Customer Loyalty Director Rob Siefker discusses the company's mindset for WOWing callers and shoppers at every turn. How do you grow professionally? 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. You may not pay or accept bribes of any type. Confidential information may include, for example, information about Zappos strategy, plans, customers, suppliers, financial statements, credit card information, contracts, capitalization, proposed acquisitions or divestitures, as well as confidential information about other companies with which we do business. But really, companies should focus on their culture because it matters. Subscribe to the Zappos Insights Newsletter! It is important to consider how these two principles are embodied in the actions of others. Zappos' leadership has succeeded in developing a culture characterized by ethicalness by identifying and integrating core values into the organization, which place great emphasis on the employees' and customers' happiness. 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. This took shape at Zappos in 2015 via a new management structure called Holacracy. Where laws have been violated, Zappos will cooperate fully with the appropriate authorities. At its core, self-management means knowing exactly what you are responsible for and having the freedom to meet those expectations however you think is best. All Zappos payments and other transactions must be properly authorized by management and be accurately and completely recorded on our books and records in accordance with generally accepted accounting principles and established corporate accounting policies. A story that changed our perspective of Zappos is about a customer who returned her husbands shoes after he passed away. This threat raises two key questions. Our goal is to help employees unlock that potential. Practical insights for compliance and ethics professionals and commentary on the intersection of compliance and culture. All employees of the Company are expected to review and follow the Insider Trading Guidelines. 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. Remember Core Value #1 Deliver WOW through Service. Do you understand the company purpose? Do you treat both large and small vendors with the same amount of respect that they treat you? We are firmly committed to providing equal opportunity in all aspects of employment and will not tolerate any illegal discrimination or harassment. Shopping tip: Zappos also offers coupons and promo codes . We don't want to become one of those big companies that feels corporate and boring. If so, you should probably decline it. This vision led Zappos to deliver happiness through the four Cs: Commerce, Customer Service, Company Culture, Community. 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. Our ten core values are: For more information about our core values, please refer to our core values document and our Employee Handbook. The best team members take ownership of issues and collaborate with other team members whenever challenges arise. How do you challenge and stretch yourself? Is there a sense of adventure and creativity in the work that you do? Whether internally with co-workers or externally with our customers and partners, delivering WOW results in word of mouth. 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. Second, if the company begins to ship products abroad, will they have to abandon their policy of free shipping? The second ethical challenge was the merger with Amazon in 2009. HRM 30200: Applied Ethical Issues Nov. 25, 2013 Position Paper 9 Zappos is an online clothing and shoe retailer. Similar restrictions on political contributions may apply in other countries. 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. Do you push yourself outside of your comfort zone? Zappos Insights' Christa Foley sits down to share more. 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. Are you inspired? How has Zappos managed ethical risk, . Today, we still sell shoes as well as clothing, handbags, accessories, and more. 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. 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. You must not provide any false or incomplete information to the accounting department. We approach situations and challenges with an open mind. Wouldn't you rather be a company where your employees easily combine their full self into everything they do? For some people, especially those that come from bigger companies, the constant change can be somewhat unsettling at first. View details We researched this on Sep 3, 2019. It does not matter whether the person works for the US government, a foreign government or is in the private sector. Zappos was able to keep its unique culture and core values. 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. We believe that no matter what happens, we should always be respectful of everyone. Instead, we carry ourselves with a quiet confidence, because we believe that in the long run our character will speak for itself. Ben Brignell maintains principles.design as an open source resource. About Us. 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. The social responsibility pyramid is comprised of four components, namely legal, economic, philanthropic and ethical (Boone & Kurtz, 2012, p. 95). Disciplinary actions may include the immediate termination of employment. 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. Ethical and Socially Responsive Business Bruce Carter Principles of Management - MGMT 3101 Dr. Yolanda Ogletree January 24, 2018 As legally required The Cheesecake Factory Incorporated has a Code of Ethics and Code of Code of Business Conduct. This was a hard decision as the company cherished every employee. 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. I don't have to pretend to be something I'm not, which makes Zappos a comfortable place to be. 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. This way the company can work around what needs to be done instead of around the people who do it. Zappos ten core values are Deliver WOW Through Service, Embrace and Drive Change, Create Fun and A Little Weirdness, Be Adventurous, Creative, and Open-Minded, Pursue Growth and Learning, Build Open . This means the best leaders are servant-leaders. Zappos has addressed some critical challenges, handling them with agility, strength, and precision. Zappos code of ethics is written for employee reference in decision making. Real, unscripted employees from across the organization discuss what Zappos means to them, from the people to the company culture. 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 will take appropriate action against any employee whose actions are found to violate this Code of Conduct. At Zappos, we think it's important for people and the company as a whole to be bold and daring (but not reckless). In most companies, new ideas have to be approved by a manager or a chain of managers. Do you love what you do and who you work with? Our relaxed and supportive office environment allows individuals to show up authentically yes, even in their flip flops or footie pajamas. Humbly speaking, creating a positive, productive culture is our bread and butter. We want everyone to always try to go the extra mile in encouraging thorough, complete, and effective communication. We have 2 annual parties at Zappos. At Zappos, anything worth doing is worth doing with WOW. Strong, positive relationships that are open and honest are a big part of what differentiates Zappos from most other companies. This further enriches the 6th core value, open and honest communication. 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. After having sold LinkExchange to Microsoft for $265 million in 1999, his innovative and entrepreneurial spirit impelled him to invest $500,000 into the new venture lauched by Swinmurn. 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. 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. 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. For example, the idea for our culture book came about from a casual discussion outside the office. 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. It's important to always act with integrity in your relationships, to be compassionate, friendly, loyal, and to make sure that you do the right thing and treat your relationships well. It exemplifies the honest and ethical values the company has built. A CUSTOMER-FOCUSED BUSINESS MODEL . Ethical principles are different from values in that the former are considered as rules that are more permanent, universal, and unchanging, whereas values are subjective, even personal, and can change with time. In October of 2011, one of the processing systems encountered complications and problems quickly escalated. The current board of directors did not want the company to focus on their clients but to shift focus exclusively to product sales. Tony Hsieh shared the reasons on why Zappos made this decision, assuring that is was for the benefit of the customers. Ask yourself: How do you plan and prepare for change? Subscribe to our newsletter. Amazon has adopted guidelines designed to implement this policy. We believe that customer service shouldnt be just a department, it should be the entire company.. Welcome, my friends, to your Zappos Oath of Employment. 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. We are not an average company, our service is not average, and we don't want our people to be average. Up to 60% off select boots, sneakers & outerwear. Prepared, careful communication and incremental change with absolute transparency and clarity, especially toward the way people will work and be trained and paid, is imperative to maintain integrity. We aim to . In order for someone to feel good about a relationship, he/she must know that the other person truly cares about them, both personally and professionally. Fundamentally, we believe that openness and honesty make for the best relationships because that leads to trust and faith. Be Adventurous, Creative, and Open-Minded, Build Open and Honest Relationships With Communication. 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. The diversity of Zappos employees is a tremendous asset. And in our culture, we celebrate and embrace our diversity and each persons individuality. 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. Where Zappos has suffered a loss, it may pursue its remedies against the individuals or entities responsible. Instead, they create a leadership vacuum and a change process where no one is in charge because everyone is, at least in theory, empowered. Here are the 12 fundamental principles of ethics: 1. It's a setup that's supposed to encourage collaboration by eliminating workplace. At Zappos, we place a lot of emphasis on our culture because we are both a team and a family. While we have grown quickly in the past, we recognize that there are always challenges ahead to tackle. 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. Zappos does an incredible job at contacting customers in a timely manner, especially when there are situations that go wrong. Be Adventurous, Creative, and Open-Minded 5. Please do the right thing by not violating the trust your prior employer placed in you. 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. How do you encourage more people to take ownership? 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. It is how it sells these products and what it does for its employees and customers that makes Zappos what it is today. 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. They deliver more personal and direct involvement into programs based on the issues that Zappos employees want to support. Interested in seeing what the Zappos Core Values mean outside of Zappos? This policy does not prohibit lawful contributions to political candidates, parties, action committees, sponsors of initiatives and for other lawful purposes, so long as such contributions are made in compliance with all applicable laws and Section I that follows. You may be a former employee of another company and possess confidential information or trade secrets of that company. Just like every person has their own personality, every company has their own culture. Companies and employees worry about work-life separation or work-life balance. This year, we invited our vendors to run away with us to the Untamed Circus.". Before making any payments to any foreign government officials or employees, please obtain approval from the Zappos Legal Department. Employees receive full medical cover, life insurance, an on-site fitness center, a 40% employee discount, paid volunteer time off, monthly team outings, car pool program and a lot more! Do you instill a sense of team and family not just within your department, but across the entire company? Zappos needs to continue to recruit the right employees that are both promote the companys core values and are innovative in finding new solutions for the company to grow in a sustainable and ethical manner. We believe in hard work and putting in the extra effort to get things done. Checklist Review: Facilitator reads aloud a checklist for each of the roles, which the person in . Are you afraid of making mistakes? In response to these situations Zappos contacted each customer informing them of the predicament they were in. Please do not do it. 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. But it can also at times feel risky, stressful, and confusing. In January 2005, Zappos polled employees on what they thought the companys core values should be. This will evolve, change, and grow over time but we wanted to get the most important stuff in here first: our Core Values. We decided that we wanted to build our brand to be about the very best customer service and the very best customer experience. You can choose to be thoughtful about your company culture. 2. It's important that anyone, anywhere in the organization is a sensor for meaningful change. We don't take "no" or "that'll never work" for an answer, because if we had, Zappos would never have started in the first place. This touched our hearts, and truly helped us to see how caring Zappos is and how dedicated they are to abide by their core values. 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. CEO Tony Hsieh believes that the secret to customer loyalty is to make a corporate culture . 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. For the latest in luxury brands & exclusive collabs. Yessica Najarro. It may seem sometimes like we don't know what we're doing. In any relationship, it's important to be a good listener as well as a good communicator. Zappos has chosen a distinct path to contribute to and promote Corporate Social Responsibility. Change can and will come from all directions. 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. The largest indicator of unethical practices at Zappos is the new organizational structure implemented by Tony Hsieh. While we've built a good foundation, this is yet another stepping stone in our journey for ultimate self-organization and long-term sustainability. That "more" is providing the very best customer service, customer experience, and company culture. Passion is the fuel that drives ourselves and our company forward. Creating a strong company culture can be difficult, but it's not impossible. As we continue to grow, we strive to ensure that our culture remains alive and well. This proves the companies dedication not only to the employees work life, but to their personal well-being. 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. To quote Tony Hsieh, "Just because you cant measure the ROI of something doesnt mean you shouldnt do it. Learn how we deliver happiness daily. 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. What can you do with your team members so that you feel both like a family and a team? Lets be friends! http://www.ariozick.com/why-zappos-shouldnt-be-your-business-model/ Honesty Honesty is an essential value required to conduct business in an ethical manner. Fast, simple and privacy-focused website analytics. Every company has a unique culture that's all their own. Bribery, like fraud, is one of the things you can do that could land you in jail because it is illegal. http://blogs.zappos.com/blogs/ceo-and-coo-blog/2009/01/03/your-culture-is-your-brand However, Zappos has not limited itself to just selling shoes. The company has developed the following framework for the companys culture and business strategies. How can the company as a whole become more efficient? 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. Do you exemplify a positive team spirit? We are ever evolving. Check-in Round: Each person has an uninterrupted chance to mention anything on their mind. We must never settle for "good enough," because good is the enemy of great, and our goal is to not only become a great company, but to become the greatest service company in the world. Zappos specifically aims at having a little weirdness in order to promote employee involvement and engagement, allowing the company as a whole to grow as innovators. 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. 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