Corporate Governance Quality and CSR-Free-Samples for Students

Questions: 1.Report on the views for and against allowing Amazon to Operate as a Physical presence in the Australian retail Sector. 2.Using the research you have done in question 1 analyse these views (both for and against) in terms of appropriate theories of ethics presented in Modules 2 and 3 of this unit. 3.Reflect on your Own Personal attitude towards the arrival of Amazon in Australia. Explain the reasons why you think it is a good thing or a bad thing. Answers: Introduction: Amazon.com is an American cloud computing and electronic company that is based in Seattle and is the largest online retailer in the world. This is a consumer centric company and the organization intends to take opportunity advantage that takes lace during the unparalleled technological revolution. There was rapid expansion in then customer base of the company and witnessed cumulative customer accounts. Business of organization was expanded through the range of acquisitions and industry was founded twenty-three years ago and serve the worldwide customers. They offer a wide range of products such as customer electronics, baby products, health and personal care items, scientific and industrial suppliers. Organization now intends to play role in the grocery retail sector that aims at delivering needs of customers. Amazon has sales retail model and for each of the price of items that is sold, Amazon takes small percentage (Aggarwal, 2013). Discussion: 1.Amazon is planning to launch their popular shopping services in Australia. Australian retailer market would shiver to due to the entrance of this corporate giant. It is being blamed that the giant business has been destroying the traditional business models such as department and chain stores. The operation of this giant organization in Australia through the website has been long, however, they need to build a network of logistics and warehouse centres for feeding the growing Australian customers ambition (Amazon.com 2017). Australia has a stable retail environment representing an opportunity for retail behemoth such as Amazon. In order to support the expansion in Australia, amazon is planning to build a fulfilment centre. Organization would be able to achieve competitive advantage in Australia due to their deep pockets and huge size. The growth of e commerce in Australia is fuelled by strong and rapidly growing economy (Simpson Taylor, 2013). All this factors make Australia an at tractive market for the corporate giant with their diverse range of products and their smart initiate of retaining the customers. Amazon can experience some increasing incremental in their revenue and growth resulting from high growth in e commerce in the region. A big change would be brought in the retail landscape of Australia and their operations will have signs of different experience in the country. Since, amazon has no target for market shares; focus of organization is on customers rather than competitors. The viability of small retailers are pressurized due to the expansion of Amazon in Australia. Entrance of amazon by way of opening logistic and warehouse centres would pose a threat to the traditional retailers operating therein. Threats from amazon would be warranting different risk profiles, different thinking and different level of investments. Retailers in Australia are struggling to cope up with purchase in store and less foot traffic and they intend to improve the onli ne sales model (Daidj, 2016). Several factors are likely to throw challenges to the entrance of Amazon in Australia. It is because 70% of the market share has been occupied by retail organization such as Woolworths and Coles. Creation of new warehouse by Amazon would ensure faster local delivery and this will help in earning business and creating value for customers through vast selection, lower price and faster delivery. Logistics is one of the biggest challenge faced by amazon in Australia and this is likely to challenge the delivery model of the organization by raising the costs. If the organization fails to deliver the goods quickly, it would face would intense competition from existing physical retail chains offering the products at lower costs. Therefore, the biggest task for Amazon is to offer quick delivery services and manage the costs. Establishment of shipping hubs in Australia would help amazon in gaining better control over the Middle East and Asia (McCahery Vermeulen, 2014). A tax plan designed for helping mortar and bricks retailer such as Harway Norman were already criticized by amazon and it said that the plan intending to impose tax on goods and services on online purchases was not properly designed. In order for online retailers to comply with the regulations concerning tax, this would create inherent disincentive. The consideration of Amazon for setting up of full service operations in Australia would be encouraged by proposed law that would provide them an encouraging platform by not charging GST and gaining competitive advantage. It was said by amazon that logistics model is suitable for business expansion but the government relied on selecting an untested model with short lead-time (Pirson Turnbull, 2015). The impact of the expansion of amazon on Australian market will be material. One of the most effected retailer due the expansion of amazon would be electronic retailer JB Hi-Fi. It is estimated that over the five year until June 2022 their ea rnings before tax and interest would fall by 33% and forecasted another fall in income of the listed premier investments by 8% (Chan et al., 2014). Therefore, in order to protect the interest of existing retailer player in the Australian market, it is required by government to regulate the business proceedings of amazon. New regulations should be passed that will help in regulating the prices charged such as imposition of price ceilings. The business proposal of amazon in Australia should be analysed through the cost benefit approach. Government should formulate the programs that would assist them in improving regulatory quality in the form of innovation, growth, fostering competitions and considerations of social objectives that would prevent these giant retailers in exploitation the existing competitors and create a sustainable business environment for all companies (Sardana Zhu, 2017). 2.Normative theories of ethics gives the philosophical definitions in terms of ethics and they use the concept of good of wrong. It shows the two fundamental concepts of judgement. In first judgement, the judgement given about anything is right and in judgement two, the judgment given can be wrong or bad. The focus on moral evaluations is due to the intentions or consequence of any act. In this theoretical concept, if Kant ethics is considered that is categorically imperative, goodwill and in universally acceptable. Now relating this particular theory of ethics to the expansion of amazon in Australia by opening of their logistics and warehouse, it can be said that there is need for business to consider the right or wrong, moral duties, consequence of their activities, ethical knowledge and moral duties while carrying out the business activities. Kant ethics deals with the ethics of duty and rather than ethical consequences and accepting the Kantian morality would ask the business pri nciples whether it is based on categorical imperative or not. Amazon expanding the busies in Australia need to treat their stakeholders as persons. This would enable them to not only work for their business interest but for the wellbeing of the consumers. There are two things required in business relationships. First is that people involved in business should not be deceived and second is that business practices of organization should be arranged in such a way that it helps in contributing to the development of moral capabilities and human rational. The contemporary business practice of the organization such as amazon has another concern is the extent to which the employees of organization have limited or restricted knowledge about the affairs of their business (Fenwick Vermeulen, 2017). In this case, the expansion of amazon in Australia would pose a challenge to the employees, as they might not have the required knowledge initially to deal with the business practices and customers therein. There is high level of information asymmetry between the management and employees in terminology of economics. Application of this ethical theory would generating symmetry information between management and employees and help amazon in creating information symmetry. Amazon should not deceive their customers by any way as per the application of this principle. As per the Kantian ethical theory, the work of organization should be morally obliged and this would help in creating a kind of organization. The Kantian approach endorse the principles of business organizational design. Business rules should not be inconsistent between different areas of operations (Nicol?escu, 2013). This would ensure that rules of justice governs the business procedures for establishing the relations among stakeholders. Invisible hand is a concept in economic that helps in bringing unbalance market back to the level of equilibrium. Applying the individual hand into the Australian economy would depict that economy is self-regulating. Presence or existence of invisible hand would make the intervention of government redundant in the economy. Everyone in the Australian society pursues individual interests and the primary interest of individual is not to procure social wellbeing but to satisfy their own personal interests (Filatotchev Nakajima, 2014). The individual hand concept is based on assumption that decision taken by individual is rational. Many instances are there where the action of individual and their self-interest may not lead to societal benefits. For instance, expansion of amazon in Australia have their own self-interest and business objectives and this might not be compatible with other business and societal interest. The intervention of federal government in such circumstances becomes ne cessary as it helps in producing compromise that is fair to all entities and individual concerns. People would be dissuaded from actively petitioning of desired economic reform due to over depending on invisible hand. Amazon would be required to amend some of its labour laws while operating in Australia and in this regard, intervention of government would work in conjunction with the invisible hand and this would help in optimizing benefits to society (Ferrell Fraedrich, 2015). Amazon might hamper the development of some underprivilge individual retail entities when the economy will be shifting to the equilibrium position. In this particular facet, it becomes essential for government to intervene and is the ideal solution as it would help the business in ameliorating some of the hardships that they might be causing on some weak businesses (Garca et al., 2015). This would also involve calling out of business by government that would for their own profit abuses time. 3.Based on revenue, amazon holds the tenth position as global retailer in world. After researching about the scope of expansion of amazon in Australia, many factors would help in gaining the market share and retaining the customers. Amazon would ensure faster local delivery by building several large warehouse in the country. Hundreds of new jobs and employment opportunities would be created in Australia due to their expansion and would help in empowering small businesses. I have learned that there are facets that makes amazon appealing to the consumers in Australia. Amazon has secured high ranks in terms of customer satisfactions and their membership programs. I have found that this particular brand has received enquiries from customers and Australia is technologically advance and offers high wage rate to the labours. This would help the organization to maintain their low cost strategy by reducing their cost of labour. I have ascertained from the survey conducted online that when ama zon would arrive locally in Australia, it is estimated that 56% of Australians will buy the brand. Since the e commerce industry in Australia is already shaken up and this has resulted in poor customer service offering and no return capabilities. As per the research, I have leaned that the expansion of amazon in Australia locally would be slower as what is expected. While conquering the Australian market, there are some of the challenges that are faced by amazon relating to the perception of risks, habit of consumers, sixe of market and distribution among them. However, there are some challenges that would be faced by amazon when expanding into Australia, particular in their logistics stores. There are two implications of the expansion of amazon in area of warehouse and logistics. Limited offering would be provided by the brand inn terms of shipping, online storage space and streaming video. In relation to other countries, premium like fast service and products are likely to be expensive. As the amazon would build the brand and share of market, it is projected that they would be eating some of their own profit margin initially. This is not in the interest of business of amazon and its long-term view entrance would be contrasting the view of Australian companies. It is so because, Australian companies run with expectations of shareholders on their quarterly results. Therefore, I think that in order for amazon to hit the profitability in the short-term, it needs to make investment in product lines, distribution and price of products. I believ e that retail store formats would be successful due to the various facets. Now, I have considered two ethical theories concerning the expansion of amazon in Australian market. The two ethical theories are normative theories and invisible hand of argument. While dealing with the normative theories, I have considered Kant ethics for explaining the various facets for the expansion into the retail market. Considering the Kant ethics would be appropriate for the organization expanding into another country as it will have to involve moral obligations while taking business decisions and this will work in best interest of both the society and reputation of brand. Using the invisible hand argument calls for need of government to intervene for regulating the activities of organization. Recommendations: Expansion of amazon in Australia would require them to adopt appropriate strategies for reaching their customer base. Since, cost is one of the challenge faced by the brand and customer base are inclined toward buying products low price as offered. Therefore, in this aspect, it is required by amazon to set up their product price at level that would help in reaching their profit margin and at the same time is reasonable for customers to buy the product locally. In order to adopt to the local conditions, amazon needs to adopt specific business model such as warehouse model for carrying out their operations and should not just roll out one business model. Relentless expansion by amazon should come up with giving return on investments should to shareholders. It is quite possible that amazon would become the major destructive force for other existing retailers in the retail market of Australia. Conclusion: From the above analysis and conducting various research, it was ascertained that expansion of amazon comes with both providing good opportunities to customers and at the same time poses with some challenges to the corporate giant. Organization while setting up their own warehouse and logistics centres will face some challenge in terms of costs and quick deliveries. Nonetheless, the major beneficiary due to the expansion would be the Australian customers and threats are postured to the existing retailer in retail market and warehouse operators. Customers would have the option of driving through the lanes and picking up their items from the store as well as online facilities. References: Aggarwal, P. (2013). Impact of corporate governance on corporate financial performance. IOSR Journal of Business and Management (IOSR-JBM), 13(3), 01-05. Amazon.com. (2017).Retrieved 17 August 2017, from https://www.amazon.com/Information-History-Theory-Flood/dp/1400096235 Chan, M. C., Watson, J., Woodliff, D. (2014). Corporate governance quality and CSR disclosures. Journal of Business Ethics, 125(1), 59-73. Council, A. C. G., Exchange, A. S. (2014). Corporate governance principles and recommendations . ASX Corporate Governance Council. Daidj, N. (2016). Strategy, structure and corporate governance: Expressing inter-firm networks and group-affiliated companies. CRC Press. Fenwick, M., Vermeulen, E. P. (2017). How the Sharing Economy Is Transforming'Corporate Governance'. Ferrell, O. C., Fraedrich, J. (2015). Business ethics: Ethical decision making cases. Nelson Education. Filatotchev, I., Nakajima, C. (2014). Corporate governance, responsible managerial behavior, and corporate social responsibility: organizational efficiency versus organizational legitimacy?. The Academy of Management Perspectives, 28(3), 289-306. Garca-Snchez, I. M., Rodrguez-Domnguez, L., Fras-Aceituno, J. V. (2015). Board of directors and ethics codes in different corporate governance systems. Journal of Business Ethics, 131(3), 681-698. McAlister, D. T., Marcos, S., Ferrell, O. C. (2016). Corporate governance and ethical leadership. Business Ethics: New Challenges for Business Schools and Corporate Leaders: New Challenges for Business Schools and Corporate Leaders, 56. McCahery, J. A., Vermeulen, E. P. (2014). Six components of corporate governance that cannot be ignored. Mitchell, L. E. (Ed.). (2017). Corporate Governance: Values, Ethics and Leadership. Taylor Francis. Nicol?escu, E. (2013). Business ethics, corporate governance, and social responsibility. Journal of Self-Governance and Management Economics, 1(1), 86-92. Pirson, M., Turnbull, S. (2015). The future of corporate governance: Network governance-a lesson from the financial crisis. Human Systems Management, 34(1), 81-89. Sardana, D., Zhu, Y. (2017). Corporate Governance and Business Management. In Conducting Business in China and India (pp. 157-218). Palgrave Macmillan, London. Schneider, A., Scherer, A. G. (2015). Corporate governance in a risk society. Journal of Business Ethics, 126(2), 309-323. Simpson, J., Taylor, J. R. (2013). Corporate Governance Ethics and CSR. Kogan Page Publishers. Tay?ir, E. A., Pazarc?k, Y. (2013). Business ethics, social responsibility and corporate governance: Does the strategic management field really care about these concepts?. Procedia-Social and Behavioral Sciences, 99, 294-303. Tricker, R. B., Tricker, R. I. (2015). Corporate governance: Principles, policies, and practices. Oxford University Press, USA. Vermeulen, E. P. (2015). Corporate governance in a networked age. Wake Forest L. Rev., 50, 711. Zahra, S. A. (2014). Public and corporate governance and young global entrepreneurial firms. Corporate Governance: An International Review, 22(2), 77-83.