Introduction to the “Amazon Effect”
The Amazon Effect is a term used to describe the dramatic impact that Amazon has had on the retail industry. It is characterized by the increased competition and decreased pricing that Amazon has created for traditional brick-and-mortar retailers, as well as the change in consumer behavior toward online shopping.
Positive and Negative Impacts of the Amazon Effect for Customers
The Amazon effect has drastically changed the way people shop, resulting in mixed effects for shoppers. The Amazon effect has resulted in improved customer convenience, with shorter delivery times, greater product selection, and lower prices for customers (Melé, 2019). It has also allowed for greater competition among businesses, resulting in better prices and improved customer service.
In contrast, the Amazon effect has also had some unfavorable consequences for customers. One of the key ethical issues posed by the Amazon effect is the possibility of it decreasing the number of local stores, which could cause a loss of employment opportunities in the area and a decrease in the taxes collected by local governments (Melé, 2019). Additionally, the Amazon effect has caused production to be outsourced to countries with cheaper labor, which may lead to workers being taken advantage of and damage to the environment.
Ethical Concerns in Business Practices
In terms of the ethical concerns about business practices, it can be argued that customers do have some responsibility as they are the ones who choose to purchase from companies that have unethical practices. Customers can choose to shop from companies that have ethical business practices and are committed to protecting the environment and their employees, and they can also take other steps, such as boycotting companies that engage in immoral activities (Melé, 2019).
Companies should be held accountable for their conduct and guarantee that their behavior is ethical and responsible. They should work hard to provide their employees with a secure workplace and guarantee that their production activities are not detrimental to the environment (Melé, 2019). Additionally, businesses should be open and honest about their policies and take ownership of errors or ethics violations.
Responsibility for Unethical Practices: Customers vs. Businesses
Customers and businesses are responsible for ensuring that ethical concerns are taken seriously and addressed. Customers can take the initiative to ensure they choose to purchase from ethical companies. Businesses should be committed to taking the necessary steps to ensure that their practices are ethical and that their production methods are not negatively impacting the environment.
Reference
Melé, D. (2019). Business ethics in action: Managing human excellence in organizations. Bloomsbury Publishing.
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