When you combine a little weirdness with making sure everyone is also having fun at work, it ends up being a win-win for everyone: Employees are more engaged in the work that they do, and the company as a whole becomes more innovative. A companys culture and a companys brand are really just two sides of the same coin. Anyone who wants to compete with us has to learn the same things, so problems are just mile markers. Wouldn't you rather be a company where your employees easily combine their full self into everything they do? How do you get your fellow circle members to grow personally? What new relationships can you build throughout your company beyond just the co-workers that you work with on a daily basis? The more widespread and diverse your relationships are, the bigger the positive impact you can make on the company, and the more valuable you will be to the company. We use mistakes as learning opportunities. You should report to work in condition to perform your duties, free from intoxication due to drugs or alcohol. Please do the right thing by not violating the trust your prior employer placed in you. First, how can Zappos continue to use competitive pricing in international markets that may have similar products with cheaper price tags? While we have grown quickly in the past, we recognize that there are always challenges ahead to tackle. The second ethical challenge was the merger with Amazon in 2009. Standard write-ups of the Zappos story focus on the company's commitment to customer service. Do you understand the purpose of your circle? Sometimes, it's the little things that make the biggest difference. At Zappos, we place a lot of emphasis on our culture because we are both a team and a family. Zappos is an effective learning organization because they establish from the first day a commitment to learning. The principles of accountability and improvement underlying the company's supplier responsibility are major objectives because of the need to ensure safe and ethical working conditions as well as compliance with various regulations in the global business environment. Our culture would not be what it is today without Zapponians past and present. Strong relationships allow us to accomplish much more than we would be able to otherwise. Actions that may lead to you unfairly taking advantage of someone may include manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair dealing practice. Passion and determination are contagious. Due to the economic times, Zappos had to layoff 8% of their highly-valued employees. There are many stories regarding the remarkable things that Zappos employees have done for their customers. How do you encourage more people to take initiative? This year, we invited our vendors to run away with us to the Untamed Circus.". 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. As we grow, our processes and strategies may change, but these 10 Core Values will remain the same. Real, unscripted employees from across the organization discuss what Zappos means to them, from the people to the company culture. Yessica Najarro. A CUSTOMER-FOCUSED BUSINESS MODEL . We can all take great pride in the many wonderful things that Zappos stands for, and as long as everyone remains committed to the values that make us special, Zappos will never be just another company. 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. Do you encourage and drive change? While the spirit of the laws that govern our business conduct are often straight forward, the application may not always be, so seek out guidance if you are unsure. Our service is not average, and we don't want our people to be average. You must WOW (go above and beyond what's expected) in every interaction with co-workers, vendors, customers, the community, investors with everyone. What are some creative things that you can contribute to Zappos? While we may be casual in our interactions with each other, we are focused and serious about the operations of our business. Having a defined set of values will serve as your guide to continue your culture's growth and evolution in a positive direction. The best team members have a positive influence on one another and everyone they encounter. Are you passionate about your work? 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. Something unique that Zappos does is allow brand representatives access to all the same sales and inventory information on their products that Zappos has. Instead, we carry ourselves with a quiet confidence, because we believe that in the long run our character will speak for itself. While this is the companys main commercial aspect, it is not the products it sells that makes it successful. Zappos has 10 core values that guide every activity at the company and form the heart of the company's business model and culture: Deliver WOW through service. But it's there. For example, the idea for our culture book came about from a casual discussion outside the office. Values are more than just words, they're a way of life. We expect every employee to deliver WOW. And for anyone we bring on board, the best expertise they can bring is expertise at learning and adapting and figuring new things out -- helping the company grow, and in the process they will also be growing themselves. That part is fairly easy. It exemplifies the honest and ethical values the company has built. This further enriches the 6th core value, open and honest communication. We should always be seeking adventure and having fun exploring new possibilities. 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. Any suspected fraud or theft should be immediately reported to your supervisor, or the director or Vice President of your department or business division. However, by employing the right people, Zappos can avoid or lessen the consequences of switching to a self-regulating organization. That may seem negative, but it's not: we'll do our best to "get it right," and then do it again when we find out that things have changed. We are firmly committed to providing equal opportunity in all aspects of employment and will not tolerate any illegal discrimination or harassment. This abstract system eliminates managers and much of the corporate hierarchy in favour of esoteric, philosophical concepts and flat, self-directed leadership. In addition, the authors emphasize the importance of valuing others' autonomy and dignity. Ask yourself: How can you do what you're doing more efficiently? You must not, without proper authority, give or release to anyone not employed by Zappos or Amazon, or to another employee who does not need to know, data or information of a confidential nature. This threat raises two key questions. Our ten core values are: For more information about our core values, please refer to our core values document and our Employee Handbook. The thinking often goes that fixing things before they are broken is better than turning up one day and realizing suddenly nothing works. It does not matter whether the person works for the US government, a foreign government or is in the private sector. 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. To this day, Zappos is still trying to recover from these ethical challenges. As a result, employees and managers will not have official job titles. 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. Here are the 12 fundamental principles of ethics: 1. For all our emphasis on customer service, our #1 priority is company culture. Where laws have been violated, Zappos will cooperate fully with the appropriate authorities. Designing a different application process, to exclude candidates who are not compatible with the Holarctic system, would be the ideal procedure. Download and print these Zappos-inspired adult coloring pages that are sure to make you smile. The best leaders are those that lead by example and are both team followers as well as team leaders. I don't have to pretend to be something I'm not, which makes Zappos a comfortable place to be. Each has had its own twists and tricks to surprise and delight partygoers. Book an office hour. These values guide everything we do, including how we interact with our employees, how we interact with our customers and community, and how we interact with our vendors and business partners. While we celebrate our individual and team successes, we are not arrogant nor do we treat others differently from how we would want to be treated. Attending such events with your vendors to enhance your relationships is permitted. Our company culture is what makes us successful, and in our culture we celebrate and embrace our diversity and each person's individuality. I love that I get to be me all day. As Zappos continues to transform and scale, we want to ensure the four Cs remain top of mind in our day-to-day business operations. 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. How do you WOW the people that you have relationships with? At Zappos our 10 Core Values are more than just words, they're a way of life. Making choices about the direction of a business which affect peoples livelihoods directly cannot be done ethically if it is done experimentally. Accordingly, all political contributions with Zappos funds are coordinated and approved by the Zappos Finance and Legal Departments. Please take this Code of Conduct seriously. Building a culture is a special process that can't be taken lightly. 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. Send it online -- for free. Ask yourself: Are you passionate about the company? Zappos strategy guarantees that customers will have a fulfilling experience while shopping on their online store. How can the company as a whole become more efficient? Humbly speaking, creating a positive, productive culture is our bread and butter. Bullets vs. cannonballs. We believe in operational excellence, and realize that there is always room for improvement in everything we do. It is now an online store generating $1 billion per year in the retailing of shoes, clothing, handbags, at-home products, beauty products, and accessories for women, men, and kids. A year later, at the age of 26, Tony Hsieh became the CEO. 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. As we continue to grow, we strive to ensure that our culture remains alive and well. This took shape at Zappos in 2015 via a new management structure called Holacracy. This means that our work is never done. Please contact the Finance Department if you have any specific questions. It is our policy to disclose information concerning Zappos to the public only through specific limited channels to avoid inappropriate publicity and to ensure that all those with an interest in Zappos will have equal access to information. Although the data of credit card numbers were not stolen, information regarding full names, addresses, phone numbers, and the last 4 digits of credit cards were compromised. At Zappos, we encourage every employee to bring their whole self to work. We encourage diversity in ideas, opinions, and points of view. Check-in Round: Each person has an uninterrupted chance to mention anything on their mind. 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. 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 are inspired because we believe in what we are doing and where we are going. 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. Pursue Growth and Learning 6. In October of 2011, one of the processing systems encountered complications and problems quickly escalated. Are you happy here? The proper use of Zappos property calls to mind Core Value #8 Do More With Less. Every company has a unique culture that's all their own. Take a moment to de-stress. Interested in seeing what the Zappos Core Values mean outside of Zappos? Many of the company's best ideas have been the direct result of informal interactions outside of the office. Second, if the company begins to ship products abroad, will they have to abandon their policy of free shipping? Be Adventurous, Creative, and Open-Minded, Build Open and Honest Relationships With Communication. Paradoxically, one way leaders try to retain relevance and stay appealing to both customers and employees is to embrace change. You must not provide any false or incomplete information to the accounting department. Fundamentally, we believe that openness and honesty make for the best relationships because that leads to trust and faith. To help avoid conflicts of interest, Zappos has adopted the following rules: Employees or consultants who buy or sell goods or services or have responsibility connected to buying and selling for or on behalf of Zappos and members of their respective families are prohibited from having (i) any economic interest in private business concerns that transact business with Zappos or are in competition with Zappos, and (ii) any significant economic interest in such business concerns that are publicly held. Relatives include your spouse, sister, brother, daughter, son, mother, father, grandparents, aunts, uncles, nieces, nephews, cousins, step relationships and in-laws. In these times of change, ethical considerations taking a backseat to a lean business model is not a sustainable approach. Are you doing everything you can to promote company growth, and at the same time are you helping others understand the growth? http://about.zappos.com/our-unique-culture/zappos-core-values Up to 60% off select boots, sneakers & outerwear. Are you learning something every day? Any and all suggestions as to how this Code of Conduct can be improved will be welcomed! HRM 30200: Applied Ethical Issues Nov. 25, 2013 Position Paper 9 Zappos is an online clothing and shoe retailer. 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. Work can be fun! t. Do you understand the company purpose? Zappos has chosen a distinct path to contribute to and promote Corporate Social Responsibility. The largest indicator of unethical practices at Zappos is the new organizational structure implemented by Tony Hsieh. The culture encourages you to be the same person you are at work as you are at home. Zappos Insights' Christa Foley sits down to share more. Conflicts of interest should be avoided. As we continue to grow, we strive to ensure that our culture remains alive and well. Ask yourself: Are you humble when talking about your accomplishments? 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. Tip! Please take the time to read this Code of Conduct, keeping in mind that over time as Zappos grows and evolves, this Code of Conduct will necessarily have to evolve as well. 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. Gifts include not just material objects, but also favors that go beyond common courtesies usually associated with accepted business practices and that potentially place the recipient under some obligation to any person soliciting or doing business with Zappos. If we want to continue to stay ahead of our competition, we must continually change and keep them guessing. We set and exceed our own high standards, constantly raising the bar for competitors and for ourselves. http://www.forbes.com/sites/csr/2010/11/23/at-zappos-getting-fired-for-not-contributing-to-company-culture/ Zappos also respects the intellectual property of third parties. Zappos has addressed some critical challenges, handling them with agility, strength, and precision. Zappos recognizes that there can be borderline cases, and they will be considered carefully. This list was further narrowed down, and on February 14, 2006, the Core Values were introduced. And it's true: we don't. 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. Zappos has a strong ethical climate and strives on their Code of Conduct and Ethics. This took shape at Zappos in 2015 via a new management structure called Holacracy. Zappos' Main Ethical Standard . 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. If there's one thing synonymous with Zappos, it's providing superior customer service. 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. NURSING ETHICAL PRINCIPLE #1: ACCOUNTABILITY: Per the American Nursing Association's Code of Ethics, professional accountability, one of the important ethical principles in nursing is defined as "being answerable to oneself and others for one's own actions."Nurses are accountable for their actions when caring for patients and must accept the personal and professional consequences of those . Be Adventurous, Creative, and Open-Minded 5. Ethics is "a set of principles for determining good and right conduct (Willerton, 2015, p. 60). Your company has a culture. Further, we dont promote work-life balance in the traditional sense. We believe in having a positive and optimistic (but realistic) attitude about everything we do, because we realize that this inspires others to have the same attitude. And for these Zapponians, it's the perfect backdrop to build meaningful connections. Ask yourself: How much do people enjoy working with you? Besides being distinctive, these beliefs create a framework for Zappos actions. And in our culture, we celebrate and embrace our diversity and each persons individuality. We know that companies with a strong culture and a higher purpose perform better in the long run. You may also raise your concern through one of the options set out in the Zappos Whistleblower Policy. One of the things that makes Zappos different from a lot of other companies is that we value being fun and being a little weird. Zappos L.E.A.F (Leading Environmental Awareness for the Future) is a grassroots program initiated by employees, which strives to transform Zappos into a greener company. If you are uncomfortable with the idea that your conduct or words will be available for all to see, you should think again about your course of action or words. Due to the economic times, Zappos had to layoff 8% of their highly-valued employees. In the end, both Zappos and its customers benefitted from the merger. In January of 2012, Zappos database was hacked and millions of customers personal information was taken. Zappos is an online shoe and clothing store. However, if the vendor tells you to have a night out without the vendor present and submit your receipt for payment, you should decline as that arrangement is akin to a cash gift. Where Zappos has suffered a loss, it may pursue its remedies against the individuals or entities responsible. Tony Hsieh shared the reasons on why Zappos made this decision, assuring that is was for the benefit of the customers. You can set values and identify the behaviors that you want to be the core of your culture. 2. How do you challenge and stretch yourself? Hsieh did not approve of abandoning the customer-centric model that Zappos was founded upon, and decided he must take action. 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. 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. Checklist Review: Facilitator reads aloud a checklist for each of the roles, which the person in . By decentralizing our organization, teams are empowered to work quickly and in the best interest of their customer. The use of illegal drugs in the work place will not be tolerated. These modern visions of management seek to enfranchise the individual. How do you get your fellow circle members to grow professionally? 20092023 - Zappos.com LLC or its affiliates. In order to buy out the board, Zappos needed to unite with Amazon, a company that not only accepted but promoted their value to customers. We look for both fun and humor in our daily work. It may seem sometimes like we don't know what we're doing. Do you love what you do and who you work with? We grow because we take on new challenges, and we face even more new challenges because we're growing. In January 2005, Zappos polled employees on what they thought the companys core values should be. Zappos is a leading online retailer and presents an interesting ethics case as it copes with the challenges of remaining competitive. Are you humble when talking about the company's accomplishments? At Zappos, we think it's important for employees to grow both personally and professionally. Principle of Ethics Zappos has a strong ethical climate and strives on their Code of Conduct and Ethics. ), but that just means that we're moving -- that we're getting better and stronger. The fact that this company is honest about these dilemmas proves that they do not want the customer to be misinformed and do not want any information to be hidden from their clients. Like all enduring enterprises, Zappos faces the challenge of reinventing itself to strive for longevity and sustainability. We never want to become complacent and accept the status quo just because that's the way things have always been done. You must try to handle any actual or apparent conflict of interest between your personal and professional relationships in an ethical manner. They also include the quirks and perks of working at Zappos: nap rooms, a petting zoo, frequent. Honest and accurate recording and reporting of information is critical to making responsible business decisions. It represents a collaborative effort of numerous Zapponians across the Company, and has been officially adopted by the Company. How can you do a better job of communicating with everyone? We believe in hard work and putting in the extra effort to get things done. Sure, people have done parts of what we do before, but what we've learned over the years at Zappos is that the devil is in the details. Never accept or be too comfortable with the status quo, because historically, the companies that get into trouble are the ones that aren't able to respond quickly enough and adapt to change. The 2008 financial crisis has seemingly convinced an entire generation of leaders that business has entered new, uncharted territory and leaders must continually attempt novel structural disruptions to their organizations as a response. 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. We had never heard of employees going out of their way to do perform sincere and heartfelt actions that show the customer how much they mean to the company. Do you push yourself outside of your comfort zone? 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. Embrace and Drive Change 3. 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. We must never lose our sense of urgency in making improvements. The brand is just a lagging indicator of the culture. Thanks to the contributors to this project. Every company onboards differently. Ask yourself: How do you encourage more teamwork? Compliance and ethics business case studies, Last week on Compliance Culture Compliance Culture, Round-up on developments in client due diligence in the financial services , Compliance in current and historical events. The best team members take initiative when they notice issues so that the team and the company can succeed. Ethical Culture Of Zappos This shows the companies dedication to their employees. Another challenge that Zappos faces in upcoming years is the threat of globalization and core sustainability. This was a hard decision as the company cherished every employee. Lets be friends! Please let your supervisor know of any safety or health concerns so that they can be addressed. Hundreds of ideals were submitted, which resulted in 37 foundational themes. You owe a duty to Zappos to advance our legitimate interests whenever the opportunity to do so arises. 1. 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). Lets be friends! A two percent or less equity interest in a company whose stock is publicly traded will not be deemed significant absent other complicating factors, such as circumstances that cause such investment to potentially influence the persons judgment on Company matters or to amount to management participation in such other company. 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. The efforts of Zappos to reinvent itself as a flatter, evolved organization with far-out corporate-speak structures, ambitious manifestos, and abstract solutions to common sources of modern employee dissatisfaction are interesting to study but challenging to implement. The first was the 2008 Layoff. If you use company funds, please make best efforts to ensure that Zappos has received proper value in return. This means offering shoppers more clothing styles and variety, reimagining ways to exceed customer expectations, protecting and growing our company culture, and serving communities near and far. In 1999 Nick Swinmurn launched ShoeSite.com; an idea prompted after a failed attempt of trying to buy a pair of shoes in San Francisco. Happy employees means higher engagement, profitability, and low turnover. Zappos seems to be creating an environment that encourages motivation and builds inclusiveness. Zappos does an incredible job at contacting customers in a timely manner, especially when there are situations that go wrong. Yet no matter how much better we get, we'll always have hard work to do, we'll never be done, and we'll never "get it right." How has Zappos managed ethical risk, . 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. 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