The Aspects of Amazons Performance with Regards to Its Environment and the Societies Found in the Environment - Case Study Example

Essentially, the aim of business is to generate profits from its operations. However, enlightened businesses should not only focus on generating profits from their activities but should act in a socially responsible manner and be accountable for their actions. Corporate ethics as well as social responsibility have become hot topics for almost all businesses across the spectrum. Thus, marketers today are re-examining their relationships with social values and responsibilities and with the very earth that sustains us. 1 It can also be seen that different groups such as environmentalists are encouraging the marketers to take greater responsibility for the social and environmental impact for their actions while they carry out their business. As such, this paper seeks to examine and critique two aspects about Amazons performance with regards to its environment and the societies found in the environment in which the company operates. The paper starts by giving a brief background about the company’s major business and this will be followed by a detailed discussion about the measures implemented by the organization in order to fulfill the environmental and social needs of different stakeholders impacted by its operations. Basically, Amazon.com, Inc is an online company that specifically deals with marketing and selling books and music, electricals, household goods among other items to different consumers. Apart from being an online organization, it can still be observed that Amazon has some social responsibilities to fulfill. This emanates from the notion that societal expectations are that companies that are socially responsible seek ways to generate profits from by serving the long term interests of their customers and communities.2 A critical analysis of Amazon’s operations shows that the company has made major strides in implementing programs that are meant to reduce its impact on the environment. The company uses environmentally friendly packaging that can be recycled and the material used to manufacture this packaging is non-toxic. The company states that “At Amazon, were constantly looking for ways to further reduce our environmental impact.”3 The main aim is to fulfill the company’s commitment to implement environmentally friendly practices. The company also uses the strategy of packaging feedback program where the customers can give feedback about their perceptions about the packaging. The feedback provided by the customers helps the company to improve the products. The other good aspect about the company’s performance toward the environment is that it has announced the Amazon Climate Research Grant Program in support of the US Governments Climate Action Plan and the White House Climate Data Initiative. 3 The issue of climatic change is topical across the whole globe and private companies are called upon to play their part by positively contributing towards the protection of the climate and the environment. The company has also embarked on a program to implement environmental and energy initiatives across all parts of the organization. Such initiatives include saving energy as well as causing little impact on the environment. On top of that, the company uses sustainable building designs such as constructing energy efficient buildings. Energy efficient lighting is used and locally sourced wood is used for interior deco to maintain desired temperatures inside the buildings. The company also offers green products to different customers and these are meant to protect the environment from unnecessary damage such as pollution caused by some products that are not environmentally friendly. Amazon strives to do good things to the communities in which it operates. For instance, the company gives donations to dozens of nonprofits across the United States, offer disaster relief campaigns, employee volunteer efforts and it offers grants to the community among other initiatives. 3 The company also operates in a socially responsible way through the use of customer relationship management (CRM). The aim is to create a mutually beneficial relationship between the company and the targeted consumers as well as other stakeholders. The main advantage of implementing a CRM program in the operations of the company is that loyalty among the customers can be created.4 This is a very effective strategy that can ensure the long term sustainability and viability of the organization. The success of the company mainly depends on the number of the customers that exist. It is therefore important for the company to attract as well as to retain the customers that exist in its data base. Communication between the company and the consumers is very important given that the marketers can generate knowledge about the needs and interests of the company. There is no organization that can function without communication.5 It can also be seen that the company tries to create equality among the employees and promote human rights across the board. However, apart from implementing different initiatives that are meant to create goodwill on behalf of the company, it can be seen that there are also other negative aspects that can be attributed to its performance. Online shopping is convenient to different people across different nations by virtue of the fact that it is convenient, fast as secure. People can perform various transactions in the comfort of their homes and still receive the items purchased. The only problem here is that the payment method mainly used by the company is not compatible with the other country’s banking systems. For instance, the popular methods used for payment of the products purchased online from Amazon include PayPal, eBay and credit cards. These payment methods are not valid in other countries and this means that people living in such countries cannot purchase any product from Amazon as a result of the fact that their local banking systems do not support the payment methods advocated by the company. There is need for Amazon Inc to improve especially its payment method used for making purchases of different products across the board. This effectively means that it cannot operate in other countries as a result of the above mentioned problem. Therefore, it is recommended that the company should adopt the market development strategy so as to improve its operations across the globe. Basically, market development is a strategy for business growth by identifying and developing new market segments for current products of the sfirm.1 The marketers need to review new demographic groups in other areas particularly the developing countries that are not currently being served by the organization. It is recommended that the company should consider reviewing new geographical markets in order to expand its operations. This also helps the company to boost its sales which in turn helps to increase the revenue it generates. Expansion to other geographical areas is a growth strategy that can positively help the company to develop in different aspects of its business. Alternatively, the company can also adopt the strategy of diversification in order to improve its operations. This is a strategy for business growth through acquiring other businesses outside the firm’s current markets.1 This strategy also enhances the company’s chances of gaining competitive advantage if the customers have the opportunity to make choices from a wide selection of products available. A critical analysis of Amazon’s operations shows that the company is operating within the parameters of the standard expectations in different societies. Overall, the company tries to create a fine balance between its profit needs and the interests of the stakeholders and the environment. It can be observed that the company tries to create a mutually beneficial relationship with the stakeholders in different areas where it is operating. The company has environmental friendly policies that guide its operations and this is recommended since all the companies have a responsibility to ensure that their activities do not impact negatively on the environment. The company’s operations are also geared towards creating trust among all the stakeholders by championing initiatives that are oriented towards protecting the environment. Companies that fail to act in a socially responsible way that is acceptable in different communities they operate in are likely to experience viability problems in the long run. To a larger extent, it can be seen that the company’s policies are meant to enlighten its stakeholders about the importance of maintaining a clean environment. It can also be seen that the companys operations do not cause harm to the environment since they are conducted online. Amazon Inc also uses recyclable packaging and this is user friendly to the environment. The company also strives to involved different stakeholders in making decisions that affect the way it operate. All these positive aspects about the operations of the company indicate that it is in the right direction. Indeed, there are minor improvements that need to be made in order to improve the organization’s viability. In conclusion, it can be noted that all businesses are primarily concerned with generating profits from their operations. However, it can be seen that during the contemporary period, the issue of protecting the environment has become topical. Companies are compelled to act in a socially responsible way and they should be accountable for their actions in order to make sure that they do not impact negatively on the environment and the stakeholders in different communities in which they operate. A critical analysis of the case of Amazon Inc shows that the company strives to operate within socially acceptable standards. There are different initiatives implemented by the organization that are oriented towards protecting the environment and uplifting the welfare of the people in different communities in which it operates. However, it has also been observed that the company needs to adopt the market development strategy in order to expand to other markets in different parts of the globe. The idea is feasible given the fact that the organization’s business is conducted online. What is only required is to ensure that the payment methods are reviewed so that they can also be compatible with other countries banking systems. This strategy will help Amazon Inc to become a force to reckon with in this type of business. This can also help it to generate more revenue from improved sales. Read More