Consider the following case: Amazon and use of sellers’ data to build a private label One of Amazon’s businesses
Learning Goal: I’m working on a management discussion question and need guidance to help me learn.Discussion main post: Description:Consider the following case: Amazon and use of sellers’ data to build a private labelOne of Amazon’s businesses that regulators are looking into is the e-commerce giant’s expanding private-label products, as third-party sellers (who are essentially business partners of Amazon’s and generating over half of its sales) have long worried that Amazon uses their own sales data to compete against them…[T]he employees said they were able to analyze various datasets from the marketplaces, including the list of top-selling and trending products in certain categories, pricing points, return data and reviews.One former employee, who worked on building AmazonBasics, said they would use the metrics to decide on an “inspiration product,” then order it from the seller and try to reverse engineer it. They worked with the sourcing team, who are usually based in China, to find a manufacturer.In a letter to the House Judiciary Committee in July, the company reiterated it prohibits the use of data related specifically to individual sellers in its private-label strategy. “Like other retailers, we use aggregated store data (e.g., total sales) and customer shopping behavior (e.g., search volume) to identify the categories and products with high customer demand over a given time period,” it wrote.Former employees said the use of data does not target individual sellers—but they looked at specific products and categories.(Source: Hu, K. Yahoo Finance. September 27, 2019)Please create a thread and post 2 paragraphs in this Discussion Forum. Include the following.1st paragraph: As an ethical top executive at Amazon, how would you manage employees with regard to using data about marketplace sellers while observing ethical practices to develop the company’s private labels? What would you say and do? Use concepts from the textbook, materials at Blackboard, and Dr. Siqueira’s video.2nd paragraph – What are the underlying values that drove your position? What is your reasoning, which you could share with employees and stakeholders, to justify your policies? Use concepts from the textbook, materials at Blackboard, and Dr. Siqueira’s video.Response post 1: As a top executive at Amazon my responsibilities are not only reaching our profit margins and making investors happy, but making sure data is kept safe and used in a responsible and ethical way. Data selling to other companies can be a very profitable avenue but it is extremely unethical. I would expect my employees to uphold the same ethical values as I do. There should be severe punishment handed out to employees who do not follow the ethical values of the company. Unethical employees can leave a stain on the company’s reputation which can affect its future and result in a loss of trust in the company with the public which will eventually affect profit margins. Employees should share an equal amount of responsibility when it comes to the handling of this data since a small group of employees controlling all the data flow through the company would be potentially dangerous. I believe that companies and consumers should have the full trust of the company that their date will be used in an ethical way. Leading the company in an ethical way will always be the most rewarding in the long term. My reasoning is that carrying ourselves in a professional and ethical manner will reflect on other companies and investors which will hopefully mean they can show us the same level of ethical behavior and professionalism. Acting like this will also put the company in good light with the public. You can lean on the company’s ethicacy in advertising campaigns which can attract more investors and customers.Response post 2: As a top ethical executive of Amazon, I would make sure to value the market sellers’ data in keeping it stored and protected by all means necessary. It would be unethical if Amazon took advantage of the sellers’ data to create the same product at a cheaper rate; some sellers rely on the products they sell to make a living. A company like Amazon has all the resources to create products at a more affordable rate; it doesn’t need to rely on the seller’s data. If the sellers’ products are not satisfying customers, then as the ethical executive, I would access their data to see if the product can improve with amazons resources.The underlying values that drove my position are that a company such as Amazon should lead by example by enhancing more ethical practices and creating a more sustainable environment without misleading its consumers. As Dr. Siquiera mentioned in her video, companies should not provide misleading information about their product’s environmental benefits, called greenwashing. Amazon should be transparent when it comes to its stakeholders, provide them with accurate data, and ensure that its goals are to practice ethical behaviors and improve its products to be eco-friendly and become a more sustainable business.
Requirements: 2 paragraph for main post + 1 small paragraph for each response