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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.
In order for Amazon to appear as a more ethical organization, they should bare the cost of the vehicles, gasoline and uniform. While these people who are delivering packages are technically independent contractors, they are still seen as a representation of Amazon and are a part of Amazon’s supply chain. These people lack job security, as delivery is on an as-needed basis, and also lack basic benefits. If Amazon were to provide these employees with these basic things, it would look a lot better for them.
Amazon need to understand when there are issues in delivery it paints them in a bad light. I recently had a situation where a book I ordered reached me very late. Amazon should provide these workers with the resources they need to effectively do there job.
As long as Amazon has control over its market, it will not need to handle this as a PR problem. Price-sensitive consumers will continue to shop at Amazon unless a competitor can offer both similar prices and ethically sourced labor. From an ethical standpoint Amazon should compensate these workers fairly, but it is unlikely to do so unless it is forced to.
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From an ethical standpoint, Amazon should treat its workers a lot more fairly. For example, the delivery agents have no job security because they are only used when needed. These delivery agents also do not have benefits. If Amazon changes this and gives these delivery agents job security, as well as benefits, then it will look a lot better ethically.
Amazon does not need to change anything if they are in control of the market. However, if their sales do drop because of this PR problem, Amazon does have to do something. The biggest problem I see would have to do with the delivery agents. They do not have the resources necessary to do their job to the best of their abilities. I would invest more money into the delivery system and their works to improve turnover of delivery workers.
As long as Amazon is in control of the market they will not need to change anything. However, if this PR problem because a major issue, and a drop in revenue is correlated to this PR issue, necessary steps will need to be made to correct the backlash. One way for Amazon to handle this would be to improve upon their delivery system. They have a high turnover of Delivery drivers because of inconsistent work hours and low benefits.
Amazon is a large profitable company. They should take the financial hit and let consumers know that they are treating their employees fairly by providing them with benefits and safety.
Amazon could utilize the opportunity for additional marketing and advertising ventures simply by purchasing the vans required for the delivery-workers and covering the van in Amazon Prime or regular Amazon decal advertisements. This would be a “win-win” situation for each party as Amazon can justify the added expenses related to purchasing the vans by the additional advertisements that circulating the market place as the delivery-worker drives around. With regards to classifying the drivers as actual Amazon workers or not comes down to the relationship Amazon has with LaserShip. LaserShip should recognize these drivers and employees of their own and in turn provide benefits and insurance coverage, which satisfy the workers, take the responsibility off of Amazon, and provide a more transparent relationship between Amazon and its care for outside vendors. Again, both suggestions offer a “win-win” situation for all three involved parties.
Since Amazon is currently the powerhouse in this industry, they do not have to address the PR. If this were to change however; then yes Amazon would have to address this issue. In my opinion, the best way for Amazon to do this is to give each driver expense money for things like gas, maintenance, food and etc. This partnered with the wage that they are making now, would have this PR problem disappear in no time.
Currently, Amazon is the industry leader but a tarnished brand image could easily flip the tables. It is always in the companies best interest to tackle the PR disasters right away instead of allowing them to linger. Especially if the company has the capital to do so, and Amazon most certainly does. In my opinion, the best way for Amazon to do address the issue is to cover each driver’s company-related expenses for things like gas, maintenance, etc.