Amazon Company Analysis

Amazon: Company Analysis


Businesses that operate in the present-day competitive market may not record optimal performance if they disregard the prevailing regulatory standards. Such guiding principles have been put in place to inform companies’ economic decision-making processes. Contravening the laid-down ethical, accounting, monetary, and government policies may subject organizations to significant penalties, hence reducing their expected profitability levels. This paper examines the above elements with a focus on Amazon, which is a globally recognized business located in Seattle, Washington, offering technology, e-commerce, artificial intelligence, and cloud-computing services.

Regulatory Considerations

Regulatory considerations help Amazon to implement economic decisions that facilitate its productivity in the marketplace not only in the U. S. but also around the world. The organization is also aware of penalties associated with improper transportation of its products and the mistreatment of workers. For example, regarding remuneration, Amazon has to abide by the stipulated hourly rate of approximately $15. 24 per employee (Murninghan, 2018). Overall, regulatory considerations influence Amazon’s level of operations in various countries depending on the existing federal, local, and government policies.


Environmental Regulations

Although Amazon’s business is online-based, the company is required to put in place practices that boost EPA’s recommended environmental regulations (Dillon et al., 2018). For instance, Greenpeace, an organization that monitors companies’ levels of adopting renewable energy, sustainable commodities and services, and non-poisonous materials, accused Amazon of violating environmental regulations (Dillon et al., 2018). Specifically, it blamed the technology business for failing to embrace transparency regarding its green practices. According to Dillon et al. (2018), Amazon’s move to supply harmful pesticides breached EPA’s environmental requirements, hence resulting in a $1. 2 million fine.

Accounting Regulations

According to the Dodd-Frank Act, employees have the right to report to the Securities Exchange Commission (SEC) in case any wrongdoing is noted in the company (Elzweig, Davidson, & Chambers, 2018). Amazon is expected to operate in a manner that guarantees sanity in its financial records in line with the Dodd-Frank Act. As Elzweig et al. (2018) assert, Amazon embraces the provision that requires any employee exposed to unwarranted termination or intimidation to seek legal services. The company also adheres to the Sarbanes-Oxley policy, which allows workers to inform the appropriate federal agency about malpractices observed in the organization.

The Extent of Impact on the Company

Regulatory issues have significantly affected Amazon’s operations. For instance, the company has been forced to ensure that it utilizes non-toxic materials while at the same time keeping customers’ details confidential (Murninghan, 2018). Observing the Sarbanes-Oxley Act and the Dodd-Frank policy has contributed to ensuring that economic crises similar to what was experienced in the period of 2007 and 2008 do not recur.


Ethical Considerations

Ethical guidelines influence companies’ financial decisions. Amazon has invested heavily in mechanisms for ensuring that unintended third parties do not access its customers’ details for malicious reasons. Ethical considerations have also helped the company to allocate financial resources aimed at boosting creativity and innovation, as opposed to utilizing other organizations’ ideas against the stipulated IP requirements.

Ethical Issues


Some of the honest problems that Amazon offers to consider consist of concealing clients’ private information and maintaining intellectual property (IP) rights. Other honest elements entail giving fair wages, providing employees long-term agreements, and allowing expecting women to consider the break regardless associated with whether they have got accomplished the set focuses on or not. Based on Elzweig et ing., (2018), the organization is expected in order to implement policies, which usually ensure that simply no worker is terminated or subjected in order to any form associated with mistreatment for revealing fraudulent deals, which includes the misrepresentation of economic statements.

The Impact of Amazon’s Ethical Issues

Amazon is among the particular most compliant businesses globally. As the result, they have regularly remained profitable credited to the restricted fines associated along with violations from the present ethical guidelines. With regard to instance, as Murninghan (2018) reveals, a part of its economic choices include ensuring that will workers get the particular recommended $15. twenty-four per hour.


Fiscal plus Monetary Policies

Fiscal and monetary factors play a large role in telling the company’s concept of encouraging United states central and condition governments to perform policies that assure fair tariffs upon online sales. Based to Da, Warachka, and Yun (2018), such policies make sure that Amazon contributes in order to the U. H. economic development focuses on with the revenue gathered from the products within the form associated with taxes.

The A result of Fiscal plus Monetary Policies upon Amazon

Whenever the particular U. S. desires to finance its tasks, they have the force to increase fees imposed on items. It can furthermore influence how much money provided to businesses. With regard to Amazon, like policies determine the costs to be arranged on various items. However, based on De uma et al. (2018), they may furthermore result in decreased stock returns, plus consequently, low success levels, particularly when clients are unable in order to deal with the fresh prices.

Higher and Lower Taxes Rates

Higher taxes rates can reduce Amazon’s expenditure amounts because of the particular associated reduced earnings. Hence, its financial decisions will mainly be geared in the direction of ensuring that clients continue being faithful towards the company’s items, regardless of the high costs. In the event of low taxes rates, Amazon desires improved purchases credited to the existing reduced product costs (Da et ing., 2018). Overall, efficiency levels increase towards the extent that the particular company can set aside section of the income acquired to development daily activities like CSR tasks.


Amazon’s business is needed to comply along with various ethical, environment, and accounting rules, such as the Dodd-Frank Take action as well as the Sarbanes-Oxley plan. In the event of any infringement, the actual court costs may interfere along with the company’s worldwide image and, as a result, its profitability amounts. In line along with EPA’s guidelines, Amazon . com is required to reveal info concerning its power consumption, the natural materials by using, plus the amount associated with harmful chemicals used in the availability procedure.


Da, Z., Warachka, Meters., & Yun, They would. (2018). Fiscal plan, consumption risk, and stock returns: Evidence from U. S. states. Journal of Financial & Quantitative Analysis, 53(1), 109-136. Web.

Dillon, L., Sellers, C., Underhill, V., Shapiro, N., Ohayon, J. L., Sullivan, M., …Wylie, S. (2018). The epa in the earlier Trump administration: Preliminary to regulatory catch. American Journal associated with Public well-being, 108(2), 89-94. Web.

Elzweig, B., Davidson, W., & Chambers, Sixth is v. (2018). Disparities among Dodd-Frank and Sarbanes-Oxley whistleblower statutes may greatly impact statements. Banking & Monetary Services Policy Statement, 37(11), 4-10.

Murninghan, M. (2018). Equity culture plus decent work: The particular case of Amazon . com. New England Diary of Public Plan, 30(1), 1-15.

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