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Zappos leadership has played a role in ensuring that there is an environment where employees can innovate and communicate with the company management without discrimination that is based on race, gender and ethnicity. The culture of freedom in the company in the company has been effective in developing relationships between the employees at every level of management of the organization. Zappos leadership has ensured that there is a positive relationship, creating employee engagement at all levels through different innovative methods that are based on the organizational culture. In order to mimic the culture of ethicalness at Zappos, other companies ought to devote to their employees and customers by embracing and driving change to pursue growth and learning. It is necessary for other companies to have a little weird situation that would promote employee engagement in the company activities that would stimulate growth (Whitehorne, 2009).
The Zappos Company operates according to a business model that has allowed the creation of long-term customer relationships. The company has accomplished to set records that do not have to compete with other organizations as the strategic and tactical inventions in the corporation results in long-term customer relations that are characterized by quality of customer service and a magnitude of profit margins.
Zappos Company faces the challenge of laying off some employees because of the unpredictable economic times. In 2008, the company had to lay off approximately eight percent of its highly placed employees, a hard decision that the company had to make as it cherished every employee. The employees who were laid off received a health insurance package that was paid by the company as a show of appreciation. In order to address the dilemma of laying off some employees, the company ought to focus on performance appraisal reports as the laying off procedure. The strategy would be important in finding out the most productive employees and those who do not contribute much to the company (Silverman, 2014).
The Zappos Company faces the ethical challenge of restructuring during partnership with other organizations. For example, Zappos merged with Amazon in 2009, a move that caused confusion among the company’s employees and customers as they were not well informed of the decision to merge the two companies. The customers publicly expressed their concern about the merger, an indication that Zappos did not focus on the clients as a major stakeholder in the organization. Zappos leadership has the obligation to inform the customers of its business operations such as the merger with Amazon in 2009. In the era of digital world, the company could communicate to its customers through platforms such as Twitter to educate its clients of the changes in its brands (O’Brien, 2009).
Zappos Company also faces the ethical challenge of leaked customer information due to technical difficulties. Technical errors are a common phenomenon but there is the need to quickly address the issues before complications and problems escalate. In 2011, customer orders were delayed deleted, and some were delivered to wrong destinations. The company faces the challenge of its system being hacked and confidential information being shared with the wrong persons (Lamm, 2011).
It is unethical practice if the company cannot ensure the privacy of its customer data on its system. The company could take safety measures such as encrypting their servers to ensure that private information is secure. It may also be necessary to contact the customers and educate them on how to ensure the security of their passwords to avoid the situation of their information being handled by the wrong persons.
Core values are important in developing a culture of ethicalness when the company defines the values and involves the entire members in understanding what the organization stands for. It is necessary that every stakeholder, from the top to the bottom, is provided with the opportunity to give their perception about the company. The stakeholders’ opinions give them a sense of ownership; thus, everybody is inspired to live up to the guiding principles that they contributed in their creation. Many factors influence the process of creating and defining a strong company culture, but the most significant step is to get the conversation with the stakeholders started (Whitehorne, 2009).
With the challenge of ensuring privacy of confidential information, Zappos has done what it takes to ensure that technological errors do not cause great losses as experienced before. The company has achieved control of its operations by distributing power, a move that allows the company to work around its needs. The challenge of sustainability by working with business partners would be solved in a better way as it may be difficult for Zappos to maintain competitive pricing in the future. It would be a right move to employ the right employees that are innovative and respect the company’s core values.
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