According Bezos, Amazon was able to accept trust building

According to Connell and
Ferres (2003), trust building is an ongoing process which will last until the
organization exists. Trust is not an inherited trait, but it is an earned
trait. In other words, a person trusts another one based on his activities in
the past. Genetics or reputation has nothing to do with the development of
trust. Amazon is one company which tries to develop trust among all its
employees and departments. Under the leadership of its founder CEO Jeff Bezos, Amazon was
able to accept trust building as one of the core business functions of the
company. The scope of trust is not limited to the employees alone in Amazon
Company. The company is keen on building trust with all its stakeholders such
as customers, sellers, employees, and the communities in which the company
operates.

According to Klidas,
Antonis, Berg, and Wilderom (2007), customer-oriented culture will help a
company to increase its trust with its customers. Amazon is one company which considers
customer satisfaction as an important thing. In order to increase customer
satisfaction, it is necessary for the company to build the trust between the
company and all its customers. This awareness forced the company to divide the
customer segment into four different categories: enterprises, final consumers,
sellers, and content (Robin School of
Business, 2012).  The needs of
each of these four customer segments are different. That is why the company
decided to divide its customers into different groups and cater their needs
properly so that the company can earn their trust.  For example, Amazon Web Services are capable
of meeting the needs of the enterprises. On the other hand its retail website is
capable of meeting the needs of the ordinary consumers by offering low prices,
wide selections, ease of website use, etc. (Robin School of Business, 2012).  

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Another strategy developed
by Amazon for the trust building was the invitation given to a variety of sellers to sell their products
through Amazon web store. This strategy
was mutually beneficial as the sellers were able to exploit the brand value of
Amazon and the company was able to reach much larger customer base (Robin School of Business, 2012). Brand value
is one of the most important things that helps companies to sell their
products. Modern customers give first priority to the brand while taking a
purchasing decision. As mentioned by Uncles,
Dowling and Hammond (2003), branding performs the role of making the customers
feel important and as the main organ of the company. While allowing sellers to
use the brand value of Amazon, they improve their trust with Amazon. It should
be noted that sellers may find it difficult to attain a brand value similar to
that of Amazon. They are getting a shortcut to sell their product under the
label of a big company. Such a gesture from a multinational company (MNC) like
Amazon would definitely improve the mutual relations between the sellers and
Amazon.

Employees
are another stakeholder who trust Amazon very much. According to Henkin
and Moye (2006), employees who feel empowered in their work environment tend to
have higher levels of trust with their company. According to the findings of
the Business
Today ‘Best Companies To Work For ‘ survey, Amazon is the third most sought
company in India (Shashidhar, 2017). The case of Amazon in other countries is
also not different. It is widely regarded as one of the most employee friendly
companies in the world. Amazon was able to earn the trust of the employees
through relationship building. Relationship building is accepted as the core
business strategy in Amazon.  As
mentioned by Gordon and Scott (2006), trust is a socially embedded property
of relationships among people. It can be earned or developed. In other words,
the reputation alone may not help a company to catch the trust of employees.
For example, Apple Inc. is one of the most valuable company in the world.
However, Apple’s work culture is demanding and many employees have complaints
about it (IBS Centre for Management Research, 2009). In
this case, the reputation of Apple Company may not help its employees to
develop trust.

Nyhan (2000) proposed a trust-based
model in which the participation of the employees is possible in the decision
making process. Amazon has developed and implemented many strategies to build
the employee trust. For example, Amazon has recently implemented a strategy in
which the company tied the compensation and ownership in the company with its
employees (Robin School of Business,
2012). This strategy helped Amazon very much in improving the trust of the
employees in the company. As mentioned by Costigan et al. (2007), employees
can be fully trusted and it is possible to broaden the decision-making
authority of those employees whenever possible. Amazon has given the decision
making ability to its employees up to certain extent. Being the owners of the
company, it is possible for Amazon employees to take independent decision on
certain occasions. The feeling of ownership in a
company would definitely help employees to improve their confidence while
working in a company. In most of the other companies, employees have the
feeling that their efforts will be benefitted only to the company since they
have no ownership role in those companies. At the same time, Amazon employees
are owners of the company and hence they develop a feeling of honour while
working in the company.