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 are not an average company, our service is not average, and we don't want our people to be average. 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? Take a moment to de-stress. All violations or suspected violations of this Code of Conduct should be promptly reported to your supervisor or the director or Vice President of your department or business division. If they did, they'd be the web's most popular shoe store. 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. If you are unsure whether a contemplated action might violate any of the antitrust laws, you must review it with the Legal Department prior to implementation. Twenty years ago, we began as a small online retailer that only sold shoes. Fast, simple and privacy-focused website analytics. Ask yourself: What are things you can improve upon in your work or attitude to WOW more people? Book an office hour. Zappos also respects the intellectual property of third parties. Where laws have been violated, Zappos will cooperate fully with the appropriate authorities. The giving of gifts to government employees, even gifts of low value, is highly regulated and in many cases prohibited. And whatever you do must have an emotional impact on the receiver. Ask yourself: Are you passionate about the company? A conflict of interest will exist if your decision may personally benefit you, a relative, or a significant other. 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 employee who handled this transaction not only reimbursed her for the product, but went out of their way to send her a bouquet of flowers for her time of need. 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. All inquires or calls from the press and financial analysts should be referred to pr@zappos.com. You must also avoid any investment, interest or association that interferes or might interfere with your independent exercise of judgment in Zappos best interests. If the violation or suspected violation involves any of those parties, or concerns accounting, internal controls or auditing matters you should make your report directly to the Zappos Legal Department or the Zappos Ethics Hotline at 800-348-1496 (Espaol: 800-216-1288). How can you build stronger relationships with your team members both inside and outside the office? Strong, positive relationships that are open and honest are a big part of what differentiates Zappos from most other companies. Real, unscripted employees from across the organization discuss what Zappos means to them, from the people to the company culture. Reports made on the Ethics Hotline may be made on a confidential and anonymous basis. Do you understand the purpose of your circle? It exemplifies the honest and ethical values the company has built. Paradoxically, one way leaders try to retain relevance and stay appealing to both customers and employees is to embrace change. Zappos code of ethics is written for employee reference in decision making. A remaining pioneer of the dot-com boom and now a subsidiary of Amazon, Zappos has thrived and innovated under the leadership of Tony Hsieh, known not only for the selection of products it offers, but also for its customer services standards and social media engagement. Deliver WOW Through Service 2. The Code of Ethics and Code of Business Conduct assures . Unless information is publicly available, you should in general avoid discussing the following subjects with any competitor: prices, terms or conditions of sale; credit terms, discounts, profits, profit margins or costs; market segment shares; distribution practices; bids on contracts; sales territories; selections, rejections or terminations of customers; or any other matters where an agreement with a competitor would be inconsistent with the complete freedom of action of Zappos in the conduct of our business. Zappos Insights 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. Embrace and Drive Change 3. Further, we dont promote work-life balance in the traditional sense. Tony Hsiech, CEO stated, "It brand about Zappos had ten . The best team members take ownership of issues and collaborate with other team members whenever challenges arise. organized under the Zappos Family. Strong relationships allow us to accomplish much more than we would be able to otherwise. Stakeholders stay happy due to Zappos's success. http://redcouch.typepad.com/weblog/2009/07/why-i-dont-like-the-amazonzappos-deal.html While it could also expose Zappos to liability, more importantly, it would damage our reputation. How do you get your fellow circle members to grow personally? 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. D. http://www.zapposinsights.com/training/holacracy http://www.lighthouse-services.com/incidentlogin.asp, Be Adventurous, Creative, and Open-Minded, Build Open and Honest Relationships With Communication. Instead, they create a leadership vacuum and a change process where no one is in charge because everyone is, at least in theory, empowered. t. Falsedeveloping relationships with charities helps the employees develop strong codes of personal ethics. Instead, they want an open and honest relationship. For example, there is nothing improper about having dinner with a vendor when the vendor is in town, even if the vendor visits regularly because there is a legitimate business purpose servedyou are developing a strong relationship with the vendor. 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. Strong, positive relationships that are open and honest are a big part of what differentiates Zappos from most other companies. For all our emphasis on customer service, our #1 priority is company culture. It is real. The best team members take initiative when they notice issues so that the team and the company can succeed. All employees of the Company are expected to review and follow the Insider Trading Guidelines. This threat raises two key questions. 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. Sometimes it may seem that new problems crop up as fast as we solve the old ones (sometimes faster! You should report to work in condition to perform your duties, free from intoxication due to drugs or alcohol. We want everyone to not be afraid to take risks and to not be afraid to make mistakes, because if people aren't making mistakes then that means they're not taking enough risks. http://about.zappos.com/our-unique-culture/zappos-community-involvement?page=1 Be Adventurous, Creative, and Open-Minded, Build Open and Honest Relationships With Communication, Challenges the status quo or common wisdom, Is comfortable with chaos and uncertainty. Are you doing everything you can to promote company growth, and at the same time are you helping others understand the growth? 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. And, our employee holiday party. What can we do that's both fun and a little weird? In response to these situations Zappos contacted each customer informing them of the predicament they were in. Please let your supervisor know of any safety or health concerns so that they can be addressed. Zappos has established partnership with a number of charitable organizations in order to foster employees' interaction with the community. Source: Zappos.com, inc. Code of business conduct and ethics Ethics is "a set of principles for determining good and right conduct (Willerton, 2015, p. 60). A conflict of interest exists when your private interests interferes in any way or competes with Zappos interests. This proves the companies dedication not only to the employees work life, but to their personal well-being. Standard write-ups of the Zappos story focus on the company's commitment to customer service. We want just a touch of weirdness to make life more interesting and fun for everyone. 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. Passion is the fuel that drives ourselves and our company forward. Humbly speaking, creating a positive, productive culture is our bread and butter. Accordingly, all political contributions with Zappos funds are coordinated and approved by the Zappos Finance and Legal Departments. Whether internally with co-workers or externally with our customers and partners, delivering WOW results in word of mouth. Although the data of credit card numbers were not stolen, information regarding full names, addresses, phone numbers, and the last 4 digits of credit cards were compromised. 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. MyFax, the online service that lets you send and receive faxes over e-mail, now has a free version. 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. Zappos does an incredible job at contacting customers in a timely manner, especially when there are situations that go wrong. 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. Over the years, Zappos has taken strides to eliminate the common fates that most companies of our age and size contend with: slowing innovation and evolution, too many management levels, bottle-necked decision making, and disengaged employees. If the trainee does not want to join the company after this process, Zappos offers them $2,000 compensation. 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. You must at all times try your best to deal fairly with your fellow employees, our customers, vendors and investors. 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. At Zappos, we think it's important for employees to grow both personally and professionally. We believe that customer service shouldnt be just a department, it should be the entire company.. While you may think that there would not be a problem with taking a government employee out to dinner or paying for a round of golf, there may be. It lets you send two faxes a day, of up to 10 pages each, without . We decided that we wanted to build our brand to be about the very best customer service and the very best customer experience. There is excitement in knowing that everyone you work with has a tremendous impact on a larger dream and vision, and you can see that impact day in and day out. Attending such events with your vendors to enhance your relationships is permitted. As CEO, Tony Hsiehs has given priority to encouraging a strong corporate culture. 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. Embrace and drive change. Our company culture is what makes us successful, and in our culture we celebrate and embrace our diversity and each person's individuality. Or maybe you love it. Significant others include persons living in a spousal relationship (including same sex) or familial fashion with the employee or consultant. Something unique that Zappos does is allow brand representatives access to all the same sales and inventory information on their products that Zappos has. A key ingredient in strong relationships is to develop emotional connections. Experiments with new ideas before going all in. We watch out for each other, care for each other, and go above and beyond for each other because we believe in each other and we trust each other. Like all enduring enterprises, Zappos faces the challenge of reinventing itself to strive for longevity and sustainability. I love that I get to be me all day. All Zappos payments and other transactions must be properly authorized by management and be accurately and completely recorded on our books and records in accordance with generally accepted accounting principles and established corporate accounting policies. But why? One of the side effects of encouraging weirdness is that it encourages people to think outside the box and be more innovative. Zappos has addressed some critical challenges, handling them with agility, strength, and precision. How do you encourage more change to be driven from all areas of the organization? The brand is just a lagging indicator of the culture. Check-in Round: Each person has an uninterrupted chance to mention anything on their mind. Similar restrictions on political contributions may apply in other countries. 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. Business contributions to political campaigns are strictly regulated by U.S. federal, state and local law. Happy employees means higher engagement, profitability, and low turnover. 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. If you use company funds, please make best efforts to ensure that Zappos has received proper value in return. Another challenge that Zappos faces in upcoming years is the threat of globalization and core sustainability. For example, the idea for our culture book came about from a casual discussion outside the office. Are you a better person today than you were yesterday? Building a culture is a special process that can't be taken lightly. You may be able to find the missing information at the source URL: https://www.zappos.com/c/code-of-conduct. A year later, at the age of 26, Tony Hsieh became the CEO. Please do not do it. Although it was . 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! By this, the customers feel valued and a part of the Zappos family. And for these Zapponians, it's the perfect backdrop to build meaningful connections. 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. Read Our Oath Of Employment 1. Be Adventurous, Creative, and Open-Minded 5. We believe that no matter what happens, we should always be respectful of everyone. 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. How much fun do you have in your job, and what can you do to make it more fun? Is there a sense of adventure and creativity in the work that you do? Do you push yourself outside of your comfort zone? Thanks to the contributors to this project. Ask yourself: How much do people enjoy working with you? How do you challenge and stretch yourself? Hsieh did not approve of abandoning the customer-centric model that Zappos was founded upon, and decided he must take action. To outsiders, that might come across as inconsistent or weird. One of the main perks of working for Zappos are the vast and numerous benefits. While this is the companys main commercial aspect, it is not the products it sells that makes it successful. The social responsibility pyramid is comprised of four components, namely legal, economic, philanthropic and ethical (Boone & Kurtz, 2012, p. 95). Great culture leads to employee happiness. Backtrack to 2013: Tony Hsieh, Zappos's CEO, started promoting a new management structure called holacracy. In these times of change, ethical considerations taking a backseat to a lean business model is not a sustainable approach. We encourage people to make mistakes as long as they learn from them. Change can and will come from all directions. NURSING ETHICAL PRINCIPLE #1: ACCOUNTABILITY: Per the American Nursing Association's Code of Ethics, professional accountability, one of the important ethical principles in nursing is defined as "being answerable to oneself and others for one's own actions."Nurses are accountable for their actions when caring for patients and must accept the personal and professional consequences of those . http://www.ariozick.com/why-zappos-shouldnt-be-your-business-model/ Officers and directors who are employees of our parent, Amazon.com, Inc., must comply with the Amazon.com, Inc. Code of Business Conduct and Ethics. They're a way of life. That may seem negative, but it's not: we'll do our best to "get it right," and then do it again when we find out that things have changed. The diversity of Zappos employees is a tremendous asset. Lets not tarnish that reputation by dealing unfairly with anyone. A law is defined as: . How can the company as a whole become more efficient? Zappos attempts are carried out with good intentions, but implementing this system on 1,500 employees will not be easy and may have some consequences. It's the responsibility of every employee to represent and foster culture. This Code of Conduct applies to all employees and consultants of Zappos.com, Inc. and its subsidiaries (Zappos), and to all officers and directors of Zappos who are also Zappos employees. You will find our core values explicitly defined there. We believe in hard work and putting in the extra effort to get things done. 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. Zappos L.E.A.F (Leading Environmental Awareness for the Future) is a grassroots program initiated by employees, which strives to transform Zappos into a greener company. Principles help inform and influence values. The second ethical challenge was the merger with Amazon in 2009. All rights reserved. Ask yourself: How do you encourage more teamwork? Another challenge that Zappos faces in upcoming years is . What new relationships can you build throughout your company beyond just the co-workers that you work with on a daily basis? Please refer to the applicable sections of the Employee Handbook for further guidance. Zappos public communications should contain full, fair, accurate, timely and understandable disclosure. However, by employing the right people, Zappos can avoid or lessen the consequences of switching to a self-regulating organization. As we grow, our processes and strategies may change, but these 10 Core Values will remain the same. We want people to develop and improve their decision-making skills. After this investment, ShoeSite was renamed Zappos, derived from the Spanish word for shoes: zapatos. What is your vision for where you want to go? You are also prohibited from using Zappos property, information or position for personal gain, or competing with Zappos or Amazon. Relatives include your spouse, sister, brother, daughter, son, mother, father, grandparents, aunts, uncles, nieces, nephews, cousins, step relationships and in-laws. 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. To help avoid conflicts of interest, Zappos has adopted the following rules: Employees or consultants who buy or sell goods or services or have responsibility connected to buying and selling for or on behalf of Zappos and members of their respective families are prohibited from having (i) any economic interest in private business concerns that transact business with Zappos or are in competition with Zappos, and (ii) any significant economic interest in such business concerns that are publicly held. It represents a collaborative effort of numerous Zapponians across the Company, and has been officially adopted by the Company. If you are uncomfortable with the idea that your conduct or words will be available for all to see, you should think again about your course of action or words. That part is fairly easy. You may not pay or accept bribes of any type. You must not, without proper authority, give or release to anyone not employed by Zappos or Amazon, or to another employee who does not need to know, data or information of a confidential nature. Wouldn't you rather be a company where your employees easily combine their full self into everything they do? 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. Please consult with the Zappos Legal Department before providing or paying for any meals, refreshments, travel or lodging expenses, or giving anything of value to a government employee, whether US federal, state, local or foreign. We expect every employee to deliver WOW. This vision led Zappos to deliver happiness through the four Cs: Commerce, Customer Service, Company Culture, Community. If you have any question about whether you can accept a gift, please check with your supervisor. 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. We believe in operational excellence, and realize that there is always room for improvement in everything we do. At Zappos our 10 Core Values are more than just words, they're a way of life. We are more than just a team though -- we are a family. You may also raise your concern through one of the options set out in the Zappos Whistleblower Policy. It is never appropriate to receive or give cash. However, if not carefully implemented, they can have the opposite effect. Our culture would not be what is it today without the people, past and present. Part of being in a growing company is that change is constant. http://about.zappos.com/jobs/why-work-zappos/our-benefits As we continue to grow, we strive to ensure that our culture remains alive and well. The hardest thing to do is to build trust, but if the trust exists, you can accomplish so much more. The first was the 2008 Layoff. Zappos takes great pride in providing a safe and healthy work environment. How can you personally help the company become more efficient? You must WOW (go above and beyond what's expected) in every interaction with co-workers, vendors, customers, the community, investors with everyone. Employees and managers on the same level playing field can constrain friendly-competition that motivates employees to keep progressing. Today, we still sell shoes as well as clothing, handbags, accessories, and more. Disciplinary actions may include the immediate termination of employment. The best team members have a positive influence on one another and everyone they encounter. We encourage diversity in ideas, opinions, and points of view. Monday 2 June 2014, by Alysia Echevarria, Zappos Insights' Christa Foley sits down to share more. Subscribe to our newsletter. http://blogs.zappos.com/blogs/zappos-family/2012/03/08/formally-introducing-zappos-l-e-f As a company that uses a self-managed organizational structure, we encourage Zapponians to identify areas of opportunity within the organization and propose solutions. If you've been at Zappos for more than a few months, one thing is clear: Zappos is growing. In 1999 Nick Swinmurn launched ShoeSite.com; an idea prompted after a failed attempt of trying to buy a pair of shoes in San Francisco. While the spirit of the laws that govern our business conduct are often straight forward, the application may not always be, so seek out guidance if you are unsure. Every company onboards differently. Our philosophy at Zappos is to WOW with service and experience, not with anything that relates directly to monetary compensation (for example, we don't offer blanket discounts or promotions to customers).We seek to WOW our customers, our co-workers, our vendors, our partners, and in the long run, our investors. Be adventurous, creative, and open minded, Build open and honest relationships through communication. We have 2 annual parties at Zappos. It is our policy to disclose information concerning Zappos to the public only through specific limited channels to avoid inappropriate publicity and to ensure that all those with an interest in Zappos will have equal access to information. Confidential information may include, for example, information about Zappos strategy, plans, customers, suppliers, financial statements, credit card information, contracts, capitalization, proposed acquisitions or divestitures, as well as confidential information about other companies with which we do business. If you make an anonymous report, please provide as much detail as possible, including copies of documents you believe relevant to the matter. They are the foundation of your company culture. 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. Do you exemplify a positive team spirit? 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." Please see your supervisor or consult with the Zappos Legal Department if you have any concern about whether you are in a conflict of interest situation. You can choose to be thoughtful about your company culture. It leads to higher employee engagement and higher profitability. Are you afraid of making mistakes? Zappos strategy guarantees that customers will have a fulfilling experience while shopping on their online store. 1. This list was further narrowed down, and on February 14, 2006, the Core Values were introduced. The thinking often goes that fixing things before they are broken is better than turning up one day and realizing suddenly nothing works. That "more" is providing the very best customer service, customer experience, and company culture. Subscribe to our newsletter. We believe that inside every employee is more potential than even the employee himself/herself realizes. You may make legal personal contributions, but you may not represent that youre making any such contribution on Zappos behalf. Creating a strong company culture can be difficult, but it's not impossible. 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