Business Ethics: A Case Study of Zappos

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Another challenge facing Zappos is that new employees and junior managers face pressure to perform. The pressure may increase their tendency to look for shortcuts to please top management. The challenge, however, starts early in life, most of the students are under pressure to perform in school at any cost, this behavior is then copied later in the workplace, and it becomes an ethical challenge (Joseph & John, 2014). By encouraging new employees to perform their duties honestly no matter the situation can minimize the problem. The organization should be resourceful in helping new employees overcome challenges of pressure to perform.

Another ethical problem is the social networking challenge; some employees may make comments regarding employers or fellow workers that may be considered demeaning and cost them their jobs. The management can minimize the ethical problem through the formulation of a conflict resolution formula to allow employees solve their differences in the best possible way and avoid using social media to make unnecessary, demeaning comments.

The sharing of core values of the business organization makes the cultural environment attractive to stakeholders. Joseph and John (2014) state the core values to include respect, honesty, responsibility, compassion, and fairness. The values also breed a standard language in the organization. The employees can communicate ideas and comfortable in discussing issues that are considered sensitive. The training on ethics also helps in developing the proper language. Core values also provide moral courage that enables individuals in ethical dilemmas to face the task with confidence. Stakeholders evaluate the ethical culture and standards set up by organizations to benefit communities.

Core values support stakeholder perspective in that contemporary issues in the society such as environmental sensitivity, and how the companies reacts to such issues impact on their perception and consumption of the products. Stakeholders also question the level of responsibility the service provider takes to manage customer purchases issues. Research by García-Marzá(2012) indicate customers identify themselves with companies ethics and may that lapses in organization attributes and personal behavior. The key to developing organization values is necessary because customers mostly seek an organization that agrees with their self-believe.

Zappos organization has had significant challenges in the past this included, The 2008 Layoff of employees where the economic recession suggested that the company had top shed 8% of the employees. The company then decide to reward its employee with six-month health insurance cover. The company was right, and I would have done the same. Awarding the laid employees insurance cover for six months ensured that they would not struggle before they secure other employment services. It is also important to reward them to secure the company’s image and total commitment of the current employees.

In 2011, the company customer information was stolen and manipulated resulting in loss amounting to millions of dollars. The management contacted every customer and accepted the responsibility and ensured guaranteed their clients that their sensitive credit cards information were safe. The situations could be handled by thoroughly testing database security before adoption to keep customer information. After hacking upgrading of the system to more technically secured ones would be appropriate.

The merger in 2009 with Amazon also presented an ethical challenge. The customers were unsure whether the merger was supposed to address their interests. The management expressed the situation openly giving reasons for the situation and promising the customers that it was for their benefit. The situation was handled correctly through the idea to inform customers openly about how the merger would help them. It is important because the loyal customers need to be guaranteed the same service in the event of amalgamation.

References

Das Gupta, A. (2010). Ethics, business and society. Los Angeles: Response Books.

De George, R. (2010). Business ethics. Upper Saddle River, N.J.: Prentice Hall.

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2015). Business ethics: Ethical decision making and cases. S.l.: Cengage learning.

García-Marzá, D. (2012). Business Ethics as Applied Ethics: A Discourse Ethics Approach. Ramon Llull J Appl Ethics, 3(3), 99

Joseph R. John J. (2013).Contemporary Issues in Business Ethics. New York, NY: McGraw-Hill.

Parboteeah, P., & Cullen, J. (2013). Business ethics. New York, NY: Routledge.

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