The article in the first url below discusses Amazon's announcement last year that it would raise the minimum wage of its employees in the US and UK. In particular, the author argues that, while economics and a tightening labor market no doubt played a role, the primary motivation for the decision was political. That is, in the aftermath of Bernie Sander's Stop BEZOS proposed legislation (and the accompanying publicity around the extent to which Amazon employees rely on state welfare to subsist), the company felt it was advisable to appease the politicians:
"For months, Sanders has been criticizing the company for paying its workers too little. He went so far as to offer a bill called the 'Stop BEZOS Act,' for Jeff Bezos, Amazon's C.E.O. The bill was deeply flawed, but it still served to call more attention to the issue."
As the author notes, "this is how democracy and capitalism are supposed to work." More specifically, it is a great example of stakeholder pressure (government and the media) being brought to bear in a way that forced a change in corporate behavior. While the details of the policies in Sander's bill were problematic (in the sense that they essentially constituted a tax on employment, which might easily have led to a reduction in jobs for the people Sanders was most seeking to help), the problem he raised was real and something that, ultimately, Amazon felt uncomfortable with once it was exposed:
"All of this attention wasn't pleasant for Amazon. It cares about its image. … [Subsequently], Amazon announced that it was raising its minimum hourly pay to $15. About 350,000 workers will receive an immediate raise as a result. Amazon also called on other companies to do the same and said it would lobby Washington to increase the federal minimum wage."
This reflects the extent to which Amazon's higher profile exposes it to greater stakeholder pressure. The article in the second url below, for example, shows how employees (emboldened by action taken in the IT sector in recent months – e.g., Strategic CSR – Google), are beginning to become more aggressive in their demands of their employer:
"This week, more than 4,200 Amazon employees called on the company to rethink how it addresses and contributes to a warming planet. The action is the largest employee-driven movement on climate change to take place in the influential tech industry."
Interestingly, the employees are using a tool IT companies use to tie employees more closely to the firm – stock options:
"Like other shareholders, they can file a resolution urging a particular corporate change that investors vote on at a company's annual meeting. Historically, this approach has been used by outside activist investors, not employees."
As one Amazon employee put it:
"'It's exactly what Amazon has taught me to be: bold, audacious, and tackle big problems,' said Maren Costa, a principal user-experience designer who has been with the company for almost 15 years."
Take care
David
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Amazon's Surrender is Inspiring
Amazon's Surrender is Inspiring
By David Leonhardt
October 3, 2018
The New York Times
Also here:
https://www.nytimes.com/2018/10/02/business/amazon-minimum-wage.html
Employees Push Amazon on Climate
Employees Push Amazon on Climate
By Karen Weise
April 11, 2019
The New York Times
Late Edition – Final
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