Introduction
Following corporate culture and developing positive interactions with staff are valuable ethical practices that most modern companies strive to uphold. However, in some cases, violations committed by managers do not remain among the team and are made public, which, in turn, becomes an occasion for public outcry. The case of Amazon, described by Conger (2020), demonstrates the one-sidedness of this corporation’s policy regarding personnel management. The layoffs of whistleblowing employees were the subject of high-level scrutiny, and the unethical nature of the conflict was one of the catalysts for public condemnation of Amazon and its tough domestic policy (Conger, 2020). The assessment of existing issues and the analysis performed due to the relevant theories and concepts of business ethics can help make appropriate recommendations and discuss whether the company could have avoided the aforementioned problems.
Amazon’s Ethical Problems and Ethical Breakdown
Considering Amazon’s problems in the case in question, one can note that the key ethical issue in the corporation is the inadequate attitude of management towards whistleblowing. According to Valentine and Godkin (2019), “whistleblowing is likely motivated by ethical decision making” since this approach to reporting internal organizational issues suggests a desire to address inappropriate or inadmissible policies (p. 277). Amazon’s management, in turn, when trying to maintain the status of a global corporation with a clean reputation, is not ready to make its peace with omissions and meet the needs of subordinates. In this regard, the additional ethical problem of not accepting the views of subordinates may be relevant in this case. An authoritarian approach to leadership does not allow employees to expect a safe work process, and this complicates the relationship between the employer and subordinates, thereby leading to public conflict.
Amazon’s primary ethical breakdown was its inability to resolve internal conflicts within the company, which, therefore, made the management responsible for firing employees. Valentine and Godkin (2019) emphasize the importance of assessing the prerequisites leading to ethical issues, particularly whistleblowing because leadership competence is largely determined by the ability to prevent contentious situations. However, in the case of Amazon, the representatives of the management apparatus did not find anything better than firing subordinates they objected to and condemned. This step proved leaders’ inability to resolve conflict situations and take into account the concerns of both parties. As a result, the senators’ interest in the corporation’s human resources policy was justified by concerns that the organization was violating employee rights. Thus, the outcomes of the ethical breakdown turned out to be serious for Amazon.
Ethical Problems Occurrence
One of the main reasons why the ethical issues at hand developed into a serious challenge for Amazon’s business under the influence of public outcry was the monopolization of the market. According to the case described by Conger (2020), Jeff Bezos, the CEO of the corporation, was repeatedly called to testify before the authorities as part of an antitrust investigation. By expanding its market share, Amazon has gained colossal global influence and become one of the major electronic retailers. This, in turn, directly entailed difficulties in managing human resources because to effectively control the performance of subordinates, the company needed to make significant efforts. The inability and unwillingness to go for it led to the described problems; instead of dealing with the causes, the leaders of the corporation tried to eliminate their consequences. These tactics were unsuccessful, as public condemnation and legislative issues testified.
Given that Amazon’s layoffs were not isolated, the entire management of the corporation should be considered as those responsible for the problems that arose but not only its CEO. As Jalan (2020) states, whistleblowing is a deliberate act and should be seen as a moral responsibility rather than a betrayal. Corporate employees are not required to hide the facts of the unacceptable attitude of management towards personnel. Therefore, the fact that the public has learned about numerous layoffs is a consequence of an incompetent human resources management policy. Moreover, in Appendix A, a chart is provided that describes the level of approval of Amazon’s activities, including its ethical focus (“Consumers love Amazon,” 2019). Based on these statistics, one can note that people tend to question corporate ethics, and layoffs confirm the existing problems.
Ways to Avoid Ethical Problems
If Amazon had pursued a distinctive HR strategy and paid more attention to building a positive company climate, the aforementioned ethical problems could have been avoided. Zhou et al. (2018) emphasize the value of addressing subordinate personal needs, for instance, workplace safety and self-esteem, as a principle to prevent whistleblowing. The fact deserves particular attention that, having no other opportunities to influence the situation in the company, employees are forced to testify against the employer and reveal the facts of illegal activities. If Amazon had been interested in avoiding conflicts with staff, it would have established an individual whistleblowing policy, which, as Valentine and Godkin (2019) argue, is a common corporate practice. Nonetheless, by not giving importance to these aspects of the business, the corporation was involved in a public conflict.
Another potentially effective way for Amazon to avoid ethical issues that arose would be to conduct a competent internal investigation. According to Zhou et al. (2018), companies that value the contribution of employees to achieve short-term and long-term goals and strive to increase team engagement do everything possible to prevent the leakage of qualified personnel. Having received the status of a global corporation with unlimited retailing opportunities, Amazon’s management made no attempt to ensure productive interaction with subordinates and create an open and transparent communication algorithm. If the corporation had gone out of its way to employees and done everything possible to address the concerns of staff regarding the sanitary condition of the company’s warehouses, this might have solved the ethical problems. However, without resorting to any of the aforementioned strategies, Amazon failed to rationally resolve the conflicts that arose.
Theories and Concepts Application
The Amazon issues under consideration can be analyzed with the help of relevant ethical theories and in the context of whistleblowing as a phenomenon that led to the public outcry. One of such concepts is Mill’s consequentialism, which Waters (2020) describes as the theory that views specific outcomes but not their prerequisites and motivations. Whistleblowing, in this case, can be described as the desire of employees to maximize benefit and minimize potential harm to personal well-being. This concept is also referred to as utilitarianism and is based on the idea that initiated actions are intended to serve the benefit of the majority (Waters, 2020). The Amazon case proves the relevance of such a theory because the laid-off employees wanted to achieve justice that would not only concern them but also a large team of specialists as a whole.
Another relevant concept is different from that of Mill and based on a universal rather than a local principle of application. In this regard, it is often referred to as universalism; the theory was developed by Kant, and alternatively, it is called deontology (Waters, 2020). The basic principle of this doctrine lies in the broad nature of its manifestation. According to the concept of universalism, if a particular action is relevant on a global scale, it is ethically rational. In the context of the Amazon case, whistleblowing can be considered an ethical practice because no employer’s personal rights are violated if an employee testifies to unacceptable company management policies. As Waters (2020) argues, Kant’s theory is consistent with the basic principles of business ethics and is an essential attribute when applied to analyzing controversial cases affecting interpersonal relationships in the workplace. Both concepts discussed justify whistleblowing as an attempt to improve the situation and address pressing issues.
Recommendations to Amazon
In order for Amazon to successfully overcome the identified challenges and address its ethical breakdown, the corporation needs to take into account the fact that whistleblowing is the norm in the face of governance violations. One of the alternative solutions is creating a special program that admits whistleblowing and allows employees to count on support in the case of infringement of rights. In Appendix B, an alternative mechanism is presented in which line managers can be involved as mediators in resolving disputes (“Whistleblowing policy,” 2022). The theory of universalism suggests an argument in favor of achieving the good for as many people as possible, and if whistleblowing can help solve the issues of the majority, this phenomenon cannot be ignored (Waters, 2020). Otherwise, bias and authoritarianism increase, which is unacceptable in today’s corporate culture.
Another valuable solution for Amazon is performing an intervention at the level of human resources management to initiate an improvement project to enhance organizational culture. Despite the status of a global corporation, the company’s problems have shown that inconsistency in the interaction between managers and subordinates is fraught with severe problems, including reputational ones. Waters (2020) suggests paying attention to the social exchange theory, which is relevant in the context of building relationships between two parties in determining responsibilities and risks. This concept, promoted by the management, can help Amazon’s leaders better understand the needs and interests of staff. Employees, in turn, will be loyal to management, which will contribute to minimizing the threat of ethical conflicts and improving the microclimate in the team.
Conclusion
The lack of rational practice to encourage whistleblowing and a weak organizational culture were the main causes of ethical issues in the Amazon case in question. If the company’s management had created an inclusive environment for staff and taken into account the interests and concerns of subordinates, public outcry around the layoffs could have been avoided. As the relevant concepts involved in evaluating the issues, Mill’s consequentialism and Kant’s universalism can be applied. In addition, the social exchange theory may be seen as a methodology to create mutual understanding between two parties to identify each other’s interests and benefits. Establishing an individual whistleblowing framework within the company is a potentially powerful mechanism for Amazon to avoid public condemnation and reputational costs.
References
Conger, K. (2020). Senators want to know if Amazon retaliated against whistle-blowers. The New York Times. Web.
Consumers love Amazon, but may be questioning its ethics. (2019). Marketing Charts. Web.
Jalan, I. (2020). Treason or reason? Psychoanalytical insights on whistleblowing. International Journal of Management Reviews, 22(3), 249-263. Web.
Valentine, S., & Godkin, L. (2019). Moral intensity, ethical decision making, and whistleblowing intention. Journal of Business Research, 98, 277-288. Web.
Waters, S. (2020). The ethical algorithm: Journalist/whistleblower relationships explored through the lens of social exchange. Journalism & Communication Monographs, 22(3), 172-245. Web.
Whistleblowing policy. (2022). Housing Ombudsman Service. Web.
Zhou, L., Liu, Y., Chen, Z., & Zhao, S. (2018). Psychological mechanisms linking ethical climate to employee whistle-blowing intention. Journal of Managerial Psychology, 33(2), 196-213. Web.
Appendix A
Perception of Amazon’s ethical policy
Appendix B
Algorithm of whistleblowing
