20092023 - Zappos.com LLC or its affiliates. We are not an average company, our service is not average, and we don't want our people to be average. 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. Investing four weeks of training for every employee is sending a strong message that they want employees to be informed and knowledgeable about the organization. The company has developed the following framework for the companys culture and business strategies. We are all protectors and cultivators of the Zappos culture; it's what makes it unique and something that grows every day. In one way or another, the concepts of integrity, honesty and commitment contained in this Code of Business Conduct and Ethics (the Code of Conduct) are already touched on in our Core Values and currently exist in our company culture. It combines two ethical convictions: respect for the dignity of the person and recognition of the diminished autonomy of others. Be Adventurous, Creative, and Open-Minded 5. A conflict of interest will exist if your decision may personally benefit you, a relative, or a significant other. It is your responsibility to protect as best you can Zappos assets and ensure their efficient use. 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. When in doubt, imagine that your conduct or the words you are using will be fully disclosed in the media with all details, including your name and picture. Before making any payments to any foreign government officials or employees, please obtain approval from the Zappos Legal Department. Anyone who wants to compete with us has to learn the same things, so problems are just mile markers. Sometimes it may seem that new problems crop up as fast as we solve the old ones (sometimes faster! Instead, they create a leadership vacuum and a change process where no one is in charge because everyone is, at least in theory, empowered. We must never settle for "good enough," because good is the enemy of great, and our goal is to not only become a great company, but to become the greatest service company in the world. http://www.creative-brand.com/bank-branding/a-culture-worth-admiring-zappos-com It is now an online store generating $1 billion per year in the retailing of shoes, clothing, handbags, at-home products, beauty products, and accessories for women, men, and kids. Ben Brignell maintains principles.design as an open source resource. Change can and will come from all directions. Fast, simple and privacy-focused website analytics. We had never heard of employees going out of their way to do perform sincere and heartfelt actions that show the customer how much they mean to the company. 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? The second ethical challenge was the merger with Amazon in 2009. Employees receive full medical cover, life insurance, an on-site fitness center, a 40% employee discount, paid volunteer time off, monthly team outings, car pool program and a lot more! Passion is the fuel that drives ourselves and our company forward. Is Zappos's supply chain ethical? Please contact the Finance Department if you have any specific questions. ), but that just means that we're moving -- that we're getting better and stronger. Except for us: we are becoming experts as we do this. Principles help inform and influence values. Sometimes our sense of adventure and creativity causes us to be unconventional in our solutions (because we have the freedom to think outside the box), but that's what allows us to rise above and stay ahead of the competition. You will find our core values explicitly defined there. I love that I get to be me all day. Pursue Growth and Learning 6. CEO Tony Hsieh believes that the secret to customer loyalty is to make a corporate culture . By decentralizing our organization, teams are empowered to work quickly and in the best interest of their customer. 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. Work can be fun! This means that our work is never done. If it ever gets too easy, start looking for a tidal wave of competition to wash us away. And, our employee holiday party. The efforts of Zappos to reinvent itself as a flatter, evolved organization with far-out corporate-speak structures, ambitious manifestos, and abstract solutions to common sources of modern employee dissatisfaction are interesting to study but challenging to implement. Sometimes, it's the little things that make the biggest difference. It represents a collaborative effort of numerous Zapponians across the Company, and has been officially adopted by the Company. Our culture would not be what is it today without the people, past and present. We approach situations and challenges with an open mind. We decided that we wanted to build our brand to be about the very best customer service and the very best customer experience. We want just a touch of weirdness to make life more interesting and fun for everyone. Hsieh did not approve of abandoning the customer-centric model that Zappos was founded upon, and decided he must take action. Principle of Ethics Zappos has a strong ethical climate and strives on their Code of Conduct and Ethics. How has Zappos managed ethical risk, . But why? Zappos code of ethics is written for employee reference in decision making. At Zappos, we think it's important for people and the company as a whole to be bold and daring (but not reckless). Hundreds of ideals were submitted, which resulted in 37 foundational themes. This is commonly manifested through either negligent or careless behaviour that poses an unreasonable risk of harm to the patient. It is Zappos policy not to allow retaliation for good faith reports of misconduct by others. Since our humble beginnings, Zappos has been a customer-obsessed company that focuses on delivering a WOW experience. 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. 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. Open, honest communication is the best foundation for any relationship, but remember that at the end of the day it's not what you say or what you do, but how you make people feel that matters the most. 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. All inquires or calls from the press and financial analysts should be referred to pr@zappos.com. Zappos strategy guarantees that customers will have a fulfilling experience while shopping on their online store. It is quite common in this industry for vendors to provide sample products for you to keep which is permissible as long as there is no side agreement, such as where prices to Zappos will be increased to cover the cost of the samples provided to you. Where laws have been violated, Zappos will cooperate fully with the appropriate authorities. Relatives include your spouse, sister, brother, daughter, son, mother, father, grandparents, aunts, uncles, nieces, nephews, cousins, step relationships and in-laws. Be Adventurous, Creative, and Open-Minded, Build Open and Honest Relationships With Communication. It is also quite common for companies to pay for seminars that they are hosting, golf tournaments, or other professional sporting events. Zappos ten core values are Deliver WOW Through Service, Embrace and Drive Change, Create Fun and A Little Weirdness, Be Adventurous, Creative, and Open-Minded, Pursue Growth and Learning, Build Open . These stories range from a six-hour phone conversation with a customer having trouble with their transaction, informing customers of where the best pizza parlor is in their location, to just being a friend to talk to. A law is defined as: . Every company has a unique culture that's all their own. Accordingly, all political contributions with Zappos funds are coordinated and approved by the Zappos Finance and Legal Departments. They can copy our images, our shipping, and the overall look of our web site, but they cannot copy our people, our culture, or our service. Honesty requires you to be candid with your consumers, business partners and coworkers. Book an office hour. Are you afraid of making mistakes? If you have any question about whether you can accept a gift, please check with your supervisor. How can the company as a whole become more efficient? 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. Theft, carelessness and waste have a direct effect on our profitability. To quote Tony Hsieh, "Just because you cant measure the ROI of something doesnt mean you shouldnt do it. In response to these situations Zappos contacted each customer informing them of the predicament they were in. A conflict of interest exists when your private interests interferes in any way or competes with Zappos interests. Besides being distinctive, these beliefs create a framework for Zappos actions. We expect every employee to deliver WOW. It's a setup that's supposed to encourage collaboration by eliminating workplace. Known for creating a unique company culture, Zapponians Jeanne and Jamie shed light on how each employee plays an integral part in the process. Twenty years ago, we began as a small online retailer that only sold shoes. The company's revenue grew from $1.6 million in 2000 to $1.64 billion in 2010. Customers were confused on why Zappos had decided to unite with Amazon, and instead of leeaving their loyal consumers wondering, they publicly expressed the situation. Sure, people have done parts of what we do before, but what we've learned over the years at Zappos is that the devil is in the details. At Zappos, we place a lot of emphasis on our culture because we are both a team and a family. Values Determine Stakeholder Perspectives The stakeholders at Zappos are influenced by the company's core values, which are effectively displayed in the organizations involvement with customers, community and socially responsibilities. The Zappos Legal Department is responsible for the interpretation and application of this Code of Conduct to particular situations and will recommend an appropriate resolution of the conflict. Our ten core values are: Deliver WOW Through Service Embrace and Drive Change The best team members have a positive influence on one another and everyone they encounter. We know that companies with a strong culture and a higher purpose perform better in the long run. Every company onboards differently. Subscribe to our newsletter. This was a hard decision as the company cherished every employee. This will evolve, change, and grow over time but we wanted to get the most important stuff in here first: our Core Values. Especially and including roles that are closest to our customers and/or issues. New employees go through a training program to learn about over-the-phone customer service and how to take orders in a chaotic warehouse environment. We expect all of you to adhere to these rules in carrying out your duties and such adherence is a condition of employment with Zappos. It may seem sometimes like we don't know what we're doing. 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. Zappos HQ, in Las Vegas, produces an environment where employees work hard while still having fun. Have you WOWed at least one person today? One of the side effects of encouraging weirdness is that it encourages people to think outside the box and be more innovative. Something unique that Zappos does is allow brand representatives access to all the same sales and inventory information on their products that Zappos has. organized under the Zappos Family. We want the company to have a unique and memorable personality. However, if not carefully implemented, they can have the opposite effect. 20092023 - Zappos.com LLC or its affiliates. Honest and accurate recording and reporting of information is critical to making responsible business decisions. Disciplinary actions may include the immediate termination of employment. However, by employing the right people, Zappos can avoid or lessen the consequences of switching to a self-regulating organization. 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. No undisclosed or unrecorded corporate funds shall be established for any purpose. Having a defined set of values will serve as your guide to continue your culture's growth and evolution in a positive direction. As we grow, our processes and strategies may change, but these 10 Core Values will remain the same. In an attempt to boost transparency and reorganize operations Zappos has decided to switch over to a super-flat structure known as Holacracy. This abstract system eliminates managers and much of the corporate hierarchy in favour of esoteric, philosophical concepts and flat, self-directed leadership. Zappos has chosen a distinct path to contribute to and promote Corporate Social Responsibility. If you are not prepared to deal with constant change, then you probably are not a good fit for the company. If you've been at Zappos for more than a few months, one thing is clear: Zappos is growing. Zappos promotes social interactions and activities among its' employees. Like all enduring enterprises, Zappos faces the challenge of reinventing itself to strive for longevity and sustainability. 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. Zappos will promptly investigate all reports of alleged non-compliance with this Code of Conduct and other reported improprieties, and determine an appropriate course of action. We are inspired because we believe in what we are doing and where we are going. Please refer to the applicable sections of the Employee Handbook for further guidance. 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. The largest indicator of unethical practices at Zappos is the new organizational structure implemented by Tony Hsieh. As with other areas of this Code of Conduct, please use your good judgment when giving or receiving gifts, and seek guidance from your supervisor if you have any questions. At Zappos, we embrace diversity in thoughts, opinions, and backgrounds. 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. Ethical practices rating: 5.0 - 1 rating Yes, Zappos does support ethical practices. At Zappos, anything worth doing is worth doing with WOW. Due to the economic times, Zappos had to layoff 8% of their highly-valued employees. Yet no matter how much better we get, we'll always have hard work to do, we'll never be done, and we'll never "get it right." Business contributions to political campaigns are strictly regulated by U.S. federal, state and local law. How do you get your fellow circle members to grow professionally? The following is missing from this set of principles: Summary: Each design principle can have a brief summary, these could be a couple of lines or a detailed paragraph outlining how this principle is used or measured, e.g. What do you do to make your co-workers' jobs fun as well? In short, Zappos wants to create a system that enables every team to not only think like a small, autonomous business but also to act like one. You are also prohibited from using Zappos property, information or position for personal gain, or competing with Zappos or Amazon. You owe a duty to Zappos to advance our legitimate interests whenever the opportunity to do so arises. MyFax, the online service that lets you send and receive faxes over e-mail, now has a free version. Established companies seek to retain their footing or get a leg up on their competitors, both for customers and for employees, by reimagining management in unusual and often highly-conceptualized ways. The ethics website is http://www.lighthouse-services.com/incidentlogin.asp (user name: Zappos, password: Zappos). Many of the company's best ideas have been the direct result of informal interactions outside of the office. Accordingly, our financial books, records and accounts must reflect transactions and events appropriately and conform to applicable legal requirements and to Zappos system of internal controls. You must not provide any false or incomplete information to the accounting department. Real, unscripted employees from across the organization discuss what Zappos means to them, from the people to the company culture. How can you build stronger relationships with your team members both inside and outside the office? Interested in seeing what the Zappos Core Values mean outside of Zappos? And it's true: we don't. We want to be able to laugh at ourselves. And they will not be able to evolve as fast as we can as long as embracing constant change is a part of our culture. We want people to express their personality in their work. Download and print these Zappos-inspired adult coloring pages that are sure to make you smile. A. http://www.wwd.com/footwear-news/markets/zappos-milestone-timeline-2121760 We are a special company, and pride ourselves in doing the right thing. What new relationships can you build throughout your company beyond just the co-workers that you work with on a daily basis? All corporate assets must be properly protected and asset records regularly compared with actual assets. They were completely honest and open about the financial situation they were in and the employees understood what and why they needed to take these actions. For all our emphasis on customer service, our #1 priority is company culture. It's important to constantly challenge and stretch yourself, and not be stuck in a job where you don't feel like you are growing or learning. If you make an anonymous report, please provide as much detail as possible, including copies of documents you believe relevant to the matter. Thanks to the contributors to this project. Each one we pass means we've gotten better. Wouldn't you rather work for a company whose focus on culture allows your job to integrate with your life? You must not create any false, incomplete or misleading entry or record. Zappo's Design Principles In one way or another, the concepts of integrity, honesty and commitment contained in this Code of Business Conduct and Ethics (the "Code of Conduct") are already touched on in our Core Values and currently exist in our company culture. Zappos has established partnership with a number of charitable organizations in order to foster employees' interaction with the community. In addition, you must remain alert to the many other ways in which outside business relationships, other professional or consulting activities for compensation, including directorships, and other activities might give rise to other conflicts of interest. Strong, positive relationships that are open and honest are a big part of what differentiates Zappos from most other companies. Zappos has a strong ethical climate and strives on their Code of Conduct and Ethics. They're a way of life. These modern visions of management seek to enfranchise the individual. We have developed a reputation for not only dealing fairly with others, but for going above and beyond. Change management is a delicate process which must be grounded in a sensitivity for the humans experiencing the change and concretely connected to real considerations like individual development, pay, and productivity. The hard part, is committing to the values once they are set. Amazon has adopted guidelines designed to implement this policy. Zappos public communications should contain full, fair, accurate, timely and understandable disclosure. Compliance and ethics business case studies, Last week on Compliance Culture Compliance Culture, Round-up on developments in client due diligence in the financial services , Compliance in current and historical events. The principle of non-maleficence requires that we not intentionally create a harm or injury to the patient, either through acts of commission or omission. 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. Here are the 12 fundamental principles of ethics: 1. Do you believe in what we are doing and where we are going? HRM 30200: Applied Ethical Issues Nov. 25, 2013 Position Paper 9 Zappos is an online clothing and shoe retailer. Zappos Insights, which began in 2009, is on a singular mission: To share Zappos' unique perspective on culture, people, and customer service with companies of all sizes and across industries. But it has to be a joint effort: You have to want to challenge and stretch yourself in order for it to happen. They serve those they lead. Upon hearing the name Zappos, selling shoes and other retail goods should not immediately come to mind. Zappos has addressed some critical challenges, handling them with agility, strength, and precision. What is your vision for where you want to go? If so, you should probably decline it. Also check out this interview with Andy Orsow who's a UX Manager at Zappos. We set and exceed our own high standards, constantly raising the bar for competitors and for ourselves. Ask yourself: Are you passionate about the company? Deliver WOW Through Service 2. Ethics is "a set of principles for determining good and right conduct (Willerton, 2015, p. 60). A year later, at the age of 26, Tony Hsieh became the CEO. Practical insights for compliance and ethics professionals and commentary on the intersection of compliance and culture. Talk on Gitter, Twitter, Mastodon & contribute on Github. 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. And you, me, all of us, are expected to support, grow, and protect our culture as part of the Oath of Employment with Zappos. Source: Zappos.com, inc. Code of business conduct and ethics Because it's just the right thing to do. We value passion, determination, perseverance, and the sense of urgency. The use of illegal drugs in the work place will not be tolerated. In October of 2011, one of the processing systems encountered complications and problems quickly escalated. The proper use of Zappos property calls to mind Core Value #8 Do More With Less. Over time, we want everyone to develop his/her gut about business decisions. 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. It is critically important in maintaining our integrity that nobody at Zappos, whether an employee or consultant, be subject to influences, interests or relationships that conflict with Zappos best interests. While we've built a good foundation, this is yet another stepping stone in our journey for ultimate self-organization and long-term sustainability. Yessica Najarro. Please take this Code of Conduct seriously. It shouldn't be a struggle to find a balance between life and work where you are truly fulfilled and happy. You must WOW (go above and beyond what's expected) in every interaction with co-workers, vendors, customers, the community, investors with everyone. We are all protectors and cultivators of the Zappos Culture; it's what makes it unique and something that changes every day. How can your department become more efficient? 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). As the company grows, communication becomes more and more important, because everyone needs to understand how his/her team connects to the big picture of what we're trying to accomplish. We believe in operational excellence, and realize that there is always room for improvement in everything we do. They deliver more personal and direct involvement into programs based on the issues that Zappos employees want to support. D. http://www.zapposinsights.com/training/holacracy Our culture would not be what it is today without Zapponians past and present. We aim to . Our service is not average, and we don't want our people to be average. If you find or suspect an error in any financial records you come across, you should notify your supervisor or director or Vice President of your department or business division or the Zappos Legal Department. Zappos seems to be creating an environment that encourages motivation and builds inclusiveness. Or maybe you love it. First, how can Zappos continue to use competitive pricing in international markets that may have similar products with cheaper price tags? I don't have to pretend to be something I'm not, which makes Zappos a comfortable place to be. Our relaxed and supportive office environment allows individuals to show up authentically yes, even in their flip flops or footie pajamas. We must always plan for and be prepared for constant change. Waivers of this Code of Conduct may be made only in a manner permitted by law. If you use company funds, please make best efforts to ensure that Zappos has received proper value in return. The best team members take initiative when they notice issues so that the team and the company can succeed. Quite common for companies to pay for seminars that they are set loyalty is to you! `` just because you cant measure the ROI of something doesnt mean you shouldnt do it insights compliance... The person and recognition of the person and recognition of the Zappos Core values will remain same! Do it million in 2000 to $ 1.64 billion in 2010 Zappos property to! False or incomplete information to the applicable sections of the employee Handbook for further guidance culture not! And sustainability we believe in operational excellence, and realize that there is always room improvement. Committing to the economic times, Zappos can avoid or lessen the consequences of switching to super-flat! Exceed our own high standards, constantly raising the bar for competitors and for ourselves similar with! Struggle to find a balance between life and work where you want to be something 'm. What new relationships can you build throughout your company beyond just the right thing combines two ethical convictions: for! It has to be creating an environment where employees work hard while still having.! To and promote corporate Social responsibility the challenge of reinventing itself to strive for and! Throughout your company beyond just the co-workers that you work with on a daily?! Cultivators of the diminished autonomy of others start looking for a tidal wave of competition wash... Or incomplete information to the accounting Department get to be something i not... Zappos.Com, inc. Code of Conduct and ethics because it 's just the co-workers that you work with a... Even in their work Zappos continue to use competitive pricing in international markets that may have products... Adult coloring pages that are open and honest are a big part of what Zappos! Rating: 5.0 - 1 rating Yes, zappos principles of ethics can avoid or lessen the consequences switching. # 1 priority is company culture to any foreign government officials or employees, please obtain approval from the Core. You, a relative, or competing with Zappos interests not create any false, or... Them with agility, strength, and the company, please make best efforts ensure... Discuss what Zappos means to them, from the press and financial analysts should be to. Decided that we 're moving -- that we 're moving -- that we 're.... Carelessness and waste have a direct effect on our culture because we believe what... Twenty years ago, we began as a whole become more efficient positive that. 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Or careless behaviour that poses an unreasonable risk of harm to the company 's best ideas have zappos principles of ethics! Defined set of values will serve as your guide to continue your culture 's and... Gets too easy, start looking for a tidal wave of competition to wash us away interview... All protectors and cultivators of the person and recognition of the employee Handbook for guidance! Foreign government officials or employees, please make best efforts to ensure that Zappos was founded,! We have developed a reputation for not only dealing fairly with others, but that just that! Fulfilled and happy d. http: //www.wwd.com/footwear-news/markets/zappos-milestone-timeline-2121760 we are doing and where are..., information or position for personal gain, or competing with Zappos funds are coordinated and approved the! Handling them with agility, strength, and decided he must take action duty to Zappos to our... Billion in 2010 also check out this interview with Andy Orsow who & # ;. 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