Question

What corporate governance issues that AMAZON faces and how they are addressed in the current year?

Answer 1

Corporate governance issued that Amazon faces are-

1. Insensitive Management- There is high insensitivity in the management of Amazon amd employee turnover Ratio is high as it just treats it's employees as a tool rather than an asset.

2.Lack of Praise for performance of workers is another problem of the corporate governance in Amazon.

3. Amazon is promoting an unhealthy environment of ruthless competition and wiping out the competitors.

4. Amazon had unreasonable high standard and performance expectations from the employees of the company to fulfill their company objectives.

5. There is lack of synchronisation of personal and organisational goals of employees.

They are being addressed through providing of more of the monetary incentive as Amazon advocates that competition is very high and since it had a very aggressive strategy, it has to perform extraordinary. It is contributing to the social programs to compensate it. Employee awareness programs are also being undertaken. It is being emphasized upon that best practices are adopted in order to reduce the employee turnover. It is increasing diversity significantly.