IndexThe major impacts that Zappos' leadership and ethical practices philosophy have had on its stakeholdersThree ethical challenges Zappos faces and the actions needed to address the challengesEffectiveness of core values ​​as they relate to developing a culture of ethicsResponse to the challenges faced by ZapposZappos leadership has played a role in ensuring that an environment exists where employees can innovate and communicate with company management without discrimination based on race, gender and ethnicity. The culture of freedom in the company has been effective in developing relationships between employees at every level of management of the organization. Zappos leadership ensured that a positive relationship existed by creating employee engagement at all levels through several innovative methods based on organizational culture. To imitate Zappos' culture of ethics, other companies should dedicate themselves to their employees and customers by embracing and driving change to pursue growth and learning. It is necessary for other companies to have a somewhat strange situation that promotes employee involvement in company activities that would stimulate growth (Whitehorne, 2009). Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essayThe major impacts that Zappos' leadership and philosophy of ethical practices have had on its stakeholdersThe Zappos company operates under a business model that has enabled the creation of long-term customer relationships. The company has managed to set records that do not have to compete with other organizations as the company's strategic and tactical inventions result in long-term customer relationships characterized by quality customer service and large profit margins. Three Ethical Challenges Zappos Faces and Actions Needed to Address the ChallengesThe Zappos company faces the challenge of laying off some employees due to the unpredictable economic times. In 2008, the company had to lay off about 8% of its high-level employees, a difficult decision the company had to make as it cared about every employee. The laid-off employees received a health insurance package paid for by the company as a token of appreciation. To deal with the dilemma of firing some employees, the company should focus on performance appraisal reports as a firing procedure. The strategy would be important to identify the most productive employees and those who do not contribute much to the company (Silverman, 2014). Zappos company faces the ethical challenge of restructuring while partnering with other organizations. For example, Zappos merged with Amazon in 2009, a move that caused confusion among the company's employees and customers as they were not well informed of the decision to merge the two companies. Customers have publicly expressed their concerns about the merger, a sign that Zappos has not focused on customers as a major stakeholder in the organization. The leadership of Zappos has the obligation to inform customers about its business operations such as the merger with Amazon in 2009. In the age of digital world, the company could communicate with its customers through platforms such as Twitter to educate its customers about changes in its brands (O'Brien, 2009). The Zappos Company also faces the ethical challenge of leaking customer information due to technical difficulties. Technical errors are a common phenomenon, but problems need to be addressed quickly before complications and problems escalate. In 2011, orders,.