj. In: PREUSS, R. A. (ed.) Amazon BIRT, J. 2014. Accounting: business reporting for decision making / Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver, Milton, Qld. John Wiley and Sons Australia, Ltd. Yohn, D., 2021. Amazon Faces A Crucible Moment with Employees. [online] Forbes. Available at: https://www.forbes.com/sites/deniselyohn/2020/06/02/amazon-faces-acrucible-moment-with-employees/?sh=75f5c7ed3822 [Accessed 23 April 2021]. Stemple. J, 2021. 'Jeff Bezos values profits above safety': Amazon workers voice pandemic concern. [online] the Guardian. Available at: https://www.theguardian.com/technology/2020/apr/07/amazon-warehouse-workerscoronavirus-safety [Accessed 23 April 2021]. Weinstein B. 2020. What’s the Difference Between Compliance Ans Ethics? [Online]. Forbes. Available: https://www.forbes.com/sites/bruceweinstein/2019/05/09/whats-the-differencebetween-compliance-and-ethics/#27b2f4bd7524 Palmer. A Ukdiss.com. 2021. Importance of Ethics to Business Organisations. [online] Available at: https://ukdiss.com/litreview/importance-of-ethics-to-businessorganisations.php [Accessed 23 April 2021]. CARROLL, A. B. 1979. A Three-Dimensional Conceptual Model of Corporate Performance. The Academy of Management Review,4,497-505

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