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> In total, after their fraudulent reinstatement, the products and merchants earned in excess of $100 million in sales revenue. Woah. Was not expecting it to b
by masonhensley 6y ago
> In total, after their fraudulent reinstatement, the products and merchants earned in excess of $100 million in sales revenue.
Woah. Was not expecting it to be that big.
> More specifically, the Indictment alleges that the defendants served as consultants to so-called third-party (“3P”) sellers on the Amazon Marketplace.
Most companies have their employees sign onboarding documents or do an annual "business conduct" policy review. Any thoughts on a better way to manage something like this at scale? On one hand, I have a bad taste in my mouth from past employment situations that dictate "we own every though that enters your mind 24/7" - but consulting regarding your current employer, yikes.
I guess ethics aren't boolean to some.
- ikeboy 6y agoDon't outsource critical business logic (like whether an 8-9 figure account should be suspended) to Indian low level contractors? This has long been a major issue with Amazon - often the people making the decisions as to whether a business with dozens of employees gets to keep selling or goes bankrupt are being paid less than US minimum wage in another country.
- kinkrtyavimoodh 6y ago> to Indian low level contractors So this style of casual racism / xenophobia is ok if directed at approved targets? Pretty sure if it happened to be 6 African American individuals who were indicted it would not be acceptable to say "Don't outsource your work to low-level Black contractors".
- deleted 6y ago[deleted]
- everybodyknows 6y agoConsider that the US DOJ has no authority to investigate, arrest or prosecute in India, India being a sovereign independent state. Also, https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html >Please respond to the strongest plausible interpretation of what someone says, not a weaker one that's easier to criticize. Assume good faith.
- gdyuytgh 6y agoDoJ absolutely can prosecute the managers who set up this scheme. Once a very white American SVP gets to spend a week in jail, the problem with outsourcing responsibility will be solved swiftly.
- jerzmacow 6y agoWhat a good rule to live ones life by!
- nurgasemetey 6y agoMany examples can be hiddenly loaded, not well-constructed rule
- ikeboy 6y agoThe difference is that people from other countries are generally not subject to US jurisdiction. Certainly the deterrence effect from stories like this is far larger for US based employees and contractors than foreign ones. It's not xenophobic to prefer US employees for sensitive positions of trust, where the rule of US law is relevant.
- kinkrtyavimoodh 6y agoSo it'd be okay to say it for contractors in Africa, who are black and who are also not under US jurisdiction?
- ikeboy 6y agoIf a company was outsourcing critical business logic to, say, Nigeria, I would absolutely criticize them for that. The color would have nothing to do with it.
- eloff 6y agoYes, generally putting critical access in the hands of foreign contractors, especially in third world or developing countries is a terrible idea. It has nothing to do with race. If you outsource to white Russian contractors in Russia you could be just as fucked.
- achow 6y agoExcept the fact that Amazon's office in Hyderabad India is the their largest in the world [1]. We are not talking about contractors - they are employees like any in their Seattle one, many actually do relocate back from US to India office. [1] https://www.nytimes.com/2020/08/25/business/amazon-hyderabad-india.html https://www.nytimes.com/2020/08/25/business/amazon-hyderabad...
- fmajid 6y agoI think the implication is that someone poorly paid and lightly supervised is more susceptible to bribery. Whether they are a contractor or full employee, or the color of their skin, is irrelevant. I personally doubt pay makes a difference, either you have integrity or you do not. All in all, this is very embarrassing for Amazon.
- scarface74 6y ago> Pretty sure if it happened to be 6 African American individuals who were indicted it would not be acceptable to say "Don't outsource your work to low-level Black contractors". Notice the word in italics? The US would still have jurisdiction. GovCloud is also not allowed to be administered by Indians but is allowed to be run by Indian Americans. It can’t be run by people from Great Britain either.
- flattone 6y agoReferring (india, a country not a color) to Issues relating to doing business/relying on decisions via work takin plce in a country other than the one where the business and its customers are is a bit different than ‘black’
- alasdair_ 6y agoThe point was that the two Amazon employees were citizens of India and took the bribes in India, so they were outside US jurisdiction.
- tsimionescu 6y agoThan why not say 'in India', instead of 'Indian'? There are many Indian people living and working in the US, with US citizenship. Conversely, if they had been US citizens ('Americans') living in India, the legal problem may have been similar. Saying 'low-level Indian contractors' brings to mind a specific, at least somewhat xenophobic, image,and is very often used very casually.
- cscurmudgeon 6y agoWell said. There are Indians under US jurisdiction. It is painful to see people contorting themselves to defend xenophobia and casual racism.
- aww_dang 6y agoLegally speaking, US citizens would still be liable.
- nkrisc 6y agoThe vast majority of people living on India are Indian, no?
- Aeolun 6y agoI assume it would be perfectly fine if they directed these kinds of decisions to Indian high level FTE’s. The problem here is not that they’re Indian :P
- dash2 6y agoCredible research suggests that levels of honesty differ across countries: Gächter, S. and Schulz, J.F., 2016. Intrinsic honesty and the prevalence of rule violations across societies. Nature, 531(7595), pp.496-499. Hugh-Jones, D., 2016. Honesty, beliefs about honesty, and economic growth in 15 countries. Journal of Economic Behavior & Organization, 127, pp.99-114. NB: I'm the author of the latter. This doesn't have to imply racism, there are numerous reasons why people might behave differently in different environments. Different culture, different institutional incentives, a different economic environment....
- viraptor 6y ago5 out of 6 people here were not based in India or another cheap labour country, so we've already for a counterexample.
- ikeboy 6y agoMost of those people weren't Amazon employees. The two employees indicted were India based (read the actual indictment, one of them moved to the US later).
- cscurmudgeon 6y agoThat’s still 4 out of 6.
- ikeboy 6y agoWhat exactly is your point?
- cscurmudgeon 6y agoYou can't see that?
- ikeboy 6y agoNo, it's unclear why the location of people that never worked for Amazon is relevant in this context.
- rtx 6y agoCasual racism is not ok man, this has nothing to do with nationality. I know tech industry workers are sensitive about outsourcing, but don't make it about nationality. If these companies are happy to sell in India they should not have problem hiring. India regularly extradites people who have been indicted in USA.
- ikeboy 6y agoYou can't honestly tell me you believe the deterrence effect is just as strong whether someone is US based or not.
- rtx 6y agoIt can be, Indian call center scammers are more scared of FBI than Indian law enforcement. Criminals have different value set nothing to do with nationality. We still have a article on the front page about an American CEO embezzing funds. You will not hear anyone saying be careful of American CEOs.
- ikeboy 6y agoThat's not the relevant comparison.
- frequentnapper 6y agoSo you're saying that it's ok to for Amazon to sell in India but not hire there?
- ikeboy 6y agoPlease read the above comments, in particular the part about critical business functions.
- frequentnapper 6y agoYou originally stated that: This has long been a major issue with Amazon - often the people making the decisions as to whether a business with dozens of employees gets to keep selling or goes bankrupt are being paid less than US minimum wage in another country. So I'm assuming you're saying that they shouldn't hire in India apparently because of less than minimum wage. So these kinds of things can be avoided if Amazon were to hire decision makers who make minimum wage or whatever the lowest amount they can get away with in US? As you know, the sellers and buyers are global. So should Amazon divide its operations so that Indian employees only process sales and purchases based in India? What happens with sales from India to USA or vice-versa? I am failing to grasp what exactly it is that you are saying here. With respect to extradition, India and USA already have a treaty.
- cscurmudgeon 6y agoThis is the kind of non-racist, non-stereotyping, and non-xenophobic advice that will make Amazon great again. https://en.wikipedia.org/wiki/Criticism_of_Amazon https://en.wikipedia.org/wiki/Criticism_of_Amazon
- dannyw 6y agoIt's hard to gauge intent, but I interpreted that message as "don't try to trim costs by outsourcing critical decisions to extremely low paid workers; especially in another country". I mean, should we try to use euphemisms for China's control of chipmaking? Or the German emission cheating scandal? Simply referencing a country or race doesn't make you racist. Interpreting it though...
- cscurmudgeon 6y ago> I mean, should we try to use euphemisms for China's control of chipmaking? Or the German emission cheating scandal? When that extends to Chinese people or Germans that is racist.
- JumpCrisscross 6y agoI’m of Indian heritage. This isn’t about the reviewers being Indian per se. It’s about a compliance function being placed in a country with poor law enforcement, low pay relative to the activity they’re monitoring and geographic/cultural separation from HQ. If you read about a bank whose traders are in New York and whose risk and compliance are in Tokyo, what would you think? And Tokyo has decent cops and high pay. This is, fundamentally, about Amazon treating this function as a cost centre versus brand defence.
- EE84M3i 6y ago> Tokyo has decent cops and high pay. No issue with your general point, but Tokyo having decent pay is generally not true and cops being decent is debatable.
- blueblisters 6y agoWere the Amazon employees who accepted the bribes from India? I don't see that mentioned anywhere on the link. It seems the third party contractors were hired by the Amazon sellers to bribe on their behalf. Edit: On reading the full indictment, there is no mention of the national origin of any employees of Amazon. The 6 accused knew each other and were exchanging insider information from undisclosed Amazon employees with third party sellers in return for a fee. A couple of them were ex-Amazon employees who presumably used their insider knowledge to build confidence with the third party sellers, but I don't think they are being charged for using that knowledge. Not sure how this would be prevented if Amazon did not have operations in India?
- fmajid 6y agoNishad Kunju of Hyderabad, India is the only defendant named as a former Amazon employee. The others bribed him, then he left the company and bribed his former colleagues.
- blueblisters 6y agoOh gosh I'm blind, I missed that line completely from the summary page. But does that mean all the bribes were given to employees in India? I wonder why they are not being charged? Perhaps because that part of the fraud happened within the Indian jurisdiction? Or are maybe they are waiting on Indian law enforcement to formally charge them.
- viraptor 6y agoThere's some space been the extremes. You're normally not allowed to say anything that would be a company secret, but nothing should stop you from consulting on Amazon Marketplace as long as you use only public information you know very well. If you're already past ignoring company secrets, is unlikely preventing other employment would stop you already. As for actual fixes, I think safety critical systems already have some answers: require 2 person confirmations, audit access, correlate repeated issues.
- frank2 6y ago> consulting regarding your current employer The 6 defendants weren't Amazon employees.
- amscanne 6y agoOne is a former Amazon worker, who was involved in the activity while employed: > In the course of the conspiracy described in the Indictment, the defendants paid bribes to at least ten different Amazon employees and contractors, including KUNJU, who accepted bribes as a seller-support associate in Hyderabad, India, before becoming an outside consultant who recruited and paid bribes to his former colleagues. In exchange for those bribes, the corrupted employees and contractors took the following illicit steps [...]
- Aeolun 6y agoI used to think you couldn’t possibly get any of those ethics courses wrong, until I saw someone close to me struggle through one. It’s just not as obvious to some people I suppose.
- ycombonator 6y agoBusiness conduct doesn’t work in countries like India which is rife with corruption. https://en.wikipedia.org/wiki/Corruption_Perceptions_Index https://en.wikipedia.org/wiki/Corruption_Perceptions_Index
- rorykoehler 6y agoIf they were worried about ethics they wouldn’t be working for Amazon. The best way to handle this is to break up the company so they can work on a scale that matches their competence (not only looking at business from a revenue perspective).
- valuearb 6y ago$100M in sales is only like $5M in profits at Amazon merchant profit levels.