Exploring Amazon's Corporate Social Responsibility Practices

1 Amazon's Corporate Social Responsibility Name Institution Course Instructor Date

2 Amazon's Corporate Social Responsibility Introduction Jeff Bezos established Amazon in 1994 as an internet-based platform primarily focused on selling books. Over time, Amazon has transformed into a dominant force in the worldwide e- commerce industry. Amazon's success as one of the leading technological businesses in the U.S. may be ascribed not only to its capabilities and possibilities, but also to its commitment to corporate social responsibility (CSR) efforts (Amazon, 2022b). This paper seeks to explore the size, history, organization, and CSR practices of Amazon, with a focus on whether the company aligns more with Milton Friedman's profit-centric view or Archie Carroll's broader stakeholder- oriented perspective. Company Overview Amazon's journey from an online bookstore to a diverse technology corporation is marked by its strengths, including a strong brand name, an established distribution network, and a large loyal customer base. The North America segment focuses on domestic retail sales, leveraging both online and physical sites. Amazon's dedication to satisfying a diverse set of customers' needs across many channels is on full display with this plan of action. However, the International division takes the company's operations outside North America by capitalizing on its global footprint to cater to diverse local markets. Amazon Web Services (AWS) is a cornerstone of Amazon's operations since it provides mission-critical cloud computing services. Amazon's vast selection of products includes not only traditional retail goods and media, but also wholesale and drop shipped goods. Amazon also produces and sells the Echo, Ring, Blink, eero, and Kindle e-readers, Fire tablets, and Fire TVs. Amazon also plays a significant role in the creation of media. From its successful Prime membership program, which provides perks like

3 free delivery and streaming access, to its Amazon Web services, which provide essential cloud infrastructure, Amazon has a lot to offer. Furthermore, the organization offers tools for merchants, writers, musicians, and content producers to market and sell their wares and works. In 2022, Amazon's revenue was $514.0 billion, an increase of 9.4 percent from the previous year. However, there was a decline of 108.2% in net income. The fact that Amazon's market worth was $1,516.1 billion reflects the company's dominant position in its industry. About 1.5 million workers throughout the world are employed by the company (Amazon, 2022b). One of Amazon's major strategic initiatives is a promise to deliver free AI skills training to up to 2 million people by 2025. The company has also stated its intention to enter the automotive market by selling Hyundai cars through its website in the United States. Amazon fights with important industry competitors such as Walmart, Alphabet Inc, Costco Wholesale Corp, and Microsoft Corp in the competitive environment. Amazon's leadership in e-commerce and cloud services sets it apart from the competition, despite the benefits other competitors may have in some areas. Amazon's commitment to corporate governance is reflected in the company's leadership, which includes prominent figures like Jeff Bezos, Andrew R. Jassy, and Brian T. Olsavsky (Amazon, 2022b). The company's history reflects its adaptability and innovation, expanding into various industries such as cloud computing, online advertising, artificial intelligence, and digital streaming. Amazon's organizational structure supports its multifaceted operations. The company's focus on technology and e-commerce is evident in its organizational design, fostering innovation and adaptability. The strengths outlined in the SWOT analysis, including a global presence, financial performance, and strategic partnerships, contribute to Amazon's organizational resilience.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4 Corporate Social Responsibility at Amazon Milton Friedman's View According to Friedman, a company's first duty is to increase profits for its shareholders. CSR initiatives are only warranted if they increase profits, according to the Friedman (Munro, 2020). According to the company's 2022 Sustainability Report, Amazon is committed to doing its part for the environment, which is consistent with Friedman's view that firms should respect established norms of behavior. The company's 0.4% drop in absolute carbon emissions in 2022, despite a 9% increase in net sales, shows a strategic approach to CSR that takes long-term profitability into account. The goal is to reach net-zero carbon emissions by 2040 (Amazon, 2022a). Archie Carroll's View The four pillars of Carroll's CSR pyramid are philanthropy, ethics, law, and the bottom line. All of these areas are covered by Amazon's CSR activities (Munro, 2020). Investments in renewable energy, for instance, help establish the firm as an industry pioneer in environmental responsibility by satisfying both regulatory mandates and moral imperatives. Additionally, Amazon's pledge to donate 82 million meals worldwide in 2022 exemplifies the company's humanitarian efforts to strengthen local communities (Amazon, 2022a). Amazon's corporate social responsibility (CSR) efforts cover a wide range of aspects, demonstrating a well-rounded approach. The company's emphasis on diminishing its carbon footprint, allocating resources to renewable energy, and advocating for sustainability is in accordance with current demands for corporate accountability. Furthermore, endeavors such as Amazon Second Chance, which promotes responsible disposal of products, and the objective to decrease food waste by 50% by 2030, showcase a dedication to the well-being of society and the

5 environment. Friedman's profit-centric approach contradicts the evolving perspective, as represented by Carroll's pyramid, which recognizes a range of obligations towards stakeholders and acknowledges the conflict between maximizing profits and meeting broader societal responsibilities. This highlights the importance for businesses to achieve a harmonious equilibrium. Conclusion In conclusion, Amazon's CSR initiatives reflect a multifaceted approach that goes beyond mere profit maximization. The company's commitments to sustainability, community welfare, and ethical business practices align with Archie Carroll's broader view of corporate responsibility. While profit remains a crucial aspect, Amazon recognizes the importance of addressing environmental, social, and ethical challenges. As the company continues to evolve, balancing the expectations of shareholders and stakeholders will be essential for sustained success in an increasingly socially conscious business environment.

6 References Amazon. (2022a). Amazon Sustainability | Building a Better Future Together . Sustainability (US). https://sustainability.aboutamazon.com/2022-report Amazon. (2022b). Amazon.com, Inc. - Overview . Ir.aboutamazon.com. https://ir.aboutamazon.com/overview/default.aspx Munro, V. (2020). CSR Historical and Emerging Themes and Related Terms. CSR for Purpose, Shared Value and Deep Transformation , 15–51. https://doi.org/10.1108/978-1-80043- 035-820200004

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Amazon

Related Documents