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QUESTION
Research a company that has encountered ethical issues publicly. Provide a brief (1 paragraph each) summary of
- the company,
- the issue faced, and
- how it impacted their business
ANSWER
Ethical Issues and How they Affect Companies
One of the top companies publicly facing ethical issues is Amazon Inc., as it battles tax issues, the worst ethical consumer rating, and poor working conditions for its workers. Amazon Inc is an e-commerce retailer and web service, provider. The company provides apparel, auto, industrial items, beauty products, and the list goes on and on. It was established by Jeff Bezos and is up and still running, serving millions of customers from its headquarters in Seattle, Washington.
As an online-based enterprise, Amazon has workers preparing to deliver goods to its customers in different locations. In recent years, Amazon has been facing ethical issues related to poor treatment of its employees with regard to wages, autonomy, motivation, and safety. It is believed that employees at Amazon are not allowed to make independent decisions, hence becoming hostage to the working conditions at the company. Inspired by the New York Times investigative report, Kelly (2021) narrates how new parents, patients, and other vulnerable workers were short-changed, as Amazon replaced them almost immediately to meet the new demand during Covid-19. Stories of disability payments, car repossession, and many others arose from Amazon’s faulty programs.
Due to the employee short-changing and other practices that violated employees’ rights, Amazon had to implement corrective action for the negative publicity it was receiving. The action included a comprehensive program that involved AmaZen for wellness- mental health and well-being. However, Amazon had to face continued to face brutal online vitriol. The program may have simmered the anger of the affected, leading to resentment of the CEO. However, the profits and sales were not affected as the negative publicity increased Amazon’s popularity. The increased sales are due to the negative publicity, which Berger, Sorenson, and Rasmussen (2010) explain, which is known to increase choice and sales when it increases awareness.
References
Berger, J., Sorenson, A. & Rasmussen, S. (2010). “Positive Effects of Negative Publicity”, in NA – Advances in Consumer Research, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth. MN: Association for Consumer Research, 37, 45-48. https://www.acrwebsite.org/volumes/15111/volumes/v37/NA-37#:~:text=.
Kelly, J. (2021). A Hard-Hitting Investigative Report into Amazon Shows That Workers’ Needs Were Neglected In Favor Of Getting Goods Delivered Quickly. Forbes. https://www.forbes.com/sites/jackkelly/2021/10/25/a-hard-hitting-investigative-report-into-amazon-shows-that-workers-needs-were-neglected-in-favor-of-getting-goods-delivered-quickly/
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