Amazon Stakeholders, CSR & ESG Programs

Amazon stakeholders, corporate social responsibility, CSR, ESG, citizenship, sustainability, business ethics, e-commerce case study, lockers
An Amazon Hub (lockers) in Italy. Amazon’s CSR and ESG strategy prioritizes customers as the primary stakeholders in programs for e-commerce sustainability and corporate citizenship. (Image adapted from photo by Gabriel Castles)

Amazon’s ability to satisfy stakeholders supports organizational growth in the e-commerce industry. CSR and ESG programs for stakeholders’ interests help maintain Amazon’s competitive market position.

Considering Archie Carroll’s description of corporate social responsibility (CSR), stakeholders are individuals or groups linked to the organization based on their stake in what the business does. The company affects its stakeholders, and vice versa.

In Amazon’s case, stakeholders have widely varying interests, considering the company’s global reach and the diversity of its products in multiple industries. This condition requires diverse programs and a broad scope for the company’s CSR and environmental, social, and governance (ESG) strategy.

Amazon responds to stakeholders through a CSR and ESG strategy for sustainability, corporate citizenship, and business ethics. These programs and related goals are on a par with the stakeholder management efforts of major competitors.

These competitors include IT and consumer electronics firms, like Google (Alphabet), Apple, Microsoft, and Samsung, as well as retail and e-commerce firms, such as Walmart, Costco, Home Depot, Aldi, and eBay.

Amazon’s CSR and ESG strategy and programs also consider competing entertainment content producers and distribution platforms, like Netflix, Disney, Sony, and Facebook (Meta Platforms).

Competitors’ sustainability and corporate citizenship influence customers’ perception regarding Amazon and its corporate social responsibility and ESG programs. CSR and ESG differences between companies can affect their branding.

Amazon’s Stakeholders

Amazon’s corporate social responsibility initiatives target the interests of main stakeholder groups. Amazon’s CSR and ESG programs are designed to satisfy the interests of the following stakeholder groups:

  1. Customers (highest priority)
  2. Employees
  3. Communities

Customers. Amazon’s corporate social responsibility and ESG strategy gives the highest priority to the stakeholder group of customers. The company considers customers as the primary determinant of its e-commerce business success, especially because these stakeholders directly affect revenues.

This prioritization agrees with Amazon’s mission statement and vision statement, which set business goals that highlight the centrality and priority of customers in the business and its development.

The interests of customers as stakeholders are, among other relevant factors, fair or reasonable pricing, convenience of service, high-quality products, and privacy and online security in transacting with the company.

Employees. Amazon values employees as significant determinants of organizational performance. Human resources are a fundamental factor in the company’s corporate social responsibility and ESG policies and programs.

As Amazon stakeholders, employees are interested in competitive compensation, career development, and job security, as well as good working conditions in fulfillment centers, delivery stations, and other facilities.

Employees are also interested in a company culture that reflects their interests and that support their career goals. Amazon’s organizational culture (work culture) supports these interests while promoting business goals, such as efficiency in e-commerce.

Communities. Amazon’s corporate social responsibility and ESG programs manage the expectations and interests of communities. These stakeholders are significant because they influence consumer perception about the company’s goods and services.

The interests of this stakeholder group include community development support, such as through education, healthcare, and environmental conservation. These interests reflect the relevant social and ecological trends noted in the PESTEL/PESTLE analysis of Amazon.

Amazon CSR, ESG, stakeholders, sustainability programs, corporate citizenship, e-commerce business ethics case study, UK van
An Amazon van in Derby, U.K. Amazon’s programs for CSR and ESG focus on customer experience in markets for e-commerce, consumer electronics, entertainment, and other relevant industries. (Image adapted from photo by Aethonatic)

Amazon’s CSR & ESG Programs & Initiatives

For Customers. Amazon satisfies customers’ interests through emphasis on service and technology. For example, the company uses advanced information and communication technologies for secure transactions and for efficient purchasing and delivery processes.

Amazon also has employee training programs to maximize the benefits of these technologies, in terms of speed and efficiency, which influence customer convenience, especially in e-commerce, and particularly in online retail.

In addition, fair and competitive pricing is maintained by supporting competition among sellers on the company’s online marketplace and through appropriate pricing strategies included in Amazon’s marketing mix (4P).

Thus, Amazon’s approach to corporate social responsibility and ESG addresses the interests of the primary stakeholder group of customers in terms of speed, efficiency, security, and reliability of services.

For Employees. Amazon satisfies the interests of the stakeholder group of employees through leadership development, career development, and an appropriate compensation policy that matches the business organization’s high growth potential in IT and online services.

For example, the company provides competitive compensation for personnel in IT and related business areas, such as in developing and maintaining the technology assets used in e-commerce operations.

Also, Amazon’s continuing growth and global expansion creates career advancement opportunities for employees, especially in leadership and management positions in all areas of the business, like logistics, information technology, retail, and marketing and sales.

Thus, competitive compensation and career development support are the main thrusts in Amazon’s corporate social responsibility and ESG strategy to address the interests of employees as a stakeholder group.

For Communities. Amazon’s corporate citizenship efforts address communities’ interests through charitable contributions, including donations for various causes involving nonprofit organizations.

This approach broadens the reach of Amazon’s corporate social responsibility and ESG strategy in satisfying the interests of the stakeholder group of communities, with nonprofits and other groups functioning as organizational extensions for the company’s community support programs.

Amazon’s CSR & ESG Performance and Stakeholders’ Satisfaction

Amazon integrates stakeholders’ interests into its corporate social responsibility and ESG strategy, which also influences the CSR and ESG programs of its subsidiaries, such as Whole Foods Market.

Such a strategy supports Amazon’s mission and vision, which aim for customer-centricity. This factor and the nature of IT and online business indicate the appropriateness of the company’s prioritization for customers as primary stakeholders.

The inclusion of employees and communities is one of the strengths of Amazon’s CSR and ESG strategy. These stakeholders fundamentally determine the success of the IT, online services, and retail business.

Amazon’s corporate social responsibility and ESG approach also has flexibility, which is achieved through the diverse programs and causes of the various nonprofits that benefit from the company’s donations and support.

The interests of governments and investors as stakeholders are also addressed through Amazon’s CSR and ESG strategy. However, the company’s prioritization is for customers, employees, and communities.

Amazon’s corporate social responsibility and ESG efforts have improvement opportunities in terms of additional programs and the inclusion of more stakeholders. New stakeholder groups can be included in these programs as the company further diversifies its business.

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