Ethical Challenges In Zappos

1591 Words 7 Pages
This paper examines the influence of organizational culture on ethical behavior of Zappos and the leadership who has fostered the culture of customer service. Research shows that organizational culture is a primary driver in employee behavior and leaders shape this behavior. Zappos has become renowned for its ethical culture. Readers will learn the importance of alignment between culture and core values as well as how leaders shape the organization’s culture and supports the core values. The Zappos online retailer is a company known as an industry leader in customer service. The company Zappos strives to make the shopping experience enjoyable (Ferrell et al, 2014). The spirit of Zappos can be traced directly to their CEO Tony. According …show more content…
Three (3) of the ethical challenges that Zappos faces Even though the cultural values at Zappos is one that is highly regarded throughout the industry, Zappos still faces many potential ethical challenges. As with many organizations, Zappos has proposed restructuring their current operation to move into a super-flat leadership hierarchy. Under the new organization structure, employees and managers will not have an official job titles. The following potential ethical challenges that may arise from the re-organization:
• With over 1,500 employees on staff, there could be some issue with maintaining employee and managers’ relationships in a harmonious state, while keeping employees motivated (Echevarria, 1999).
• Another challenge that Zappos faces in upcoming years is the threat of globalization and core sustainability (Echevarria, 1999). The question is can Zappos continue to honor their free-shipping policy, while being challenged from cheaper international markets (Echevarria,
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As a result of the economy and pressure from the venture capital firm, who maintained interest, 8% of the staff was laid off (Echevarria, 1999). The decision was an ethical challenge based on the philosophy of “a positive team and family spirit” (Echevarria, 1999). Zappos followed their policy of honesty and transparency, by being open about the financial situation with the employees. Zappos awarded sixth months of health insurance coverage to the employees as compensation. The rationale was that being transparent in their decision allowed Zappos to maintain a loyal and dedicated

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