HRM 522 - Case Study 3: Zappos: Delivering Customer Satisfaction

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Business Finance



Required Resources

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2015). Business ethics: Ethical decision making and cases
(10th ed.). Stamford, CT: Cengage Learning.

Supplemental Resources

Bureau of National Affairs, Inc. (BNA). (2006). Sarbanes-Oxley Act: HR’s role in ensuring compliance and driving cultural change. Retrieved from

Caldwell, C., Truong, D., Linh, P., & Tuan, A. (2011). Strategic human resource management as ethical stewardship. Journal of Business Ethics, 98(1), 171-182. doi:10.1007/s10551-010-0541-y

Djurkovic, J., & Maric, R. (2010). The influence of human resource management on improvement of business ethics. Perspectives of Innovations, Economics and Business, 4(1), 77-79.

Enyinna, O. (2013). Is stakeholder theory really ethical? African Journal of Business Ethics, 7(2),
79-86. doi:10.4103/1817-7417.123083

Islam, G. (2012). Recognition, reification, and practices of forgetting: Ethical implications of human resource management. Journal of Business Ethics, 111(1), 37-48. doi:10.1007/s10551-012-1433-0

Case Study 3: Zappos: Delivering Customer Satisfaction

Worth 200 points

Read the “Zappos: Delivering Customer Satisfaction” case, located on page 475 of the textbook.

Write a four to six (4-6) page paper in which you:

  1. Analyze the manner in which Zappos’ leadership has fostered a culture of ethicalness in the company. Suggest two (2) actions that other companies can take in order to mimic this culture.
  2. Determine the major impacts that Zappos’ leadership and ethical practices philosophy have had on its stakeholders.
  3. Examine three (3) of the ethical challenges that Zappos faces. Recommend three (3) actions that Zappos’ leadership should take in order to address these ethical challenges.
  4. Evaluate the effectiveness of the core values in relation to developing a culture of ethicalness. Determine the manner in which the core values support the stakeholder’s perspective.
  5. Analyze the major ethical challenges that Zappos has faced. Determine whether or not you would have resolved these challenges differently than Zappos’ management. Provide a rationale for your response.
  6. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other similar Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

  • Examine ethical issues and dilemmas in business.
  • Analyze scenarios to determine the ethical character of decisions made and the related impact on the organization.
  • Examine the significant issues of an ethical controversy in business to moral philosophy and values.
  • Write clearly and concisely about issues in ethics and advocacy for HR professionals using correct grammar and mechanics.
  • Use technology and information resources to research issues in business ethics and advocacy for HR professionals.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer


Running head: Ethical Issues In Zappos Company

The Ethical Issues in Zappos Company
Name of the Student
Professor’s Name
Course Name and Number
Date of Submission


Ethical Issues In Zappos Company


Question One
The leadership at Zappos Company has shown a good degree of ethics in a business
situation, and many other business leaders can borrow from them. Ethical activities are
activities that are considered to benefit both the business and its and other stakeholders. The
Idea of starting Zappos Company came from the market gap which was experienced by the
founder of Zappos. He went to buy some shoes and realized that all of the shoes were either
oversize or undersize. The fascinating situation made him start his own shoe company which
has grown to be one of the largest shoe sellers. The leadership at Zappos have created an
ethical culture in their business because they do not only think of profit-making activities but
also the welfare of their workers. Ethicalness has been demonstrated through the allowance of
the employees to be innovative and communicate effectively to their senior leaders. The
business has also created an ethical environment where there is a good relationship between
the seniors and the subordinate staff (Ferrell, Fraedrich & Ferrell, 2015). There are two
things that the leadership of other companies may take into consideration when mimicking
the present culture at Zappos. They include the understanding of the employee’s need and
innovation. The employee’s need can be met through constant dialogue and motivation. Once
the need of the employees has been identified, they can be subjected to numerous training so
that the work efficiency can be met. The innovation of the best communication plan is also
another ethical issue that can be borrowed from the Zappos. The Zappos have explained their
layoffs in the case study in a manner that is transparent and justified (Caldwell, Truong, Linh
& Tuan, 2011).
Question Two
Talking of Zappos sta...

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