Ethical and Socially Responsive Business Bruce Carter Principles of Management - MGMT 3101 Dr. Yolanda Ogletree January 24, 2018 As legally required The Cheesecake Factory Incorporated has a Code of Ethics and Code of Code of Business Conduct. 20092023 - Zappos.com LLC or its affiliates. For all our emphasis on customer service, our #1 priority is company culture. This year, we invited our vendors to run away with us to the Untamed Circus.". NURSING ETHICAL PRINCIPLE #1: ACCOUNTABILITY: Per the American Nursing Association's Code of Ethics, professional accountability, one of the important ethical principles in nursing is defined as "being answerable to oneself and others for one's own actions."Nurses are accountable for their actions when caring for patients and must accept the personal and professional consequences of those . The use of illegal drugs in the work place will not be tolerated. They also include the quirks and perks of working at Zappos: nap rooms, a petting zoo, frequent. They are the foundation of your company culture. Ask yourself: How can you do what you're doing more efficiently? Due to the economic times, Zappos had to layoff 8% of their highly-valued employees. Pursue Growth and Learning 6. We must all learn not only to not fear change, but to embrace it enthusiastically, and perhaps even more importantly, to encourage and drive it. In 1999 Nick Swinmurn launched ShoeSite.com; an idea prompted after a failed attempt of trying to buy a pair of shoes in San Francisco. They will replace the top-down predict-and-control paradigm with a new way of achieving control through distributing power. It is how it sells these products and what it does for its employees and customers that makes Zappos what it is today. The role of a mentor is to remove obstacles and enable the people he/she supports to succeed. The social responsibility pyramid is comprised of four components, namely legal, economic, philanthropic and ethical (Boone & Kurtz, 2012, p. 95). You should report to work in condition to perform your duties, free from intoxication due to drugs or alcohol. If it ever gets too easy, start looking for a tidal wave of competition to wash us away. Price fixing, customer and market allocations, bid rigging and other arrangements with competitors that are unlawful must be avoided, and you may never exchange sensitive business information with competitors. Please take the time to read this Code of Conduct, keeping in mind that over time as Zappos grows and evolves, this Code of Conduct will necessarily have to evolve as well. Business contributions to political campaigns are strictly regulated by U.S. federal, state and local law. Customers were confused on why Zappos had decided to unite with Amazon, and instead of leeaving their loyal consumers wondering, they publicly expressed the situation. t. Falsedeveloping relationships with charities helps the employees develop strong codes of personal ethics. The second ethical challenge was the merger with Amazon in 2009. However, if not carefully implemented, they can have the opposite effect. What new relationships can you build throughout your company beyond just the co-workers that you work with on a daily basis? In any case where you are unsure about the propriety of an event or action, please seek out your supervisor, the director or Vice President of your department or business division, or the Zappos Legal Department for further guidance. Our culture would not be what is it today without the people, past and present. Values Determine Stakeholder Perspectives The stakeholders at Zappos are influenced by the company's core values, which are effectively displayed in the organizations involvement with customers, community and socially responsibilities. 20092023 - Zappos.com LLC or its affiliates. We don't want to become one of those big companies that feels corporate and boring. Bribery, like fraud, is one of the things you can do that could land you in jail because it is illegal. This self-inflicted evolution can lead to positive growth and a more forward-facing structure that is built for the future, but it can also be destructive to a corporate culture that people rely on for consistency and security. Zappos customers admire the service they receive and appreciate that the company is quick to respond when they are at fault. In an attempt to boost transparency and reorganize operations Zappos has decided to switch over to a super-flat structure known as Holacracy. Although the data of credit card numbers were not stolen, information regarding full names, addresses, phone numbers, and the last 4 digits of credit cards were compromised. Our bonds go far beyond the typical "co-worker" relationships found at most other companies. If you are uncomfortable with the idea that your conduct or words will be available for all to see, you should think again about your course of action or words. While you may think that there would not be a problem with taking a government employee out to dinner or paying for a round of golf, there may be. organized under the Zappos Family. This vision led Zappos to deliver happiness through the four Cs: Commerce, Customer Service, Company Culture, Community. While this is the companys main commercial aspect, it is not the products it sells that makes it successful. Remember that you are a trusted member of the Zappos family please do not violate that trust. Since our humble beginnings, Zappos has been a customer-obsessed company that focuses on delivering a WOW experience. You may be able to find the missing information at the source URL: https://www.zappos.com/c/code-of-conduct. Do you understand the purpose of your circle? They're a way of life. We believe that no matter what happens, we should always be respectful of everyone. Fundamentally, we believe that openness and honesty make for the best relationships because that leads to trust and faith. Please take this Code of Conduct seriously. Our company culture is what makes us successful, and in our culture we celebrate and embrace our diversity and each person's individuality. The first was the 2008 Layoff. Please refer to the applicable sections of the Employee Handbook for further guidance. http://about.zappos.com/our-unique-culture/zappos-community-involvement?page=1 Each employee or consultant must promptly report to his or her supervisor or the Zappos Legal Department all actual or apparent conflicts of interest. http://www.forbes.com/sites/csr/2010/11/23/at-zappos-getting-fired-for-not-contributing-to-company-culture/ We work together but we also play together. The best team members take initiative when they notice issues so that the team and the company can succeed. How can you personally help the company become more efficient? Paradoxically, one way leaders try to retain relevance and stay appealing to both customers and employees is to embrace change. In order to buy out the board, Zappos needed to unite with Amazon, a company that not only accepted but promoted their value to customers. That Confidentiality Agreement remains in effect for as long as you are employed by Zappos and after you leave. Although it was . Zappos' leadership has succeeded in developing a culture characterized by ethicalness by identifying and integrating core values into the organization, which place great emphasis on the employees' and customers' happiness. We never want to become complacent and accept the status quo just because that's the way things have always been done. How do you get your fellow circle members to grow personally? And, our employee holiday party. This means offering shoppers more clothing styles and variety, reimagining ways to exceed customer expectations, protecting and growing our company culture, and serving communities near and far. You will find our core values explicitly defined there. This means the best leaders are servant-leaders. Please let your supervisor know of any safety or health concerns so that they can be addressed. The proper use of Zappos property calls to mind Core Value #8 Do More With Less. We want people to develop and improve their decision-making skills. Shopping tip: Zappos also offers coupons and promo codes . Send it online -- for free. Federal and state laws prohibit trading in securities by persons who have material information that is not generally known or available to the public. These modern visions of management seek to enfranchise the individual. Actions that may lead to you unfairly taking advantage of someone may include manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair dealing practice. We must never lose our sense of urgency in making improvements. Do you believe in what we are doing and where we are going? This was a hard decision as the company cherished every employee. Upon hearing the name Zappos, selling shoes and other retail goods should not immediately come to mind. It is now an online store generating $1 billion per year in the retailing of shoes, clothing, handbags, at-home products, beauty products, and accessories for women, men, and kids. The company started as a shoe distributor and acted as the intermediary, transferring merchandise from the supplier to the customer. Are you doing everything you can to promote company growth, and at the same time are you helping others understand the growth? Ask yourself: Are you humble when talking about your accomplishments? We are more than just a team though -- we are a family. If the violation or suspected violation involves any of those parties, or concerns accounting, internal controls or auditing matters you should make your report directly to the Zappos Legal Department or the Zappos Ethics Hotline at 800-348-1496 (Espaol: 800-216-1288). In one way or another, the concepts of integrity, honesty and commitment contained in this Code of Business Conduct and Ethics (the Code of Conduct) are already touched on in our Core Values and currently exist in our company culture. And whatever you do must have an emotional impact on the receiver. Zappos specifically aims at having a little weirdness in order to promote employee involvement and engagement, allowing the company as a whole to grow as innovators. Twenty years ago, we began as a small online retailer that only sold shoes. Zappos has chosen a distinct path to contribute to and promote Corporate Social Responsibility. The efforts of Zappos to reinvent itself as a flatter, evolved organization with far-out corporate-speak structures, ambitious manifestos, and abstract solutions to common sources of modern employee dissatisfaction are interesting to study but challenging to implement. It would be great if you could contribute and update this set of principles with anything that's missing! Zappos has addressed some critical challenges, handling them with agility, strength, and precision. It shouldn't be a struggle to find a balance between life and work where you are truly fulfilled and happy. At Zappos, these low-cost perks are often the most appreciated by employees. It lets you send two faxes a day, of up to 10 pages each, without . Instead, we believe in work-life integration through team buildings, happy hours, and event gatherings. Check-in Round: Each person has an uninterrupted chance to mention anything on their mind. However, Zappos will keep some hierarchy and keep the Big Bosses who set the pay structure. While this Code of Conduct addresses a wide variety of topics, you need to use your good judgment and common sense as it cannot, and does not, address every possible situation. http://about.zappos.com/our-unique-culture/zappos-core-values In order to maintain our integrity and reputation, it is important that you obey the laws affecting our business, whether those laws are federal, state or local, and to the extent that foreign laws apply to what we do, you must also obey those laws. The Zappos Legal Department is responsible for the interpretation and application of this Code of Conduct to particular situations and will recommend an appropriate resolution of the conflict. Be Adventurous, Creative, and Open-Minded, Build Open and Honest Relationships With Communication, Challenges the status quo or common wisdom, Is comfortable with chaos and uncertainty. But it can also at times feel risky, stressful, and confusing. Over the years, Zappos has taken strides to eliminate the common fates that most companies of our age and size contend with: slowing innovation and evolution, too many management levels, bottle-necked decision making, and disengaged employees. At Zappos, our 10 Core Values are more than just words. These modern visions of management seek to enfranchise the individual. If you are unsure whether a contemplated action might violate any of the antitrust laws, you must review it with the Legal Department prior to implementation. Accordingly, you may not take for yourself opportunities in Zappos area of business that you discover through the use of Zappos property, information or position. The company delivers above and beyond basic workplace needs and addresses the self-actualization needs that most individuals desire from their work experience. We want the weirdness in each of us to be expressed in our interactions with each other and in our work. Zappos also respects the intellectual property of third parties. In one way or another, the concepts of integrity, honesty and commitment contained in this Code of Business Conduct and Ethics (the Code of Conduct) are already touched on in our Core Values and currently exist in our company culture. Zappos ten core values are Deliver WOW Through Service, Embrace and Drive Change, Create Fun and A Little Weirdness, Be Adventurous, Creative, and Open-Minded, Pursue Growth and Learning, Build Open . After having sold LinkExchange to Microsoft for $265 million in 1999, his innovative and entrepreneurial spirit impelled him to invest $500,000 into the new venture lauched by Swinmurn. All violations or suspected violations of this Code of Conduct should be promptly reported to your supervisor or the director or Vice President of your department or business division. Do you instill a sense of team and family not just within your department, but across the entire company? Determine the major impacts that Zappos' leadership and ethical practices philosophy have had on its stakeholders. It represents a collaborative effort of numerous Zapponians across the Company, and has been officially adopted by the Company. How do you get the company as a whole to grow? Source: Zappos.com, inc. Code of business conduct and ethics It is critical for relationship-building to have effective, open, and honest communication. Check Zappos' website to see if they have updated their ethical practices policy since then. We don't take "no" or "that'll never work" for an answer, because if we had, Zappos would never have started in the first place. mariaquintana, You can choose to be thoughtful about your company culture. Your culture doesn't stay the same, it will continue to evolve. Investing four weeks of training for every employee is sending a strong message that they want employees to be informed and knowledgeable about the organization. The same way a toxic culture leads to unhappiness. However, Zappos has not limited itself to just selling shoes. Are you a better person today than you were yesterday? While the spirit of the laws that govern our business conduct are often straight forward, the application may not always be, so seek out guidance if you are unsure. If they did, they'd be the web's most popular shoe store. The Code of Ethics and Code of Business Conduct assures . Despite the fact that these actions are not easy to address and could be extremely costly, Zappos accepted the blame and guaranteed that their customers personal credit card numbers were safe. And they will not be able to evolve as fast as we can as long as embracing constant change is a part of our culture. Are you happy here? It is real. Just like every person has their own personality, every company has their own culture. Zappos does an incredible job at contacting customers in a timely manner, especially when there are situations that go wrong. How do you get your fellow circle members to grow professionally? While we've built a good foundation, this is yet another stepping stone in our journey for ultimate self-organization and long-term sustainability. Subscribe to our newsletter. Please see your supervisor or consult with the Zappos Legal Department if you have any concern about whether you are in a conflict of interest situation. A companys culture and a companys brand are really just two sides of the same coin. In most companies, new ideas have to be approved by a manager or a chain of managers. It is our policy to employ only persons who do not engage in other business activities that compete with or sell to or buy from Zappos or Amazon. You must WOW (go above and beyond what's expected) in every interaction with co-workers, vendors, customers, the community, investors with everyone. Do you treat both large and small vendors with the same amount of respect that they treat you? C. https://blog.kissmetrics.com/zappos-art-of-culture/ And that's where we're breaking new ground. Please refer to the applicable sections of the Employee Handbook for further guidance. Officers and directors who are employees of our parent, Amazon.com, Inc., must comply with the Amazon.com, Inc. Code of Business Conduct and Ethics. Zappos has established partnership with a number of charitable organizations in order to foster employees' interaction with the community. Except for us: we are becoming experts as we do this. Zappos is a leading online retailer and presents an interesting ethics case as it copes with the challenges of remaining competitive. Ask yourself: What are things you can improve upon in your work or attitude to WOW more people? It's the responsibility of every employee to represent and foster culture. This took shape at Zappos in 2015 via a new management structure called Holacracy. In addition, the authors emphasize the importance of valuing others' autonomy and dignity. The more widespread and diverse your relationships are, the bigger the positive impact you can make on the company, and the more valuable you will be to the company. The principle of non-maleficence requires that we not intentionally create a harm or injury to the patient, either through acts of commission or omission. You are also prohibited from using Zappos property, information or position for personal gain, or competing with Zappos or Amazon. Help needed for "Zappo's Design Principles"! The giving of gifts to government employees, even gifts of low value, is highly regulated and in many cases prohibited. We are not an average company, our service is not average, and we don't want our people to be average. Work can be fun! That's a bit scary, but you can take comfort in knowing that nobody else knows how to do what we're doing either. The company has developed the following framework for the companys culture and business strategies. Be Adventurous, Creative, and Open-Minded, Build Open and Honest Relationships With Communication. We encourage people to make mistakes as long as they learn from them. We believe that inside every employee is more potential than even the employee himself/herself realizes. As alluded to at the beginning of this Code of Conduct, ask yourself if you would be embarrassed or uncomfortable if your supervisor found out about the gift in question. Zappos.com, Inc. Code of Business Conduct and Ethics As Revised May 1, 2010 Living Our Core Values In one way or another, the concepts of integrity, honesty and commitment contained in this Code of Business Conduct and Ethics (the " Code of Conduct ") are already touched on in our Core Values and currently exist in our company culture. If you make an anonymous report, please provide as much detail as possible, including copies of documents you believe relevant to the matter. Subscribe to the Zappos Insights Newsletter! Our service is not average, and we don't want our people to be average. Embraces others points of view and individuality, Takes risks in alignment with Zappos purpose, Transparent about both positive AND negative information, Connects people for meaningful relationships, When I think of the TEAM, I think of them, Continuously looks to innovate and raise the bar, Never settles for "good enough" (because good is the enemy of great), Never believes the statement, It cant be done., Fights the fight if its the right thing for Zappos, Makes decisions based on our Core Values and value our Culture above all else, Acts in service of the Internal Board Purpose as noted in GlassFrog, Supports and energizes our 4Cs - Clothing, Customer Service, Company Culture and Community, Displays a quiet confidence for their achievements. Zappos Insights Zappos Insights, which began in 2009, is on a singular mission: To share Zappos' unique perspective on culture, people, and customer service with companies of all sizes and across industries. Ethical practices rating: 5.0 - 1 rating Yes, Zappos does support ethical practices. The current board of directors did not want the company to focus on their clients but to shift focus exclusively to product sales. Zappos will take appropriate action against any employee whose actions are found to violate this Code of Conduct. While we have grown quickly in the past, we recognize that there are always challenges ahead to tackle. As we continue to grow, we strive to ensure that our culture remains alive and well. To outsiders, that might come across as inconsistent or weird. http://www.businessinsider.com/bosses-in-zappos-holacracy-2014-1, Annual Revenue: billion The best leaders are those that lead by example and are both team followers as well as team leaders. In response to these situations Zappos contacted each customer informing them of the predicament they were in. Waivers of this Code of Conduct may be made only in a manner permitted by law. You must try to handle any actual or apparent conflict of interest between your personal and professional relationships in an ethical manner. Tip! In January of 2012, Zappos database was hacked and millions of customers personal information was taken. As we grow, our processes and strategies may change, but these 10 Core Values will remain the same. Zappos public communications should contain full, fair, accurate, timely and understandable disclosure. Despite knowing that they would encounter a huge loss, they gracefully accepted their mistake and abided by the false price on the website. Tony Hsiech, CEO stated, "It brand about Zappos had ten . The brand is just a lagging indicator of the culture. The following potential ethical challenges that may arise from the re-organization: With over 1,500 employees on staff, there could be some issue with maintaining employee and managers' relationships in a harmonious state, while keeping employees motivated (Echevarria, 1999). In order to stay ahead of the competition (or would-be competition), we need to continuously innovate as well as make incremental improvements to our operations, always striving to make ourselves more efficient, always trying to figure out how to do something better. Are you afraid of making mistakes? We are a special company, and pride ourselves in doing the right thing. Accordingly, our financial books, records and accounts must reflect transactions and events appropriately and conform to applicable legal requirements and to Zappos system of internal controls. Building a culture is a special process that can't be taken lightly. Customer Loyalty Director Rob Siefker discusses the company's mindset for WOWing callers and shoppers at every turn. Theft, carelessness and waste have a direct effect on our profitability. Do you approach situations and challenges with an open mind? This policy does not prohibit lawful contributions to political candidates, parties, action committees, sponsors of initiatives and for other lawful purposes, so long as such contributions are made in compliance with all applicable laws and Section I that follows. It is never appropriate to receive or give cash. In these times of change, ethical considerations taking a backseat to a lean business model is not a sustainable approach. Service to Zappos should never be subordinated to personal gain or advantage. Be Adventurous, Creative, and Open-Minded 5. Fast, simple and privacy-focused website analytics. Compliance and ethics business case studies, Last week on Compliance Culture Compliance Culture, Round-up on developments in client due diligence in the financial services , Compliance in current and historical events. You do what you 're doing more efficiently and stay appealing to both customers and employees is to obstacles... 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