Amazon Ethics and Compliance

Amazon.Com Inc. did not show a profit when they first started out years ago in a garage but their investors believed in the product and today Amazon.Com has become one of the most successful online companies of the dot.com era. Amazon .Com ethical standards are set high. Amazon simply adds great products, great value, and innovation at reasonable prices. In a 1997 Letter to their Shareholders, Amazon.Com stated “A fundamental measure of our success will be the shareholder value we create over the long term." From the very beginning, our emphasis has been on the long term and as a result, we may make decisions and weigh tradeoffs differently than some other companies. Accordingly, it is important for you, our shareholders, to understand our fundamental management and decision-making approach so that you may ensure that it is consistent with your own investment philosophy..

The Role of Ethics and Compliance

Ethics and compliance play an extremely important role in the financial environment of Amazon.com. “Amazon.com’s public financial reports must contain full, fair, accurate, timely and understandable disclosure as required by law” (Corporate Governance, p. 1, 2012). Rules such as this one helps people become more ethical in the financial environment within this company. It also teaches employees that they must comply with laws that the company must follow. Doing so allows the financial environment within the company to improve. When employees are doing what they should financially, they are helping the company reach their goals. Reporting false information or not following laws would not be the best move for the company. They would be unethical in their financial reporting and would not be complying with laws. The role of ethics and compliance is clearly an important one for this company.

Ensuring Ethical Behavior

“Amazon.com employees should always act lawfully, ethically, and in the best interests of Amazon.com” (Corporate Governance, p. 1, 2012). There are many procedures that Amazon.com has in place to ensure ethical behavior. An example of one of these procedures is how Amazon.com helps employees comply with laws, rules, and regulations. If employees have any questions about any laws, rules, or regulations they can ask the Legal Department. This helps ensure ethical behavior within the workplace. It encourages employees to ask questions about ethical issues that they may not be completely sure about. Amazon.com also ensures ethical behavior by using procedures to help employees report violations. These employees can talk to management or the Legal Department when they see violations of the code of conduct occurring in the workplace.

Amazon.com also ensures ethical behavior by using procedures to help stop price fixing