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Ethical Practices At Zappos

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Zappos is an online company which specializes in selling shoes, apparel, and accessories. Their approach to customer service and their business model make them stand out from other similar companies. Zappos offers free shipping and full refunds on returns. The unique core values the company follows are unconventional. It shapes their corporate culture and employees can pride themselves on respect and integrity to each other and to the customers.
The company offers great health benefits for the employees and their families. These employees are, however, required to socialize with each other in and outside the workplace. Zappos organizes outings for everyone with the belief that it improves trust and friendships between the workers.
In 2015, …show more content…

It starts off with $11 per hour for the first 90 days and is then moved up to $13 per hour. If they want to move up and earn more than that, they must demonstrate growth and specific skills. The company explains it by claiming they want to motivate the workers to do their best. Nonetheless, these wages are still below the national hourly average of $15.92.
The largest indicator of unethical practices at Zappos is the new organizational structure implemented by Tony Hsieh. He informed his managers through an email that they were no longer needed and would become regular workers, but were able to keep their salary. He also sent an email to all his employees to educate them on this new change into a Teal organization. A severance pay for three months was offered for anyone who wanted to leave and 14 percent of employees chose to take it.
Without the prospects of moving up in the workplace or the possibilities of pay increases, many employees are not as motivated to do their best. Leaving it up to everyone to manage themselves can also cause a lack in …show more content…

In 2011, Zappos released a marketing campaign which involved people who appeared to be naked. This, of course, offended several groups and it caused negative attention. Zappos pulled back the ads and issued an apology. To me, this is a sign of effectively managing ethical risk, because they did not need to issue an apology. Instead, they could have easily just change the ad and ignore the critics. It shows that they care how people perceive the image of the company.
A potential ethical risk for the future could be the mandatory socializing between all employees. Especially in today’s society, where sexual harassment is a big issue, chances are that out of office gatherings could lead to law suits. If employees get too comfortable with each other, the line between casual and professional relationships can get crossed. This could lead to inappropriate behavior and complaints.
5. When it comes to the Christian Worldview, Tony Hsieh has expressed honesty towards his employees and customers. He likes to send emails to everyone involved as soon as an issue arises. It would show more integrity if he would address his stakeholders in person through town hall meetings for example. It would also show his commitment to the company and to the people on a more personal

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