Table of Contents
Zappos’ Leadership Philosophy and its Ethical Practices has had major impacts on the company’s stakeholders
Zappos faces three ethical challenges and must take the necessary actions to address them
The Effectiveness and Relationship of Core Values with Developing an Ethical Culture
Zappos’ Challenges: What can be done?
Zappos has ensured that employees are able to communicate and innovate with the company’s management without facing discrimination due to race, ethnicity or gender. The company’s culture has been successful in building relationships with employees at all levels. Zappos has created a positive working relationship by using innovative methods based on organizational culture. Other companies can emulate Zappos’ culture of ethics by dedicating themselves to employees and customers, embracing change for growth and learning. Other companies need to create a weird situation in order to encourage employee involvement and growth.
Zappos Leadership, Ethical Practices and Philosophy on Stakeholders have Major ImpactsThe Zappos Company has a business plan that allows it to create long-term customer relations. The company’s strategic and tactic inventions have resulted in long-term client relationships characterized by high quality service and large profit margins. Zappos Company Faces the Challenge of Laying Off Some Employees Due to the Unpredictable Economic Times. In 2008, the firm had to let go of approximately 8 percent its most highly placed employees. The decision was hard for the business, because they valued every employee. The company offered health insurance as a way to show appreciation for the employees that were laid off. The company should focus on the performance evaluation reports to solve the problem of laying some employees off. This strategy will help identify employees who are the most productive, and those that don’t add much to the business (Silverman et al. 2014).
Zappos Company has to face an ethical dilemma when restructuring while partnering with other organizations. Zappos, for example, merged with Amazon, which caused confusion in the workplace and among customers, as the merger was not properly communicated. Zappos’ customers expressed public concern over the merger. It was clear that Zappos had not prioritized the client as an important stakeholder. Zappos has an obligation to its customers regarding business activities, including the merger with Amazon that took place in 2009. In the digital age, the business could use Twitter as a platform to communicate with their customers about changes to the brands they represent (O’Brien 2009).
Zappos Company has to deal with an ethical problem as well. Technical difficulties have led to the disclosure of sensitive customer data. It is not uncommon for technical errors to occur, but it’s important that they are addressed quickly before problems and complications escalate. In 2011, there were delays in deleting orders and some of them were sent to the wrong addresses. The company’s system was hacked in 2011 and confidential data was shared with incorrect people.
The company should not allow its system to store customer data without ensuring the privacy. To ensure the security of private information, the company can take measures to protect it. For example, they could encrypt their servers. You may need to contact customers to explain how to secure their passwords and prevent their data from being misused.
The Effectiveness of Values as a Relationship to Ethical BehaviorCore values can be important for the development of an ethical behavior when the business defines these values and the members are involved in the process of understanding what is meant by the organization. Each stakeholder must be allowed to voice their opinion, no matter how big or small. They feel more ownership when they hear the opinions of stakeholders. It is important to begin the dialogue with all stakeholders before defining or creating a strong company’s culture.
Zappos’ response to challenges facedZappos has taken the necessary steps to ensure that technology errors don’t cause as much damage as they have in the past. By distributing power to its employees, the company is able to control its operations. Working with partners could be a more effective way to solve the sustainability challenge, as Zappos may find it difficult in future to maintain its competitive pricing. The right employees would respect the core values of the company and be innovative.
