Essay: Broad ethical dilemma parallel to a successful business (Amazon)

The following dissertation aims to explore, the broad ethical dilemma parallel to a successful business. Amazon who currently operates within the e-commerce industry is a leading force in the world.
Firstly, the question at hand “what is ethics”. According to (Jeurissen and Rijst, 2007) ethics is a two-way road – as there is a demand for “integrity” and matching that there subsists a “social responsibility” which businesses are obliged to follow. With that being said the relationship between business and society is derived from the same mutual understanding and benefits. Businesses nowadays are more concerned with their ethical endeavors, as seen through the illustration that, “customers are demanding transparency as they take an increasing interest in the ethical practices of those they buy from” (the Guardian, 2018). Arguably depicting a sense of brand image and the power of consumers (Editorial Board, 2016).
The following dissertation aims to explore how e-commerce has an effect on success in particular Amazon. The focal point relates to how ethics can have an impact on e-commerce and the extent. Can success be measured? Is success relevant to e-commerce? The research will focus on retrieving such information by looking at the specific aims and objectives below:
1.2. Aims and Objectivities
1.2.1. Objective 1: To identify the extent of Amazon ethical duties and dilemmas?
1.2.2. Objective 2: Exploring the ethical implications of e-commerce?
1.2.3. Objective 3: How successful are the ethical businesses in e-commerce and how does it affect the changes they have to make?
2. Literature Review 1400
Ethics is the focal area for businesses, as they rely on the fundamentals in order too – attract employees, investors, and customers. The longevity of a practicing ethical business underlines the concept of CSR (Corporate social responsibly) and its methodology.
The case of Amazon implies that ethical endeavours have a tremendous impact on the success, which shadows their alliance. Additionally, Amazon has seen this through the illustration of the addition of a sustainable program, which is put in place to ethically give back to the community (environment).
The argument that Amazon must ensure that they follow the correct protocols is widely analyzed by (Editorial Board, 2016). This is a clear indication to the objective at hand, on how to what extent of Amazon ethical duties and dilemmas? Arguably, there are the positive and negative as shown by the argument that, Amazon is an ethical company can be interpreted in various manners (Ethical Consumer, 2019). This is evident the company now face a backlash from the general public for avoiding taxes.
Customarily to build on the following topics: business ethics and organization studies, business ethics and corporate social responsibility for business success and growth. Ethics and business go hand in hand, (Howard and Katalin, 2008). This can be seen done through the demonstration of ethical practices. According to (Howard and Katalin, 2008), a change in ethical practices will need communication skills as well as a moving ability of a higher order.
On one hand, ethically speaking, (Adda, Azigwe and Roger Own, 2016), argues that a successful company must be an advocate of moral courage. After analyzing such argument, it is clear to note that on the other hand, (Norman, 2013) identifies business ethics in connection to success as, “ethical decision makings are surrounded by layers of issues involving organizations and institutions”. This is clear evidence that ethics does not always equate to success but if done properly it can be a powerful arsenal within any company.
The case of Amazon reiterates the theory of the ethical implications of e-commerce. Ethical dilemmas are “Practical strategies for addressing ethical issues in business can be directed at various aspects of business activity, such as marketing, finance, human resources, accounting and so forth (Palmer and Lyn Stoll, 2014). Evidently showing that Amazon being a recognized brand has many attributes in order to ensure the company acts ethically. A clear illustration would be the act of the witness of numerous cases widely published and scandals that have caught the attention of the public’s eyes. The concerns over these cases have brought in a defensible call for more ethical behavior from companies and in this instance Amazon (Palmer and Lyn Stoll, 2014).
Furthermore, success can be measured in numerous ways; for instance, success can be seen through your finances, customer satisfaction, performance, and ethical attempts. In relation to ethics – most businesses nowadays implement CSR, to optimize the sales, relations and future possible pathways. From the years of 2013 – 2016 more than 82% of the SP 500 published CSR reports in 2016 (Coppola, 2018). This is evidence that companies are taking this matter seriously, as increased pressure of consumers continuous is increasing as the years go on.
Moreover, in order to investigate the question at hand, “What are the ethical influences in correlation too successful industries guidance”? One must understand that ethics does not underline success. According to, (Norman, 2013) argues that “Whereby it would be virtually impossible to be both ethical and successful in business” This can be seen as a contradiction – but it further clarifies that in a typical industry, you will not always finish first or in other words be successful.
In addition, to understand where and how ethics will be a factor in relation to success – there must be an alternative approach. The approach encourages, companies to look beyond the ethics of an individual and start to look at senior levels and above to determine and promote ethical behavior (Norman, 2013).
2.1 Corporate social responsibility
According to, Howard Bowen who (Carroll, 1999) CSR refer to as the father of Corporate social responsibility “the obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society” (US About Amazon, 2019). CSR is an important factor, as shown by (Grazier et al., 2019) that states, “Improves public image, increases media coverage, boosts employee engagement and attracts and retains investors”. In relation to the aims and objectives, the CSR is seen as fundamental. Moreover, Amazon has a strict line between bricks and clicks. The difference being is seen through the clicks vs. bricks theory, “While e-commerce in the U.S. presently accounts for only 20% of sales transactions and 7% of sales revenue, its market-share has been consistently growing by about 10% per year and reached $1.2 trillion by 2013.” This is a clear illustration that CSR has a strong influential factor in the e-commerce market (BigCommerce, 2019). Broadly, CSR defines the integration of both social and environmental matters into business and stakeholders relationships. Evidently showing, Amazon has a clear structure of e-commerce as shown by figure 1. Evidently, the figure relates back to the aims and objectives of the dissertation at hand.
2.1.2 The Triple Bottom Line
The triple bottom line theory as demonstrated by (Norman and MacDonald 2004) helps to shed light on the aims and objectives. As Amazon heavily trust on the fact that the triple bottom line theory allows them to follow the perceptive attributes, economic sustainability, social sustainability, fair trade movement, environmental sustainability. This is evident that Amazon arguably disregards the use of TBL and its usage. Moreover, TBL was also criticized by the inability to deliver its literal meaning (Norman and MacDonald 2004). The triple bottom line (TBL) argues that for businesses to measure their success they follow in accordance with the three perspectives: people, planet, and profits (Elkington, 1998).
CSR has a common ground with the fact that Amazon needs to ensure that, as they are e-commerce they use the framework to devise an e-commerce plan of action to distinguish their needs. The exploration of implications within e-commerce is shown by figure 2.
2.1.3 Key success factors and market characteristics
The key aspects underlining success are split up into 6 parts, which make up the factors that influence success (see figure 3). Moreover, it is evident that Amazon utilizes the success factors within the e-commerce industry as seen through the illustration of the advisable understanding and help of shareholders understand what makes Amazon different (Forbes.com, 2019).
E-commerce has seen an increase in sales, as shown by (figure 4). The number of e-commerce sales is set to see a rapid growth by the years 2021. This is relevant to the aims and objectives, as the underlining question remains, that successful businesses are heading towards the e-commerce industry. Furthermore, it is evident that Amazon to ensure they stay top of the e-commerce industry they need to meet the ever so changing changes in the market. With that being said, the changes are as such; the correlation between consumers and e-commerce will fluctuate as the “prices of consumers goods will not be as flexible as commodity prices” (Kansascityfed.org, 2019).
How successful are the ethical businesses in e-commerce and how does it affect the changes they have to make?
According to, (Grunert and Ellegaard, 1992), successful businesses that operate within e-commerce must develop the three significant theoretical components that underlie the foundation of the MAPP. MAPP, as stated by (Grunert and Ellegaard, 1992), as the industry, competitive strategy and industry position, environmental factors, temporal factors, and managerial position. The follows derives from the ideology that Amazon, meets the framework, thus allowing them to be an ethical company and ultimately resulting in a successful manner.
The theory states that success can be seen as a deciding factor, ultimately leading to the question at hand whether businesses become ethical or consumers did. This is critically analyzed through the statement; “The rise of an ethically conscious consumer has been the subject of great media attention, scientific research, and strategic planning by businesses worldwide. This has been largely due to the digital age we now live in,” (Ürgos, 2019).
3.0 Methodology (592)
The chosen methodology in the following dissertation is as stated. The use of primary research methods was chosen in order to reach a broad range of audience(s). According to (Saunders, 2009) the information it is able to provide is an efficient way of collecting responses from a large sample prior to quantitative analysis. Primary research is a quick and effective manner to collect non-biased results and data interpretation can be seen as a positive factor. On the other hand, primary research can be interpreted as, “biased or given just for the sake of it” (Sparrow, 2019).
3.1 Quantitative analysis
Quantitative analysis is the term described by to (Saunders, 2009), as a raw form of information. That meaning, (Saunders, 2009), went on to further analyze that “these data, therefore, need to be processed to make them useful, that is, to turn them into information.” Evidently showing that in order for a reputable qualitative analysis technique to be put forward, the addition of graphs and table should be included in order to depict the final image being put forward.
To achieve the research objectives mentioned in the aims and objectives, a questionnaire will be generated. The method of choice as mentioned above will highly benefit the question at hand, offering a broad aspect and ultimately being able to gather the correct non-biased information required. This ultimately allows for a more precise sense of direction in the field of study. Furthermore, the method choice of research was chosen due to the cost affiliation it posses (low cost – effective manner).
(Saunders, 2009) states that in order to fulfill the aims and objectives there should a framework to follow. That is, size of the sample (50), types of questions, number of questions needed to ask and characteristics of the audience.
3.2 Research ethics
The ethical dilemma of collecting the data is an important factor for the following aims and objectives. With that being said, the “ethics” and “credibility” go hand in hand with the main research question. Similarly, (Saunders, 2009) stated that in order to generate as mentioned above a credible source, the framework should be followed. To ensure the questionnaire its integrity it will be handed out to a certain age group (21+). Also, the questionnaires will be distributed in the University of Westminster, thus assuming the characteristics of intellectual individuals.
3.3 Sample size
Depending on the scope of the research, a proposed sampling size has been provided. With that being said, (Saunders, 2009) reiterates “your time constraints prevent you from surveying the entire population” thus the proposed sample size of 50 has been allocated to answer the following research question.
Analyzing Data
The analyses of the data gathered will allow for an understanding of the research topic. , (Saunders, 2009) argues that all data will be analyzed through a computer “Virtually all data collected by questionnaires will be analyzed by computer”. This translates into a complete guide to understanding what motivates certain behavior and choices. The data analysis will be able to identify common themes about relationships – thus seen through the visual representation of a network diagram (figure 5). The demerits of the chosen method, relate back to the fact that dishonesty and lack of conscious reports may interfere with the collection of results.
Validity
According to (Saunders, 2009), internal validity can be seen as a demerit, as it refers to the ability of the questionnaire to achieve what it intends to achieve. Also, (Cooper and Schindler 2008) argues that “content validity” defines what is adequate. This can be combated through “the definition of the research through the literature reviewed.
4.0 Analysis (1200-1300)
4.1 Objective 1
The first objective in the literature review is the: To identify the extent of Amazon ethical duties and dilemmas? From the findings, it is evident that the findings clearly indicate that 65% of the public interviewed strongly believed that, Amazon rightfully needed to pursue their ethical duties. This is evidently emphasized in the literature review, by the illustration of (Howard and Katalin, 2008) which argued that in order to stay relevant and successful, a company needs (Amazon),
In comparison, Holland and Barrett are one of the UK’s most ethical companies in, as they argue that, “highest level of ethical standards and good governance arrangements” (Statement, 2019). This is evidence that consumers are ethically aware of and by the research conducted, shows an increase in demand for ethics.
Also, the research questions came to support the ideology that Amazon is now on the way to becoming one of the biggest sustainable e-commerce companies’ (the US About Amazon, 2019). This is a clear illustration and in support to the question. Amazon’s ethical dilemmas and responsibilities do in fact stretch beyond the expected scope. Similarly, the questionnaire came to find out that; over 30% of people emphasized the idea that ethical dilemmas had an effect on e-commerce companies (Amazon). This is backed up by the theory that argues that being ethical can not only benefit the company itself but also the stakeholders and the whole society itself (Chaffey, D. 2007).
With the introduction of the following: “have a long-term goal to power our global infrastructure using 100% renewable energy”. A clear illustration that ethically speaking the correct form of strategy is being put in place. The findings also revealed that the remaining 25% of the general decided that the ethical norms did not meet their desired needs, with a further 10% deciding it made no difference.
Lastly, the research data collected allowed for a deeper understanding of the ideology behind “what it means to be ethical”. This can be seen done through the illustration of ethics leads to success in achieving organizational goals (Hamidu, Md Haron and Amran, 2015).
4.2 Objective 2
Exploring the ethical implications of e-commerce?
The ethical implications of e-commerce showed that there has been an increase in consumption of ethical goods and practices (Folkes and Kamins, 1999). The data collected showed an indication that numbers are set to see an uprise by the years 2021 (figure 4). The data also demonstrated a shift in power, as ethical consumers had a powerful say in the way the company (Amazon) operated. This can be seen done through the illustration of (Editorial Board, 2016), which; argues the fact that consumer power has increased by over 30%.
Similarly, (Joines, Scherer and Scheufele, 2003), implies that the implementation of e-commerce is a new modern, in which customers feel they can get the most out of it. Moreover, the data reveals that there are reports of customers spending more time online searching for information on products and services (Joines, Scherer and Scheufele, 2003).
The data showed that customer intimacy had an influential aspect of the implications of e-commerce. With that being said, the point is that customers are now becoming more and more personalized with one‐on‐one experience with their customers (Joines, Scherer and Scheufele, 2003). This is evident, in the new – high numbers that e-commerce is attracting, with the inclusion of ethical companies now giving them an extra edge.
Also, it is apparent that the ethical implications illustrated the fact that customers are now more likely to shop from an ethical company, as health-conscious increases, thus showing so in the data collected. Reports indicate that 68 percent of households who use the Internet spend time online searching for information on products and services. This is an illustration that the data collected backs up the idea that, e-commerce has many implications, but most are seen as a positive factor, which contributes to the success of such companies (figure 6).
4.3 Objective 3
How successful are the ethical businesses in e-commerce and how does it affect the changes they have to make?
The question at hand, what is a success? How can success be measured? What influences success? With all the questions mentioned, the data collect clearly indicated that ethical businesses are more successful. Moreover, businesses that were ethical and operating in e-commerce were seen to be even more successful. The data states, that over 80% found that ethical companies who operated in the e-commerce (Amazon), found incentives to carry on shopping with the company. Being an advocate, while in comparison, other companies in which operated in the e-commerce but did not practice ethically, found out to be less successful. The theory adds, (Joines, Scherer and Scheufele, 2003) argues that the following framework helps e-commerce in this instance Amazon. The frame is as follows: interactivity, customer intimacy, and the ability to shop online. Many argue that these are the characteristics that are provoking interest among consumers, and will generate success for e‐companies. This means that consumers are likely to opt for ethical companies.
Also, the data showed that changes were really well accepted in the field by both Amazon and customers. It clearly shows that changes are unforeseen as argued by (Palmer, 2010). Furthermore, the changes that Amazon would have to make, underline the e-commerce industry. The data analyzed shows that, the implications and changes being made as “stepping-stones” (Joines, Scherer and Scheufele, 2003). The concept at hand, states that the proposed theory has an influential mannerism. This directly links to objective 3, as the influential factor has an uproar in the e-commerce industry. The findings conclude and answer objective 3, as e-commerce companies’ must/should be ethical and that results in a more successful company. Moreover, objective 3 is met by the ever so changes in the market, influencing prices, products, and services.
5.Conclusion
To conclude, it is evident from the information gathered in the above dissertation, the question at hand “How does ethics on e-commerce influence success in an organization? The case of Amazon” is answered effectively. With that being said, the information gathered indicates that objectives 1,2 and 3 have been met. Objective 1 aimed at the corporate sense of delegation. Also, the objective is met with a critical understanding of the influencing aspect of e-commerce. The findings indicated that, consumes not only cared for the ethical aspect side of things but that most were advocates.
Similarly, objective 2 was based on the ethical implementations of e-commerce. The findings indicated that implications did affect Amazon but consumers were little affected. Consumers showed that most were met with a sense of support and ethical adoptions with behavioral changes in e-commerce. Also, findings clearly indicated that the literature support claims that implications could have several effects, most positive as mentioned previously. Objective 2 was clear that Amazon faces several ethical implications but most “if not all” were accomplished with the correct frameworks put in place.
Lastly, objective 3 analyzed the successfulness of ethical businesses on e-commerce (Amazon). The findings showed that ethical businesses were more successful, even the ones operating in the e-commerce industry. The findings indicated that consumers are heavily linked to the ethical aspect of business and or some was the make or break point. This is a clear illustration of the importance of a strong ethical background. Furthermore, 55% of consumers went on to say that they were able to adopt the changes in the market to maintain their ethical responsibilities. Similarly, this is another great illustration of the ethical boundaries fortifying today’s day and age with a more conscious range of consumers than ever before.
6 Recommendations
To recommend as a deeper sense of research and wider scope is heavily irritated and advised. With that being said, Amazon needs to ensure they fulfill their 2021 vision place. Also, Amazon is heavily criticized for their managerial cruelty. This is something that needs to address, as consumers are treated very highly, whereas employees are met with an opposite reaction (National Ethics Association, 2019). Moreover, Amazon is a fast-paced giant can be sometimes described as a relentlessly high-pressured and brutal work environment. According to one employee stating “Nearly every person I worked with, I saw cry at their desks.” Evidently, Amazon does not cater to their workforce but need to ensure their needs and wants are met.
7 Limitations
The limitations of the research are as follows: the chosen method of research “primary research – questionnaire” can be interpreted as differences in understanding and interpretation. The scope could also be enlarged, as (50) as the sampling size could be seen as a narrow view standpoint. Also, the addition of secondary data research would help the scope of the investigation, being Amazon is an already established company who solely operates within the e-commerce field. Finally, the adoption of new and reliable sources, which will help provide a more in-depth data collection scheme with a wider range. This will allow for a deeper understanding and research method.