Business issue
The business issue in Amazon about the theme of technology and its implications on business processes is the challenge of managing privacy and data security. With the increasing use of technology and artificial intelligence in Amazon’s business processes, there is a growing concern about protecting customers’ personal information and data. With the rising number of cyber-attacks and data breaches, customers are becoming more cautious about sharing their personal information with companies (Yathiraju, 2022).
Amazon must ensure that it complies with all applicable laws and regulations on data protection and privacy and take the appropriate precautions to secure its customers’ data. Failure to do so may incur heavy fines and harm the business’s reputation, which might cause consumers to lose faith in it (Rowe, 2022). As a result, Amazon is very concerned about the business challenge of managing privacy and data security as it continues to use technology and AI in its business operations.
Theories
Managing privacy and data security at Amazon is related to several theories and concepts in organizational behaviour and management. Three of the most prominent theories that relate to this issue are the stakeholder theory, the theory of planned behaviour, and the theory of institutionalization.
The theory of institutionalization suggests that organizations must conform to societal norms and expectations to succeed. In the context of privacy and data security, companies must comply with regulations such as the European Union’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) in order to meet societal norms and expectations regarding data protection (Seeley, 2023). Failure to do so could result in legal consequences and a loss of customer trust. Amazon’s adherence to privacy laws like the California Consumer Privacy Act and the General Data Protection Regulation (GDPR) illustrates how it has institutionalized its processes to conform to social norms and expectations (CCPA). The business has implemented safeguards to secure consumer data and personal information, including encrypted storage systems and stringent access restrictions (Wong, 2023). In addition to establishing a privacy policy outlining its commitment to protecting consumer privacy and data, Amazon has also implemented several security measures to guard against data breaches. By doing this, Amazon shows that it is committed to upholding societal standards and expectations for data privacy, preserving consumer confidence, and ensuring the success of its company.
Stakeholder theory under corporate governance suggests that organizations are responsible for meeting the expectations of various stakeholders, including customers, shareholders, employees, and society (Zhang, 2022). Regarding the privacy and data security, organizations ensure that customers’ personal information and data are protected. Failing to do so could result in negative consequences for the company, such as decreased customer trust and loyalty, reputational damage, and legal consequences. For instance, in the case of Amazon, the corporation is required to guarantee the security and protection of its user’s personal data and information. This entails implementing robust security measures to avoid data breaches and adhering to privacy laws like the GDPR and CCPA (Li, 2022). Customer privacy issues must be addressed, and Amazon must be open and honest with its consumers about how their data is handled. Amazon can preserve its client base’s confidence and loyalty by living up to their privacy and data security expectations, which is essential to the business’s success.
The theory of planned behaviour suggests that individuals make decisions based on their attitudes, subjective norms, and perceived behavioural control. In the context of privacy and data security, this theory suggests that customers will be more likely to share their personal information with companies if they believe that the company will protect their information if their friends and family believe that it is okay to do so, and if they feel in control of how their information is used. Give examples and make the example detailed for amazon.
Theory of Planned Behavior Analysis Table for Amazon’s Privacy and Data Security Issue
| Attitudes | Subjective Norms | Perceived Behavioral Control |
| Customers trust Amazon’s ability to protect their personal information and data. | Influence of friends and family on customers’ decision to share personal information. | Customers’ control over how their personal information is used. |
| Amazon’s reputation for privacy and data security. | Industry norms and expectations for data protection. | Amazon’s policies and procedures for protecting customers’ personal information. |
| Awareness of cyber-attacks and data breaches. | Social media recommendations and reviews. | Customers’ understanding of the risks associated with sharing personal information. |
By investing in technology like encryption and multi-factor authentication to secure user data, Amazon has made efforts to increase customer confidence. Additionally, the business has put in place privacy rules that are clear and simple for clients to comprehend. As a result, customers have a more favourable opinion of Amazon and feel more comfortable disclosing personal information to the business. For example, customers can choose to opt out of data-sharing programs, and they can control their privacy settings. This gives customers a sense of control and makes them more likely to trust Amazon with their personal information
Critical Analysis of Privacy and Data Security Issues in Amazon
Overview of the Business Issues
With the increasing use of technology and AI in Amazon’s business processes, there is a growing concern about protecting customers’ personal information and data. This is particularly true in light of the increasing number of cyber-attacks and data breaches in recent years. As a result, customers are becoming more cautious about sharing their personal information with companies and expect companies to protect their information and data.
Impact of the Business Issues
The impact of Amazon’s privacy and data security issues has been significant. The company is responsible for ensuring that its customers’ personal information and data are protected and secure. If the company fails to do so, it could face negative consequences such as decreased customer trust and loyalty, reputational damage, and legal consequences.
On the other hand, privacy and data security issues have also brought about some positive impacts for Amazon. For example, the company has been able to use AI and other technologies to improve its business processes, such as its supply chain management, customer service, and marketing efforts (Helo, 2022). Amazon has leveraged its data and insights to understand its customers better and make more informed business decisions.
Positive Impacts of the Business Issues
One of the positive impacts of the privacy and data security issue at Amazon has been the increased use of AI and other technologies in its business processes. For example, the company has been able to use AI to improve its supply chain management, customer service, and marketing efforts. AI has allowed the company to automate many of its manual processes, improving efficiency and effectiveness (Modgil, 2022). Amazon has leveraged its data and insights to understand its customers better and make more informed business decisions.
Another positive impact of the privacy and data security issue at Amazon has been the increased focus on compliance with privacy and data security regulations. For example, the company has been able to comply with regulations such as the European Union’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). This has helped the company to maintain its customers’ trust and confidence, as well as to protect its reputation.
Negative Impacts of the Business Issues
One of the negative impacts of the privacy and data security issue at Amazon has been the increased focus on compliance with privacy and data security regulations (Li, 2022). This has required the company to invest significant resources in compliance, which has increased its costs. Amazon has faced challenges in maintaining its customers’ trust and confidence and protecting its reputation.
Another negative impact of the privacy and data security issue at Amazon has been the increased risk of cyber-attacks and data breaches. As the company continues to use technology and AI in its business processes, it becomes more vulnerable to cyber-attacks and data breaches. This has the potential to result in significant financial losses, reputational damage, and legal consequences.
Amazon’s Response to the Business Issue
Amazon has taken several steps to respond to the privacy and data security issue. For example, the company has invested in encryption and multi-factor authentication technologies to protect its customers’ personal information and data. Amazon has implemented policies and procedures to ensure that its employees are trained and knowledgeable about privacy and data security (Das, 2022). Another step that Amazon has taken is developing its security management system, which is designed to continuously monitor the company’s systems and networks to detect and respond to any potential security threats. The company has also regularly established a security review process to assess and improve its privacy and data security measures.
Amazon has also put in place a variety of safeguards to address privacy issues. For instance, the business established a data protection officer who manages privacy and data security efforts and ensures that its policies and procedures comply with best practices and industry standards. A data protection board created by Amazon and charged with providing top management with privacy and security-related advice. Amazon has also collaborated with outside parties to address privacy and security concerns. To build industry standards and best practices for data protection, for instance, the corporation collaborated with advocacy groups and privacy organizations (Tomlinson, 2022). To keep up with the most recent advancements and industry best practices, Amazon has also formed relationships with privacy and security specialists.
References
Althafairi, b., alhoumaida, n., saxena, m., & almsri, z. (2019). Case study-amazon. Journal of the community development in asia (jcda), 2(2).
Das, T. K., Mishra, S., & Pratihari, H. N. On Making Cloud More Secure and Trustworthy.
Helo, P., & Hao, Y. (2022). Artificial intelligence in operations management and supply chain management: An exploratory case study. Production Planning & Control, 33(16), 1573–1590. Available at https://www.seasiainfotech.com/blog/how-amazon-uses-artificial-intelligence/
Li, Z. S., Werner, C., Ernst, N., & Damian, D. (2022). Towards privacy compliance: A design science study in a small organization. Information and Software Technology, p. 146, 106868.
Madakam, s., holmukhe, r. M., & revulagadda, r. K. (2022). The next generation intelligent automation: hyperautomation. Jistem-journal of information systems and technology management, 19.
Modgil, S., Singh, R. K., & Hannibal, C. (2022). Artificial intelligence for supply chain resilience: learning from Covid-19. The International Journal of Logistics Management, 33(4), 1246–1268.
Rowe, F., & Markus, M. L. (2022). Taking the measure of digital giants: Amazon and the Social Welfare Computing research agenda. Electronic Markets, 32(2), 437-446. Available at https://businessmodelanalyst.com/amazon-swot-analysis/
Seeley, M., Hede, H., Bylart, M., & Rodwell, J. (2023). Diagnosing the Institutional Forces Impacting Australia’s Aerial Firefighting Capability. Sustainability, 15(2), 1636.
Tomlinson, A., Parkin, S., & Shaikh, S. A. (2022). Drivers and barriers for secure hardware adoption across ecosystem stakeholders. Journal of Cybersecurity, 8(1), tyac009.
Wong, R. Y., Chong, A., & Aspegren, R. C. (2023). Privacy Legislation as Business Risks: How GDPR and CCPA are Represented in Technology Companies’ Investment Risk Disclosures. Proceedings of the ACM on Human-Computer Interaction, 7(CSCW1).
Yathiraju, N. (2022). Investigating the use of an Artificial intelligence Model in an ERP Cloud-Based System. International Journal of Electrical, Electronics and Computers, 7(2), 1-26.
Zhang, L., Zhang, X., An, J., Zhang, W., & Yao, J. (2022). Examining the role of stakeholder-oriented corporate governance in achieving sustainable development: evidence from the SME CSR in the context of China. Sustainability, 14(13), 8181.
Appendices
write