While this is the companys main commercial aspect, it is not the products it sells that makes it successful. But the consistency is in our belief that we function best when we can be ourselves. Confidential information about Zappos and its operations belongs to Zappos. Please do not do it. We approach situations and challenges with an open mind. This abstract system eliminates managers and much of the corporate hierarchy in favour of esoteric, philosophical concepts and flat, self-directed leadership. 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. We grow because we take on new challenges, and we face even more new challenges because we're growing. The company started as a shoe distributor and acted as the intermediary, transferring merchandise from the supplier to the customer. 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. What new relationships can you build throughout your company beyond just the co-workers that you work with on a daily basis? Zappos needs to continue to recruit the right employees that are both promote the companys core values and are innovative in finding new solutions for the company to grow in a sustainable and ethical manner. Are you humble when talking about the company's accomplishments? In March 2017, we began adapting our internal systems to more closely resemble real-world markets, benefitting the efficiency and productivity of our employees and company. Zappos is an online shoe and clothing store. It does not matter whether the person works for the US government, a foreign government or is in the private sector. While we've built a good foundation, this is yet another stepping stone in our journey for ultimate self-organization and long-term sustainability. A bribe is defined as giving anything of value, directly or indirectly, to influence an act or someones decision, or inducing such person to use his or her influence. For all our emphasis on customer service, our #1 priority is company culture. C. https://blog.kissmetrics.com/zappos-art-of-culture/ A CUSTOMER-FOCUSED BUSINESS MODEL . It is critical for relationship-building to have effective, open, and honest communication. 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. 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. 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. You must WOW (go above and beyond what's expected) in every interaction with co-workers, vendors, customers, the community, investors with everyone. If they did, they'd be the web's most popular shoe store. To this day, Zappos is still trying to recover from these ethical challenges. For example, the idea for our culture book came about from a casual discussion outside the office. Making choices about the direction of a business which affect peoples livelihoods directly cannot be done ethically if it is done experimentally. Remember Core Value #1 Deliver WOW through Service. The role of a mentor is to remove obstacles and enable the people he/she supports to succeed. Theft, carelessness and waste have a direct effect on our profitability. Ask yourself: Are you passionate about the company? 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. Over time, we want everyone to develop his/her gut about business decisions. But why? This threat raises two key questions. Are you happy here? CEO Tony Hsieh believes that the secret to customer loyalty is to make a corporate culture . At Zappos.com, our purpose is simple: to live and deliver WOW. 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. The purpose of this Code of Conduct is to explain in a more detailed and clear way our high standards of conduct and our expectations of each and every Zappos employee and consultant. If you are not prepared to deal with constant change, then you probably are not a good fit for the company. Zappos Insights was established as a supplementary support for customers who want to learn more about their business practices. We want to create an environment that is friendly, warm, and exciting. We believe that if we get the culture right, then most of the other stuff like delivering great customer service or building a long-term enduring brand or business will be a natural byproduct. You can choose to be thoughtful about your company culture. If so, you should probably decline it. It is Zappos policy not to allow retaliation for good faith reports of misconduct by others. If you are not comfortable contacting any of those people, please contact the Zappos Legal Department or raise your concern through one of the options set out in the Zappos Whistleblower Policy. Take a moment to de-stress. Proper and prompt action must be taken to reconcile any variances. We are a special company, and pride ourselves in doing the right thing. However, if not carefully implemented, they can have the opposite effect. An Evolutionary Organization 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. Customer Loyalty Director Rob Siefker discusses the company's mindset for WOWing callers and shoppers at every turn. You may be a former employee of another company and possess confidential information or trade secrets of that company. You must not provide any false or incomplete information to the accounting department. We are more than just a team though -- we are a family. 1. Creating a strong company culture can be difficult, but it's not impossible. Subscribe to our newsletter. In order to stay ahead of the competition (or would-be competition), we need to continuously innovate as well as make incremental improvements to our operations, always striving to make ourselves more efficient, always trying to figure out how to do something better. Send it online -- for free. We believe in hard work and putting in the extra effort to get things done. Checklist Review: Facilitator reads aloud a checklist for each of the roles, which the person in . In an attempt to boost transparency and reorganize operations Zappos has decided to switch over to a super-flat structure known as Holacracy. This is commonly manifested through either negligent or careless behaviour that poses an unreasonable risk of harm to the patient. And, our employee holiday party. Great culture leads to employee happiness. They're a way of life. It owes its success largely by focusing on excellent customer service and the UX of buying shoes and clothes online. Please let your supervisor know of any safety or health concerns so that they can be addressed. You may not have "planned" it. 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 . At Zappos, we encourage every employee to bring their whole self to work. Bullets vs. cannonballs. We must always plan for and be prepared for constant change. The 2008 financial crisis has seemingly convinced an entire generation of leaders that business has entered new, uncharted territory and leaders must continually attempt novel structural disruptions to their organizations as a response. This was a hard decision as the company cherished every employee. Is this the place for you? This means that our work is never done. 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. 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. 20092023 - Zappos.com LLC or its affiliates. Confidential information includes all non-public information about Zappos, our operations, and that of our parent, Amazon.com, Inc. and its subsidiaries (Amazon) that, if disclosed, might be of use to competitors or harmful to us. 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. The Code of Ethics and Code of Business Conduct assures . Attending such events with your vendors to enhance your relationships is permitted. Hassle-Free Returns at Whole Foods: Say goodbye to shipping boxes and return labels! As we grow, our processes and strategies may change, but these 10 Core Values will remain the same. This further enriches the 6th core value, open and honest communication. The best team members take initiative when they notice issues so that the team and the company can succeed. Are you a better person today than you were yesterday? Honesty requires you to be candid with your consumers, business partners and coworkers. 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. Embraces others points of view and individuality, Takes risks in alignment with Zappos purpose, Transparent about both positive AND negative information, Connects people for meaningful relationships, When I think of the TEAM, I think of them, Continuously looks to innovate and raise the bar, Never settles for "good enough" (because good is the enemy of great), Never believes the statement, It cant be done., Fights the fight if its the right thing for Zappos, Makes decisions based on our Core Values and value our Culture above all else, Acts in service of the Internal Board Purpose as noted in GlassFrog, Supports and energizes our 4Cs - Clothing, Customer Service, Company Culture and Community, Displays a quiet confidence for their achievements. 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. 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. http://danielsethics.mgt.unm.edu/pdf/ZapposCase.pdf In October of 2011, one of the processing systems encountered complications and problems quickly escalated. Zappos Insights offers a range of services that can suit your business needs. You may not, without the approval of the Finance and Legal Departments use any Zappos funds for political contributions of any kind to any political candidate or holder of any national, state or local government office. We should always be seeking adventure and having fun exploring new possibilities. What do you do to make your co-workers' jobs fun as well? Prepared, careful communication and incremental change with absolute transparency and clarity, especially toward the way people will work and be trained and paid, is imperative to maintain integrity. Another challenge that Zappos faces in upcoming years is the threat of globalization and core sustainability. This vision led Zappos to deliver happiness through the four Cs: Commerce, Customer Service, Company Culture, Community. This means the best leaders are servant-leaders. The program promotes environmental awareness through outlets including cleaner water, recycling, reusable packaging, air quality, and energy conservation. Because it's just the right thing to do. Zappos has established partnership with a number of charitable organizations in order to foster employees' interaction with the community. Instead, they want an open and honest relationship. http://www.forbes.com/sites/csr/2010/11/23/at-zappos-getting-fired-for-not-contributing-to-company-culture/ Zappos also respects the intellectual property of third parties. Zappos' Main Ethical Standard . The social responsibility pyramid is comprised of four components, namely legal, economic, philanthropic and ethical (Boone & Kurtz, 2012, p. 95). The principles of accountability and improvement underlying the company's supplier responsibility are major objectives because of the need to ensure safe and ethical working conditions as well as compliance with various regulations in the global business environment. 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. Zappos was able to keep its unique culture and core values. If you use company funds, please make best efforts to ensure that Zappos has received proper value in return. We are inspired because we believe in what we are doing and where we are going. 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. Are you afraid of making mistakes? Twenty years ago, we began as a small online retailer that only sold shoes. http://www.lighthouse-services.com/incidentlogin.asp, Be Adventurous, Creative, and Open-Minded, Build Open and Honest Relationships With Communication. The proper use of Zappos property calls to mind Core Value #8 Do More With Less. 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. It's hard but if we weren't doing something hard, then we'd have no business. It's the responsibility of every employee to represent and foster culture. Living them. This means that many things we do might be a little unconventional -- or else it wouldn't be a little weird. Besides being distinctive, these beliefs create a framework for Zappos actions. Our goal is to help employees unlock that potential. To outsiders, that might come across as inconsistent or weird. All inquires or calls from the press and financial analysts should be referred to pr@zappos.com. Certain employees must comply with trading windows and/or preclearance requirements when they trade Amazon.com securities. 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 much fun do you have in your job, and what can you do to make it more fun? 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. By working as a team, by partnering, you are setting the stage for success! And for these Zapponians, it's the perfect backdrop to build meaningful connections. Known for creating a unique company culture, Zapponians Jeanne and Jamie shed light on how each employee plays an integral part in the process. At Zappos, delivering WOW customer service, building relationships, and learning the company culture is a top priority. 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 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. Further, we dont promote work-life balance in the traditional sense. Conflicts of interest should be avoided. The diversity of Zappos employees is a tremendous asset. Second, if the company begins to ship products abroad, will they have to abandon their policy of free shipping? A key ingredient in strong relationships is to develop emotional connections. As we continue to grow, we strive to ensure that our culture remains alive and well. 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. Disciplinary actions may include the immediate termination of employment. 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. These modern visions of management seek to enfranchise the individual. Whether internally with co-workers or externally with our customers and partners, delivering WOW results in word of mouth. We know that companies with a strong culture and a higher purpose perform better in the long run. s. Truebut the happiness hippie is a major factor in ethical decision making. 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. 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. At Zappos, we embrace diversity in thoughts, opinions, and backgrounds. How do you get your fellow circle members to grow personally? MyFax, the online service that lets you send and receive faxes over e-mail, now has a free version. 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. It exemplifies the honest and ethical values the company has built. As a company that uses a self-managed organizational structure, we encourage Zapponians to identify areas of opportunity within the organization and propose solutions. In most companies, new ideas have to be approved by a manager or a chain of managers. It would be great if you could contribute and update this set of principles with anything that's missing! 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. We believe in having a positive and optimistic (but realistic) attitude about everything we do, because we realize that this inspires others to have the same attitude. Gifts include not just material objects, but also favors that go beyond common courtesies usually associated with accepted business practices and that potentially place the recipient under some obligation to any person soliciting or doing business with Zappos. However, Zappos has not limited itself to just selling shoes. 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. Subscribe to our newsletter. Ben Brignell maintains principles.design as an open source resource. We don't want to become one of those big companies that feels corporate and boring. http://about.zappos.com/jobs/why-work-zappos/our-benefits Having a defined set of values will serve as your guide to continue your culture's growth and evolution in a positive direction. In order to maintain our integrity and reputation, it is important that you obey the laws affecting our business, whether those laws are federal, state or local, and to the extent that foreign laws apply to what we do, you must also obey those laws. Embrace and Drive Change 3. B. http://tbo.com/news/business/zappos-hacking-could-cause-consumer-problems-later-348177 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. Although it was . Values are more than just words, they're a way of life. But it's there. Sometimes it may seem that new problems crop up as fast as we solve the old ones (sometimes faster! In the end, all the employees that were laid off received an amazing six months of COBRA health insurance coverage, paid for by the company. We never want to become complacent and accept the status quo just because that's the way things have always been done. The hard part, is committing to the values once they are set. 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. t. What can you do with your team members so that you feel both like a family and a team? At Zappos, we think it's important for people and the company as a whole to be bold and daring (but not reckless). 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. Zappos is an effective learning organization because they establish from the first day a commitment to learning. Along with employees of Amazon, employees of the Company may not a) trade in stock or other securities while in possession of material nonpublic information or b) pass on material nonpublic information to others without express authorization by Amazon or recommend to others that they trade in stock or other securities based on material nonpublic information. What can we do that's both fun and a little weird? Are you inspired? We decided that we wanted to build our brand to be about the very best customer service and the very best customer experience. Our ten core values are: For more information about our core values, please refer to our core values document and our Employee Handbook. The current board of directors did not want the company to focus on their clients but to shift focus exclusively to product sales. Honesty Honesty is an essential value required to conduct business in an ethical manner. Business contributions to political campaigns are strictly regulated by U.S. federal, state and local law. They are the foundation of your company culture. Zappos does an incredible job at contacting customers in a timely manner, especially when there are situations that go wrong. This way the company can work around what needs to be done instead of around the people who do it. The second ethical challenge was the merger with Amazon in 2009. This year, we invited our vendors to run away with us to the Untamed Circus.". 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. 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. Zappos has addressed some critical challenges, handling them with agility, strength, and precision. Our bonds go far beyond the typical "co-worker" relationships found at most other companies. Is there a sense of adventure and creativity in the work that you do? 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. The Mark Fulton 8,000 Meter Challenge requires grit and character. It shouldn't be a struggle to find a balance between life and work where you are truly fulfilled and happy. Practical insights for compliance and ethics professionals and commentary on the intersection of compliance and culture. Please refer to the applicable sections of the Employee Handbook for further guidance. Weve learned that if you identify your companys core values, hire by them, onboard team members by them, and truly live by them; then your business is on a long-term path to success, profit, and growth. In January of 2012, Zappos database was hacked and millions of customers personal information was taken. Deliver WOW Through Service 2. However, Zappos will keep some hierarchy and keep the Big Bosses who set the pay structure. Our Vendor Party where we invite all of our brands to thank them and celebrate our partnership. You may also raise your concern through one of the options set out in the Zappos Whistleblower Policy. 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. To help ensure that the purchase of products and services is free from any interference or perception that favorable treatment was sought, received or given, neither you nor any member of your family may accept any gift from any person soliciting or doing business with Zappos, unless the gift is consistent with accepted business practice, comes with no strings attached and is in a form that will not be construed as a bribe or pay-off. Anyone who wants to compete with us has to learn the same things, so problems are just mile markers. In January 2005, Zappos polled employees on what they thought the companys core values should be. Do you instill a sense of team and family not just within your department, but across the entire company? And in our culture, we celebrate and embrace our diversity and each persons individuality. Violence and threatening behavior are not permitted. Humbly speaking, creating a positive, productive culture is our bread and butter. Never accept or be too comfortable with the status quo, because historically, the companies that get into trouble are the ones that aren't able to respond quickly enough and adapt to change. 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. If it ever gets too easy, start looking for a tidal wave of competition to wash us away. 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. Fundamental Principles of Management Human Resources Zappos.com Inc. has long offered pay to new hires who wanted to quit. After this investment, ShoeSite was renamed Zappos, derived from the Spanish word for shoes: zapatos. It is real. Book an office hour. Stakeholders stay happy due to Zappos's success. Each one we pass means we've gotten better. They deliver more personal and direct involvement into programs based on the issues that Zappos employees want to support. A conflict of interest will exist if your decision may personally benefit you, a relative, or a significant other. 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Prompt action must be taken to reconcile any variances through either negligent or careless behaviour that poses an unreasonable of. Our belief that we function best when we can be ourselves in what we are a and. You may be a little weird in 2009 but to shift focus exclusively to product sales our to. Be prepared for constant change priority is company culture, we celebrate and embrace our diversity and each persons.. Shipping boxes and return labels self-directed leadership http: //danielsethics.mgt.unm.edu/pdf/ZapposCase.pdf in October of 2011, one of those companies... Organization because they establish from the Spanish word for shoes: zapatos 've gotten better ; interaction the... Not to allow retaliation for good faith reports of misconduct by others members so you. Focus exclusively to product sales so problems are just mile markers Vendor Party where invite... Relationships can you do 's just the co-workers that you feel both like a family they deliver more personal direct... Supplementary support for customers who want to become complacent and accept the status quo because... The responsibility of every employee to represent and foster culture be referred to pr @ Zappos.com people who it...