Peer Feedback on Introductory Memo (ONE PER GROUP) Due April 2

Introductive Memo

Amazon & it’s Workplace Conditions/Environment

Prepared for: BUS 682 Professor Nara Jeong

Prepared by Group 2:

Ayn De Chavez Dillon Eng

Marika Mizianty Sammy Muira

Devani Rodabaugh

1

Memorandum

To: BUS 682 Section 05 From: Group 2 - Ayn De Chavez, Dillon Eng, Marika Mizianty, Sammy Miura, Devani Rodabaugh Date: 2021, March 15 Subject: Amazon & it’s Workplace Environment/Conditions

Issue:

We would like to analyze the social issue of poor working conditions. This issue affects numerous places of work throughout the nation. Amazon has had multiple employees experience negative treatment by management and unsafe working conditions. This has been an issue for a couple years, but has just started to gain traction in the media in 2020. Amazon and CEO Jeff Bezos have been accused of not caring about their employees and ignoring the complaints that have been filed. Everyone is looking to Amazon to see what changes they will make to ensure their workers safety and a positive working environment. Importance:

For one of the biggest companies in the world, you would want to believe that they would treat their employees quite well. At Amazon, we see the exact opposite, they’re treated as some of the worst in America. There are multiple accounts and reports of unfair treatment and safety concerns. Going on, they are seen to regularly fire employees for not hitting these quotes that are quite difficult to reach. They don’t have any feelings or remorse for their staff but rather the rates in which they’re getting the packages out. There comes a bit of urgency with this issue as the working conditions have gained widespread attention. Many people are wondering whether “The importance the company now seems to be placing on its employees is in response to the negative coverage and scrutiny, or if it truly reflects the company’s sentiments” Poor working conditions need to be actively monitored. The fact of it all is, the disposable income that Amazon has to pay off anything that is against them is also why there aren’t many worries regarding how they treat their employees. Better working conditions and fair employee treatment is to be sought after in any job that is worked, especially at Amazon. Ethos:

Amazon regularly faces lawsuits and complaints from their employees, due to the company’s patterns of mistreatment and discrimination. Stated on Amazon’s Global Human Rights Principles, it says, “We are committed to ensuring that all workers are treated equally, and we do not tolerate discrimination based on race, color, national origin, gender, gender identity, sexual orientation, religion, creed, the presence of any physical, sensotry, or mental disabilities, age, political ideology, pregnancy, … or other legally protected status in hiring and working practices, such as job applications, promotions, job assignments, training, wages, benefits, and termination”, yet there have been multiple occurrences in which Amazon has violated their own principles. Multiple women have sued Amazon for terminating them for being pregnant and people of color, specifically black employees, have faced racial discrimination in the Amazon work place. The cases and lawsuits mentioned below portray evidence that Amazon disfavors people of color, and any employee that may require accommodations due to physical disabilities/inabilities are likely to be terminated or mistreated, which contradicts the company’s “commitment” to anti-discrimination and equal treatment.

2

In 2019, Amazon employee, Beverly Rosales, sued the company for terminating her after telling her manager that she was pregnant. Rosales stayed with the company for two months after her pregnancy announcement and was hassled by managers for her bathroom usage and how her pregnancy was slowing down her work pace. Rosales stated, “Amazon wants to push out as much product as possible... They care more about the numbers than their employees”. In addition to Rosales’s case, CNET also reviewed seven lawsuits that were filed by pregnant Amazon employees. When these expecting mothers asked for longer bathroom breaks and less hours on their feet, Amazon ignored their requested accommodations and in most cases, pregnant employees were terminated immediately after telling their managers they were expecting. There have also been multiple reports of management closely monitoring employees’s bathroom usage and terminating them for “stealing time” from the company.

Furthermore, a more recent lawsuit was filed earlier this March, by Charlotte Newman, a black woman who graduated from Harvard University with a master’s degree in business administration. Newman originally interviewed for the senior manager job, which she had the experience and qualifications for, but was offered a lower pay grade position. She took the job but ended up having to perform duties that the senior manager was responsible for. Newman also included that there are many other examples of “de-leveling” black employees at Amazon and how people of color are purposely not promoted or are paid less than their white counterparts. The lawsuit stated, “​Black employees who Ms. Newman talked with, as well as many Black employees who talked with reporters, consistently found that they and Black co-workers were slotted into Amazon job levels and compensation lower than their experience and credentials supported”. Pathos:

In addition to the discriminatory and unequal practices of Amazon, there have also been numerous cases in which the company also violated regulations regarding safe work environments. Many previous Amazon employees have been left homeless and without income due to injuries caused by avoidable workplace accidents. In 2018, the National Council for Occupational Safety and Health listed Amazon Warehouses as one of the most dangerous places to work in the U.S. In October, the year before, previous Amazon Warehouse employee, Vickie Shannon Allen, spoke out about her injury experience in one of the company’s warehouses in Texas and how the company responded over a nine month time period. Allen injured her back due to her workstation missing a piece of safety equipment that prevented products from falling. With her injuries, Allen struggled to keep up with her work and was frequently sent home without pay until she pressed management for workers compensation. By January 2018, Allen returned to work and was once again injured by the same workstation that was still missing the piece of safety equipment. Allen had to go back on medical leave, and went unpaid for an extra two weeks since she didn’t have the money to commute the 60 miles to the warehouse. The workstation wasn’t fixed until June 2018, a whole 8 months after Allen’s accident. When Allen met with the Amazon fulfillment center, all they offered her was one week of paid leave over having to deal with the issue for 9 months and was offered a buyout of $3,500 as long as she signed a non-disclosure agreement. Allen declined, wanting to reveal the unethical operations of the company, and has now been left with no income, and no home. Allen currently lives in her car and quotes, “they cost me my home, they screwed me over and over and I go days without eating.” Moreover, in other workplace accident cases, Amazon management terminated employees for injuries and also failed to file worker’s compensation when injuries were reported.

3

Another previously mistreated and injured Amazon employee, Lindsai Florence Johnson, who was taken away in an ambulance for dehydration and dizziness, stated, “Not all people report injuries because they are scared to get taken off their job or told they can’t work over there anymore. I have many times come home with bruises from work at Amazon and I experienced my first hernia there.”Amazon’s operations are more focused on productivity and have little care for their employees safety and livelihood. Logos:

According to Amazon’s Code of Business Conduct and Ethics, it states, “Amazon.com provides equal opportunity in all aspects of employment and will not tolerate any illegal discrimination or harrassment of any kind”. It also includes, “Amazon.com provides clean, safe and healthy work environment. Each employee has responsibility for maintaining a safe and healthy workplace by following safety and health rules and practices and reporting accidents, injuries and unsafe conditions, procedures, or behaviors”. With the reported cases and lawsuits mentioned above, it is apparent that Amazon as a company is not only violating their Code of Business Conduct and Ethics, but is also violating laws and regulations that are meant to protect workers/employees.

There are over 180 federal laws and regulations that the U.S. Department of Labor mandate. Under these laws, harassment, discrimination, and unfair treatment of employees based on their race/color, religion, sex, age, pregnancy status, disabilities, etc., are prohibited and are enforced by the Equal Employment Opportunity Commission (EEOC). In addition, under the Occupational Safety and Health (OSH) Act, employees are entitled to “safe and healthful working conditions'' while employers are supposed to comply with the standards to fulfill those conditions as well as compensate their workers for any injuries or illnesses that happen on the job. Employees are also entitled to Worker’s Safety Rights, in which they should have the right to “be provided with the necessary safety equipment, report injury or illness, and voice concerns over unsafe working conditions without fear of retaliation”. Amazon, as an employer, has an obligation to their employees to create a safe workplace environment/culture but is failing to do so. These labor laws are implemented to provide equal opportunity and promote physical/mental well being for all workers. Amazon’s patterns of racial discrimination, mistreatment, and unsafe work environments are completely unethical and changes need to be made not only because of the laws and regulations mentioned, but for the overall well-being of their employees. Kairos:

By the year of 2020, society has zoned in on the gap between the wealthy and the poor as well as inequality at large. Amazon is one of the wealthiest companies in the world and has the ability to set a major example within its industry. Discrimination due to race and gender has been a topic of concern throughout the developed world. Through looking at issues of employee mistreatment within the corporation, it is clear that Amazon does not create a safe environment and culture for its employees.

As stated previously, black employees are not treated with the same respect as other employees. The employee that sued the company for discrimination, reported that her coworkers would engage in racial stereotypes. This type of work environment should never be tolerated, but especially moving forward within society, there is no space for the toxicity witnessed in the work environment. Eliminating discrimination and unsafe working conditions can be beneficial for Amazon in many ways. Amazon is focused on always improving employee performance, therefore, with equal treatment of all employees, employee engagement would increase and work culture would

4

become healthier. In order to make this possible, the highest level of leadership must be supportive and willing to make changes. This would also set a positive work standard for other large corporations that struggle with discrimination issues to learn from. Continuing the pattern of employee mistreatment, discrimination, and poor working conditions will only result in further controversy for the company. Stakeholder Analysis:

External Stakeholders Nature of Interest Nature of Power

Customers ● Buying goods that are not exploitative

● Feels good not buying from a culturally insensitive company

● Purchasing from other e-commerce websites Ebay, Alibaba Express, Wish

● Can buy from other retailers, like Target, Best Buy, etc.

● Dictates if Amazon gains money ● Semi-Dangerous; If public sides with

Employees can lead to fallout

Main Suppliers

● Makes profit through Amazon ● Self-interested; wants Amazon

to succeed for ease of business, somewhat staked in Amazon

● Can leave for other e-commerce sites ● Utilize their leverage over Amazon if the

company’s reputation is tarnished ● Second biggest concern, always many

suppliers in the current market; costly to replace; ​business model is unimaginable and unsustainable, without them

Thirdparty Sellers ● Only self-interested ● Can leave for other websites

● Can leave for other e-commerce sites ● Little leverage ● Not a concern; very little cost to replace

Internal Stakeholders Nature of Interest Nature of Power

General Managers (CEO, Board of Directors, Ground Floor Managers)

● Public will view what they do the most

● Most scrutiny ● Most appease their workforce

or ignore it

● Has all power over the employee ● Has definitive power ● Will dictate the reputation of Amazon

Investments Companies ● Want Amazon to succeed at any cost

● Only cares how the public view Amazon

● Lots of money in the company

● Has dominant power ● Can move their money away from amazon ● Less likely to side with workers

Employees ● Better Hours ● Better Pay ● Work with better regulations ● Less exploitative methods

● Worker Strikes ● Unionization ● Voting Power ● Walk outs ● If they aren’t happy business can’t run ● Dangerous; Biggest concern for Amazon

failing

5

Ethical Approaches: Due to unacceptable standards of conduct, Amazon’s treatment of employees is unethical. Amazon creates ethical conflict by violating their code of conduct. This is apparent through discrimination and mistreatment of employees. To analyze this issue further, the ethical approaches of rights and justice are examined. Rights:​ ​Basic human rights are not fully respected at Amazon, in terms of employee treatment. Warehouse employees are a prime example of the mistreatment Amazon employees face. “​Multiple reports can be found of employees pushed to meet extremely high targets, subjected to strict breaks and a ​terrifying work environment​, ​monitored electronically​, and worried that not meeting targets will result in immediately losing their jobs. People talk about ​peeing in bottles out of fear​ of being disciplined or terminated for ‘wasting time’ going to the toilet, to the point where employees ​deliberately decide not to drink water​ so they don’t have to pee while working.” As well as warehouse employees, employees working within the office often report a toxic work environment. The workforce evaluates its employees by ranking them best performance to worst performance. The bottom performers lose their jobs. “One woman received low ratings after cutting back working nights and weekends to care for her dying father. Another who miscarried twins had to go on a business trip the day after her surgery because she was told the work still needed to be done.” The system created in the office space prioritizes a performance improving algorithm, which in turn, neglects equal treatment of all employees. Employees suffering injuries or mental health crises are forced to put their personal situations aside and perform just as well as other employees due to fear of termination. Justice:​ ​Jeff Bezos, the CEO of Amazon, is the richest man in the world. However, warehouse employers work in dangerous conditions for long hours and barely make minimum wage. Another issue is that employers recovering from physical traumas, for example pregnancy, aren’t receiving the correct compensation and are being forced to work at the same performance level as everybody else. Within one of the richest companies in the world, it's necessary to give each employee fair pay as well as save funds to create compensation packages for employees who need help at that time. Even though the Amazon employment code of conduct preaches equality and fair wages, it is evident the work environment does not meet these standards.

Week # Task

Week 8 Start the Introduction (Everyone)

Week 9 Work on the identification of the issue (Devani)

Week 10 Discover the importance of the issue (Dillon)

Week 11 Delve into the stakeholder analysis (Sammy)

Week 12 Research more ethical approaches (Marika & Ayn)

Week 13 Expand the recommendations (Everyone)

Week 14 Do and finish the conclusion (Everyone)

6

Resources: https://www.forbes.com/sites/deniselyohn/2020/06/02/amazon-faces-a-crucible-moment-with-e mployees/?sh=1e0f0c653822 https://ethicalunicorn.com/2019/01/12/how-ethical-is-amazon/ https://www.washingtonpost.com/technology/2021/03/01/amazon-race-discrimination-lawsu it/ https://ir.aboutamazon.com/corporate-governance/documents-and-charters/code-of-business-co nduct-and-ethics/default.aspx https://www.dol.gov/general/aboutdol/majorlaws https://www.usa.gov/labor-laws#item-34977 https://www.cnet.com/features/amazon-fired-these-7-pregnant-workers-then-came-the-lawsuits/ https://www.cbsnews.com/news/black-woman-amazon-racial-discrimination-lawsuit/ https://www.theguardian.com/technology/2018/jul/30/accidents-at-amazon-workers-left-to-suffe r-after-warehouse-injuries https://sustainability.aboutamazon.com/people/human-rights/principles https://www.nytimes.com/2015/08/16/technology/inside-amazon-wrestling-big-ideas-in-a-br uising-workplace.html?partner=rss&emc=rss&_r=0 https://www.businessinsider.com/amazon-warehouse-workers-have-to-pee-into-bottles-201 8-4?r=US&IR=T https://static1.squarespace.com/static/5a3af3e22aeba594ad56d8cb/t/5ad098b3562fa7b8c90d 5e1b/1523620020369/Amazon+Warehouse+Staff+Survey+Results.pdf