Ethical issues at amazon 1

Ethical Issues at Amazon

Part one

Situation analysis
With the complex business structure and the ramified economic changes, every

organization must adhere to appropriate legal and ethical compliance programs, which may

increase the overall outcomes and efficiency of the business. Legal and ethical business practices

are undertaken by the business, which aids the business in strengthening the posting impact on

the organization of the stakeholders. However, different companies use different values and

cultures to define ethics for the business. Ethical issues arise from employers or employees

breaching the moral and ethical concerns set to make the business environment suitable for

everyone. Ethical issues when the actions taken by the employees breach the moral and ethical

concerns in the current business environment (Amazon, 2018).

In this video, CNBC examines Amazon's meteoric rise to prominence and the visionary

leadership of Jeff Bezos, who built one of the world's most revered and feared corporations. The

narrative of Jeff Bezos, a cunning visionary who staked his wealth on the rising internet and built

one of the world's most revered and feared corporations, is told by CNBC. Today, Amazon sells

about $80 billion worth of items every year, ranging from zippers to accordions, and has

revolutionized the way we buy by delivering goods to our doorsteps more quickly than we could

have ever dreamed. Reporter David Faber examines a force that has revolutionized the

publishing and retail sectors and is coming under closer examination as it penetrates more and

more American society.

In essence, Faber says that Amazon is what it claims to be: a store where you can buy

practically anything and, equally important or more so, have it delivered quickly and

satisfactorily. That is about as close as Amazon gets to a magic weapon in a time when customer

service frequently appears deader than dial-up connections. "The client encounter, "Bezos puts it,

is the source of everything else, including his fortune, which is thought to be worth between $30

and $40 billion. As Amazon Rises "also touches on one of the company's most remarkable

peculiarities: that despite moving $90 billion of merchandise annually, it does not turn a profit.

One of the local retail experts believes that Amazon loses $5–6 billion annually since it is so

expensive to keep all of that inventory stocked and the customer experience at its current level.

Ethical Issue

The primary ethical issues in this video are warehouse abuse. In the given case, it is

analyzed that so many drivers of Amazon were facing issues related to less payment and loss of

their own business, which may, directly and indirectly, impact their work. One of the drivers had

to stay at his job till midnight as he was asked to meet the target, and if he failed to do so, he

would be penalized for the same. 

Multiple reports can be found of employees pushed to meet extremely high targets,

subjected to strict breaks and a terrifying work environment, monitored electronically, and

worried that not meeting targets would immediately lose their jobs. People talk about peeing in

bottles out of fear of being disciplined or terminated for 'wasting time going to the toilet, to the

point where employees deliberately decide not to drink water so they do not have to pee while

working. One employee became sick while pregnant and was given a warning. One was

hospitalized after having an epileptic seizure at work and received a strike for not showing up the

next day. Another turned up for work with a gastric bug, had to go home after two hours and was
Ethical issues at amazon 3

given a strike despite getting a sick note from their doctor. One woman tragically suffered a

miscarriage while working, which she believed was 'partly due to continuous pressure to hit

targets.

Recommendation
The ethical decision frameworks of Amazon should be based on the collected information

and the undertaken framework, which are given below. This ethical decision uses moral

philosophies, and ethical considerations must be considered.

Identification of the ethical issue- In this process, Amazon needs to analyze all the

ethical issues related to the breach of the ethical rules and guidelines. It is analyzed that Amazon

needs to give all the employees related benefits to the employees who could add value to their

economic development (Amartya, 2017).

Gathering of information: After identifying the case, Amazon needs to collect the

required data, which could assist in developing a good strategic plan to solve the issues and

problems faced by the employees and Amazon. This will be used to develop mutually agreed

understanding between employees and employers (Amazon. 2018).

Analysis of data: After collecting the data, Amazon needs to analyze the gathered data

with the assistance of the regulators and banking authorities. However, it requires a high amount

of compliance program, which needs to be assessed based on existing rules and regulations.

Consideration of Alternative: This process requires official consideration of the

negative and positive impact of the ethical issues which Amazon Company has faced. It will

require Amazon to evaluate the employees' work program and compliance structure, which needs

to be made to resolve the queries effectively. There are several alternatives which could be
Ethical issues at amazon 4

undertaken by Amazon, such as undertaking a particular action plan, setting new objectives and

goals and undertaking the proper work program for the better satisfaction of employees.

Make a decision: Afterward undertaken, decisions will be undertaken which will assist

in taking the business decisions such as considering drivers as regular employees, determining

the benefits plans which will be given to them and assessing the issues and problem areas which

will add value to the better satisfaction of employees at large (Trevino, and Nelson, 2016). The

decision to undertake employees as normal employee and render the employee benefits program

require proper analysis program and implemented actions.

In this case, justice theory will be used to assess the basis of the decision-making process.

According to the justice theory, the company will have to treat all these employees as regular

employees, and they should be given all the benefits (Vaughn, 2015).

All the decisions taken by Amazon should be taken in the organization's best interest to

add value to society. The company needs to give back more to its society than it has been taking

to run its business effectively (Biller-Andorno, and Capron, 2016).

Part two
1. Does this decision promote fairness in the compensation of people or the

distribution of resources?
Ethical issues at amazon 5

In a way, yes

After evaluating all the cases related to legal and ethical issues, it could be inferred that

all the employees who indulged in discharging the assigned work should be treated as employees

of Amazon. Thus, in the limelight of the given case study, these employees should be given all

the employee benefits plans given to other regular employees. It is explained that companies like

Amazon cannot easily decide to give zero benefits to their contract-based employees and absorb

all the benefits they actually take from employees.

In the end, the reason for this event's occurrence and the way the company had taken the

decision have legal and ethical issues. These issues are required to be solved to overcome the

problems in the long run. It is assessed that different ethical theories and action plans will assist

in implementing the work program and delivering the best possible benefits to employees.

The ethical decision frameworks of Amazon should be based on the collected information

and the undertaken framework, which are given below. This ethical decision uses moral

philosophies, and ethical considerations must be considered.

2. Does the result of this decision provide for the best use of allocated organizational

resources?

CSR initiatives are a way for businesses to operate their operations in a way that benefits

society as a whole, ultimately increasing customer satisfaction. A new article from the Australian

Financial Review has been chosen to consider the ethical issues in this report. This article

describes the moral and legal dilemmas the Amazon Company encountered when providing

employee compensation plans. The Seattle-based Amazon Company is a global enterprise that

engages in cloud computing and online sales of electronic goods.

This business had to consider moral and legal considerations when deciding whether to

file a lawsuit on behalf of members who worked for three delivery services used by Amazon and

were incorrectly classified as self-employed workers. The purpose of this program was to

provide employees with an employee benefit plan and the legal policy frameworks that Amazon

had created for its employees who deliver its products to customers worldwide (Crane, and

Matten, 2016).

3. Does this decision promote a fair distribution of benefits and burdens?

Answer: yes

According to the equity principle, the distribution of benefits and burdens is just if the

benefits and burdens are allocated according to individuals' contributions and efforts. Every

economic decision we make in life involves the allocation of costs and benefits. In public policy

matters, the distribution of costs and benefits is the stuff of political life. The process is known as

cost shifting, sometimes knowingly. However, it is often done surreptitiously to protect profits

and sales against the fallout that occurs as a consequence of the initial action. (Amazon)

When approaching the issue from an ethical standpoint, it is necessary to see it as a

choice between getting client consent or opting for customer-oriented services. According to the

consequentialist ethical theory, an action's justness is determined by its effects. In light of this,

consequentialism is a theory that holds that a thing's goodness or badness depends on its

byproducts and results.

4. Is this result or decision fair to all, especially the least advantaged or least

represented?

At some point, yes

The problem with accurately assessing those perceived risks and benefits is difficult and

often speculative, as gazing into the future is hardly an exact science. In the past, much of what

has passed for cost-benefit analysis is wishful thinking based upon hopes, investments, or other

imagined happenings that might or might not become realized.

After analyzing all the details and the case study program, the company needs to assess

whether the internal and external factors will negatively and positively affect the business. The

managers need to analyze that drivers are putting efforts in the organization's best interest, and it

is the company's responsibility to give the best employee benefits to them for their best interest.

It will also establish a nexus between the organization's development and employee development

(Martinov-Bennie, and Mladenovic, 2015).

5. If this decision was universalized, would it produce the desired results?

In this case, yes

Justice theory will be used to assess the basis of the decision-making process. According

to the justice theory, the company will have to treat all these employees as regular employees,

and they should be given all the benefits (Vaughn, 2015). According to analysis, every

organization must exercise initiative in a way that will ultimately improve the overall results and

efficiency of the business as a whole. The business should adhere to its values and commitments

to increase client satisfaction (Den Hond, de Bakker, and Neergaard, 2016). This essay

highlights an immoral action that Amazon took in society that may have a direct or indirect

impact on all its employees. The GMB union declared that it would file a lawsuit on behalf of the

workers in this moral dispute so that they could receive the benefits.
Ethical issues at amazon 8

References

Amartya, S. (2017). What do we want from a theory of justice? In Theories of Justice (pp. 27–

50). Routledge.

Amazon ., 2018., Amazon delivery firms face legal action over workers' rights, GMB union is

demanding gig economy drivers get sick pay and national minimum wage  [online].

Available from < https://www.theguardian.com/technology/2018/jun/04/amazon-

delivery-firms-face-legal-action-over-workers-rights>., Accessed on 25 May 2018.

Biller-Andorno, N. and Capron, A.M., 2016. Ethical issues in governing biobanks: global

perspectives. Routledge.
Ethical issues at amazon 9

Crane, A. & Matten, D. (2016). Business ethics: Managing corporate citizenship and

sustainability in the age of globalization. Oxford University Press.

Den Hond, F., de Bakker, F.G. and Neergaard, P., 2016. Introduction to managing corporate

social responsibility in action: Talking, doing and measuring. In Managing Corporate

Social Responsibility in Action (pp. 15-26). Routledge.

Martinov-Bennie, N. and Mladenovic, R., 2015. Investigating the impact of an ethical framework

and an integrated ethics education on accounting students' ethical sensitivity and

judgment. Journal of Business Ethics, 127(1), pp.189-203.

Sabag, ?. and Schmitt, M. eds., 2016. Handbook of social justice theory and research (pp. 10-14).

New York, NY: Springer.

Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P. and Saaeidi, S.A., 2015. How does corporate

social responsibility contribute to a firm financial performance? The mediating role of

competitive advantage, reputation, and customer satisfaction. Journal of Business

Research, 68(2), pp.341-350.

Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do it

right. John Wiley & Sons.

Vaughn, L., (2015). Doing ethics: Moral reasoning and contemporary issues. WW Norton &

Company