By:

JOSEPH L. ADAN, Ph.D.

MARY JANE A. DE ANDRES, MBA
 BACKGROUND

Jeffrey Preston Besos Largest Online Marketplace

 01

E-Commerce
02

Cloud Computing
03

Digital Streaming

Artificial
04

Intelligence
SERVICES
 FACTS
• It is the largest Internet company by
revenue in the world
• It is the second largest private employer
in the United States
• In 2015, it surpassed Walmart as the most
valuable retailer in the United States by
market capitalization
 FACTS
• In 2017, it acquired Whole Foods Market
for US$13.4 billion, which vastly
increased its presence as a brick-and-
mortar retailer
• In 2018, Bezos announced that its two-
day delivery service, Amazon Prime, had
surpassed 100 million subscribers
worldwide.
SUBSIDIARIES

Beijing Century Joyo Courier Services

SUBSIDIARIES
COMPETITOR ANALYSIS
COMPETITOR ANALYSIS
COMPETITOR ANALYSIS
NUMBER OF EMPLOYEES
 FINANCIAL INFORMATION
• Amazon annual revenue for 2018 was
$232.887B, a 30.93% increase from 2017.
• Amazon annual revenue for 2017 was
$177.866B, a 30.8% increase from 2016.
• Amazon annual revenue for 2016 was
$135.987B, a 27.08% increase from 2015.
FINANCIAL INFORMATION
 CORPORATE SOCIAL
RESPONSIBILITY OF AMAZON
Despite the size and the scope of its
business, Amazon does not release an annual
sustainability or CSR report. Official website
of the company remains as the only source
of information about the range of
sustainability programs and measures
initiated by the company.
 CORPORATE SOCIAL
RESPONSIBILITY OF AMAZON
Amazon’s first
sustainability
executive Kara
Hartnett Hurst was
appointed only in
August 2014 as an
indication that CSR
aspect of the business
has not been paid due
attention to for a
long period of time.
CSR ISSUES OF
AMAZON ON
PROFIT
ANTI-COMPETITIVE PRACTICES
 ANTI-COMPETITIVE PRACTICES
• Canadian Site
Amazon has a Canadian site in both English
and French, but until a ruling in March
2010, was prevented from operating any
headquarters, servers, fulfillment centers
or call centers in Canada by that country's
legal restrictions on foreign-owned
booksellers.
 ANTI-COMPETITIVE PRACTICES
• Booksurge
In March 2008, sales representatives of
Amazon's BookSurge division started
contacting publishers of print on demand
titles to inform them that for Amazon to
continue selling their POD-produced books,
they were required to sign agreements with
Amazon's own BookSurge POD company.
 ANTI-COMPETITIVE PRACTICES
• Direct Selling
In 2008, Amazon UK came under criticism for
attempting to prevent publishers from direct
selling at discount from their own websites.
Amazon's argument was that they should be
able to pay the publishers based on the lower
prices offered on their websites, rather than
on the full recommended retail price (RRP)
 ANTI-COMPETITIVE PRACTICES
• Price Control
Following the announcement of the Apple iPad on
January 27, 2010, Macmillan Publishers entered into
a pricing dispute with Amazon.com regarding
electronic publications. Macmillan asked Amazon to
accept a new pricing scheme it had worked out with
Apple, raising the price of e-books from $9.99 to
$15. Amazon responded by pulling all Macmillan
books, both electronic and physical, from their
website (although affiliates selling the books were
still listed).
 ANTI-COMPETITIVE PRACTICES
• Removal of Competitor’s Products
On October 1, 2015, Amazon announced
that Apple TV and Google Chromecast
products were banned from sale on
Amazon.com by all merchants, with no
new listings allowed effective
immediately, and all existing listings
removed effective October 29, 2015.
 TAX AVOIDANCE ISSUES
• Tax Avoidance in the US
Amazon has been criticized for its refusal
to collect sales taxes from customers in
states in which it does not have a physical
presence, thus giving it a comparative
advantage over brick-and-mortar retailers.
 TAX AVOIDANCE ISSUES
• Tax Avoidance in Japan
In July 2009, the Tokyo National Tax Agency
ruled that Amazon had to pay 14 billion yen
($119 million) in back corporate taxes, despite
its operations in the country being formally
represented by the U.S.-based subsidiary Amazon
Int'l Sales, Inc. Amazon refused to acknowledge
the tax debt, claiming Japan had no jurisdiction
on Amazon, due to Amazon not having a physical
presence or registered company in Japan.
 TAX AVOIDANCE ISSUES
• Tax Avoidance in the UK
It was reported in The Guardian, April 4, 2012,
that Amazon generated more than £3.3bn of
sales in the UK but paid no corporation tax at
all on the profits, and that it was under
investigation by the UK tax authorities.
Amazon's tax affairs were also being
investigated in China, Germany, Poland, South
Korea, France, Japan, Ireland, Singapore,
Luxembourg, Italy, Spain and Portugal.
• MISSION -serve consumers through online and
physical stores and focus on selection, price,
and convenience
• VISION - is “to be Earth’s most customer-centric
company, where customers can find and
discover anything they might want to buy online,
and endeavors to offer its customers the lowest
possible prices.”
 PEOPLE
• Harsh working condition in the warehouses and customer
service
Work 11 hours and half hour break Click icon to add picture
unpaid
Tracking/monitoring worker like
belt being pulled around
Amazon point system –workers
received disciplinary points for
various infractions
Handheld devices created a robotic
work atmosphere –treat employees
like robot
16 miles walking a day
50 to 70 hours weeks during the
holiday seasons,
no time of during holidays,
 changes in shift without informing
employees
Anti-unionization efforts
(to prevent employees becoming powerful
Amazon hired a
‘union-busting’ firm
called the Burke
Group. Their
aggressive tactics
scared employees
from unionizing
Re-hiring the same temporary
employees
Zero hours contract-no set hours /contract
Flexible time
PLANET
New packaging that cannot be recycled
(Use of plastic envelopes)
Millions of Americans
make free online
returns each year,
contributing to
greenhouse-gas
emissions – and many
items end up in
landfills
 CONCLUSION/RECOMMENDATION
• Amazon proved to be difficult to find
example of active CSR behavior
• Amazon is actively seeking for
improvements in its operations. The only
active behavior the company has shown is
in finding loopholes that can be used to
save money.
• However if the company would have been
more open about its CSR practices could
have been have a more positive output.
• . Amazon should not only be good for its
corporate office employees but also for
those working in the customer service
department and warehouses.
Improving the working conditions
would help restoring the balance
between the 3P’s.