Case Study Analysis and Report-Workers’ Exploitation in Amazon

Introduction

Every organization needs to retain the best group of employees in the company to be efficient, productivities and lucrative. However, there are many thoughtful considerations, which are to be taken by the company management to depict some ethical business traits and make the business sustainable. Unfortunately, business ethics and sustainability have become major challenges for organizations. This case is associated with the workers’ exploitation. Workers in large and small organizations are not feeling safe and secure. Different companies are exploiting workers to make financial gains.  It is unethical to streamline or prioritize the financial benefits and use workers as robots in the company. It is due to lack of employee policy, work ethics, and work environment standards.

The worker’s exploitation is related to the business ethics issue. For Instance, one of the most prominent business ethics principles is respect. It has been revealed that many large organizations, which are dealing with an immense range of customer, are not respecting workers at the workplace. Amazon m being a top retail corporation has streamlined its large workforce in different departments. However, recently, the case of an employee or workers’ exploitation emerged. The firm management or HR team is not respecting its workers’. The workers’ exploitation has been demonstrated through work overload and poor work environment. Another dimension is fairness, and it is also a prominent business ethics principle.  Amazon does not seem fair with its employees in departments. For Instance, instead of identifying the physical limits of employees, the company wants to take more work from employees to be productive and lucrative (Ahn, Lee and Yun, 2018).

It seems important to streamline some main arguments regarding this case. Workers at Amazon Company are frustrated due to the exploitation. To protect their labor and human rights, they decided to create the workers’ union. On the other hand, the company is trying to suppress this intention to avoid the immense employee resistance. The economic growth and business expansion have increased the company’s growth. After acquitting the whole foods, almost 87000 employees have been added to the workplace. However, these workers of whole foods also intend to unionize due to the exploitation of their dedication. Another considerable fact is that workers are feeling extremely exploited in this company. On March 19, 2018, an interview has been taken from different employees of the company. Truly, they are miserable in this firm.  Now, due to this unethical business practice, there is a huge threat of the employee turnover. On the other hand, employee exploitation should also be a big thing to worry about this retail giant. Being a 15th largest employer in the country, it should streamline its efforts to enable the work ethics and sustainable work environment (Ahn, Lee and Yun, 2018).

Now, after placing some arguments, it seems necessary to go deeper in the case description and derive more insights to conduct a comprehensive analysis of ethical. Understanding the case and describing some facts is necessary to create the base for the analysis. Finally, it will be easy to come up with some key recommendations.

Case description (Workers’ Exploitation)

Amazon Company is exploiting workers’ due to overwork and strict working conditions. According to recent reports, workers are working 55 hours a week and restrained to take short breaks during the working hours. Even, workers are found urinating in water bottles to avoid punishment for taking breaks. Many workers are found asleep standing up due to the heavy workload.  Ahead of the Christmas season, it has been observed that workers are given or delegated some relentless targets. Many workers collapsed during the working hours and hospitalized. The recent example of the workers’ exploitation is the relentless targets. In the packaging department, a worker is targeted to pack 200 items in one hour. He is to be paid only £8.20 (Blanco-Oliver, Veronesi and Kirkpatrick, 2018).

On the other hand, Amazon is saying that is providing a safe and healthy working environment for works from the day one along with the competitive pay. However, the company is expecting the certain performance level from employees, and it is a right of the company. As far as the work targets are concerned, the company says it sets the target for workers based on their previous performance. However, as far as business ethics are concerned, this argument of the company cannot be justified. If the firm sets the relentless target for the employee based on the previous performance, it cannot expect the same performance due to the physical limitations of employees. People in this company are working like robots, and it is to be violently opposed (Carollo and Guerci, 2018).

Amazon is growing and expanding in different parts of the world.  An increase in the fulfillment center has created many jobs. It is a fact that Amazon welcomes new people in the workplace. However, working conditions are demoralizing workers’ even before starting the work.  Interestingly, Amazon is justifying these working conditions. It says it builds the sustainable and productive working environment. Answering about the bottle of urine, it says it was the solution of the workers to save the time to enhance the visibility of productivity. On the other hand, it seems real workers’ exploitation on the maker of productivity and performance level. Amazon is using different business tricks to exploit workers’ and take extra work from them with the same so-called competitive pay. The workers’ exploitation cannot be tolerated at any cost because it is just against business ethics (Ghosh, 2018).

Another aspect of this workers’’ exploitation case is job termination. For Instance, a worker is hired by the company and given a contract of nine months. The workers must expect to lose the job if he does not meet the exceptional job performance level even before the end of the contact.  It seems another form of exploitation. Amazon is trying to create its work standards instead of adapting the general workers’ rights. The priority or preference of the firm is profitability and business ranking. It is impairing the image. The workers’’ exploitation case, streamlined recently through news, is going to hit the firm hard in the future (Grevatt, 2018).

The workers’ exploitation story is long. However, another pertinent example of the workers’ exploitation has been observed recently in Amazon’s flagship warehouses. People have been forced to pay to the third party to take the benefit of the special bus service.  The employee is taking less than half the wages at home and finding some dire transportation links. People are stranded due to these dire transportation links and slept under bridges. Interestingly, the firm is making the employee policies and shaping practices by integrating with the company’s perceptive only. The profitability has not been compromised for many years. On the other hand, employees are getting injured, collapsed, frustrated, and stranded in this company. It is the workers’ exploitation (Weindling, 2017).

People or workers in the company are afraid to take time off sick. The most shocking fact regarding the Amazon Warehouses in the United Kingdom is the 600 ambulance calls.  According to workers’, working conditions are tough and complex, and the number of workers’ collapse is increasing with the passage of the time. Workers are telling reporters that they are living in a prison where everything is triggered by permission. It is a fact that the working practices in this big retail giant are alarming. Union leaders in different warehouses have to combine their efforts to reach the authorities. The regulator must intervene in the working condition or practices.The most important thing is to make the working conditions in this company favorable for humans. Workers’ values must be highlighted by these regulators that can also force the company to alter the working conditions and reduce the visibility of the exploitation (Sainato, 2018).

Analysis of ethical issues

·         Safe or Favorable Working Conditions

The analysis of the ethical issues is integrated with the different unfair or unethical work practices by Amazon Company in this particular case. The main ethical issue, in this case, is the safe or favorable working conditions that can enable the workers’ safety and health. Amazon has not changed its work culture in warehouses or fulfillment stores to save the money. The management of the company wants to use workers to meet relentless targets. They want to increase the productivity through physical efforts of workers’ instead of bringing modern or advanced technology to reduce the workload. The company prefers using a workers’ physical strength for a long run to be productive and lucrative. It is unethical because the company does not create employee values. The company cannot gain the employee satisfaction and loyalty due to this unethical behavior in the Amazon. If the company is giving or offering competitive pay to employees, then it must take responsibility for the psychological and emotional distress. Giving a competitive pay and pushing employees to work in strict conditions is not justifiable, especially in the contemporary business era. Instead of making the team, regulating shift works, and adopting modern technology to make work easier for workers’, it seems unethical to use physical power to save money. The exploitation starts when the employee is forced to work in such conditions. In result, the visibility of the workplace accidents increases, and it is also quite visible in Amazon Company (Robertson, Voegtlin and Maak, 2017).

·         Employee Happiness

Another ethical issue in the case is making employees happy. Making employee happy at the workplace has become a prominent and important ethical issue. The employee in the company can be made happy through creating a flexible working culture, good management-employee relations, and much other attractive facilitation. The big issue in this Company is lack of flexibility. The employees have to work consistently or frequently. Amazon could allow work breaks in warehouses and fulfillment stores to reduce the stress and let employees take some refreshments. Unfortunately, the human resource management in the company is equally responsible for the workers’ exploitation. The HR team did not establish any measures to assess employee satisfaction and happiness. They only created the performance measures to improve performance and productivity. Employees are not happy with this company, and it seems destructive for both employees and the company. Interestingly, the impact of this ethical issue on the company’s profitability is positive. On the other hand, the impact of this issue on employees is negative. The top management, business executives, and HR development teams of the company are major stakeholders regarding this issue (Pichhi, 2018).

·         Relentless Targets

Another ethical issue, in this case, is the relentless target for employees without even assessing the ability and time limitations.  In the warehouses or fulfillment centers, employees have to pick and pack the product within the time limitation, and it is to be done repeatedly.  In the pressure work conditions, tough targets are hitting the physical capabilities. Employees have to walk on floors all day and even they have to run to meet their targets. It seems a big question that why Amazon is not using the technology in these warehouses to facilitate employees. Workers’’ exploitation is linked with the poor working environment, and despite containing the financial capability; the firm is struggling to make some changes. The chief executive officer of Amazon has frequently opposed by these allegations, stating that all critics are wrong about the working conditions (Onasanya, 2018).

·         Employee Treatment

Another ethical issue, in this case, is the employee treatment. As mentioned in the case, the employees in this company are treated like robots. Amazon, in different UK and US warehouses, installed security cameras like airport security to monitor the movement of employees.  These employees are called pickers in these warehouses. They have to repeatedly move towards the predetermined route on the floor to find the product, scan it, put into the right box and sent to the delivery. These efforts are made to enable fast delivery for customers. Unethically, the efficiency comes at the cost.  Instead of training and motivating emotes to meet relentless targets, the employee is to be fired if targets are not achieved. Therefore, people avoid taking breaks for bathrooms, drinks, smoke, and even taking phone calls (Marx, 2018).

Now, ethical issues are aligned with the workers’ exploitation in the Amazon; followings are some recommendation or strategies for the company management to reduce these issues and emerge as an ethical employer in different countries.

Recommendations

·         Transforming Culture

After the analysis of the ethical issues regarding this case, there are some solutions or recommendations, which are to be streamlined to reduce the workers’ exploitation.  For Instance, the Amazon Company should start from its work culture. The best thing that the Amazon Company can do to reduce workers’ exploitation is to transform its culture. The transformation may include fostering teamwork, restructuring shift work, and changing the design of the warehouse floor. It seems a technical recommendation that can help employees change their experience when working in this big retail giant (Grevatt, 2018).

·         Work-Life Balance

Another recommendation for the company is to practice the work-life balance. This practice or recommendation is directly associated with the human resource department of the company. The work-life balance activities can help the management of the company to create the space for workers in the department to take breaks and early offs. Increasing number of employees to implement the work-life balance is a good approach, which has been practiced by many companies (Ahn, Lee and Yun, 2018).

·         Federal Regulations

To reduce the workers’’ exploitation and come up as an ethical company, the firm must have to integrate with the federal regulations regarding employee rights and safety at the workplace.  The human resource department of the company is not active so far. Department managers are monitoring employees regarding work performance and productivity. Now, it is the best time for Amazon to change the employee policy by aligning with the human resource department. It is a key to eliminate some unethical work traits and employee’s troubles. The most important thing is to build a stronger workforce that can meet the objective of rapidness and efficiency instead of fostering through exploitation (Agerholm, 2017).

·         Adopting the Work Culture of Whole Foods

Another recommendation for Amazon Company is adopting the work culture of whole foods, which is being acquired recently by this company. As mentioned in the case, 87000 workers are also not happy due to hectic working conditions. The best thing is to adopt the whole food culture of collaboration and teamwork that can also help this company to foster the management-employee’s relations. There is a gap between management and employees due to unethical behavior of the management in the workplace.  Adaptation is highly recommended to initiate the change in the workplace (Blanco-Oliver, Veronesi and Kirkpatrick, 2018).

·         Internal Business Analysis

Heavy workload, long working hours, and low pay for employees are causes of employee exploration the workers’ exploitation is a big ethical is a big ethical issue because the company is the beneficiary. I would like to recommend the CEO Jeff Bezos to conduct the internal business analysis. Instead of opposing allegations of employees, it seems better to direct monitoring teams to assess the actual working conditions and employee’s intentions.  He can make effective employee strategies after obtaining some key exploitation insights along with some ethical business considerations (Pichhi, 2018).

Conclusion

In the end, it is to conclude that Amazon Company is on target due to the recent case of workers’ exploitation. People in warehouses and many other departments are pushing hard to enhance productivity. It resulted in heavy workloads, overtimes, workplace accidents, low pay, and long working hours. The firm wants to increase productivity in the presence of many other retail rivals through the productivity of its employees. However, it is quite damaging and destructive.   It is unethical for any employer to use the employees like robots or prisoners. Employees in the workplace are working more than 55 hours a week, and it is causing many employees collapses at the workplace.  People are afraid of salary cut of termination when meeting targets, and it causes emotional distress. People, due to the hectic working environment and relentless targets, use to sleep during working hours and finally penalized by the company. Pickers in Amazon warehouses are struggling to meet their targets due to the impaired physical health. Not every employee is to be terminated, and it goes in favor of the company. Dishonorably, instead of making some change to facilitate employees, the firm is just focusing on profitability and productivity. Some ethical issues, which have been derived from the case analysis, are employee’s happiness, working condition, employee treatment, and unyielding targets. In the external business environment, especially in the retail industry, Amazon has successfully maintained a good perception or brand image. However, some shocking facts or events regarding the workers’’ exploitation have highlighted the cost of remarkable productivity and efficiency.  Cultural transformation, work-life balance, aligning with federal regulations, adopting the culture of acquired whole foods and conducting the internal business analysis are some key recommendations for the management of the company to reduce the workers’ exploitation and emerged as an ethical employer in different countries.

Productivity and profitability are a dream of every company. However, the company cannot take on employees to meet this purpose. There should be a work culture that creates the win-win situation for both management and employees, and it can also help to build the sustainable relationship. Interestingly, Amazon has not realized the negative impacts of these illustrated ethical issues. Any shocking events and working circumstances have helped to perceive this company differently. The business world is changing, and companies, especially retail chains are trying to retain the best talent to be lucrative and efficient. The way of being profitable and productive is wrong with Amazon Company. The case shows the preferences of the company, which go against employees. Now, the firm must have to consider these recommendations and begin the change process immediately to make the difference. It is a great opportunity for this company to initiate workplace ethics through prioritizing employees and working conditions. The impact on productivity and profitability will be positive for this company.

References

Agerholm, H. (2017) Amazon workers working 55-hour weeks and so exhausted by targets they ‘fall asleep standing up’, 27 November, [Online], Available: https://www.independent.co.uk/news/uk/home-news/amazon-workers-working-hours-weeks-conditions-targets-online-shopping-delivery-a8079111.html [15 October 2018].

Ahn, J., Lee, S. and Yun, S. (2018) ‘Leaders’ Core Self-evaluation, Ethical Leadership, and Employees’ Job Performance: The Moderating Role of Employees’ Exchange Ideology’, Journal of Business Ethics, vol. 148, no. 2, pp. 457–470.

Blanco-Oliver, A., Veronesi and Kirkpatrick (2018) ‘Board Heterogeneity and Organisational Performance: The Mediating Effects of Line Managers and Staff Satisfaction’, Journal of Business Ethics, vol. 152, no. 2, pp. 393–407.

Carollo, L. and Guerci, a. (2018) ‘‘Activists in a Suit’: Paradoxes and Metaphors in Sustainability Managers’ Identity Work’, Journal of Business Ethics, vol. 148, no. 2, pp. 249–268.

Ghosh, S. (2018) Peeing in trash cans, constant surveillance, and asthma attacks on the job: Amazon workers tell us their warehouse horror stories, 5 May, [Online], Available: https://www.businessinsider.com/amazon-warehouse-workers-share-their-horror-stories-2018-4 [15 October 2018].

Grevatt, M. (2018) An Amazon worker speaks: ‘Workers feel extremely exploited’, 19 March, [Online], Available: https://www.workers.org/2018/03/19/an-amazon-worker-speaks-workers-feel-extremely-exploited/ [15 October 2018].

Marx, P. (2018) Jeff Bezos Can Thank Exploited Workers for His $100 Billion, 2 January, [Online], Available: https://medium.com/@parismarx/jeff-bezos-can-thank-exploited-workers-for-his-100-billion-d3d5245a6e1b [15 October 2018].

Onasanya, F. (2018) Amazon must be forced to change, for the sake of its workers, 20 July, [Online], Available: https://www.theguardian.com/commentisfree/2018/jul/20/amazon-workers-employees-unions-regulations [15 October 2018].

Pichhi, A. (2018) Inside an Amazon warehouse: “Treating human beings as robots”, 19 April, [Online], Available: https://www.cbsnews.com/news/inside-an-amazon-warehouse-treating-human-beings-as-robots/ [15 October 2018].

Robertson, D.C., Voegtlin, C. and Maak, T. (2017) ‘Business Ethics: The Promise of Neuroscience’, Journal of Business Ethics, vol. 144, no. 4, pp. 679–697.

Sainato, M. (2018) Exploited Amazon workers need a union. When will they get one? 8 July, [Online], Available: https://www.theguardian.com/commentisfree/2018/jul/08/amazon-jeff-bezos-unionize-working-conditions [15 October 2018].

Weindling, J. (2017) 7 Examples of How Amazon Treats Their 90,000+ Warehouse Employees Like Cattle, 4 December, [Online], Available: https://www.pastemagazine.com/articles/2017/12/7-examples-how-amazon-treats-their-90000-warehouse.html [15 October 2018].

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