And in our culture, we celebrate and embrace our diversity and each persons individuality. One of the side effects of encouraging weirdness is that it encourages people to think outside the box and be more innovative. You are also prohibited from using Zappos property, information or position for personal gain, or competing with Zappos or Amazon. 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. And that's where we're breaking new ground. It is critical for relationship-building to have effective, open, and honest communication. However, by prioritizing customer trust and satisfaction, they are rapidly recovering. The diversity of Zappos employees is a tremendous asset. No undisclosed or unrecorded corporate funds shall be established for any purpose. Each supervisor is responsible for controlling the disclosure and use of confidential information by employees under his or her direction. Due to the economic times, Zappos had to layoff 8% of their highly-valued employees. We encourage diversity in ideas, opinions, and points of view. Conflicts of interest should be avoided. Honest and accurate recording and reporting of information is critical to making responsible business decisions. At Zappos, we think it's important for employees to grow both personally and professionally. Reports made on the Ethics Hotline may be made on a confidential and anonymous basis. As we continue to grow, we strive to ensure that our culture remains alive and well. Create Fun and A Little Weirdness 4. This year, we invited our vendors to run away with us to the Untamed Circus.". 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! Ethical practices rating: 5.0 - 1 rating Yes, Zappos does support ethical practices. But the consistency is in our belief that we function best when we can be ourselves. Paradoxically, one way leaders try to retain relevance and stay appealing to both customers and employees is to embrace change. We have 2 annual parties at Zappos. 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 lets you send two faxes a day, of up to 10 pages each, without . Known for creating a unique company culture, Zapponians Jeanne and Jamie shed light on how each employee plays an integral part in the process. Our culture would not be what it is today without Zapponians past and present. 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. It is how it sells these products and what it does for its employees and customers that makes Zappos what it is today. We are ever evolving. Your culture doesn't stay the same, it will continue to evolve. Be adventurous, creative, and open minded, Build open and honest relationships through communication. Sometimes our sense of adventure and creativity causes us to be unconventional in our solutions (because we have the freedom to think outside the box), but that's what allows us to rise above and stay ahead of the competition. Are you humble when talking about the company's accomplishments? Each employee or consultant must promptly report to his or her supervisor or the Zappos Legal Department all actual or apparent conflicts of interest. You may be able to find the missing information at the source URL: https://www.zappos.com/c/code-of-conduct. Waivers of this Code of Conduct may be made only in a manner permitted by law. A bribe is defined as giving anything of value, directly or indirectly, to influence an act or someones decision, or inducing such person to use his or her influence. All inquires or calls from the press and financial analysts should be referred to [email protected]. The thinking often goes that fixing things before they are broken is better than turning up one day and realizing suddenly nothing works. By having the freedom to be creative in our solutions, we end up making our own luck. We believe that customer service shouldnt be just a department, it should be the entire company.. 20092023 - Zappos.com LLC or its affiliates. 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. A conflict of interest will exist if your decision may personally benefit you, a relative, or a significant other. Instead, we carry ourselves with a quiet confidence, because we believe that in the long run our character will speak for itself. Lets be friends! It is Zappos policy not to allow retaliation for good faith reports of misconduct by others. All employees of the Company are expected to review and follow the Insider Trading Guidelines. How much fun do you have in your job, and what can you do to make it more fun? organized under the Zappos Family. Sign up for one of our immersive culture and customer service workshops, request a keynote speaker, or tour the Zappos campus. 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. By this, the customers feel valued and a part of the Zappos family. 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. We decided that we wanted to build our brand to be about the very best customer service and the very best customer experience. The second ethical challenge was the merger with Amazon in 2009. Zappos Insights offers a range of services that can suit your business needs. Tony Hsiech, CEO stated, "It brand about Zappos had ten . In addition, the authors emphasize the importance of valuing others' autonomy and dignity. At Zappos, we place a lot of emphasis on our culture because we are both a team and a family. Are you empowering your fellow circle members to process their tensions, improve the structure of their circles by bringing issues to governance meetings, and to drive change? While we've built a good foundation, this is yet another stepping stone in our journey for ultimate self-organization and long-term sustainability. This means that many things we do might be a little unconventional -- or else it wouldn't be a little weird. Zappos is a leading online retailer and presents an interesting ethics case as it copes with the challenges of remaining competitive. The best leaders are those that lead by example and are both team followers as well as team leaders. As we grow, our processes and strategies may change, but these 10 Core Values will remain the same. At Zappos.com, we decided a long time ago that we didnt want our brand to be just about shoes, or clothing, or even online retailing. Deliver WOW Through Service 2. Zappos is an online shoe and clothing store. You may not like it. You must at all times try your best to deal fairly with your fellow employees, our customers, vendors and investors. You must also avoid any investment, interest or association that interferes or might interfere with your independent exercise of judgment in Zappos best interests. Bribery, like fraud, is one of the things you can do that could land you in jail because it is illegal. Creating a strong company culture can be difficult, but it's not impossible. Please bear in mind that each of us has a personal responsibility to incorporate, and to encourage our colleagues to incorporate, these principles into our work. Having identified with this ethics-laden culture, Zappos has so far created a favorable and productive working environment. Zappos.com, Inc. Code of Business Conduct and Ethics As Revised May 1, 2010 Living Our Core Values 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. Help needed for "Zappo's Design Principles"! 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). If you are not comfortable contacting any of those people, please contact the Zappos Legal Department or raise your concern through one of the options set out in the Zappos Whistleblower Policy. For a comprehensive look at the radical corporate reorganization efforts at Zappos and their effects on employees, Roger D. Hodges 2015 story for New Republic is a great read. Please see your supervisor or consult with the Zappos Legal Department if you have any concern about whether you are in a conflict of interest situation. We know that companies with a strong culture and a higher purpose perform better in the long run. Ethics is "a set of principles for determining good and right conduct (Willerton, 2015, p. 60). 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. At Zappos, these low-cost perks are often the most appreciated by employees. Zappos promotes social interactions and activities among its' employees. It is important to consider how these two principles are embodied in the actions of others. They are the foundation of your company culture. Zappos has always been about being able to do more with less. Stakeholders stay happy due to Zappos's success. t. Falsedeveloping relationships with charities helps the employees develop strong codes of personal ethics. Embrace and drive change. The company has developed the following framework for the companys culture and business strategies. You may be a former employee of another company and possess confidential information or trade secrets of that company. Since adopting Holacracy in 2014, we've evolved how we use self-organization to find ways to layer our culture, core values, and focus of people into the system in a way that works for us. Fast, simple and privacy-focused website analytics. Besides being distinctive, these beliefs create a framework for Zappos actions. They strive to eliminate any kind of cynicism and negative interactions. Unless information is publicly available, you should in general avoid discussing the following subjects with any competitor: prices, terms or conditions of sale; credit terms, discounts, profits, profit margins or costs; market segment shares; distribution practices; bids on contracts; sales territories; selections, rejections or terminations of customers; or any other matters where an agreement with a competitor would be inconsistent with the complete freedom of action of Zappos in the conduct of our business. How can you make your relationships more open and honest? For the latest in luxury brands & exclusive collabs. Backtrack to 2013: Tony Hsieh, Zappos's CEO, started promoting a new management structure called holacracy. I love that I get to be me all day. The matters covered in this Code of Conduct are of the utmost importance to Zappos, Amazon and Zappos business partners, and are essential to our ability to conduct its business in accordance with our stated values. We want just a touch of weirdness to make life more interesting and fun for everyone. Making choices about the direction of a business which affect peoples livelihoods directly cannot be done ethically if it is done experimentally. As the company grows, communication becomes more and more important, because everyone needs to understand how his/her team connects to the big picture of what we're trying to accomplish. Building a culture is a special process that can't be taken lightly. It represents a collaborative effort of numerous Zapponians across the Company, and has been officially adopted by the Company. Determine the major impacts that Zappos' leadership and ethical practices philosophy have had on its stakeholders. Do you exemplify a positive team spirit? We believe that the best teams are those that not only work with each other, but also interact with each other outside the office environment. We must never lose our sense of urgency in making improvements. A law is defined as: . We want everyone to always try to go the extra mile in encouraging thorough, complete, and effective communication. In any relationship, it's important to be a good listener as well as a good communicator. The social responsibility pyramid is comprised of four components, namely legal, economic, philanthropic and ethical (Boone & Kurtz, 2012, p. 95). 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. The brand is just a lagging indicator of the culture. It owes its success largely by focusing on excellent customer service and the UX of buying shoes and clothes online. We're not looking for crazy or extreme weirdness though. At Zappos, we think it's important for people and the company as a whole to be bold and daring (but not reckless). Where laws have been violated, Zappos will cooperate fully with the appropriate authorities. Our service is not average, and we don't want our people to be average. Honesty requires you to be candid with your consumers, business partners and coworkers. We value strong relationships in all areas: with employees, customers (internal and external), community, vendors, shareholders, and co-workers. Examples of such behavior include derogatory comments based on racial or ethnic characteristics and unwelcome sexual advances. 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. 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. You should report to work in condition to perform your duties, free from intoxication due to drugs or alcohol. It's important that anyone, anywhere in the organization is a sensor for meaningful change. We want everyone to not be afraid to take risks and to not be afraid to make mistakes, because if people aren't making mistakes then that means they're not taking enough risks. Lets be friends! We are firmly committed to providing equal opportunity in all aspects of employment and will not tolerate any illegal discrimination or harassment. Are you learning something every day? Disciplinary actions may include the immediate termination of employment. He informed his managers through an email that they were no longer needed and would become regular workers, but were able to keep their salary. Pursue Growth and Learning 6. It's an endless cycle, and it's a good thing: it's the only way for a company to survive. In these times of change, ethical considerations taking a backseat to a lean business model is not a sustainable approach. Learn how we deliver happiness daily. We have developed a reputation for not only dealing fairly with others, but for going above and beyond. It shouldn't be a struggle to find a balance between life and work where you are truly fulfilled and happy. Like all enduring enterprises, Zappos faces the challenge of reinventing itself to strive for longevity and sustainability. We expect every employee to deliver WOW. You may not pay or accept bribes of any type. However, Zappos will keep some hierarchy and keep the Big Bosses who set the pay structure. How do you get the company as a whole to grow? In order to stay ahead of the competition (or would-be competition), we need to continuously innovate as well as make incremental improvements to our operations, always striving to make ourselves more efficient, always trying to figure out how to do something better. The company delivers above and beyond basic workplace needs and addresses the self-actualization needs that most individuals desire from their work experience. Do you instill a sense of team and family not just within your department, but across the entire company? Please contact the Finance Department if you have any specific questions. 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. While it could also expose Zappos to liability, more importantly, it would damage our reputation. The culture encourages you to be the same person you are at work as you are at home. That's a bit scary, but you can take comfort in knowing that nobody else knows how to do what we're doing either. CEO Tony Hsieh believes that the secret to customer loyalty is to make a corporate culture . t. Please take this Code of Conduct seriously. Is this the place for you? For example, the idea for our culture book came about from a casual discussion outside the office. Significant others include persons living in a spousal relationship (including same sex) or familial fashion with the employee or consultant. As a company that uses a self-managed organizational structure, we encourage Zapponians to identify areas of opportunity within the organization and propose solutions. And whatever you do must have an emotional impact on the receiver. Communication is always one of the weakest spots in any organization, no matter how good the communication is. When in doubt, imagine that your conduct or the words you are using will be fully disclosed in the media with all details, including your name and picture. The current board of directors did not want the company to focus on their clients but to shift focus exclusively to product sales. Each one we pass means we've gotten better. Hello, Savings. By working as a team, by partnering, you are setting the stage for success! Other Zappos employees are not allowed to communicate with the press on Zappos behalf or provide any information about us off the record, for background, confidentially or secretly. Please do not do it. Ask yourself: Are you taking enough risks? Living them. Please let your supervisor know of any safety or health concerns so that they can be addressed. Companies and employees worry about work-life separation or work-life balance. At Zappos, everybody is given the keys to drive the company forward. That "more" is providing the very best customer service, customer experience, and company culture. D. http://www.zapposinsights.com/training/holacracy Ask yourself: Are you humble when talking about your accomplishments? And it's true: we don't. But really, companies should focus on their culture because it matters. Confidential information about Zappos and its operations belongs to Zappos. Book an office hour. 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