Cultural, Value and Ethic Conflicts of Amazon's Logistics


Hausarbeit, 2021

14 Seiten


Leseprobe

Table of content

Table of figures

1. Executive Summary

2. Introduction

3. Amazon as a Company
3.1. Mission, Vision & Values
3.2. Porter's Value Chain

4. Ethical Conflict
4.1. Main Message
4.2. Context of ethical issues

5. Effects on Culture, Values and Ethics
5.1. Culture & Value
5.2. Ethics

6. Reactions from Amazon

7. Proposals and Conclusion

References

Table of figures

Figure 1: Main figures of Amazon

Figure 2: Mission, Vision and Values of Amazon

Figure 3: Porter's Value Chain of Amazon

Figure 4: Main Message

Figure 5: Statement of former worker at Amazon logistic worker

Figure 6: Ethical issues and its context

Figure 7: Consequences of defined values and culture of Amazon

Figure 8: Ethical question marks at Amazon's Fulfillment Centers

Figure 9: Amazon's Statement on the criticism of poor employee treatment

Figure 10: Future proposals for Amazon

Figure 11: Main Message confirmation

1. Executive Summary

This report deals with the working conditions and employee treatment in Amazon's fulfillment centers.

The Main Message defined at the beginning of the report Claims that there are ethical conflicts regarding the work environment and employee treatment.

After defining and examining the issues in terms of ethics, culture, and values, the initial hypothesis was confirmed.

The major conflicts are in sharp productivity controls with possible consequences of termination if targets are not met, high injury rates of almost ten percent, and the impact on employees' health. The analysis showed that workers in logistics are in a kind of vicious circle that causes unbelievable psychological, but mainly physical stress.

Circumstances that exceed ethical boundaries several times.

For the future, Amazon would be welladvised not to try to hide the issue as it has done in the past, but to start taking responsibility and give employees appreciation and recognition, as they help keep the company's engine running every day.

2. Introduction

In January 2019, Amazon became the world's most valuable Company for the first time, with a market capitalization of over $810 billion. Today, the ecommerce giant ranks fourth behind Saudi Aramco, Apple, and Microsoft, with a fabulous market capitalization of over $1,200 billion (Statista, 2021).

One of the biggest key activities and expertise in online commerce is logistics, which is why Amazon's fulfillment centers are the engine of the Company. Those are hugewarehouses where workers track, pack, sort and reshuffle each order before sending it on its way to the customer. Above all, for the company's mission and goals, logistics is the cornerstone of success. The extreme customer focus, sameday delivery through the Prime Program, and the evergrowing product portfolio are putting more and more pressure on logistics centers of Amazon and the workers there. Everything has to be solved faster and more efficiently and preferably combined with cost reductions (The Verge, 2021).

This paper looks at the working conditions in Amazon's logistics centers and how they are conflicted in terms of culture, values, and ethics.

For this task, the Company Amazon is introduced and Porter's Value Chain is explained. Afterward, concrete examples are given and examined for the effects of culture, values, and ethics. In the end, Amazon's reactions and actions are shown, the impact on the end consumer is examined and advice for the future is given based on the findings.

3. Amazon as a Company

This chaptergives an overview of the business of Amazon, its business concept, and its value chain. The following shows the main figures of Amazon.

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Figure 1: Main figures of Amazon

3.1. Mission, Vision & Values

This short chapter focuses on Amazon's mission, Vision, and values. This is essential because later the ethical analyses and findings have to be related to the company's attitude to see whether a correlation of cause and effect can be identified here.

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Figure 2: Mission, Vision, and Values of Amazon

Concerning this chart, it is important to keep the following points in mind, as they may become interesting again later: lowest price, largest possible selection, highest comfort as well as customeroriented approach are the cornerstones of the tech giant's mission and Vision. As for the values, keeping in mind to deliver results and hire the best.

3.2. Porter's Value Chain

Amazon is a very complex and powerful Company that has revolutionized the market through its disruptive approach. To understand the whole concept and tasks of Amazon, and finally, to recognize the point of criticism related to Culture, Values, and Ethics, the Porter's Value Chain is considered in the following.

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Figure 3: Porter's Value Chain of Amazon

Looking at the graph of Porter's Value Chain, the power and size of Amazon become clear once again. The tech Company runs almost every part of the value chain itself, which is an extremely rare occurrence in today's economy. Only the vendor and the final delivery are still outsourced. However, Amazon now has many own products and also its own delivery vehicles for the end customer distribution.

It is important to mention about this thesis that the following part regarding the investigation of ethical conflicts refers exclusively to the working conditions in the Amazon logistics centers. This is only a small, but as already emphasized, a very important part of the Amazon concept. The Problems there are not transferable to employees in other areas and activities.

According to Porter's Value Chain, this area belongs to Operations, more precisely the Packaging process.

4. Ethical Conflict

In this chapter, the ethical Problems in the Amazon Logistic Centers are examined in detail. First, the main Statement is defined, followed by an explanation of the context of the Problems to reach the same perspective.

4.1. Main Message

Before going deeper into the circumstances, the main message is defined. This is a kind of key hypothesis on the relevant topic. The objective is to disprove or prove this thesis after the analysis part.

The main message of this paper is as follows:

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Figure4: Main Message

4.2. Context of ethical issues

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Figure 5: Statement of a former worker at Amazon logistic worker

This shocking quote from J. Williams, a former worker at an Amazon fulfillment center in California should give any reader something to think about.

The potential reasons that led the former employee to make this Statement will now be explained Step bystep.

The whole context of ethics is divided into the three main conflicts below.

[...]

Ende der Leseprobe aus 14 Seiten

Details

Titel
Cultural, Value and Ethic Conflicts of Amazon's Logistics
Autor
Jahr
2021
Seiten
14
Katalognummer
V1040012
ISBN (eBook)
9783346464897
ISBN (Buch)
9783346464903
Sprache
Deutsch
Schlagworte
cultural, value, ethic, conflicts, amazon, logistics
Arbeit zitieren
Jakob Scheidel (Autor:in), 2021, Cultural, Value and Ethic Conflicts of Amazon's Logistics, München, GRIN Verlag, https://www.grin.com/document/1040012

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