After having sold LinkExchange to Microsoft for $265 million in 1999, his innovative and entrepreneurial spirit impelled him to invest $500,000 into the new venture lauched by Swinmurn. Have you WOWed at least one person today? The more widespread and diverse your relationships are, the bigger the positive impact you can make on the company, and the more valuable you will be to the company. Strong, positive relationships that are open and honest are a big part of what differentiates Zappos from most other companies. http://www.lighthouse-services.com/incidentlogin.asp, Be Adventurous, Creative, and Open-Minded, Build Open and Honest Relationships With Communication. Our bonds go far beyond the typical "co-worker" relationships found at most other companies. We are not an average company, our service is not average, and we don't want our people to be average. How do you grow professionally? We approach situations and challenges with an open mind. Please take the time to read this Code of Conduct, keeping in mind that over time as Zappos grows and evolves, this Code of Conduct will necessarily have to evolve as well. There are many stories regarding the remarkable things that Zappos employees have done for their customers. We believe in hard work and putting in the extra effort to get things done. mariaquintana, Relatives include your spouse, sister, brother, daughter, son, mother, father, grandparents, aunts, uncles, nieces, nephews, cousins, step relationships and in-laws. We're not looking for crazy or extreme weirdness though. To this day, Zappos is still trying to recover from these ethical challenges. We set and exceed our own high standards, constantly raising the bar for competitors and for ourselves. Are you inspired? Especially and including roles that are closest to our customers and/or issues. All inquires or calls from the press and financial analysts should be referred to [email protected]. Zappos has established partnership with a number of charitable organizations in order to foster employees' interaction with the community. Be Adventurous, Creative, and Open-Minded, Build Open and Honest Relationships With Communication. As Zappos continues to transform and scale, we want to ensure the four Cs remain top of mind in our day-to-day business operations. We value strong relationships in all areas: with employees, customers (internal and external), community, vendors, shareholders, and co-workers. Ethical practices rating: 5.0 - 1 rating Yes, Zappos does support ethical practices. 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. The best team members take ownership of issues and collaborate with other team members whenever challenges arise. Wouldn't you rather work for a company whose focus on culture allows your job to integrate with your life? You are also prohibited from using Zappos property, information or position for personal gain, or competing with Zappos or Amazon. Help needed for "Zappo's Design Principles"! Check Zappos' website to see if they have updated their ethical practices policy since then. 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. This touched our hearts, and truly helped us to see how caring Zappos is and how dedicated they are to abide by their core values. Zappos takes great pride in providing a safe and healthy work environment. Accordingly, you may not take for yourself opportunities in Zappos area of business that you discover through the use of Zappos property, information or position. Do you believe in what we are doing and where we are going? Employees: 1500+, http://www.wwd.com/footwear-news/markets/zappos-milestone-timeline-2121760, http://about.zappos.com/our-unique-culture/zappos-core-values, http://www.creative-brand.com/bank-branding/a-culture-worth-admiring-zappos-com, http://www.forbes.com/sites/csr/2010/11/23/at-zappos-getting-fired-for-not-contributing-to-company-culture/, http://about.zappos.com/jobs/why-work-zappos/our-benefits, http://about.zappos.com/our-unique-culture/zappos-community-involvement?page=1, http://blogs.zappos.com/blogs/zappos-family/2012/03/08/formally-introducing-zappos-l-e-f, http://tbo.com/news/business/zappos-hacking-could-cause-consumer-problems-later-348177, http://redcouch.typepad.com/weblog/2009/07/why-i-dont-like-the-amazonzappos-deal.html, http://www.ariozick.com/why-zappos-shouldnt-be-your-business-model/, http://danielsethics.mgt.unm.edu/pdf/ZapposCase.pdf, https://blog.kissmetrics.com/zappos-art-of-culture/, http://blogs.zappos.com/blogs/ceo-and-coo-blog/2009/01/03/your-culture-is-your-brand, http://www.zapposinsights.com/training/holacracy, http://www.businessinsider.com/bosses-in-zappos-holacracy-2014-1. Zappos does an incredible job at contacting customers in a timely manner, especially when there are situations that go wrong. Take a moment to de-stress. Another challenge that Zappos faces in upcoming years is the threat of globalization and core sustainability. Despite knowing that they would encounter a huge loss, they gracefully accepted their mistake and abided by the false price on the website. Lets not tarnish that reputation by dealing unfairly with anyone. We don't take "no" or "that'll never work" for an answer, because if we had, Zappos would never have started in the first place. Are you a better person today than you were yesterday? Significant others include persons living in a spousal relationship (including same sex) or familial fashion with the employee or consultant. Additional restrictions on use of confidential information are more fully set forth in the Confidentiality Agreement each of you signed upon accepting employment with Zappos. Bullets vs. cannonballs. Our culture would not be what it is today without Zapponians past and present. And for anyone we bring on board, the best expertise they can bring is expertise at learning and adapting and figuring new things out -- helping the company grow, and in the process they will also be growing themselves. Remember Core Value #1 Deliver WOW through Service. Having identified with this ethics-laden culture, Zappos has so far created a favorable and productive working environment. Be Adventurous, Creative, and Open-Minded 5. We never want to become complacent and accept the status quo just because that's the way things have always been done. You should report to work in condition to perform your duties, free from intoxication due to drugs or alcohol. Get a $10 credit for Fathom Analytics. Whats the ROI on hugging your mom?". This proves the companies dedication not only to the employees work life, but to their personal well-being. Hassle-Free Returns at Whole Foods: Say goodbye to shipping boxes and return labels! While we celebrate our individual and team successes, we are not arrogant nor do we treat others differently from how we would want to be treated. It combines two ethical convictions: respect for the dignity of the person and recognition of the diminished autonomy of others. We don't want to become one of those big companies that feels corporate and boring. Please refer to the applicable sections of the Employee Handbook for further guidance. We expect every employee to deliver WOW. Waivers of this Code of Conduct may be made only in a manner permitted by law. In order to buy out the board, Zappos needed to unite with Amazon, a company that not only accepted but promoted their value to customers. Second, if the company begins to ship products abroad, will they have to abandon their policy of free shipping? In any case where you are unsure about the propriety of an event or action, please seek out your supervisor, the director or Vice President of your department or business division, or the Zappos Legal Department for further guidance. Do you love what you do and who you work with? By this, the customers feel valued and a part of the Zappos family. Despite the fact that these actions are not easy to address and could be extremely costly, Zappos accepted the blame and guaranteed that their customers personal credit card numbers were safe. But it's there. 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). Do you exemplify a positive team spirit? Honest and accurate recording and reporting of information is critical to making responsible business decisions. We are a special company, and pride ourselves in doing the right thing. The brand is just a lagging indicator of the culture. As alluded to at the beginning of this Code of Conduct, ask yourself if you would be embarrassed or uncomfortable if your supervisor found out about the gift in question. They're a way of life. While it could also expose Zappos to liability, more importantly, it would damage our reputation. Learn how we deliver happiness daily. The only reason we aren't swamped by our competition is because what we do is hard, and we do it better than anyone else. Instead, they want an open and honest relationship. Create Fun and A Little Weirdness 4. As a result, employees and managers will not have official job titles. How do you encourage more people to take initiative? 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. Your company has a culture. Sometimes it may seem that new problems crop up as fast as we solve the old ones (sometimes faster! You may not pay or accept bribes of any type. In the end, both Zappos and its customers benefitted from the merger. Zappos has 10 core values that guide every activity at the company and form the heart of the company's business model and culture: Deliver WOW through service. This means offering shoppers more clothing styles and variety, reimagining ways to exceed customer expectations, protecting and growing our company culture, and serving communities near and far. The first was the 2008 Layoff. That part is fairly easy. And whatever you do must have an emotional impact on the receiver. How can you personally help the company become more efficient? But why? About Us. Zappos committed to their employees. This self-inflicted evolution can lead to positive growth and a more forward-facing structure that is built for the future, but it can also be destructive to a corporate culture that people rely on for consistency and security. This is commonly manifested through either negligent or careless behaviour that poses an unreasonable risk of harm to the patient. Since our humble beginnings, Zappos has been a customer-obsessed company that focuses on delivering a WOW experience. For all our emphasis on customer service, our #1 priority is company culture. We have 2 annual parties at Zappos. Lets be friends! MyFax, the online service that lets you send and receive faxes over e-mail, now has a free version. t. Embrace and Drive Change 3. As we continue to grow, we strive to ensure that our culture remains alive and well. 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? Passion is the fuel that drives ourselves and our company forward. Past epic party themes have ranged from Mardi Gras and old-school hip-hop to a Hawaiian luau at a waterpark. We want just a touch of weirdness to make life more interesting and fun for everyone. When you combine a little weirdness with making sure everyone is also having fun at work, it ends up being a win-win for everyone: Employees are more engaged in the work that they do, and the company as a whole becomes more innovative. 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. Subscribe to our newsletter. We can all take great pride in the many wonderful things that Zappos stands for, and as long as everyone remains committed to the values that make us special, Zappos will never be just another company. Is Zappos's supply chain ethical? We have designated our CEO, COO, and CFO as our official spokespeople for all matters. Ask yourself: Are you passionate about the company? At Zappos, anything worth doing is worth doing with WOW. This policy does not prohibit lawful contributions to political candidates, parties, action committees, sponsors of initiatives and for other lawful purposes, so long as such contributions are made in compliance with all applicable laws and Section I that follows. http://www.creative-brand.com/bank-branding/a-culture-worth-admiring-zappos-com Federal and state laws prohibit trading in securities by persons who have material information that is not generally known or available to the public. It is our policy to employ only persons who do not engage in other business activities that compete with or sell to or buy from Zappos or Amazon. Just like every person has their own personality, every company has their own culture. That Confidentiality Agreement remains in effect for as long as you are employed by Zappos and after you leave. Honesty Honesty is an essential value required to conduct business in an ethical manner. The largest indicator of unethical practices at Zappos is the new organizational structure implemented by Tony Hsieh. It leads to higher employee engagement and higher profitability. 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. If there's one thing synonymous with Zappos, it's providing superior customer service. That "more" is providing the very best customer service, customer experience, and company culture. All rights reserved. If we want to continue to stay ahead of our competition, we must continually change and keep them guessing. To outsiders, that might come across as inconsistent or weird. Humbly speaking, creating a positive, productive culture is our bread and butter. Its what makes us successful. Welcome, my friends, to your Zappos Oath of Employment. Each has had its own twists and tricks to surprise and delight partygoers. Please take this Code of Conduct seriously. Be adventurous, creative, and open minded, Build open and honest relationships through communication. The company delivers above and beyond basic workplace needs and addresses the self-actualization needs that most individuals desire from their work experience. One of the main perks of working for Zappos are the vast and numerous benefits. Are you afraid of making mistakes? Hsieh did not approve of abandoning the customer-centric model that Zappos was founded upon, and decided he must take action. Zappos' leadership has succeeded in developing a culture characterized by ethicalness by identifying and integrating core values into the organization, which place great emphasis on the employees' and customers' happiness. You must never engage in competitive conduct that cannot be justified by sound business considerations wholly apart from its effect on any injured competitor. Principle of Ethics Zappos has a strong ethical climate and strives on their Code of Conduct and Ethics. Reprisals, threats, retribution, or retaliation against any person who has in good faith reported a violation or a suspected violation of law, this Code of Conduct, or other Company policy, or any person who is assisting in good faith in any investigation or process with respect to such a violation, is prohibited. The fact that this company is honest about these dilemmas proves that they do not want the customer to be misinformed and do not want any information to be hidden from their clients. If you make an anonymous report, please provide as much detail as possible, including copies of documents you believe relevant to the matter. Work can be fun! Please let your supervisor know of any safety or health concerns so that they can be addressed. 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. As we continue to grow, we strive to ensure that our culture remains alive and well. You may make legal personal contributions, but you may not represent that youre making any such contribution on Zappos behalf. 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. Hundreds of ideals were submitted, which resulted in 37 foundational themes. To WOW, you must differentiate yourself, which means do something a little unconventional and innovative. You may not like it. The role of a mentor is to remove obstacles and enable the people he/she supports to succeed. In January 2005, Zappos polled employees on what they thought the companys core values should be. While this Code of Conduct addresses a wide variety of topics, you need to use your good judgment and common sense as it cannot, and does not, address every possible situation. Employees performing services in the United States or other countries governed by at will employment rules should be aware that this Code of Conduct does not alter an employees at-will relationship with Zappos. We want people to express their personality in their work. First, how can Zappos continue to use competitive pricing in international markets that may have similar products with cheaper price tags? Our company culture is what makes us successful, and in our culture we celebrate and embrace our diversity and each person's individuality. In a very direct way, complying with applicable laws promotes our core value of building open and honest relationships, for how can you expect to have open and honest relationships if you are acting dishonestly? Orders were deleted or delayed, delivered to the wrong locations, and a glitch on a website listed a set price for every item resulting in a $1.6 million loss for the company. It is Zappos policy not to allow retaliation for good faith reports of misconduct by others. http://www.ariozick.com/why-zappos-shouldnt-be-your-business-model/ Zappo's Design Principles. Having a defined set of values will serve as your guide to continue your culture's growth and evolution in a positive direction. How has Zappos managed ethical risk, . In order for someone to feel good about a relationship, he/she must know that the other person truly cares about them, both personally and professionally. 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