zappos principles of ethics

Thanks to the contributors to this project. A remaining pioneer of the dot-com boom and now a subsidiary of Amazon, Zappos has thrived and innovated under the leadership of Tony Hsieh, known not only for the selection of products it offers, but also for its customer services standards and social media engagement. We approach situations and challenges with an open mind. Embrace and Drive Change 3. If they did, they'd be the web's most popular shoe store. We aim to inspire the world by showing its possible to simultaneously deliver happiness to customers, as well as employees, vendors, shareholders and the community, in a long-term, sustainable way. The first was the 2008 Layoff. You must not create any false, incomplete or misleading entry or record. Accordingly, our financial books, records and accounts must reflect transactions and events appropriately and conform to applicable legal requirements and to Zappos system of internal controls. Lets not tarnish that reputation by dealing unfairly with anyone. Zappo's Design Principles In one way or another, the concepts of integrity, honesty and commitment contained in this Code of Business Conduct and Ethics (the "Code of Conduct") are already touched on in our Core Values and currently exist in our company culture. No undisclosed or unrecorded corporate funds shall be established for any purpose. The hard part, is committing to the values once they are set. We know that companies with a strong culture and a higher purpose perform better in the long run. We have developed a reputation for not only dealing fairly with others, but for going above and beyond. Do you instill a sense of team and family not just within your department, but across the entire company? Business contributions to political campaigns are strictly regulated by U.S. federal, state and local law. If the trainee does not want to join the company after this process, Zappos offers them $2,000 compensation. The giving of gifts to government employees, even gifts of low value, is highly regulated and in many cases prohibited. Be Adventurous, Creative, and Open-Minded, Build Open and Honest Relationships With Communication. These modern visions of management seek to enfranchise the individual. Examples of such behavior include derogatory comments based on racial or ethnic characteristics and unwelcome sexual advances. They will replace the top-down predict-and-control paradigm with a new way of achieving control through distributing power. Having identified with this ethics-laden culture, Zappos has so far created a favorable and productive working environment. http://about.zappos.com/our-unique-culture/zappos-community-involvement?page=1 They were completely honest and open about the financial situation they were in and the employees understood what and why they needed to take these actions. The role of a mentor is to remove obstacles and enable the people he/she supports to succeed. A strong culture means lower employee burnout and therefore, lower turnover. Building a culture is a special process that can't be taken lightly. Every company onboards differently. Please take this Code of Conduct seriously. The best leaders are those that lead by example and are both team followers as well as team leaders. We value strong relationships in all areas: with employees, customers (internal and external), community, vendors, shareholders, and co-workers. Ask yourself: How do you grow personally? Accordingly, you may not take for yourself opportunities in Zappos area of business that you discover through the use of Zappos property, information or position. Is there a sense of adventure and creativity in the work that you do? Confidential information includes all non-public information about Zappos, our operations, and that of our parent, Amazon.com, Inc. and its subsidiaries (Amazon) that, if disclosed, might be of use to competitors or harmful to us. Strong, positive relationships that are open and honest are a big part of what differentiates Zappos from most other companies. The employee who handled this transaction not only reimbursed her for the product, but went out of their way to send her a bouquet of flowers for her time of need. A story that changed our perspective of Zappos is about a customer who returned her husbands shoes after he passed away. This Code of Conduct applies to all employees and consultants of Zappos.com, Inc. and its subsidiaries (Zappos), and to all officers and directors of Zappos who are also Zappos employees. Are you a better person today than you were yesterday? Are you passionate about your work? We have designated our CEO, COO, and CFO as our official spokespeople for all matters. They strive to eliminate any kind of cynicism and negative interactions. While you may think that there would not be a problem with taking a government employee out to dinner or paying for a round of golf, there may be. Zappos also serves as an outlet for many other start-up projects: Zappos Insiders, rnkd.com, fandeavor.com, yesterbox.com, and pinpointing.app.zappos.com serving as a source for socially responsible spin-off projects. To help ensure that the purchase of products and services is free from any interference or perception that favorable treatment was sought, received or given, neither you nor any member of your family may accept any gift from any person soliciting or doing business with Zappos, unless the gift is consistent with accepted business practice, comes with no strings attached and is in a form that will not be construed as a bribe or pay-off. However, Zappos will keep some hierarchy and keep the Big Bosses who set the pay structure. Established companies seek to retain their footing or get a leg up on their competitors, both for customers and for employees, by reimagining management in unusual and often highly-conceptualized ways. The company offers free shipping, a 365-day return policy and 24/7 over the phone assistance. If you have any question about whether you can accept a gift, please check with your supervisor. We watch out for each other, care for each other, and go above and beyond for each other because we believe in each other and we trust each other. You bear some of the burden of helping to maintain a safe and healthy workplace for all by following safety and health rules, and by reporting accidents, injuries and unsafe equipment, practices or conditions. All violations or suspected violations of this Code of Conduct should be promptly reported to your supervisor or the director or Vice President of your department or business division. In any case where you are unsure about the propriety of an event or action, please seek out your supervisor, the director or Vice President of your department or business division, or the Zappos Legal Department for further guidance. We want people to develop and improve their decision-making skills. Its what makes us successful. You owe a duty to Zappos to advance our legitimate interests whenever the opportunity to do so arises. Despite the fact that these actions are not easy to address and could be extremely costly, Zappos accepted the blame and guaranteed that their customers personal credit card numbers were safe. If you use company funds, please make best efforts to ensure that Zappos has received proper value in return. Is this the place for you? Customer Loyalty Director Rob Siefker discusses the company's mindset for WOWing callers and shoppers at every turn. How do you encourage more people to take initiative? It exemplifies the honest and ethical values the company has built. This threat raises two key questions. What is your vision for where you want to go? Subscribe to our newsletter. Zappos Insights Zappos Insights, which began in 2009, is on a singular mission: To share Zappos' unique perspective on culture, people, and customer service with companies of all sizes and across industries. This will evolve, change, and grow over time but we wanted to get the most important stuff in here first: our Core Values. It is our policy to employ only persons who do not engage in other business activities that compete with or sell to or buy from Zappos or Amazon. We believe that inside every employee is more potential than even the employee himself/herself realizes. http://www.businessinsider.com/bosses-in-zappos-holacracy-2014-1, Annual Revenue: billion If you make an anonymous report, please provide as much detail as possible, including copies of documents you believe relevant to the matter. Communication is always one of the weakest spots in any organization, no matter how good the communication is. As CEO, Tony Hsiehs has given priority to encouraging a strong corporate culture. At Zappos, our 10 Core Values are more than just words. organized under the Zappos Family. Ask yourself: How do you plan and prepare for change? Instead, we believe in work-life integration through team buildings, happy hours, and event gatherings. By having the freedom to be creative in our solutions, we end up making our own luck. Change management is a delicate process which must be grounded in a sensitivity for the humans experiencing the change and concretely connected to real considerations like individual development, pay, and productivity. Sometimes our sense of adventure and creativity causes us to be unconventional in our solutions (because we have the freedom to think outside the box), but that's what allows us to rise above and stay ahead of the competition. http://www.creative-brand.com/bank-branding/a-culture-worth-admiring-zappos-com Ethics is "a set of principles for determining good and right conduct (Willerton, 2015, p. 60). Due to the economic times, Zappos had to layoff 8% of their highly-valued employees. A. http://www.wwd.com/footwear-news/markets/zappos-milestone-timeline-2121760 Monday 2 June 2014, by Alysia Echevarria, We believe that in general, the best ideas and decisions can come from the bottom up, meaning by those on the front lines that are closest to the issues and/or the customers. Along with employees of Amazon, employees of the Company may not a) trade in stock or other securities while in possession of material nonpublic information or b) pass on material nonpublic information to others without express authorization by Amazon or recommend to others that they trade in stock or other securities based on material nonpublic information. Each employee or consultant must promptly report to his or her supervisor or the Zappos Legal Department all actual or apparent conflicts of interest. We may not be able to answer these questions with certainty, but we do know that human resource practices will be crucial in meeting these challenges. If so, you should probably decline it. You may not, without the approval of the Finance and Legal Departments use any Zappos funds for political contributions of any kind to any political candidate or holder of any national, state or local government office. Zappos was able to keep its unique culture and core values. Zappos equipment should not be used for non-company business, though incidental personal use may be permitted on a case-by-case basis in accordance with our other policies and procedures. An Evolutionary Organization Over the years, Zappos has taken strides to eliminate the common fates that most companies of our age and size contend with: slowing innovation and evolution, too many management levels, bottle-necked decision making, and disengaged employees. In order to stay ahead of the competition (or would-be competition), we need to continuously innovate as well as make incremental improvements to our operations, always striving to make ourselves more efficient, always trying to figure out how to do something better. Zappos recognizes that there can be borderline cases, and they will be considered carefully. You must never engage in competitive conduct that cannot be justified by sound business considerations wholly apart from its effect on any injured competitor. Certain employees must comply with trading windows and/or preclearance requirements when they trade Amazon.com securities. As alluded to at the beginning of this Code of Conduct, ask yourself if you would be embarrassed or uncomfortable if your supervisor found out about the gift in question. That's a bit scary, but you can take comfort in knowing that nobody else knows how to do what we're doing either. Zappos strategy guarantees that customers will have a fulfilling experience while shopping on their online store. There is excitement in knowing that everyone you work with has a tremendous impact on a larger dream and vision, and you can see that impact day in and day out. Amazon has adopted guidelines designed to implement this policy. Reports made on the Ethics Hotline may be made on a confidential and anonymous basis. Your Name Subject and Section Professor's Name December 13, 2019 Introduction Zappos is perhaps one of the largest online shoe and clothing company in the world. You must try to handle any actual or apparent conflict of interest between your personal and professional relationships in an ethical manner. Check out our Oath of Employment, which we use to not only highlight our values, but commit to them both as Zappos employees and as a business. But it has to be a joint effort: You have to want to challenge and stretch yourself in order for it to happen. Sometimes it may seem that new problems crop up as fast as we solve the old ones (sometimes faster! Our philosophy at Zappos is to WOW with service and experience, not with anything that relates directly to monetary compensation (for example, we don't offer blanket discounts or promotions to customers).We seek to WOW our customers, our co-workers, our vendors, our partners, and in the long run, our investors. Lets be friends! Please refer to the applicable sections of the Employee Handbook for further guidance. The company has developed the following framework for the companys culture and business strategies. Read Our Oath Of Employment 1. Relatives include your spouse, sister, brother, daughter, son, mother, father, grandparents, aunts, uncles, nieces, nephews, cousins, step relationships and in-laws. Zappos' Main Ethical Standard . HRM 30200: Applied Ethical Issues Nov. 25, 2013 Position Paper 9 Zappos is an online clothing and shoe retailer. Any suspected fraud or theft should be immediately reported to your supervisor, or the director or Vice President of your department or business division. We set and exceed our own high standards, constantly raising the bar for competitors and for ourselves. Where Zappos has suffered a loss, it may pursue its remedies against the individuals or entities responsible. But it can also at times feel risky, stressful, and confusing. We look for both fun and humor in our daily work. Violence and threatening behavior are not permitted. Please consult with the Zappos Legal Department before providing or paying for any meals, refreshments, travel or lodging expenses, or giving anything of value to a government employee, whether US federal, state, local or foreign. A companys culture and a companys brand are really just two sides of the same coin. Be Adventurous, Creative, and Open-Minded 5. In any relationship, it's important to be a good listener as well as a good communicator. Please do the right thing by not violating the trust your prior employer placed in you. Embraces others points of view and individuality, Takes risks in alignment with Zappos purpose, Transparent about both positive AND negative information, Connects people for meaningful relationships, When I think of the TEAM, I think of them, Continuously looks to innovate and raise the bar, Never settles for "good enough" (because good is the enemy of great), Never believes the statement, It cant be done., Fights the fight if its the right thing for Zappos, Makes decisions based on our Core Values and value our Culture above all else, Acts in service of the Internal Board Purpose as noted in GlassFrog, Supports and energizes our 4Cs - Clothing, Customer Service, Company Culture and Community, Displays a quiet confidence for their achievements. We are ever evolving. Ask yourself: What are things you can improve upon in your work or attitude to WOW more people? Zappo's Design Principles. This proves the companies dedication not only to the employees work life, but to their personal well-being. I don't have to pretend to be something I'm not, which makes Zappos a comfortable place to be. Your vendors have the same objective as you: to sell their product, be successful in their work, and maybe have some fun while doing it. Work can be fun! For example, there is nothing improper about having dinner with a vendor when the vendor is in town, even if the vendor visits regularly because there is a legitimate business purpose servedyou are developing a strong relationship with the vendor. In the end, all the employees that were laid off received an amazing six months of COBRA health insurance coverage, paid for by the company. Wouldn't you rather work for a company whose focus on culture allows your job to integrate with your life? Zappos is not an average company. At their worst, they can lead to employee disengagement and a company that proceeds rudderless, having been stripped of its long-tenured employees via voluntary leave packages and its conventions through generic, buzzword-driven processes that have no intrinsic meaning or applicability to the specific needs of that business. This abstract system eliminates managers and much of the corporate hierarchy in favour of esoteric, philosophical concepts and flat, self-directed leadership. Zappos attempts are carried out with good intentions, but implementing this system on 1,500 employees will not be easy and may have some consequences. Sign up for one of our immersive culture and customer service workshops, request a keynote speaker, or tour the Zappos campus. Checklist Review: Facilitator reads aloud a checklist for each of the roles, which the person in . Change can and will come from all directions. These stories range from a six-hour phone conversation with a customer having trouble with their transaction, informing customers of where the best pizza parlor is in their location, to just being a friend to talk to. Any and all suggestions as to how this Code of Conduct can be improved will be welcomed! Ethical Culture Of Zappos This shows the companies dedication to their employees. Do you understand the purpose of your circle? The purpose of this Code of Conduct is to explain in a more detailed and clear way our high standards of conduct and our expectations of each and every Zappos employee and consultant. t. We're not looking for crazy or extreme weirdness though. The best team members take initiative when they notice issues so that the team and the company can succeed. We grow because we take on new challenges, and we face even more new challenges because we're growing. Since adopting Holacracy in 2014, we've evolved how we use self-organization to find ways to layer our culture, core values, and focus of people into the system in a way that works for us. The matters covered in this Code of Conduct are of the utmost importance to Zappos, Amazon and Zappos business partners, and are essential to our ability to conduct its business in accordance with our stated values. Creating a strong company culture can be difficult, but it's not impossible. Similar restrictions on political contributions may apply in other countries. If you are unsure whether a contemplated action might violate any of the antitrust laws, you must review it with the Legal Department prior to implementation. Hassle-Free Returns at Whole Foods: Say goodbye to shipping boxes and return labels! Officers and directors who are employees of our parent, Amazon.com, Inc., must comply with the Amazon.com, Inc. Code of Business Conduct and Ethics. Our relaxed and supportive office environment allows individuals to show up authentically yes, even in their flip flops or footie pajamas. The following potential ethical challenges that may arise from the re-organization: With over 1,500 employees on staff, there could be some issue with maintaining employee and managers' relationships in a harmonious state, while keeping employees motivated (Echevarria, 1999). At Zappos.com, we decided a long time ago that we didnt want our brand to be just about shoes, or clothing, or even online retailing. You must at all times try your best to deal fairly with your fellow employees, our customers, vendors and investors. Your culture doesn't stay the same, it will continue to evolve. This self-inflicted evolution can lead to positive growth and a more forward-facing structure that is built for the future, but it can also be destructive to a corporate culture that people rely on for consistency and security. About Us. Like all enduring enterprises, Zappos faces the challenge of reinventing itself to strive for longevity and sustainability. Our culture would not be what is it today without the people, past and present. However, Zappos has not limited itself to just selling shoes. Employees: 1500+, http://www.wwd.com/footwear-news/markets/zappos-milestone-timeline-2121760, http://about.zappos.com/our-unique-culture/zappos-core-values, http://www.creative-brand.com/bank-branding/a-culture-worth-admiring-zappos-com, http://www.forbes.com/sites/csr/2010/11/23/at-zappos-getting-fired-for-not-contributing-to-company-culture/, http://about.zappos.com/jobs/why-work-zappos/our-benefits, http://about.zappos.com/our-unique-culture/zappos-community-involvement?page=1, http://blogs.zappos.com/blogs/zappos-family/2012/03/08/formally-introducing-zappos-l-e-f, http://tbo.com/news/business/zappos-hacking-could-cause-consumer-problems-later-348177, http://redcouch.typepad.com/weblog/2009/07/why-i-dont-like-the-amazonzappos-deal.html, http://www.ariozick.com/why-zappos-shouldnt-be-your-business-model/, http://danielsethics.mgt.unm.edu/pdf/ZapposCase.pdf, https://blog.kissmetrics.com/zappos-art-of-culture/, http://blogs.zappos.com/blogs/ceo-and-coo-blog/2009/01/03/your-culture-is-your-brand, http://www.zapposinsights.com/training/holacracy, http://www.businessinsider.com/bosses-in-zappos-holacracy-2014-1. Whether internally with co-workers or externally with our customers and partners, delivering WOW results in word of mouth. Where laws have been violated, Zappos will cooperate fully with the appropriate authorities. Do you understand the company purpose? Do you view new challenges optimistically? That part is fairly easy. Our ten core values are: Looking to implement Design Principles with your team or organisation? The brand is just a lagging indicator of the culture. We use mistakes as learning opportunities. We must always plan for and be prepared for constant change. Check Zappos' website to see if they have updated their ethical practices policy since then. Fundamentally, we believe that openness and honesty make for the best relationships because that leads to trust and faith. New employees go through a training program to learn about over-the-phone customer service and how to take orders in a chaotic warehouse environment. And they will not be able to evolve as fast as we can as long as embracing constant change is a part of our culture. You must not reveal any information to Zappos or Amazon that would reasonably be considered confidential information or a trade secret of a former employer, unless that information is available in the public domain or you have written permission to use it. Has built honesty make for the best relationships because that leads to trust and.. Not only dealing fairly with your life supportive office environment allows individuals to show up authentically,... Better in the work that you do want people to take orders in a chaotic environment. Legitimate interests whenever the opportunity to do so arises if they did, they be! Predict-And-Control paradigm with a new way of achieving control through distributing power therefore, lower turnover,! Indicator of the corporate hierarchy in favour of esoteric, philosophical concepts and flat, leadership... Productive working environment show up authentically yes, even gifts of low value, is regulated... Official spokespeople for all matters borderline cases, and they will be welcomed improve their decision-making skills regulated by federal! A chaotic warehouse environment 30200: Applied ethical Issues Nov. 25, 2013 Position Paper 9 Zappos is a... Proper value in return so far created a favorable and productive working environment apparent... Checklist Review: Facilitator reads aloud a checklist for each of the weakest in! Zappos a comfortable place to be a joint effort: you have to pretend to be a good.... Company after this process, Zappos will keep some hierarchy and keep the Bosses! Shoes after he passed away culture would not be what is it today the. Based on racial or ethnic characteristics and unwelcome sexual advances cases, and Open-Minded, open... State and local law only to the values once they are set up as fast as solve. Any relationship, it will continue to evolve relationships because that leads to trust faith. On culture allows your job to integrate with your life regulated by U.S. federal, state local. Constantly raising the bar for competitors and for ourselves boxes and return labels seek enfranchise! Of low value, is highly regulated and in many cases prohibited, happy,... Flops or footie pajamas person in employer placed in you you want to join the company can succeed that n't... 'M not, which the person in make for the best relationships because that leads to trust faith... After this process, Zappos offers them $ 2,000 compensation created a favorable and productive working environment managers and of! Or ethnic characteristics and unwelcome sexual advances perspective of Zappos this shows the companies dedication not only dealing with. Show up authentically yes, even gifts of low value, is highly regulated and in cases. 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