Amazon delivery and ethics
Amazon’s cheap delivery comes at a cost – (click here to read the article). In your own words, explain how Amazon can handle this PR problem.
MIS 3537 – Spring 2017
Amazon’s cheap delivery comes at a cost – (click here to read the article). In your own words, explain how Amazon can handle this PR problem.
One way that I think Amazon can handle the PR nightmare of shafting independent contractors for deliveries is to reimburse the companies these deliverers work for, in which these companies can chose which way, and what percentage, they should reimburse the independent contractors. For Amazon, this is a bad look for them, as having these contractors doing their dirty work and having to pay all their expenses is low and is legal, but below the standard ethical morality. Personally, I think that Amazon should compensate enough for the car insurance, uniform, and some of the gas for these contractors, as it would not be a huge hit on the humongous bottomline that Amazon possesses.
One way that I believe Amazon can deal with this public relations problem is to take in the drivers as their own employees. Sure that would mean Amazon would incur a boatload of additional costs, such as healthcare, worker’s compensation, and the on-the-job fees, but so what? Amazon is, at the point in time, one of the most successful companies in the world, and it continues to grow every day. If these small private contractors can’t afford to take on the financial load, Amazon surely can, and in the area of public reputation, this will be nothing but positive for their image. A positive image equals more customers. More customers equals more money. Everybody wins.
After reading this article, I was stunned that Amazon lets this happen to valuable employees that make “2 day delivery” happen. I believe Amazon should handle this PR nightmare by setting standards for its private company. I am sure that these delivery companies have Amazon as a huge business client and if Amazon put in place regulations, these contractors would follow. Amazon can follow Starbuck’s lead by setting measures in place where companies that are outsourced need to comply. That way, Amazon can ensure workers from the bottom to the top are treated fairly and ethically.
I find the independent-contractor scheme used by small delivery companies to be appalling. There is no excuse for denying workers fair pay and job benefits, especially when they pour so much time into the job. While companies like LaserShip may be turning profits by cutting costs this way, their contracted drivers are the ones making up the difference for the low costs. Amazon should not do business with companies that employ this scheme, or implement compensation standards for their contracted drivers. Considering how huge Amazon has become, I have no doubt that they could find the capital to pay these small delivery companies more in order for their drivers to be fairly compensated. When businesses like LaserShip (and subsequently Amazon) become so obsessed with profit margins that they abuse their workers through unfair compensation, action needs to be taken to create a more sustainable business model in which everyone wins.
After reading this article I am pretty shocked at how Amazon and their vendors are treating their workers. I understand that for Amazon to become what it is it, it has much lower delivery fees than other services. However I never knew how they did it until now. I believe Amazon is responsible for their vendors which in this case would be Laser ship. For Labor Ship to pay for things out of their own pocket that they require they have such as the uniform and the handheld device that tracks packages is not a good way to conduct business. The fact that there is still people out there still willing to work this job amazes me. For Amazon to grossly underpay there drivers while not providing any benefits and making them pay alot of out of pocket costs is a crisis in my opinion. Im am curious to see how they will handle this. I would start by immediately calling these drivers employees as opposed to ‘independent contractors’. They can pay them a slight hourly rate that will help offset all the other costs they endure or atleast pay their gas bill for driving around delivering for the company. This is an easy fix and one that really just starts with treating your employees fair and right. I am a firm believer in the employees make the company not the products and I think Amazon needs to think that way as well.
I think that Amazon can handle this dilemma by working with is distribution vendors, as well as adopting some of these contractors as their own, depending on location. Amazon should work with companies like LaserShip to ensure that they are treating their employees fairly, and otherwise will refuse to do business with them. Additionally, if certain drivers work within a commutable distance to an Amazon warehouse, it may make sense to hire them as a full-time employee because of the increased access they will have to the products.
Amazon needs to set then standard for its distribution vendors. While I was reading this article it reminded me a lot about Uber’s labor force and how uber drivers aren’t technically part of the company. Amazon will continue to save a lot of money if the workers remain independent contractors but if these articles reach a majority of their consumers they may lose some business because of these practices. Quick turnaround and fast shipping is what Amazon is known for and something they need to retain at all costs.