Expert answer:Impact of government policies on business
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Amazon has a history of not directly addressing any
adverse information against them. In 2016 a NY Times article
portrayed Amazon’s Seattle headquarters as a “bruising
workplace” (Covert, 2017). Amazon’s did not directly confront
those accusations but instead a letter, from CEO Jeff Bezos to
Amazon employees, was carefully leaked to the press stating
that that was not the Amazon Bezos new or worked at and that
his door was always open to employees with a problem (Covert,
2017). Amazon’s public relations are conveyed through its
customer service not a spokesperson. Even after the Amazon
working conditions accusation in 2016 Amazon was still ranked
number 1 in the American Customer Satisfaction Index (ACSI)
(Chandrasekhar, 2017). Unlike other large tech companies such
as Google and Facebook, Amazon does not rely on advertising
to generate income. So while Facebook and Google have to
balance the needs of users, content creators, and advertisers,
Amazon can focus on only its customer’s needs (Finely, 2017).
This silence applies to adverse information about
government related topics too. When Amazon purchased Whole
Foods there was a cry from the media and economists for the
government to step in and label Amazon a monopoly. The
director of the New America Foundation’s Open Markets
program wrote an article claiming that “Amazon is
monopolizing commerce in the United States and crushing of
competition (Shephard 2017). In 2017 the Yale Law Journal
published a 24,000 word paper called ‘Amazon’s Antitrust
Paradox’ which laid out why American antitrust law has evolved
to the point that it is no longer equipped to deal with tech giants
such as Amazon.com (Pearlstein, 2017). Amazon’s only
response to these allegations has been their goal is to provide the
biggest selection and the best prices to their customers.
Because Amazon does not publicly address any allegations
that does not mean they are not doing anything to curb the
antitrust matters. Amazon has nearly doubled its lobbying
expenditures in 2016 versus the previous year of $9.4 million
dollars. Amazon has also hired Jay Carney, a former White
House press secretary, as senior vice president for global
corporate affairs to help with its lobbying efforts (Peterson,
2016) Amazon is not open about the intent of its lobbying
efforts but Jay Carney stated that “Like a lot of businesses,
Amazon has a presence in Washington and we focus on issues
that matter to us” (Peterson, 2016).
References:
Chandrasekhar, S. (2017, March 17). Amazon Officially Ranks #1 in American Customer
Satisfaction Index for Internet Retail – 1redDrop. Retrieved from
https://1reddrop.com/2017/03/16/amazon-officially-ranks-number-1-american-customersatisfaction-index/
Covert, J. (2015, August 17). Amazon’s brutal workplace risks Walmart-style PR disaster.
Retrieved from http://nypost.com/2015/08/17/jeff-bezos-says-hed-quit-the-amazondescribed-in-nyt-expose/
Finely, K. (2017, May 6). Teflon Amazon, Where Bezos Gets Rich and Bad News Never Sticks |
WIRED. Retrieved from https://www.wired.com/2017/05/teflon-amazon-bezos-gets-richbad-news-never-sticks/
Pearlstein, S. (2016, July 28). Is Amazon getting too big? – The Washington Post. Retrieved from
https://www.washingtonpost.com/business/is-amazon-getting-toobig/2017/07/28/ff38b9ca-722e-11e7-9eacd56bd5568db8_story.html?utm_term=.c8d4ad99e730
Peterson, A. (2016, February 5). Why Amazon is doubling down on lobbying – The Washington
Post. Retrieved from https://www.washingtonpost.com/news/theswitch/wp/2016/02/05/why-amazon-is-doubling-down-onlobbying/?utm_term=.b6fa4f5b76c3
Shephard, A. (2017, June 19). How Amazon Is Changing the Whole Concept of Monopoly.
Retrieved from https://newrepublic.com/article/143376/amazon-changing-wholeconcept-monopoly
In 2015, the United States Supreme Court decided to allow “disparate impact” claims,
which means that residents can file fair housing complaints even if there is no proof that the
company deliberately discriminated against them (Dunn, 2015). For example: Let’s say that
University Management Inc. remains race neutral and implements housing processes fairly, but
provide housing to less Asian students than other races. Some would claim disparate impact,
claiming that there is no proof that UMI discriminated, but there are far less Asian students
residing on the properties than other races.
Sustainability can be impacted in the event that a disparate impact claim is heavily
publicized, leading the public to assume the company’s guilt. University Management’s stellar
reputation works to their advantage, but they must set and follow strict policies and procedures to
keep it that way. The Virginia Apartment Management Association sets forth guidelines that can
help the company minimize the risk or appearance of discrimination (VAMA, n.d.). Consistency
is key in beating a disparate impact claim.
Admitting fault in the case that discrimination claims are true will prove honesty and
show stakeholders that the company is willing to improve from their mistakes. Alternatively,
fighting claims that are untrue will reduce the chance of residents taking advantage and filing
erroneous disparate impact claims. Disparate impact claims also have the potential to impact the
company’s finances. When claims are filed, UMI must send letters to residents and guarantors
costing the company money in postage, envelopes, paper, and legal fees from the attorney. With
this governmental action, UMI must be prepared for the potential financial strain that would
come with this type of claim.
References
Dunn, J. (2015, August 10). Big Impact: Supreme Court Housing Decision Could
Have Significant Effect on Education. Retrieved September 17, 2017, from
http://educationnext.org/big-impact-supreme-court-housing-decision-significant-effecteducation/
VAMA. (n.d.). Retrieved October 15, 2017, from
http://www.vamaonline.org/search/all.asp?bst=disparate
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