http://www.reuters.com/article/2014/10/27/us-amazon-com-germany-idUSKBN0IG0HV20141027
Upon rejection of better pay and working conditions, warehouse staff at Amazon has been called by the labor union to go on strike at five different cities across Germany. The union hopes that Amazon will offer a pay level for its logistics workers similar to that of the mail order and retail industries, even though Amazon argues that its workers already receive high pay in comparison to industry standards.
For an online retailer like Amazon, a primary goal of operations is cost savings. Henceforth, it is understandable for Amazon to disagree to pay rises that will increase the total cost of production. However, it is equally important for Amazon to adhere to its corporate social responsibility in order to sustain a dependable image in the industry. Therefore, I believe that in response to the workers’ protests, Amazon should create shared value opportunities by “redefining productivity in the value chain”, according to Kramer and Porter. For example, Amazon can review its operations to detect areas where less resources can be utilized, or where less waste can be produced. In doing so, not only can the money saved be used to meet the workers’ demands, Amazon will also be involving itself in sustainable practices that are beneficial to society as a whole.