Assignment 1: Social Performance Of Organizations Due Week

Assignment 1 Social Of Performance Of Organizationsdue Week 3 And Wor

According to the textbook, the current world economy is increasingly becoming integrated and interdependent; as a result, the relationship between business and society is becoming more complex. Use the Internet to research one of the listed Fortune 500 companies below. Use a tablet, smartphone, laptop, desktop, or traditional video recorder to record a maximum five to seven (5–7) minute dynamic video on the topics detailed below. Alternatively, you may submit a four to six (4–6) page paper instead of the video submission.

Specify the nature, structure, and types of products or services of your company, and identify two (2) key factors in the organization’s external environment that can affect its success. Provide explanation to support the rationale. Suggest five (5) ways in which the primary stakeholders can influence the organization’s financial performance. Provide support for the response. Specify one (1) controversial corporate social responsibility concern associated with your company. Submit a reference page with at least four (4) quality references that you have used for this presentation / paper.

Paper For Above instruction

The interplay between business operations and societal expectations is increasingly significant in today’s interconnected global economy. In analyzing this relationship, selecting a Fortune 500 company provides a focused lens through which to explore organizational performance, environmental influences, stakeholder impact, and corporate social responsibility (CSR). For this paper, I will examine Amazon.com, Inc., a leading global technology and e-commerce giant, to illustrate these dynamics.

Company Overview: Nature, Structure, and Products

Amazon.com, Inc. operates primarily as an electronic commerce and cloud computing company. Its core business involves retailing a vast array of products, including electronics, books, apparel, and household goods through its online marketplace. Additionally, Amazon provides digital content, such as e-books and streaming services, and offers cloud computing infrastructure via Amazon Web Services (AWS). The company’s organizational structure is diverse, encompassing various subsidiaries and operational divisions that facilitate its global reach.

Amazon’s business model is built on customer-centricity, technological innovation, and extensive supply chain logistics. Its services extend beyond retail to include subscription services like Amazon Prime and advertising solutions, making it a multifaceted enterprise. The company’s structure is hierarchical but flexible, with teams dedicated to technology development, logistics, customer service, and corporate functions, all aligned toward delivering a seamless omnichannel experience.

External Environmental Factors Influencing Success

Two significant external factors impacting Amazon’s success are technological advancement and regulatory environment. First, rapid technological innovation is crucial for Amazon to maintain its competitive advantage. The evolution of artificial intelligence, machine learning, and logistical automation directly affects Amazon’s operational efficiency and customer experience (Brynjolfsson & McAfee, 2014). Continuous investment in cutting-edge technology drives product recommendations, delivery logistics, and cloud services, reinforcing Amazon’s market dominance.

Second, the regulatory environment, especially concerning antitrust laws, data privacy, and tax policies, heavily influences Amazon’s business operations. Increased scrutiny from regulators in the U.S. and the European Union regarding competitive practices and data handling poses potential risks, requiring Amazon to adapt its strategies to comply with evolving legal standards (Khan, 2017). The ability to navigate these regulatory challenges is vital for sustaining growth and avoiding penalties that could impair its global operations.

Stakeholder Influence on Financial Performance

Primary stakeholders—customers, employees, suppliers, and shareholders—play a pivotal role in shaping Amazon’s financial health. Here are five ways they influence performance:

  1. Customer Loyalty and Satisfaction: Satisfied customers lead to repeat business, positive reviews, and increased sales revenue. Amazon’s focus on customer service and innovative offerings enhances loyalty, driving financial growth (Lemon & Verhoef, 2016).
  2. Employee Productivity and Innovation: Motivated and well-trained employees contribute to operational efficiency and innovation, reducing costs and increasing competitiveness (Cascio & Boudreau, 2016).
  3. Supplier Relationships: Strong partnerships with suppliers ensure reliable inventory and favorable terms, impacting profit margins and market responsiveness (Gereffi & Fernandez-Stark, 2016).
  4. Shareholder Expectations: Shareholders influence strategic direction through investment decisions and pressure for profitability, compelling Amazon to prioritize profitability and shareholder value (Shleifer & Vishny, 1997).
  5. Community and Regulatory Stakeholders: Engagement with local communities and regulators impacts Amazon’s social license to operate, affecting brand reputation and legal standing, ultimately influencing financial stability (Mitchell, Agle, & Wood, 1997).

Controversial CSR Concern: Tax Avoidance

One notable controversy surrounding Amazon involves its tax practices. The company has faced allegations of aggressive tax planning and avoidance of paying substantial taxes in various jurisdictions despite generating substantial profits globally (Zucman, 2014). Critics argue that Amazon’s use of offshore subsidiaries and tax incentives deprives governments of revenue needed for public services, raising ethical questions about corporate responsibility and fairness. This issue highlights the tension between corporate strategy to maximize shareholder value and societal expectations for fair taxation and social contribution (Lanis & Richardson, 2012).

Conclusion

Analyzing Amazon’s business structure, external influences, stakeholder interactions, and CSR concerns reveals the complex web of factors affecting its organizational performance. As the global economy evolves, Amazon must continuously adapt to technological advancements, regulatory shifts, and societal expectations to sustain its market leadership. Stakeholder engagement and responsible corporate practices will be vital in ensuring long-term success and social legitimacy.

References

  • Brynjolfsson, E., & McAfee, A. (2014). The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies. W.W. Norton & Company.
  • Cascio, W., & Boudreau, J. W. (2016). The Search for Global Competence: From International HR to Talent Management. Journal of World Business, 51(1), 103-114.
  • Gereffi, G., & Fernandez-Stark, K. (2016). Global Value Chain Analysis: A Primer. Center on Globalization, Governance & Competitiveness (CGGC), Duke University.
  • Khan, L. (2017). Amazon’s Antitrust Paradox. Yale Law Journal, 126, 710-805.
  • Lanis, R., & Richardson, G. (2012). Corporate Social Responsibility and Tax Planning: A Case of Missing the Point? Critical Perspectives on Accounting, 23(4-5), 432-442.
  • Lemon, K. N., & Verhoef, P. C. (2016). Understanding Customer Experience Throughout the Customer Journey. Journal of Marketing, 80(6), 69-96.
  • Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a Theory of Stakeholder Identification and Salience. Academy of Management Review, 22(4), 853-886.
  • Shleifer, A., & Vishny, R. W. (1997). A Survey of Corporate Governance. The Journal of Finance, 52(2), 737-783.
  • Zucman, G. (2014). Tax Evasion and the Macroeconomy. Journal of Economic Perspectives, 28(4), 121-148.

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