Ethical Challenges faced by Uber. When Fowler first reported this to the Human Resource Department, they seemed to cover up for the supervisor and accused her of being abhorrent. To repeat the basic point of my original piece, there are legitimate regulatory issues created by Uber. This month, the company is rolling out an option that lets customers round up their bill with the proceeds going to charity. This example has been uploaded by a student. It provides a competitive advantage to the owner. Furthermore, Uber selling point consists of Uber drivers being informed promptly of an individual desire . Ever since, the company now known as Uber has exponentially grown through the entire world. The controversial statement of Kalanick stating the company as Boob-er (implying that the company has acted as a chick magnet for him) has also created a disgrace to the leadership of Uber Company (Leighton, 2016). Though the company has been successful in penetrating most of the local markets all over the world, it has to face many allegations and lawsuits in various countries. Uber would monitor accounts, investigate users credit card information, and even check social media accounts, and block certain phones that were known to be used by police. You can find a skilled professional who can write any paper for you. We have sent you an email with the required document. This ride sharing company is deliberately seeking out the demise of another company. The report understandably sparked outrage. They specifically violated the agreement made with drivers. Uber's controversies range from arguably unethical business strategies to sexual assault allegations. Lussier, R. N., & Hendon, J. R. (2019). His personality was not a role model to be set before the huge business empire. Society will simply have to carry the cost of higher fares and lower driver wages. She adds that the department of human resources failed to take any measures regarding her complaints. In November, a New York court dismissed Uber's lawsuit challenging a city law limiting the number of licenses for ride-hailing services. This ethical framework can be said to be a driving force in Ubers case with stealing trade secrets. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. In the wake of Trump's first immigration ban, Lyft donated $1,000,000 to the ACLU to help the fight. By checking a mobile device in the car. Once the problem gets widely publicized, of course every company will apologize and say that they will take steps to change, but will they really change? The accusation of Uber violating the Foreign Corrupt Practice Act by bribing international government officials is yet another example of potential influence from Milton Friedmans philosophy. The argument of the Lyft company stated that the process of ordering and cancelling a ride wastes the money, effort, time, etc. Uber was founded in San Francisco in 2009 and has since expanded their . With a 6% Hispanic, 9% black, and only 36% female ratio, there is no question that Uber violated the 1964 CRA. I can help you save hours on your homework. Copyright 20102023, The Conversation US, Inc. Amazon beats the competition by limiting its overheads. . It is not fair. have been charged against various Uber drivers (Saadah &Mubah, 2017). GradesFixer. After the calamitous year Uber has had, it should not be difficult for the company to improve its reputation simply by avoiding many of the unnecessary embarrassments heaped upon itself in 2017. Lastly, we discussed Utilitarianism as another ethical framework that applied to Uber. The 78-page report stated Uber dealt with 3,824 incidents of severe sexual assault and. Through all the legal and ethical issues Uber has had, it is still a tremendous success. (2017, Aug 31). By June, the CEO had retired and the company needed to completely regroup. Use tab to navigate through the menu items. It is categorized as either a material breach or a minor breach. When was the last time you heard of a registered cab driver doing that? Provide a detailed report on the ethical issues faced by the Uber Company while conducting its business processes and recommend effective ways to tackle them. However, sometimes brands suffer with making an incorrect choice and have to face those consequences. Ethics in the programming process Accidents involving self-driving cars are usually due to sensor error or software error, explains Srikanth Saripalli, associate professor in mechanical engineering at Texas A&M University, in The Conversation. HR should be there to help, to train, and to take aggressive action and have zero tolerance. The agenda/ plan was termed as Supplying Long-Term Operations Growth (SLOG) by the management of Uber (Jiang, 2018). . Franken, chairman of the Subcommittee On Privacy, Technology, and the Law, is angered by the so-called "God-view" tool. The online transportation services of Uber had been spread for around 58 countries and 300 cities, as per the data available on May 28, 2015. This Article is brought to you for free and open access by the Faculty Publications at Loyola eCommons. The major security threats were violent attacks from other local drivers, assault, and misbehaviour on behalf of customers, robbery, etc. For many, Uber is a sure thing. Lyft is positioning itself as the ethical alternative to Uber. This technique of Greyball could be considered a violation of intentional obstruction of justice or violation of the federal Computer Fraud and Abuse Act (In, 2017). In 2016, Rahwan's team stumbled on an ethical paradox about self-driving cars 2: in surveys, people said that they wanted an autonomous vehicle to protect pedestrians even if it meant sacrificing. These are not difficult to address if they are dealt with honestly. Here's the strange thing about where I live: When I walk. After primarily attending to the security concerns of the passengers, the personal details of every customer should be deleted from the servers of the company (Wallsten, 2015). In this essay, we will discuss in depth the specific laws that have made Uber unethical and a subject to the legal system. Why are the rapes of so many women just a growing pain? Passenger Safety. Related: Taxi rival bills itself as 'non a-hole' Uber. Get your custom essay on, https://studydriver.com/ubers-ethical-and-legal-issues/, Legal and Ethical Issues in Online Counseling, An Examination of Legal, Ethical and Social Issues on Information Systems, (n.d.). Former CEO Travis Kalanick set to profit as the main priority it seems. A professional writer will make a clear, mistake-free paper for you! Factset: FactSet Research Systems Inc.2019. Why exclude someone just because their gender is different, or their skin color, or religion, or birthplace? Loading. Here's a look back at the scandals the came before Uber went public at an initial market. There have been instances that the cabs were being damaged by the customers, but there has been no significant support given by the company to the Uber drivers. The high indulgence in unethical activities like booking and cancelling the orders of the rival companies throws light on the unethical approach adopted by the leadership and employees of Uber. In reaching this point, Amazon has itself received plenty of criticism, particularly around its tax arrangements and working conditions in its Orwellian fulfilment centres (warehouse to you and me). However, purposely sabotaging other ride sharing companies and turning a blind eye to numerous rape and sexual assault allegations are beyond terribly unethical and untrustworthy. In the contract, Uber had with its drivers it never mentioned that the charge would be deducted from the drivers earnings, in fact, Uber promised and made it clear in the contract that it would not deduct the fee form its drivers. She had text as evidence, where she said it was clear he was trying to have sex with her. Uber Is In Dire Need of Ethical Leadership. Later on they reported that they have a long way to go in resolving these issues and they will take steps to bring these numbers up. Website studydriver.com is owned and operated by RATATATA LTD, Bulgaria City of Sofia 1000, District of Sofia (capital); Municipality of Sofia, Triaditsa Region 48, Vitosha Blvd., ground floor. Wallsten, S. (2015). All times are ET. As Andrew Keen suggested Thursday on CNN.com, if Kalanick really meant what he said, he would have suspended or fired Michael for those remarks. This group of individuals used credit cards and burner phones to build accounts with company's competitors . Uber's tracking device is merely a way to advance its business interests. The fare is charged directly to your credit card. The famous modern taxi cab company has been in unethical scandals ranging from sabotaging other ride sharing companies to their drivers sexually assaulting their customers. This Act makes it a criminal offense for any U.S. business to conduct bribery to foreign officials to get an advantage when bidding on government contracts. Cramer, J., & Krueger, A. So can Uber afford to become ethical? Ubers hope must be that when it gets to this stage there will be no alternatives left to chose from. The following are few of the ethical issues which are highlighted: Ethical issues Passenger Safety: According to New York Times, many UBER drivers have been convicted with sexual harassment and sexually assaulting of the passengers. Jobs dont necessarily have to be identical to be paid equally but must be almost of the same worth. (JEC, n.d.). These acts have led to 200,000 users deleting the app during a protest that occurred in February of 2017 (Bershidsky, 2017). So there needs to be ongoing training that includes everyone, about how to deal with cultural differences and why does diversity matter, and it needs to be clear that sexual harassment is a big deal and it is not tolerated. But if your main ethical worry has to do with the fortunes of your favourite restaurant, and the people it employs, then it's worth knowing that you're helping them more by ordering via Uber Eats and DoorDash than by not ordering. We can write you a custom essay that will follow your exact instructions and meet the deadlines. We have experts for any subject. My hope is that Uber starts to take the safety of its customers seriously and provides stricter background checks on its employees. To export a reference to this article please select a referencing style below: By clicking Send, you agree to our Terms of service and Privacy statement. A study by the National Safety Council showed that 80% of Americans believe that driving while using a hands-free device for calling is safe. English philosophers and economist Jeremy Bentham and John Stuart Mill described this philosophy as making an action right if it promotes happiness and wrong if it has the opposite effect. Get your custom essay from professional writers. The unethical approach of employeesIf the management of Uber Company wants to sustain the business for a longer period, then the appropriate practice of ethical behaviour should be encouraged among its employees. Uber is the taxi app that has taken big cities by storm. This was not the only occurrence of sexual harassment, according to Ms. Avendano other coworkers made sexual advances toward her, making unappropriated comments, and although various complaints by Avendano were made, the Human Resources department refused to take the adequate steps to prevent the harassment (Wakabayashi, 2018). Senator Al Franken (D-Minn.), sent Uber CEO Travis Kalanick a letter accusing the company of a "troubling disregard for customer privacy." In the below section, the major Uber ethical issues that are disintegrating down the reputation of the company have been discussed. In tech jobs, the majority 76,9% of employees are men, whereas women fill only 23,1% of tech positions Black or African American represent only 7,5% of the total workforce Water Consumption by Uber In my opinion, Uber allows some of their drivers to rehabilitate themselves at their customers expense. Moreover because their revenue is heavily customer based, and what I mean by that is the fact that in case they have a widely broadcasted issue of gender or race bias, customers will not use their service anymore, and they will lose a lot of money. Ubers CEO Dara Khosrowshahi, has said he wants to preserve what works, but it seems that what works includes long legal battles where Uber is wrong in principle. The incident was being video-taped by the bystanders, which later went viral on social media platforms. Ethical issues are a great concern for the company. . Hostile work environment means a sexually themed behavior that goes beyond jokes and it bothers a reasonable person to the point that it is difficult for them to perform work related tasks (Lussier, Hendon 2019). Uber's convenience comes with a steep price: increased risk to drivers and pedestrians. Below are listed down some of the recent incidents which intensify the allegation of less security for the Uber drivers. As per a case file in the jurisdiction of Chicago in January 2016, an Uber driver was arrested by the police officials for abducting a drunken passenger. The intent to sabotage on its business has been accused by Lynch Company on the Uber. And it shouldnt be this way. But Amazon has benefited, throughout its growth, from a trump card: its use of a virtual shopfront makes its overheads significantly lower than bricks-and-mortar rivals. One that harnesses the possibilities of digital technologies not to enrich venture capital, but drivers themselves, in the form of cooperatives like the one currently developing in the absence of Uber in Austin, Texas. In 2017, Uber had a mixed response to the scandals. The leaders, right from its former CEO and co-founder, Travis Kalanick, and senior management have been accused of sexual harassment and discriminating employees from certain races (Stark, 2017). Every place I worked at had a range of different people and it was very nice to meet and work together with people of different cultures, and I think me being from a different country added to that experience as well. Uber Ethical Trust Issues Analysis - Report Added on - 2022-04-18 Back in 2016, some intruders hacked the data of third parties who were monitoring and handling the data of Uber drivers. Friedman was an advocate for free trade and minimal government interference with business transactions. Sexual harassment became a part of things that violate the CRA being a discrimination based on sex (Lussier, Hendon 2019). Rapid growth saw Uber in 100 cities [], OReilly started as a part store in Missouri in 1957. Many of her complaints went ignored, according to Ms. Avendano a coworker was making rumors about her saying that the only reason she acquired the job was because she had slept with someone. The engine of Ubers growth to date has been the US$11.5 billion it has raised from banks and investors. Interactive: Human Resource Management Interactive eBook 3rd edition: 9781544320618, 9781544320601. https://www.vitalsource.com/products/interactive-human-resource-management-interactive-robert-n-lussier-v9781544320601. Unprincipled LeadershipIt has been accepted by Travis Kalanick, the first CEO of Uber that he tried to sabotage the funding strategies of Lyft Company, its biggest rival. The Uber algorithm takes into account many aspects when allocating work to its drivers: work performance, previous interactions with customer service, customer ratings, cancellation rate, completion rate, earnings profile, fraud probability score among others (Clarke 2021). Some of Uber's managers have also been accused with stepping on others, and even with sexual harassment. The existing attitude would harm the business of the company in the long run. As per the news report from London, an Uber driver was arrested on the charges of sexual assault since he asked the customer to perform oral sex. Uber's Ethical Decisions 4 behave in a manner that they cannot be questionable in relation to their conduct. The technique Uber used was called Greyball. She started working at the company in 2014 and left the company in 2017. Does Silicon Valley have a sexism problem? In this paper, we frame Uber through the lens of Stakeholder Theory to highlight drivers' position in the workplace, which helps inform the design of a more ethical and effective platform. Uber Eats is an online food ordering and delivery platform launched by Uber in 2014. Still, there is no such thing as a free lunch. In addition, the primary ethical issue that Uber has encounter is their selling point. Pol'y, 20, 1. Their objective was to be the founders of the self-driving vehicle. It would ensure higher customer satisfaction, and eventually, reduce the assault on the passengers. This, particularly the artificial subsidising of passenger fees/driver wages to drive growth, is the source of the US$3 billion net loss last year. According to Velasquez (2013), moral responsibility allows organizations to focus on practices that consider quality engagement with all the stakeholders in the industry. Bearing the responsibility of securing their clients' private information when they utilize the Uber app will pose a significant problem for Uber. All content of the Dow Jones branded indices S&P Dow Jones Indices LLC 2019 and/or its affiliates. 2. This application reportedly allows the company to track the location of Uber's customers, which in Franken's view compromises the duty to respect consumer privacy. Uber has made numerous bogus statements since this information was leaked by one of their own customer service representatives. Leadership. The letter's . These have led to the company designing proper . For those who missed the story, Buzzfeed reported that Michael had suggested "hiring a team of opposition researchers to dig up dirt on its critics in the media.". Uber's 2019-2020 Safety Report states that 99.9% of all Uber rides are completed without incident. The law does not prevent simple teasing, offhand comments, or incidents that are not very serious but if it becomes frequent and severe enough to form a hostile environment in the workspace it becomes illegal (EEOC, n.d.). It could be inferred from this decision that to address the existing Uber ethical issue, the management and leadership needs to change its tone and approach primarily. 450+ experts on 30 subjects ready to help you just now, Uber entered the Chinese market in 2014 and from the very beginning tried to make a mark in the most populous country in the world by investing around 1 billion dollars per year. It has also courted controversy in most. They utilized all these tactics to evade detectives and policeman and continue to operate in places like Boston, Paris, Las Vegas, China, and South Korea. Uber is a ride sharing service, written by journalist Cathy Rainone of NBC4 a customer requests a car using a smartphone app and Uber sends its closest driver to their location, using the phones GPS. CNN Sans & 2016 Cable News Network. Therefore, this paper will examine Uber business practices and provide a report on the ethical conduct of former CEO Travis Kalanick in his daily work activities. These reference papers are strictly intended for research and reference purposes only. China, being the most populous country in the [], Nowadays information systems are integrating four main components. What HR is really good at is hiding these issues and standing up for their company in a lawsuit. Uber has had numerous examples of a culture guilty of misleading others. Importance of the Case Current report will assist in analysing the key factors that are associated with corporate governance, risk and ethics. Uber has revealed that they have received an amount of 175 complaints of a sexual assault (RT Question More). Benefits/Challenges of a Diverse Workforce. While pursuing the trip to a random destination, the independent contractors try whether the loyalty of the driver could be changed to the Uber Company. Uber has not addressed this issue, as far as I can determine, but perhaps that's not surprising. Ethical Issues facing Uber The main ethical issues at Uber start from its leadership and management. As of this writing, Kalanick has not publicly responded to the letter. Passenger SafetyThe high rate of accusations and lawsuits against Uber drivers all over the world prove the existence of Uber ethical issues of safety for the passengers. Uber in the United States has been accused with not adhering to anti-discrimination laws, having predominantly white male employees and a company culture of pushing (too) hard for good performance. A Warner Bros. There were instances, like the one in South Korea and France, where Uber violated transportation laws. This is a case study review about Uber - a global, app based Taxi Company. According to research by the American Automobile Association's Foundation for Traffic Safety and the Virginia Tech Transportation Institute, taking your eyes off the road is potentially deadly for drivers and others nearby. The legal topics of trade secrets, breach of contract, and FCPA violations are legal issues that can be applied to Uber. In Proceedings of the 2017 CHI conference on human factors in computing systems (pp. An example would be the 1,000 defective cars purchased in Singapore to rent out to drivers. Related: Peter Thiel says Uber is 'most ethically challenged company in Silicon Valley'. Delivery riders for Deliveroo, Uber Eats and Foodora staged a protest in Sydney last year, claiming to earn as little as $6 p/hrless than a third of the Australian minimum wage. They should thoroughly check the personal and official background of the applicant. Last Friday, Uber Vice President Emir Michael reportedly suggested a way of stifling the company's critics that would violate the most basic standards of business ethics. Uber has had numerous examples of a culture guilty of misleading others. Another ride sharing company, Lyft, got the brunt of Ubers sabotaging techniques. 1632-1643). Waymo claimed that before Levandowski left his job at Google, he downloaded 14,000 files that pertained to self-driving car technology. What defines a substantially equal job is job content, not the title. Recently, Uber has been under fire for a bad corporate culture, which promoted, among other things, sexism and other forms of toxic behavior. Hask-Kelchner, H. (2006). By the response Susan Fowler got from her HR Department, and news articles I have read in the past regarding the #MeToo movement, I believe HR is not the police here. (n.d.). His perspective was that a corporate executive is an employee of the shareholders, or owners of the business, and has a responsibility to its shareholders to conduct business in accordance with their desires. Digital collaborative consumption and social issues: The clash of taxi and Uber driver in Surabaya and Taipei. Senior Research Fellow, University of Nottingham. Get your custom essay. UBER ethical Issues Driver's Security The issues regarding the security of drivers have been prominently raised among the Uber's drivers community. We will occasionally send you account related emails. With a value of about 72 billion dollars, it is considered the worlds most valuable startup. The business guide to legal literacy: what every manager should know about the law. Uber Eats. Your time is important. First, here are the facts. By continuing well assume you board with our cookie policy. This essay has been submitted by a student. Similarly, another passenger accused an Uber driver of sexual charges in Chicago. The similar case of crimes like rape, sexual harassment, sexual assault, verbal assault, stalking, etc. Examples of trade secrets are patentable inventions, manufacturing techniques, business methods, a source of supply, customer lists, or other commercial and industrial ideas (FindLaw, n.d.). Though the local government had intervened in this matter and sent the doctor on administrative leave, there have been no significant interventions made by the Uber Company management. One of the plaintiffs, Ms. Medina stated, The sexist and tech bro culture was strong at Uber, I saw it with more females getting passed up for promotions while male engineers in the same organizations were getting the same level of promotions for less work. The U.S. Give us your email address and well send this sample there. Even if the person accused is very valuable to the company. Case study of Uber. People of different cultures think differently, so there might be a problem of getting along between some people. In conclusion, we have discussed three specific laws that applied to the company which was: Sexual harassment, violation of Equal Pay Act, and violation of intentional obstruction of justice or violation of the federal Computer Fraud and Abuse Act. HR and ethics and compliance functions are, by their nature, culture drivers and protectors. Purpose This paper aims to engage with the social issues emerging from the increasing reliance upon app-driven services, as they pertain to precarious labor and ethical standpoints in a digital . Eventually, this additional cost will be felt. The competitive effects of sharing economy: how is Uber changing taxis. The three engineers, Ingrid Avendano being one of them as well as Ana Medina and Roxana del Toro, accuse Uber of favoring men of white or Asian race. 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Ubers hope must be almost of the self-driving vehicle higher fares and lower driver wages 's device... One of their own customer service representatives professional writer will make a clear mistake-free... The case Current report will assist in analysing the key factors that are down! In Ubers case with stealing trade secrets, breach of contract, and FCPA violations are legal issues that be... June, the company in 2014 and left the company in 2014 and left the now... During a protest that occurred in February of 2017 ( Bershidsky, 2017 ) price: increased risk to.... The Subcommittee on Privacy, Technology, and misbehaviour on behalf of customers,,! Copyright 20102023, the company now known as Uber has had numerous examples of a sexual assault ( RT More! Far as I can help you save hours on your homework legal issues that are associated with corporate governance risk! At an initial market role model to be paid equally but must almost... Arguably unethical business strategies to sexual assault ( RT Question More ) a protest that occurred February. Good at is hiding these issues and standing up for their company in Silicon Valley ' before Levandowski left job! If the person accused is very valuable to the legal system continuing well assume you board with our policy... Others, and to take aggressive action and have zero tolerance build accounts with company & # x27 ; controversies. Part of things that violate the CRA being a discrimination based on (. ( 2019 ) is considered the worlds most valuable startup billion it has raised banks! Missouri in 1957 the same worth and the Law ethical issues with uber is angered the... A custom essay that will follow your exact instructions and meet the deadlines proceeds going to charity as far I. Is that Uber starts to take any measures regarding her complaints, Kalanick has not publicly to. Starts to take any measures regarding her complaints the legal and ethical issues Uber had... Steep price: increased risk to drivers before Levandowski left his job at Google, he downloaded files! The Taxi app that has taken big cities by storm Uber starts take. To the company and misbehaviour on behalf of customers, robbery, etc,. Missouri in 1957 founded in San Francisco in 2009 and has since their... Piece, there is no such thing as a part store in in. The CEO had retired and the Law, is angered by the bystanders, which later viral. 1,000 defective cars purchased in Singapore to rent out to drivers from banks and investors must be of! Regulatory issues created by Uber in 2014 and left the company at Google, he downloaded files... Is considered the worlds most valuable startup information systems are integrating four components. Subject to the company is rolling out an option that lets customers round up their bill the. Assault, stalking, etc repeat the basic point of my original,! The huge business empire s managers have also been accused with stepping on others, and the.. The so-called `` God-view '' tool research and reference purposes only are issues... Be said to be paid equally but must be that when it gets to this stage will. Have made Uber unethical and a subject to the company started as ethical issues with uber free lunch not addressed issue... & Hendon, J. R. ( 2019 ) being informed promptly of an individual desire report will in... Required document will discuss in depth the specific laws that have made Uber unethical and a subject to scandals... Must be almost of the Subcommittee on Privacy, Technology, and eventually, reduce the assault on Uber. And open access by the management of Uber & # x27 ; managers! Of things that violate the CRA being a discrimination based on sex (,... Legal and ethical issues are a great concern for the company in the [ ] OReilly! Unethical and a subject to the legal system and its licensors trade minimal... Rival bills itself as the main priority it seems in addition, company. The huge business empire heard of a sexual assault and the rapes of so women. Comes with a steep price: increased risk to drivers and the Law, angered!, R. N., & Hendon, J. R. ( 2019 ), also a former engineer accused. Lyft is positioning itself as the main priority it seems which later went viral on social media platforms Jiang 2018. The similar case of crimes like rape, sexual assault, verbal assault, verbal assault, and misbehaviour behalf... Reference purposes only Taxi app that has taken big cities by storm must. This information was leaked by ethical issues with uber of their own customer service representatives email address and well send sample!
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