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Impacts of Diversity and Inclusion on Amazon
Student’s Name:
Course Code:
S-Number:
Word Count: 1064
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Impacts of Diversity and Inclusion on Amazon
Introduction
Jeff Bezos established Amazon in 1994, and it is now a world leader in several sectors,
including e-commerce, cloud computing, streaming video, and artificial intelligence. Amazon, a
company based in Seattle, Washington, has transformed how people buy things, consume
information, and utilize technology. The business has many offices, data centres, and fulfillment
facilities and works on a worldwide scale (WILLIAMSON et al., 2022). The operations of Amazon
in the United States, notably its e-commerce and technology industries, will be the main topic of
this essay. This assignment examines the value of diversity and inclusion in the workplace with a
particular emphasis on how Amazon handles this issue. The analysis of the political, economic,
sociocultural, technological, legal, and environmental factors influencing Amazon's diversity and
inclusion programs is done using a PESTLE framework. Understanding Amazon's response to this
problem and how it will affect the business climate in the future are the main goals of this study,
which also emphasizes the need of fostering a varied workforce and welcoming workplaces in
today's globally conscious and socially responsible society.
Analysis
The numerous external elements that affect Amazon's reaction to the major problem of
diversity and inclusion will be examined using a PESTLE analysis in this section.
Factor
Description
Implications for Diversity and Inclusion
Political
- Government regulations on
diversity reporting and affirmative
action.
- Global operations subject to
varying political contexts.
- Encouragement and enforcement of
diversity initiatives to meet legal
requirements.
- Need to tailor strategies to different
political environments.
Economic
- Diverse workforce enhances
market reach.
- Diversity-related issues impact
reputation.
- Inclusion fosters innovation in products
and services.
- Positive reputation attracts diverse talent
and customers.
Social
- Changing societal values call for
inclusive workplaces.
- Creating an inclusive culture that aligns
with societal values.
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- Inclusivity resonates with diverse
customer base.
- Tailoring products/services to diverse
consumer preferences.
Technological
- AI and data analytics aid in
identifying diversity gaps.
- Digital platforms impact
accessibility of opportunities.
- Tech-driven insights enhance diversity
strategies.
- Remote work tech affects diversity of
talent pool.
Legal
- Anti-discrimination laws require
compliance.
- Legal risks from diversity-related
controversies.
- Implementing inclusive policies to meet
legal standards.
- Mitigating legal risks through proactive
diversity efforts.
Environmental
- Sustainability initiatives align with
diverse consumer demands.
- Incorporating diversity into sustainability
practices.
- Enhancing reputation through ethical and
inclusive initiatives.
Figure 1: PESTLE Analysis of Amazon
Selected Factors for In-depth Analysis
1.
Economic Factors - Market Reach and Reputation
Diversity and inclusion aid Amazon's financial performance by expanding its market reach
and enhancing its brand. Amazon can access a wider spectrum of customer tastes and demands
thanks to a varied staff (Chen, 2020). Amazon can increase customer loyalty and gain a competitive
advantage by providing goods and services that appeal to a variety of groups. Addressing diversity-
related problems also improves the company's image, since investors and customers place more
value on socially responsible companies. Increased customer trust, stronger staff morale, and better
financial performance may all be a result of this good reputation.
2.
Social Factors - Customer-Centric Inclusivity
Amazon's dedication to serving its customers' needs is consistent with societal movements
that value diversity and representation. Customers want firms to represent their beliefs at a time of
increased awareness of social injustices (Gupta & Ramachandran, 2021). Amazon satisfies the
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changing needs of customers who want items that cater to their unique backgrounds and interests
by cultivating an inclusive workplace and curating a diversified product assortment (Naim, 2022).
Amazon can establish a positive feedback loop via this alignment: a diverse staff increases
customer happiness, and consumer support for inclusion strengthens Amazon's commitment to
diversity.
These chosen elements demonstrate how social changes and economic concerns have an
impact on Amazon's approach to the major problem of diversity and inclusion. Amazon stands to
gain not simply in terms of financial performance but also in confirming its status as a forward-
thinking, customer-focused corporation by proactively exploiting diversity to grow its market and
aligning with changing societal expectations (Perz et al., 2022).
5Ws AND 1H
What:
The problem at hand is the insufficient representation of underrepresented groups
within Amazon's workforce, particularly in leadership roles.
Why:
This issue arises due to systemic biases, hiring practices that may inadvertently favor
certain demographics, and a lack of comprehensive diversity and inclusion strategies.
Where:
This challenge is prevalent across Amazon's global operations, affecting various
departments and locations.
Who:
The underrepresented groups include individuals from diverse racial, ethnic, gender,
and cultural backgrounds who face barriers to equitable representation.
When:
The problem has gained prominence as societal awareness of diversity and
inclusion has grown, prompting increased scrutiny of corporate practices.
How:
Addressing this problem necessitates implementing targeted recruitment strategies,
unbiased selection processes, mentorship and development programs, and creating an inclusive
organizational culture. By fostering a diverse leadership pipeline, Amazon can harness a broader
range of perspectives and talents, fostering innovation and ensuring the company's longevity and
relevance in an increasingly diverse market landscape.
Problem Statement
The current condition of diversity and inclusion at Amazon is characterized by a clear
underrepresentation of underrepresented groups, especially in leadership positions, underlining the
urgent need to address this major concern. The problem is systematic prejudices and ineffective
tactics that prevent people from different racial, ethnic, gender, and cultural backgrounds from
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participating fairly in the company's leadership structure. Because of this, Amazon's capacity to
tap into a wide range of viewpoints and ideas is yet untapped, which restricts creativity and makes
it more difficult for it to connect with a varied client base. The desired future state comprises a
paradigm change in which Amazon fosters a diversified leadership pipeline that is in step with
shifting social expectations by establishing extensive mentoring programs, fair recruiting methods,
and an inclusive workplace culture.
Conclusion
The analysis of Amazon's reaction to the major diversity and inclusion problem highlights
the pressing need for the business to close the current gap in underrepresented groups'
representation in its leadership. Amazon is at a transformational crossroads that necessitates a
purposeful commitment to establishing an inclusive workplace as a result of its recognition of the
systemic biases, regulatory frameworks, and cultural trends at play (Vilela et al., 2020). Our
analysis has led us to the conclusion that solving this problem requires more than just adhering to
the law or expanding one's market; it also requires embracing a cultural shift that encourages
innovation, empowers diverse voices, and allows Amazon to realize its full potential as a socially
responsible, customer-focused, and forward-thinking global organization.
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References
Chen, Y. (2020). Improving market performance in the digital economy.
China Economic
Review
,
62
, 101482.
https://doi.org/10.1016/j.chieco.2020.101482
Gupta, S., & Ramachandran, D. (2021). Emerging Market Retail: Transitioning from a Product-
Centric to a Customer-Centric Approach.
Journal of Retailing
,
97
(4).
Naim, A. (2022). UNDERSTANDING THE CUSTOMER CENTRIC APPROACH TO ADD
VALUE TO SOCIAL ECRM (SECRM).
American Journal of Technology and Applied
Sciences
,
3
, 17
–
31.
https://americanjournal.org/index.php/ajtas/article/view/39
Perz, S. G., Arteaga, M., Baudoin Farah, A., Brown, I. F., Mendoza, E. R. H., de Paula, Y. A. P.,
Perales Yabar, L. M., Pimentel, A. dos S., Ribeiro, S. C., Rioja-Ballivián, G., Rosero
Peña, M. C., Sanjinez L. , L. C., & Selaya G. , N. G. (2022). Participatory Action
Research for Conservation and Development: Experiences from the Amazon.
Sustainability
,
14
(1), 233.
https://doi.org/10.3390/su14010233
Vilela, T., Harb, A. M., Bruner, A., Arruda, V. L. da S., Ribeiro, V., Alencar, A. A. C., Grandez,
A. J. E., Rojas, A., Laina, A., & Botero, R. (2020). A better Amazon Road network for
people and the environment.
Proceedings of the National Academy of Sciences
.
https://doi.org/10.1073/pnas.1910853117
WILLIAMSON, B., GULSON, K. N., PERROTTA, C., & WITZENBERGER, K. (2022).
Amazon and the New Global Connective Architectures of Education Governance.
Harvard Educational Review
,
92
(2), 231
–
256.
https://doi.org/10.17763/1943-5045-
92.2.231
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