Introduction
Maintaining an ethical decision-making framework in the realm of skyrocketing competition rates and increasingly challenging sociopolitical and socioeconomic setting is a highly complicated task. Moreover, with the rise in the importance of information management as the main tool for predicting customer behaviors and market changes, a range of companies have been sacrificing their ethical principles for accurate customer data collection. Specifically, the issue of tricking people into submitting personal data without being fully aware of how their information will be used has become quite common among numerous organizations. Being one of the doubtless IT leaders, Amazon has been criticized for its approach toward customer data collection and the lack of transparency therein (Manchaiah et al., 2019). However, due to the flaws i9n its current code of ethics, Amazon will need to focus on promoting transparency in data management in order to restore its customers’ trust in its performance.
Amazon Case Study: Key Details
Over the course of its history, Amazon has had to face quite a range of ethical controversies surrounding its choice of business strategies. However, the issue with customer data management, particularly, data collection from uninitiated buyers, must have been one of the most complex ethical dilemmas that the company has ever encountered (Manchaiah et al., 2019). Specifically, Amazon’s current strategy of data collection through its monetization mechanisms often implies bypassing the process of receiving buyers’ consent and informing them in detail about the nature of the process, as well as its outcomes (see Fig. 1) (Manchaiah et al., 2019). Amazon claims the specified approach to be used solely for improving customer experience and providing buyers with the advertisements for the products that are targeted specifically at them based on the obtained information. However, the lack of consent and awareness on customers’ side creates a rather dubious situation.
Critical Ethical Issue: Data Appropriation and Exploitation
Delving further into the issue will show the controversial nature of the subject. Specifically, the information that Amazon collects by analyzing the monetization activities, as well as any information related to them, allows the company to target its audience in a much more precise and effective manner, offering the exact products and services that customers are likely to purchase. However, the specified approach toward advertising comes at a price since Amazon collects customers’ data in a rather subtle and nuanced manner (Manchaiah et al., 2019). Specifically, Amazon’s current stance on the use of telco data assets as the means of eliciting customer-related information creates an environment where customers are not fully informed about the manner in which their personal data is processed (Manchaiah et al., 2019). Therefore, Amazon’s approach to customer data management during monetization and the further development of advertising strategies for targeting specific audiences can be interpreted as questionable.
Ethics of Using Data for Monetization
Approaching the problem form the ethical perspective will require viewing the issue as a dilemma of choosing between customer-oriented services and the challenges of obtaining customer consent along with meticulous process of customer education. Namely, applying the Utilitarianism approach will suggest that any action ultimately leading to buyers’ benefit can be justified and, therefore, should be approved (Manchaiah et al., 2019). In the specified context, the idea of using monetization activities without informing buyers in order to tailor the advertisements specifically to customers’ needs can be considered an ethically neutral action (Manchaiah et al., 2019). However, utilizing Kant’s Deontological ethics will suggest that any action misaligning with the current ethical standards is, in fact, morally unjustifiable (Manchaiah et al., 2019). Consequently, in the described perspective, Amazon should be blamed for failing to inform its buyers and collecting their data without their knowledge.
History of Using Data in Retail
Admittedly, the issue of data misuse has been a source of concerns and multiple conflicts in retail since the conception of trade. The issue of personal data privacy and the need to shield buyers from organizations collecting data has been arising consistently since the early 2010s (Manchaiah et al., 2019). For instance, the 2012 New York Times article represents the problem of customer data misuse by large corporations straightforwardly (Duhigg, 2012). Specifically, the author points out that, due to meticulous data collection, companies may elicit information of which customers may not be aware themselves in order to promote specific products to them (Duhigg, 2012). Over the years, the issue has only exacerbated, with the methods of data extraction having become much more nuanced and intricate, therefore, complicating the path to customers’ understanding of how their personal data is used.
Data Ethics and Moral Obligations
Approaching the case of Amazon, one will notice that the company’s decisions do not quite align with the current standards for data ethics and ethical management of customer information. Specifically, the obligations that companies presently have in regard to the management of their customers’ private information involve the moral responsibility to handle the personal data in the way that does not harm customers or infringe upon their rights (Manchaiah et al., 2019). The specified standard demands that the principles of non-disclosure should be applied to personal data management (Manchaiah et al., 2019). In turn, in case of Amazon, personal information of its customers has clearly been transferred to a third party through the caveats in the monetization practices in order to create better-targeted advertisements (Manchaiah et al., 2019). Therefore, Amazon’s current behavior appears to be misaligned with the principal concepts of ethics, particularly, the ones of nonmaleficence and customer autonomy (Manchaiah et al., 2019). Currently, Amazon holds the moral obligation to alter its approach to personal information management and introduce transparency into its data collection policies.
Consumer Awareness and Fairness
The necessity to keep customers fully aware of the manner in which their personal data is handled by the organization is obligatory not only for legal reasons, but also for ethical ones. Specifically, based on the Deontological principles of moral obligations and ethical values as the essential basis for decision-making, an organization must act upon the ethical standards of nonmaleficence and beneficence, as well as the concept of customer autonomy (Manchaiah et al., 2019). However, given the difference in priorities of companies and their buyers, particularly, the need for an organization to thrive in a highly competitive setting, placing the needs of customers at the forefront is not typically deemed as sensible.
The detachment from the ethical and moral obligations observed in a range of firms, including Amazon, can be attributed to them embodying a business entity and not being represented by a specific individual, hence the pointlessness of appealing to personal values and morals. As First Baron Thurlow pointed out, there is no point in expecting a corporation to demonstrate the presence of consciousness since “it has no soul to be damned, and no body to be kicked” (Bottomley et al., 2020, p. 266). Therefore, assuming that corporations such as Amazon are going to start aligning with essential standards for ethical behavior without an external impetus would be naïve.
Human Behavior: Lack of Awareness
In turn, the issue is exacerbated by the lack of the relevant data management literacy skills in customers. Studies indicate that most people utilizing the monetization function at Amazon are unaware of the implications of them using the service, particularly, in regard to the personal data collection issue (Manchaiah et al., 2019). Furthermore, the behavior of Amazon’ target audiences shows that there is a consistent failure to recognize the threat and accept it as such, leading to most customers being rather careless with their use of the services in question (Manchaiah et al., 2019). As a rule, Amazon tends to represent the specified process as the means of attuning the advertisements and recommendations to customers’ needs: “Amazon.com offers customized information to each customer through his or her own Web page and recommendations based on the customer’s interests and buying pattern” (Ha, 2004, p. 337). Therefore, the lack of awareness about Amazon’s dubious policies in its target audiences raises concerns about the likely breach of ethical standards and the safety of buyers.
Amazon: Exploiting Both Sellers and Buyers
Remarkably, the application of the Deontological and Utilitarian ethical theories to the analysis proves that Amazon’s current approach to managing personal data processing and its use in advertising proves that the company exploits not only customers but also retailers. Specifically, while customers are under a particularly high threat of data exposure, sellers may also suffer from the mismanagement of their corporate data by Amazon managers.
Ethical Practice toward Consumers
In order to address the current situation and improve its global image, Amazon will need to change its et5hical practice toward its buyers. Namely, Amazon will require greater transparency in its information management. The specified goal can be accomplished by improving the existing communication channel for conversing with buyers to provide the latter with clear and concise information about the company’s data management policies. Additionally, Amazon must revisit its framework for developing targeting advertisement. The proposed change can be launched with a change in the corporate ethics, particularly, the reinforcement of the concepts of customer beneficence and nonmaleficence, as well as the enhancement of the significance of customer advocacy and education. Specifically, the principles of Kantian ethics, particularly, the Deontological notion of values as the cornerstone for decision-making, must be incorporated into the organizational ethical code and decision-making frameworks.
Amazon: Key Decisions, Positions on Morale and Governance
Presently, it is quite difficult to pinpoint the exact person to blame for the ethical catastrophe that Amazon’s current approach to data management represents. While one could claim that the company’s information managers are to be seen as the guilty party, their role in Amazon’s ethical breach boils down primarily to following the set framework for information management. Thus, even though the company managers could question the legitimacy of the strategies established as the default, the corporate standards leading to the development of the strategies in question can be seen as the pain factor affecting the present situation. Therefore, Amazon’s CEO and company leaders setting the ethical standards should be seen as responsible.
Frameworks for Managing Ethical Concerns
To address the current concerns, Amazon will have to revisit its current framework for data management completely. However, since changing the entire system immediately is impossible, with rapid alterations being likely to entail a massive drop in the company’s performance rates and its resulting downfall, minor steps are to be introduced as a temporary remedy. Specifically, making data management processes transparent and promoting customer awareness concerning data processing within Amazon must be seen as a crucial step.
Impact
The effect of Amazon’s breach of ethical standards, namely, non-disclosure of customers’ personal data, could be seen as minor at first glance. Namely, since Amazon has not been selling customer data for malicious purposes and, instead, has been seeking to improve customer experience by making targeted advertising more precise, the impact of the company’s actions could be deemed as miniscule. However, embracing the larger picture of the observed phenomenon, one will realize that the breach of corporate ethics and the selling of buyers’ personal information for advertising purposes has, in fact, created a rift between Amazon and its clients, undermining their trust toward the company. More importantly, Amazon’s actions have contributed to making the line between evidently harmless and possible dangerous disclosure of customer data very fuzzy (Manchaiah et al., 2019). The specified outcome is likely to contribute to a drop in customer safety.
Conclusion
Since Amazon’s approach to customer data involves a sever breach of corporate ethics, the organization must introduce transparency into its information management framework, allowing customers to educate themselves about the outcomes of using Amazon’s services. The proposed solution will have to incorporate a drastic change to the corporate information management standards as a twofold procedure. Namely, the change must start with the introduction of transparency across Amazon’s communication channels so that customers could be aware of how their personal data is used. At the same time, improved ethical code must be established rigidly so that staff members could follow them exactly. The proposed solution is expected to result in better customer communication and create premises for customer education about the nature of data management within the company, while also ensuring that Amazon does not disclose its data to any third party without customers’ permission. With the specified steps introduced, Amazon will be able to restore its reputation and its customers’ faith in its decency.
Reference List
Duhigg, C. (2012) ‘How companies learn your secrets,’ the New York Times, Web.
Ha, H. (2004), ‘Factors influencing consumer perceptions of brand trust online’, Journal of Product & Brand Management, 13 (5), pp. 329-342.
Manchaiah, V., Amlani, A. M., Bricker, C. M., Whitfield, C. T., & Ratinaud, P. (2019). Benefits and shortcomings of direct-to-consumer hearing devices: Analysis of large secondary data generated from Amazon customer reviews. Journal of Speech, Language, and Hearing Research, 62(5), 1506-1516.
Newton, B., and Scaer, M. (2018) ‘Run Amazon payments analytics with 750 TB of data on Amazon Redshift’, Web.