182_A Critical Review of Amazon Ethics
Adventures in Sustainable Living Podcast
Episode 182
A Critical Review of Amazon Ethics
When I get up in the morning I typically sit quietly by the wood stove for about an hour and start my day with some good coffee. I don’t worry about a lot of things during my quiet time but I do put some thought into planning my day.
If I think of something I need at the homestead, if I have time I may browse the internet for the best product and the best price. After all online shopping is a modern conveniences that I enjoy just as much as everyone else.
It is simply a part of our culture now. However, in the face of building a sustainable future we do have to strike a balance between consumption and ethics. This week I want to dive into a critical few of Amazon Ethics.
Welcome back everyone to the Adventures in Sustainable Living podcast. This is your host Patrick and this is E181 A Critical Review of Amazon Ethics.
Sustainability question of the week
Who coined the term “carbon footprint?”
Good news story of the week
In a recent study focusing on the benefits of regular exercise, researchers found a clear correlation between exercise, reduction of stress and reduced risks of cardiovascular disease. The study revealed that exercising helped reduce the stress-related brain activity that is associate with the development of cardiovascular diseases.
The study involved 50,000 people that followed workout recommendations of 150 minutes per week, which is about 21 minutes per day. The study included an average of 10 year follow up on patients and concluded that those who followed these recommendations were 23% less likely to develop cardiac disease. Not only that, regular exercise greatly improved the symptoms of depression.
And you know, one of the best ways to establish a good habit is to make it so easy that you can’t say no. Surely most of us can spare 21 minutes per day. So, that’s yet another case for staying active. And one of the best ways to do that is to live sustainably and grow some of your own food, raise chickens, forage for some of your own food, or turn your yard into a wildlife haven.
So, let’s get started with this weeks episode because I am going to give you lots to think about.
While I am sitting quietly having my morning “Zen” time I don’t typically worry about a lot. I do put some thought into planning my day. If I am lucky I have a smooth day. No problems with clients, no emergencies, no ethical issues to deal with.
Just like most people these days I will spend some time browsing the internet. Typically I am researching various topics and I try to spend some time learning something new. Bu then of course my mind will stray because I start thinking of a way to improve things at the homestead. That of course leads to online shopping. And just like the average person one of the first places I go is Amazon. This company had indeed become the largest global online marketplace where you can find just about anything you need.
While online shopping is a significant convenience, it is another area in our lives that is fraught with environmental issues, wastefulness, carbon emissions and of course ethics. But few of us really think about that when we are shopping and simply trying to save ourselves a little time and money.
But I truly believe that if we are going to build a sustainable future we are at the point where we have to question every single thing we do. That is the start of evaluating your habits and making positive changes. But, most importantly you have to question what is normal.
And the Amazon marketplace has become a normal part of our lives. While Amazon had humble beginnings it has grown into a significant economic force. But many people are starting to question some of the companies practices. And that is the focus of this episode.
Truly I am of the opinion that an important part of transitioning into a sustainable future it taking a strong look at the source of the products we use everyday. Many people are just now realizing that the price for putting a product on the shelf far exceeds what we pay at checkout time.
We now live in a global community and many of our products, including our food, are produced by people that work and live on wages that are dismal compared to what we expect in a developed country. Yet most of use are oblivious to that part of our lives.
We go to Walmart and shop on Amazon and are just happy to have that convenience. However, in our age of information and the advent of the internet we have access to hundreds of years of information in a matter of seconds. Truly, in our culture, ignorance about some of these issues is a choice. And ignoring some of the larger social challenges of our time is just no longer acceptable.
One of the issues that we face concerning the products we purchase are the challenges associated with corporate responsibility. I strongly believe that in our global community corporations should make effects to protect the rights of the people who produce the things we purchase, make certain that materials are sustainable sourced, and take responsibility for all the waste. But how do we know as consumers that these things are actually happening. After all, big business often says one thing on their corporate website but the reality of how they do business is often very different.
Sometimes our best source of information about corporate responsibility is third party evaluations. Many times this is in the form of public forum platforms. Now I will be the first to admit there are pros and cons to such platforms. Social media being a perfect example. But, the Supreme Court has actually recognized that the internet in general, and social media in particular, have become a critical forum for the expression of protected speech.
If properly used under the guidelines of due diligence these platforms can become a valuable source of information. The Trip Advisor platform is a good example. Travelers post their opinion about various destinations and services that they utilized. That becomes a valuable source of information for others that have never visited a particular destination.
But, as far as my personal experience is concerned, I have most frequently used the Airbnb and the HipCamp platform. Airbnb likely needs no explanation. But the HipCamp platform is where owners list their property as a place for private camping. Similar to Airbnb, owners can review past guests and guests can review the services and responsiveness of the owners.
These are two instances where I will always take the time to leave a review. It is beneficial to property owners especially because it is a private small business. I also enjoy these platforms because if people engage in bad behavior they get banned. If they are great guests then other property owners can see that as well.
Another example where public platforms are important is when it comes to evaluating big business. Most corporate websites are going to boost their public image and speak only of how great they are at social responsibility. But it is often quite different when it comes to third party evaluations, especially public forum platforms.
As consumers we can decided whether or not to patronize a business based on their public tract record, customer service, sustainability practices, labor practices, ethics, etc.
But it seems that our modern culture is plagued with an over abundance of ethical issues. Things such as racial and economic justice, healthcare access, gender equality, sexuality, environmental issues, education, and most recently artificial intelligence. While most of us may feel powerless to do much about such issues, one thing we can do is vote with our dollars. If we see that a particular business consistently engages in bad behavior then we can patronize someone else.
Believe it or not, two of the largest global economic forces are Walmart and Amazon. If you visit both of their websites you will see an over abundance of information about how well they treat people and how responsible they are about sourcing their products. But if we turn to third party opinions, the story is quite different.
Just like Walmart, Amazon had very humble beginnings. Jeff Bezos was an investment banker. After evaluating the analysis of potential growth of the internet, he quit his job, and moved back in with his parents in Seattle, Washington to save money for his new startup. That was in 1994. His idea was to open an online bookstore. Working out of his garage he developed software for his site which he called Amazon.com. He sold his first book in 1995. His basic idea was to deliver high quality products with excellent customer service. Twenty five plus years later Amazon is a global economic force.
But despite Amazon’s fantastic success I have to question whether or not this company is a good global citizen. That said, let’s take a look at this companies tract record.
Corporate Citizenship
Many large corporations shield their profits overseas and Amazon is no different. In 2018 Amazon had $11 billion in profits and paid zero tax. Amazon also avoided $5.2 billion in corporate federal income tax in 2021. If the company had no tax breaks, Amazon would have paid $7.3 billion in taxes. Instead the company paid $2.1 billion. Over the last four years Amazon had a total federal tax rate of 5.1% on $78 billion in US income.
But this tax avoidance is consistent abroad as well. Research performed by Ethical Consumer calculated that in 2021 Amazon avoided paying as much as half a billion pounds in taxes in the UK. Furthermore, in 2023 Amazon received a tax credit of 7.7 million pounds. Not only did Amazon avoid paying UK taxes in 2022 but essentially got a refund out of the tax purse paid by UK citizens.
And FYI, based on the average income in the US, most citizens pay taxes in the range of 12% to 22% of their income. So, this global corporate giant with billions in profits pays a tax rate that is less than 50% of what you and I do.
CEO salary
In 2020, Amazon CEO Andy Jassy’s total compensation was $29.2 million USDs. Based on a 50 hour work week that works out to be $11,700 per hour. At least in Colorado, the average Amazon warehouse worker is paid $18/hour.
Worker’s rights
Amazon has a long history of violating basic workers rights. Amazon on numerous occasions has aggressively opposed unionization of warehouse workers spending as much as $14 million on anti-union consultants in 2022.
In October 2021, 1400 UK delivery drivers sued Amazon seeking employment rights including minimum wage and holiday pay. In the US Amazon has been sued for violating the terms of a US labor board settlement breaching a 2021 agreement which required Amazon to allow workers to unionize. Currently in the US Amazon faces 240 open or settled charges across 26 states all related to unfair labor practices.
Some time ago Amazon got a lot of press after increasing workers wages to $15/hour. But that was also followed by a significant cut in benefits. Workers often describe conditions in Amazon’s “Fulfillment Centers” as being brutal, working for hours at a time with no breaks. Amazon also forces workers to sign an 18 month non-compete agreement which prevents them from finding similar work in their area if their employment is discontinued.
Even white collar workers are not immune to such abuse. Current and former employees speak of ruthless work conditions such as working for four days without sleep, never seeing their families, and even being fired for having cancer or a miscarriage and needing some time for recover.
Privacy violations
Most people are not aware that all the smart devices in theirs home are invading your privacy and recording your conversations. Apple HomeKit, Amazon Alexa, Google Home and Nest devices have this ability. In fact many of these companies have a history of recording and reviewing voice data from customers without their consent.
In June 2023 Amazon agreed to pay monetary settlements over two alleged privacy violations. These violations were centered around Amazon’s voice assistant Alexa and the doorbell camera Ring.
In one case involving the voice assistant Alexa Amazon agreed to pay $25 million. The US Trade Commission claimed that Amazon had kept recordings of children’s conversations even after the parents asked that they be deleted and the tech giant said they would.
In a separate case Amazon agreed to pay $5.8 million. The doorbell ring had recorded customer’s private spaces, sometimes including the bedrooms and bathrooms, and allowed employees and contractors to watch the recordings.
Renewable energy usage
Amazon’s hosting services, known as Amazon Web Services, did announce that it would invest in both solar and wind energy projects. After these projects came online, AWS is now running on 50% renewable energy. Furthermore the company has committed to transition to 100% renewable energy by 2030.
But the company’s commitment to sustainable operations has come into question. Amazon is engaging in negotiations with some of the largest gas and oil companies to use the power of their giant servers to make it easier to drill for fossils fuels. Additionally, Amazon is stalling on revealing its energy usage and climate impacts to the Carbon Disclosure Project.
Other Environmental Impacts
Amazon also has some significant environmental impacts that need to be considered.
While some of Amazon’s furniture is Forest Stewardship Council certified, there is no umbrella policy for timber usage. This means that virgin forests could be destroyed to produce their products.
About 50% of the palm oil in Amazon products is untraceable. Palm oil production relies on destruction of rain forests, contributes to climate change, biodiversity loss and even human rights violations.
Amazon also has no public policy concerning the use of toxic chemicals in its electronic products. These chemicals are known for having significant detrimental environmental impacts. Amazon has also promised to source its cotton in a sustainable manner but has thus far failed to do so.
Animals
And lastly Amazon has no policy on animal testing or for selling products made from factory farmed animals. It is even possible to purchase certain live animals on their website.
Summary of Amazon Ethics
So, in summary, according to third party sources, there are the following ethical issues with Amazon:
-Shameless tax avoidance; This enormous global company pays a tax rate at 50% to 60% less than the average citizen
-The CEO gets paid $11,700 per hour while the average worker gets paid $18/hour at least in Colorado
-A long history or employee abuse and human rights violations
-Privacy violations
-No meaningful commitment to reducing their carbon footprint
-No real respect for the environment or animal rights.
Now there is no doubt that Amazon has redefined how people shop. The company impacts employment, investments, local communities, cost of local services, and possibly even inflation. But you do have to question the ethics of a company with such a long history of workplace abuse, intimidation tactics and discrimination.
I think what we should consider is whether or not it is ethical to shop with Amazon? But is this really a dilemma? Or is it more of a question of just how flexible you want to be with your ethics.
No matter how convenient it is to use the companies’ services, it is really worth perpetuating inequity, worker abuse and environmental degradation. There are those who believe there is no ethical consumption under capitalism. There are just less harmful ways. I am not sure that I agree with that altogether. But I do believe that every single thing we do has an impact and it is often a matter of just making different choices.
Would it not be better to vote with your dollar and support ethically made products that support small-scale manufacturers or local artisans and protect the environment. And perhaps we should boycott products that exploit workers rights, take advantage of child labor, damage the environment and blatantly invade our privacy.
Perhaps by now I have convinced you that Amazon is part of the evil empire. But there is actually a bright side. There are a number of alternatives to Amazon. In fact, the list is so long I am only going to discuss a few.
Thrive Market
This is an online marketplace where memberships start at $12/month. You will have access to over 6,000 sustainable and organic products.
Groove Collaborative
This company offers flexible subscriptions and delivers eco-friendly, cruelty free, non-toxic household and personal care products.
Earth Hero
This company selects brands through a five step process that ensures every product they sell is as sustainable and safe as possible.
Bookshop
This is an online store that supports independent booksellers. It places 10% of sales into an earning pool that is evenly divided between its partners. Additionally 80% of profits go to stores, vendors, and authors.
Etsy
Etsy is a global business that sells products directly from artisans and entrepreneurs. Etsy has a significant commitment to sustainability. All their operations are run off renewable energy and they are the first major online shopping business to offset 100% of carbon emissions.
Brightly
This is a community based platform that focuses on sustainable products. They provide valuable information on sustainable living while offering health and kitchen goods that are eco-friendly and affordable. The company also donates 1% of their annual revenue to environmental protection.
And there are numerous others:
Package Free Shop, Public Goods, Ten Thousand Villages, Uncommon Goods, EcoRoots, and many others.
There are far too many choices for me to be able to cover them all. The point being, there are choices other than Amazon.
Another alternative is to shop on Amazon to find a product that you need then purchase directly from the seller. This is something that most people never think about.
1) Find the seller online:
First you can find the product you want on Amazon. In many cases the seller may have their own website and sell directly to you.
2) Find the seller’s name on Amazon
You can do this by searching for products, then click on the store name at the bottom of the page.
3) Use another online retail site
There are other online retailers such as eBay. While these other sites may not take care of all of your needs, you can search for others by using resources such as The Good Trade or TechCrunch.
4) Physically go to the place of business
If what you want can be found locally, then go to an established business and support your local economy.
5) If you like to read, then patronize local bookstores and visit other online stores such as indiebooks.org , bookshop.com or audiobooks.com
6) Shop at other big box stores such as Target, Home Depot, Lowes, CostCo.
Now all of this being said, there are times when Amazon is a good choice. For example:
-when you already has a subscription
-you need several items at once and you want to save on shipping
-you need something quickly.
But you may want to buy directly from the seller if you want to spend your dollars locally, you want to support a small business, the seller has attractive delivery terms, you can save money because you have a coupon.
Summary
Admittedly, we have all come to love online shopping. Most studies about the impact of our consumer habits conclude that shopping online does reduce our environmental footprint.
But despite these advantages, more and more consumers are staring to question where things come from, what they are made of and how those products are produced. People are simply becoming more aware of our environmental footprint.
Despite the many advantages of retail giants such as Amazon, you have to start questioning their ethics. I always question ethics whenever I see big government or big business “laying down the law” so to speak but then they don’t follow their own rules. For example, Amazon has in their code of ethics that employees should “always act lawfully, ethically, and in the best interest of Amazon.” But in the background the company has a long history of abuses.
What I found over and over again is that Amazon ethics leave a lot to be desired. The company expects loyal and ethical behavior from its employees but clearly does not follow their own advice.
On one hand Amazon has some wonderful philanthropic programs. On the other hand, the companies tax avoidance costs the US economy approximately $245 billion per year, it costs the UK economy hundreds of millions of pounds per year.
According to the analysis firm Civic Economics, Amazon’s online sales in 2015 accounted for a loss of $1.2 billion in revenue to state and local governments. In one year they estimate that the companies sales displaced the equivalent of 39,000 retail store fronts and 220,000 jobs. And just like Walmart, there is a strong correlation to Amazon gaining market share and local businesses shutting down.
And on top of all the ethical questions, Amazon regularly invades our privacy. Whether you like it or not, with smart TVs, Kindles, Echo and Alexa Amazon records as much information as possible about its users and that data is used to sell products and is sold to advertisers and marketers. Who wants that? You are losing your personal privacy even for the conversations you have in your own home.
Now I do realize that no business is ever perfect. No one has a 100% shiny, blameless tract record. However, considering the history of Amazon I think it is time to consider alternatives. That said, if you scrutinize other larger retailers you will find similar issues.
So it truly comes down to just how flexible you are willing to be with your ethics. Amazon is clearly collected significant profits at the expense of other businesses, the environment, by abusing the rights of workers, and shameless tax avoidance. If it were you and I doing these things, we would like go to jail. Yet this large corporation on a percentage bases pays far less tax than you and I. Does that really sound fair?
Now I realize that all of us appreciate the ease and convenience of online shopping. At times it is really difficult to overlook the convenience and services that Amazon has created. But I truly hope, just like me, you are increasingly concerned about the ethics of Amazon. So the next time you open your laptop and consider online shopping, maybe Amazon should not be the first place you go.
So, in closing let’s talk about the sustainability question of the week.
Who coined the term “carbon footprint?”
In 2004, the big oil conglomerate British Petroleum introduced their carbon calculator. This was promoted as a means for every person to assess how their daily life impacted the environment. Many people believe that this was a means of big oil distracting the public from the real issues of climate change. This got the public to focus on their individual impact instead of focusing on what big oil was doing.
This was simply yet another distraction technique. And if you want to read something even more interesting, look up the history of the “Keep America Beautiful” campaign. It was just a means of blaming the public for pollution instead of big business taking responsibility for their own actions.
So, I want to close out this episode with a something for you to think about in the next week.
You always, always, always reap what you sow. Few people stop the realize that even the small decision we make day-to-day will in many ways determine what our lives will be like 5 years from now. So choose something sustainable. Make one small change at a time and you will be surprised how you will be living 5 years from now.
So think about during this upcoming week. For now this is your host Patrick signing off. Always remember to live sustainably because this is how we build a better future.
Patrick
