Amazon's tax avoidance
We launched a boycott of Amazon in 2012 over its tax avoidance. This was called because in 2011, as the world's biggest online retailer, Amazon generated UK sales of £2.9bn yet paid only £1.8m in corporation tax. The correct figure should have been over £8 million at the full rate of corporation tax at that time.
Things have become much worse since then.
In 2024, Amazon's UK revenue surged to reach a massive £29 billion. This is 10 times its turnover when Ethical Consumer’s boycott campaign started. Yet, the company continues to underpay its taxes and withhold details of its actual profits. While it proudly states that it paid just over £1 billion in direct taxes that year, it remains unclear what level of profit those tax payments were based on.
Paul Monaghan, chief executive of Ethical Consumer's sister organisation, the Fair Tax Foundation said: “Amazon are once again tactically releasing their total tax contribution calculation to distract attention away from the pitifully low levels of corporation tax that have been contributed by Amazon UK Services over recent years. The public are not interested in how much VAT Amazon has collected and passed on to the Government. They want to know how much profit they actually account for in the UK from the £29billion of revenue they collect here. One can only surmise that the lack of transparency is connected to the sizeable chunk of UK revenue that is still shunted to the historically ‘loss-making’ subsidiary in Luxembourg."
In 2024, Ethical Consumer research estimates that Amazon's corporation tax avoidance alone may have Amazon’s substantial tax avoidance in the UK cost the UK public purse over £575 million. How does Amazon's tax strategy impact public services and ethical consumer choices? Explore the full details of Amazon's tax avoidance on our boycott page.
Amazon's company ethos
Excessive pay for those at the top
Executive compensation at Amazon shows a significant disparity:
- CEO Andrew R Jassy: USD $40.1 million (£29.5m) in 2024
- Five other executives: over $20 million each (£14.7m)
- Average UK warehouse worker starting salary: under £14 an hour.
This highlights a stark contrast in pay within the company.
Involvement with controversial industries and lobbying
What are the ethical implications of Amazon's move into nuclear power? Amazon invested £500 million in small modular nuclear reactors in October 2024 to power AWS data centers. This move raises ethical questions regarding environmental impact and long-term energy solutions, sparking debate on its alignment with sustainability goals.
Earlier this year, together with Google and Meta, Amazon signed a pledge to support efforts to at least triple nuclear energy worldwide by 2050.
It also lost points for membership of various lobby groups such as the World Economic Forum, Eurocommerce or the Business Roundtable. These organisations tend to exert undue corporate influence on policy-makers in favour of market solutions that are potentially detrimental to the environment and human rights.
Military links
Amazon reports on its business practices but maintains deep military ties.
The company has no policy prohibiting work with the military and has secured 137 US Department of Defense contracts since 2020, including a $581.3 million deal to provide cloud services for the Air Force's Cloud One program "designed to provide secure, scalable computing environments for weapons systems, command-and-control applications, intelligence processing, and business systems."
While Amazon frames this as supporting mission-critical work, critics revealed that "Amazon sold cloud-computing services to two Israeli weapons manufacturers whose munitions helped devastate Gaza" during periods when Israel's military was using their products to indiscriminately kill civilians and destroy civil infrastructure.
Through its Joint Warfighting Cloud Capability contract, AWS continues providing "secure, reliable, and mission-critical cloud services" to the US Department of Defense, enabling them to deploy their cloud environments to “meet the needs of their mission”.
Links with Israeli human rights' abuses
Amazon.com, through Amazon Web Services (AWS) signed a $1.22 billion (£0.9bn) contract with the Israeli state in 2021, alongside Google. Known as Project Nimbus, it promised vast cloud storage, artificial intelligence tools, and analytics to “the Government, the Security Services and other entities.”
Nimbus provides the backbone for Israel’s apartheid regime and its war on Gaza. Despite Amazon’s claims to publicly characterise Nimbus as a civilian project, Israeli officials themselves have credited the project with giving the military new capabilities during airstrikes.
We have a separate article on Amazon's links with Israel.
Amazon and workers’ rights
Amazon is renowned for its poor treatment of its workers.
The Centre for Law and Work together with Berkeley University of California published a document in 2022 pointing out that in spite of all Amazon’s claims, “it absolutely does not” comply with international labour standards.
On many occasions Amazon has aggressively opposed unionisation and organising efforts at its warehouses.
In April 2024, GMB filed legal proceedings against Amazon. The union claims Amazon has engaged in widespread attempts to coerce staff to cancel their trade union membership. Union recognition would mean Amazon would be forced to sit down with GMB on matters relating to pay, hours, and holidays.
Amazon's anti-union efforts have significant implications for workers' rights. The company has spent spent tens of millions on anti-union consultants, raising serious concerns about fair treatment and collective bargaining. This investment undermines ethical labor practices within the company.
Amazon suppliers don’t receive better treatment either from the company. Amazon was listed in the UK’s Groceries Code Adjudicator (GCA) survey for the first time in 2023.
Amazon has been consistently name the worst food retailer annually. Why does Amazon consistently rank poorly in supplier surveys, and what measures are being taken to address these issues and improve relationships with suppliers? Explore the underlying reasons for this recurring problem.
The GCA is responsible for encouraging, monitoring and enforcing compliance with the Code and thus for regulating the relationships between the UK's largest grocery retailers and their direct suppliers. Perhaps unsurprisingly Amazon jumped straight to the last place of the list with almost four times as many accusations of code violations as the next company up.
Inadequate supply chain policies
Amazon sources conflict minerals and cotton without adequately stringent policies for protecting human rights. This is a concern because these products are at risk of being sourced from places where human rights abuses occur, including Turkmenistan (in the cotton sector) and the Democratic Republic of Congo (conflict minerals). Much more is needed than vague commitments to ensure the supply chain is free from violations.
Children’s privacy violations
In June 2023 Amazon agreed to pay $25 million (£18.5m) in fines to settle alleged privacy violations. These involved its voice assistant Alexa and doorbell camera Ring. US’s Federal Trade Commission claims in one lawsuit that the tech company kept recordings of children's conversations with its voice assistant Alexa but failed to delete them – as it had promised it would – when parents asked it to do so.
Amazon agreed to pay another $5.8 million, because Ring had allowed employees and contractors to watch recordings of customers' private spaces, sometimes including bedrooms and bathrooms.