Evaluate How Each Category of Stakeholder Impacts the Overall Success of Amazon Company
It depends on particular stakeholders, of course, but we can safely say that all stakeholders expect a form of satisfaction from an organization. If these stakeholders are shareholders (stockowners), then they generally wish to see a high return on their purchase of company shares. If, on the other hand, they are employees, they typically hope for interesting tasks, a safe work environment, job security, and rewarding pay and benefits. If, yet again, the stakeholders are members of the community surrounding a business, they usually wish that the company not harm the physical environment or degrade the quality of life within it.
This condition requires a broad scope for the company’s corporate social responsibility strategy, policies and programs. Satisfying stakeholders’ interests helps maintain Amazon’s market position as the leading online retail company in the world. Amazon.com Inc. maintains corporate social responsibility initiatives to target the interests of its main stakeholder groups. In general, the e-commerce organization experiences pressure from a variety of stakeholders and their interests. Nonetheless, Amazon’s corporate social responsibility programs are designed to address and satisfy the interests of the following stakeholder groups, arranged according to significance. Amazon’s corporate social responsibility strategy gives the highest priority to customers as the most important stakeholder group. The company considers customers as the primary determinant of its e-commerce business success, especially because these stakeholders significantly affect revenues. Such prioritization agrees with Amazon’s mission statement and vision statement, which highlight the centrality of customers in the business and its development. The interests of these stakeholders are fair pricing, convenience of service, and online security in transacting with the company. Amazon satisfies all of these interests through emphasis on service and technology. For example, the company uses advanced information and communication technologies for secure transactions and for efficient purchase and delivery processes. Amazon employees are also trained to maximize the benefits of these technologies and to ensure customer convenience. In addition, fair pricing is maintained through competition among sellers on the company’s online retail website and through the market-based pricing strategy [Read: Amazon’s Pricing Strategies, Marketing Mix]. Thus, Amazon’s corporate social responsibility approach effectively addresses the interests of customers as the primary stakeholder group. Amazon.com Inc. integrates stakeholders’ interests in its corporate social responsibility (CSR) strategy. The company considers these interests as significant influences on the e-commerce business. Such strategy supports Amazon’s mission and vision, which affect organizational development. It is appropriate for the company to prioritize customers as the primary stakeholder group, considering the online retail nature of the business. The inclusion of employees and communities is one of the strengths of the strategy. The company’s corporate social responsibility approach is also flexible because customers are free to choose their charitable organizations through Amazon Smile. However, the interests of governments and investors as stakeholders are not clearly included in the strategy. For example, Amazon’s corporate social responsibility efforts must consider investors’ interests on the financial performance of the e-commerce business. The company must also address governmental interests regarding consumer protection and international retail. These considerations show that Amazon’s corporate social responsibility strategy is satisfactory, but has room for improvement.
Such concerns are putting Amazon in a negative place in the minds of the ‘responsible’ consumers and thus, shaping a bad public image of the company. In order to avoid extenuating circumstances, Amazon will have to publish a CSR report in order to disclose its environmental impacts. This calls for taking into account the carbon footprint of the company and going ‘green.’ Thus, this indicates that CSR does not primarily affect the company but the company has stepped into a position where it will have to shape its strategy round CSR issues as a response to public appeal (Godelnik, 2011). The stakeholders of Amazon are managers, directors, strategic partners, employees, customers and community, wherein, key are customers and community at the time. In line with environmental pressures, Amazon is most likely to be affected with social responsibility and will have to shape its corporate strategy to disclose its carbon footprint and go green to suit its responsible customers’ demands and make good its public image.
Amazon’s web site offers the ability to present a broad range of merchandise. Well organized and easy to navigate help and FAQ pages make the difference in smooth shopping experience. Building a customer community helps to keep customers coming back to the site. It also helps shoppers identify with the brand. Amazon has built a loyal customer base of millions, thanks to a highly efficient web buying experience and outstanding customer service. With some controlling interest in popular Web sites, word-of-mouth from users, the ease of communication using e-mail and options such as gift certificates, Amazon.com has created one of the most popular home-shopping sites today.
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Godelnik, R. (2011). Why Amazon Needs to Come Clean about its Carbon Footprint. Triple