Running head: Governance Plan of Amazon 1

Governance Plan of Amazon

Naveen varma Gokaraju

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Abstract

The Following paper gives a glance on few of the Amazons Governance plan which has aided its

success as a world’s largest Ecommerce website.

Keywords: Governance plan, customer-centric strategy, stakeholders.

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Governance Plan

Governance Plan refers to a set of rules or guidelines to be followed by every layer in the

organization to aid in successful planning.

Amazon which has started as an online bookstore has now become one of the largest

growing Ecommerce websites in the world. Being an online business has many advantages as

well as disadvantages like though it makes products more accessible to customers it also makes it

vulnerable to customers bad reviews and unsatisfaction which will affect the company’s

reputation. To overcome these kinds of problems and maintain their standards Amazon follows a

well-established Governance Plan.

Amazons Governance Plan

One of the most important rules in Amazons governance plan is to focus relentlessly on

customers, which might be the major reason why Amazon was very successful in creating its

own brand name a lot of customer base. Amazon runs on a customer-centric strategy which

keeps its focus on customer needs and incorporates them into their innovation ideas. It provides a

customized service to every person by providing a subscription-based delivery system and

improving customer experience.

Amazon has always worked towards improving the Quality of the work environment and

worker and thus has a strict policy to follow its health and safety rules to make every employee

responsible for a healthy and safe workplace.

Amazon has stated that they would make investment decision which will benefit in a long

term rather than trying to gain short term profits or wall street gains. This proves their dedication

for the benefit of stakeholders over their business profits.

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Amazon states that they will always choose free future cash flow like investments in their

business or more customer base which will increase their value and revenue rather than focusing

on increasing their profits through sales.

Amazon also involves its stakeholders in the company’s decisions to make new

investments and has a policy of encouraging new innovations and says success of the innovations

or new investments will yield profits while failure will be a lesson towards success.
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References

Governance. (n.d.). Retrieved from

https://ir.aboutamazon.com/corporate-governance

Code of Business Conduct and Ethics. (n.d.). Retrieved from

https://ir.aboutamazon.com/corporate-governance/documents-charters/code-business-

conduct-and-ethics