Professional self-employment, new power and the sharing economy: Some cautionary tales from Uber. Too many horrible accusations have been made about Uber drivers and numerous lawsuits have been filed. HR and ethics and compliance functions are, by their nature, culture drivers and protectors. Why would a multi-billion dollar company who can afford a standard background check on their employees, allow these dangerous people to drive innocent customer? (JEC, n.d.). Not only does Uber not avoid these costs, its model actually introduces new ones. Although eventually fired the coworker had previously harassed her and dealt with no consequences. Retrieved from New York Times: https://www.nytimes.com/2018/05/21/technology/uber-sexual-harassment-lawsuit.html, In, S. F. (2017, Mar 04). Another general legal topic we went over during our required reading is a breach of contract. Former CEO Travis Kalanick set to profit as the main priority it seems. 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. Ultimately, in response to Fowler's claim of sexual harassment and similar accusations, Uber fired 20 employees, including senior executives, and reprimanded 40 more employees. A Warner Bros. Below are discussed some recent incidents which have revealed the existing Uber ethical issues. & Pub. Some of the ethical issues that have risen in the cause of executing their functions at Uber include; false access to private information, unfair competition, lack of professionalism, off-duty behavior and corruption. All times are ET. You can find Ubers ethical position on its . Software, hardware, people and data those components will be analyzed further. Lussier, R. N., & Hendon, J. R. (2019). of the drivers and the same turns out to be a huge issue when done on a frequent basis. She started working at the company in 2014 and left the company in 2017. Don't use plagiarized sources. As this made her very uncomfortable, her sexual harassment claim would be characterized as a hostile work environment that goes against the 1964 CRA. Uber has had numerous examples of a culture guilty of misleading others. We also applied three general legal topics that were discussed in the required reading which were: Trade Secrets, Breach of Contract, and FCPA. Taxi regulation in the age of Uber. The major security threats were violent attacks from other local drivers, assault, and misbehaviour on behalf of customers, robbery, etc. 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. You can get your custom paper by one of our expert writers. Their objective was to be the founders of the self-driving vehicle. 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. Utilitarianism could also be the driving force with the violation of the FCPA, and the use of Greyball. Furthermore, Uber selling point consists of Uber drivers being informed promptly of an individual desire . Uber executives stated that they are working on bringing in more women and more people of color into tech (Lussier and Hendon, 2019). Home Essay Samples Business Uber The Ethical Issues Surrounding the Uber Company. So can Uber afford to become ethical? Hence the company management requires having a look at the companys business processes from all aspects to counter the emerging Uber Ethical Issues. Uber (and Lyft, another ride-share app . Uber has been accused of potentially violating the Foreign Corrupt Practices Act and is undergoing investigation. 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? 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. Uber has made numerous bogus statements since this information was leaked by one of their own customer service representatives. In this case, also, the Uber Company has not taken any supportive stance for its driver. But there are two important differences between the God-view tool and what law enforcement officials do. (n.d.). The report understandably sparked outrage. Several Uber drivers have been accused of sexually assaulting passengers, according to a recent report by Farhad Manjoo in The New York Times, among other sources. Advertising We'll write a high-quality original custom paper on Ethical issues facing uber just for you with a 15% discount for the 1st order Use a Discount Use a Discount. Total Assignment Help Rated 4.8/5 based on 10542 reviews. 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. NYUJ Legis. Practical Ethics in Public Administration. By clicking Continue, you agree to our terms of service and privacy policy. Designing for labour: Uber and the on-demand mobile workforce. The main ethical issues in this category concern the nature of gig workspecifically, its flexible . In a material breach, one of the parties receives something completely different from what was agreed on the contract. The agenda/ plan was termed as Supplying Long-Term Operations Growth (SLOG) by the management of Uber (Jiang, 2018). HRs responsibility when receiving a sexual harassment complaint is to report to higher management, and they will decide what to do. Related: Uber sorry for 'hot chick' 20-minute ride promo. Uber has suspended its services in Philippines after the national regulator banned it from operating for one month. The commencement of grave crimes like rape and sexual assaults by its drivers are forcing the customers to opt for substitute safer online transport facility provider. The business guide to legal literacy: what every manager should know about the law. Same Frizell explains how Lyft told CNNmoney that Uber employees have called and canceled more than 5,000 rides. Our local operations span across Australia, US, UK, South east Asia and the Middle East. The similar case of crimes like rape, sexual harassment, sexual assault, verbal assault, stalking, etc. Uber's main selling point -- that nearby drivers are notified immediately of your desire to get a ride -- is also its chief drawback, at least from a safety perspective. Senior Research Fellow, University of Nottingham. Center for Ethical Organizational Cultures . Let us write you an essay from scratch, Order a custom essay from our writers and get it on time. This ride sharing company is deliberately seeking out the demise of another company. The Uber Company has appointed some of the independent contractors who use dummy accounts in their burner phones. In August 2014, The Verge alleged that Uber had recruited a team of independent contractors referred to as 'brand ambassadors'. Disclaimer. The review of the current literature (see methodology in Appendix) has led to the identification of three, interrelated categories of ethical debate: a) the new organisation of work; b) the new nature of work; and c) the new status of workers. First, here are the facts. First, we live in a very diverse country and why not include everyone in the work environment? This is a case study review about Uber - a global, app based Taxi Company. The Edge DR Tech Sections Close Back. I can help you save hours on your homework. This is a mistake. 3. Effectively, what both companies surely rely on is investors subsidising the prices customers pay in the short term, in return for a long-term monopoly with higher prices. 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. 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. Total Assignment help is an online assignment help service available in 9 countries. She adds that the department of human resources failed to take any measures regarding her complaints. cent sure and w the three arities to the Uber Technologies, Inc. (Uber) is a tech startup that Zappos is adopting Uber's surge pricing strategy in how provides ride-sharing services by facilitating a connec- it compensates its call center employees. Give us your email address and well send this sample there. We use cookies to personalyze your web-site experience. Start your subscription - find out more The company did not respond to repeated requests for information about its drivers. (2016, May). Here's the strange thing about where I live: When I walk. Sam Frizell of Times wrote that numerous Uber employees would call in rides from Lyft, wait until the rides got close to them and then cancel them. While shops have used economies of scale to operate first nationally, then internationally, for over a century, taxi companies have remained highly localised. ETHICAL ISSUES. Amazon became the largest online retailer on the planet by burning through huge sums of investment on the way to becoming dominant in an ever-increasing number of sectors, and a de facto monopoly in some such as books. 19 Digital collaborative consumption and social issues: The clash of taxi and Uber driver in Surabaya and Taipei. The open letter continues, "Making changes only at the corporate leadership level creates a dangerous likelihood that Uber's sustained ethics challenges will resurface.". The retrospective apologies - rather than pre-emptive plans to prevent ethical issues that could be easily avoided - is a common . Uber's report astutely calls out two critical components to ensure that HR has the right ability to influence the organization: (1) confirming that human resources had the full and robust support of management, and (2) ensuring that the organization is . An Uber Ethical Dilemma: Examining the Social Issues at Stake Florence Chee Loyola University Chicago, fchee@luc.edu Author Manuscript This is a pre-publication author manuscript of the final, published article. Our professional writers can rewrite it and get you a unique paper. Case study of Uber. Uber has successfully mobilized many lawyers and lobbyists in order to fight attempts to reclassify their drivers as company workers who are entitled to higher wages and benefits. Orders: Jobs dont necessarily have to be identical to be paid equally but must be almost of the same worth. Let's fix your grades together! Even if it acceptable to practice bribery in the foreign country, the FCPA prevents US companies from doing so (Hask-Kelchner, 2006). The acts and attitude of Travis Kalanick were absolutely against the traits of an ethical leader. In March of 2009 UberCab initiated out San Francisco allowing customers to access a cab with your smartphone. This led to a four-month investigation and pressure . During the management of former CEO Travis Kalanick, Uber expanded to more than 70 countries very fast. These are staggering amounts, and to make sense of them we need to understand that Ubers business model is the same as Amazons. Uber has not addressed this issue, as far as I can determine, but perhaps that's not surprising. Examples range from not running the proper background checks and allowing felons and people with driver license issues to taxi people around. Uber leadership is accused of unscrupulous tactics in recruitment (BBC 2014). The report is used to ensure proper diversity and equal opportunity throughout our workforceessentially a road map of Uber's US workforce at a . Even if the person accused is very valuable to the company. The benefits of a diverse workforce at an organization such as Uber are described above, but there exist challenges as well. 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. Leighton, P. (2016). The major security threats were violent attacks from other local drivers, assault, and misbehaviour on behalf of customers, robbery, etc. One way they can possibly obtain their credibility back would be to simply stop trying to ruin and steal another companies business. Ubers fundamental problem is that it does not have this advantage. It all comes down to the economic model on which Uber is built. This Article is brought to you for free and open access by the Faculty Publications at Loyola eCommons. All rights reserved. If Uber can achieve market dominance before it runs out of funding, the inefficiencies in its model cease to matter. Ensuring HR has a significant seat at the table. 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. There are always problems wherever people are involved. Uber, unfortunately, is also guilty of breaching a contract. Benefits/Challenges of a Diverse Workforce. Uber's relation with drivers deteriorated following a decision to alter the company's revenue-sharing formulawith Uber taking as much as 30 percent of gross fare revenue (depending on driver volume), up from 20 percent previously. A wealth of data at your fingertips. Remember: This is just a sample from a fellow student. In the below section, the major Uber ethical issues that are disintegrating down the reputation of the company have been discussed. Journal of Management & Organization, 22(6), 859-874. 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). For many, Uber is a sure thing. for. The technique Uber used was called Greyball. The investors were being influenced and misinformed to stay away from funding in the venture capital of Lyft company. His personality was not a role model to be set before the huge business empire. All Rights Reserved. We have experts for any subject. 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. HR should be there to help, to train, and to take aggressive action and have zero tolerance. There is a great tendency among commentators to focus on the capabilities of Ubers app, when making sense of its explosive growth across the world. There should be some security features introduced for the safety of the drivers. 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. Don't wait until a breach happens to plot the course forward. In Proceedings of the 2017 CHI conference on human factors in computing systems (pp. 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. Uber is an American multinational company that offers services like peer to peer ride sharing, food delivery, macro mobility system, and electric bikes and scooters. But even before that, this wildly popular car-sharing service had raised several disturbing ethical issues: 1. In a properly regulated market, in which Uber has to give its drivers appropriate employment protections, and passengers the safeguards they need, its goal of apparently aping Amazon becomes even harder. Trade secrets are something not generally known. Recently, Uber has been under fire for a bad corporate culture, which promoted, among other things, sexism and other forms of toxic behavior. Retrieved from Harvard JLOT: https://jolt.law.harvard.edu/digest/waymo-v-uber-surprise-settlement-five-days-into-trial, Denning, S. (2013, June 26). Does Silicon Valley have a sexism problem? 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. 3/22/2021. Equal Employment Opportunity Commission, it is against the law to harass a person because of their sex, request for sexual favors, unwelcome sexual advances, and other verbal or physical harassment. A fairly common conclusion is that Uber needs to become more ethical if it is to survive. 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. Cancel via phone or email within 30 days for a full, no-questions-asked refund! Uber's advantages include door-to-door convenience, safety, and reliable quality. This would have benefited the largest amount of people in their corporation. 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. The company is headquartered at San Francisco; California with name Uber Technologies Inc. Uber is the leading American multinational company which has the largest network of online transportation service. Why are the rapes of so many women just a growing pain? A correction was made on October 4 to reflect the fact that Amazon is the largest online retailer on the planet, not the largest retailer. The first distribution center opened in 1975. According to the U.S. Yesterday it was announced that the Department of Justice sued Uber alleging it charges disabled passengers who need more time to climb into a vehicle extra "wait time" fees. Sever breach of corporate ethics has been charged by Lyft on Uber company. our extensive database of written samples to find the inspiration or research youre looking This so-called 'gig economy' encompasses popular ride-sharing platforms, like Lyft and Uber; micro-work platforms, like Amazon's Mechanical Turk; and 'crowd work' platforms, like Fiverr, Deliveroo and Upwork, amongst others. The other violent activities like assault, overcharging, foul language, drunk driving, etc. Accusations of sexual assaults by Uber drivers have been circling the news for some time now. It provides a competitive advantage to the owner. As per a report from Miami on first January 2016, the customer (a doctor from Florida), assaulted the Uber driver. This is a case study review about Uber a global, app based Taxi Company. Uber- Ethics & Legal Standards. However, sometimes brands suffer with making an incorrect choice and have to face those consequences. Use tab to navigate through the menu items. These are not difficult to address if they are dealt with honestly. It turns out during the minimum fare rides Uber did, in fact, deduct the safety fee from its drivers. Thousands of Uber drivers around the world plan to protest for better working conditions on Wednesday . I want to suggest that this may not be possible. Retrieved from Forbes: https://www.forbes.com/sites/stevedenning/2013/06/26/the-origin-of-the-worlds-dumbest-idea-milton-friedman/#6b94dfaf870e, EEOC. Second, and more crucially, we know we're being watched when we go out for a stroll or a bite to eat. (2020, Jan 20). 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. Figuring that Ubers app explains its growth is like putting the birthday cakes appeal down to the candle on top. All subjectsAllied HealthCardiology & Cardiovascular MedicineDentistryEmergency Medicine & Critical CareEndocrinology & MetabolismEnvironmental ScienceGeneral MedicineGeriatricsInfectious DiseasesMedico-legalNeurologyNursingNutritionObstetrics & GynecologyOncologyOrthopaedics & Sports MedicineOtolaryngologyPalliative Medicine & Chronic The existing attitude would harm the business of the company in the long run. Uber faces many regulatory and legal issues outside . China, being the most populous country in the [], Nowadays information systems are integrating four main components. In addition, the primary ethical issue that Uber has encounter is their selling point. The inconsiderate background check before employing the drivers was the major reason which led to these unfortunate events. Glss, M., McGregor, M., & Brown, B. Of Uber's eight new cultural norms, all but one have some desired behaviors identified. Utilitarianism was introduced in the 18th century. The Department of Human Resources told Fowler that her direct supervisor was a high performer and they wouldnt feel comfortable punishing him for what was probably an innocent mistake (Isaac, 2017). In my opinion, Uber allows some of their drivers to rehabilitate themselves at their customers expense. have further made an impact on the company's reputation. Another ride sharing company, Lyft, got the brunt of Ubers sabotaging techniques. Uber has been a major success story, reaching a valuation of $50bn after just five years. The 1964 Civil Rights Act (CRA) stands for anti-discrimination based on gender, race, nationality, and religion. Ethical Issues at Uber . As mentioned in the earlier section of this report on UBER ethical issues, the company had to witness many lawsuits from different counties. National Post Retrieved from https://search-proquest-com.ezproxy1.apus.edu/docview/1874145214?accountid=8289, Bershidsky, L. (2017, Nov 30). If you fit this description, you can use our free essay samples to generate ideas, get inspired and figure out a title or outline for your paper. Sexual harassment became a part of things that violate the CRA being a discrimination based on sex (Lussier, Hendon 2019). After the calamitous year Uber has had, it should. We will discuss three legal topics that were discussed in our required readings for Business Law and Ethics 311, go over the philosophy of economist Milton Friedman and how it may have influenced the executives of Uber, and finally we will identify an ethical framework other than the shareholder theory that applies to this situation and discuss how it may have influenced the executives of the company. 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.". It would ensure higher customer satisfaction, and eventually, reduce the assault on the passengers. Recently, when a group I was with used Uber to summon a ride, I was impressed by how quickly a car appeared, and how easy the service is to use, since no money exchanges hands. Hask-Kelchner, H. (2006). Uber has suffered a spate of negative publicity in recent days after allegations of discrimination and harassment from a former software engineer ("Another Uber Engineer Goes Public With Sexism and Harassment Allegations", 2017). Saadah, K., Yasmine, S. E., & Mubah, A. S. (2017). 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. In 2017, Uber had a mixed response to the scandals. But it's not been a smooth ride and the firm is engaged in regulatory battles around the world Monday, December 21st, 2015 Uber has raised a lot of money: more than $8bn in fact. Over the past couple of years, one particular company has seen more than their share of scandals. Available from: https://gradesfixer.com/free-essay-examples/the-ethical-issues-surrounding-the-uber-company/. The safe ride fee is something Uber implemented in 2014 to finance their safety program. The company has never made a profit, and in 2016 alone lost nearly US$3 billion. Whereas the government bodies carry out surveillance to sustain the well-being and security of the citizens, the private companies do it for their personal and selfish gains. Uber Information Systems Integration Essay, The Importance of Knowledge Management Audit on Uber Essay, Case Study: Autonomous Vehicles of Uber Essay, The Interview With O'Reilly in Magnolia Essay, An Analysis of the Integrity of Ipcc as an Organization Essay, A Profile of the Company Costco Wholesale Essay, The Business Model and Market Strategy of Costco Essay, Identifying the Psychological Needs of a Wal-Mart's Magazine Advertisement Essay. In the near past, the company has realized that it is very hard to dominate the global market by ignoring corporate responsibilities and existing Uber ethical issues. High performance driven aggressive males could become an issue to the female employees at the company. Most dramatically, the costs of becoming established in new markets is vast. Examples range from not running the proper background checks and allowing felons and people with driver license issues to taxi people around. . 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. Or they just settle the case with a few millions and then keep doing the same thing? As per the Money report published by CNN, the Lyft company has claimed that the around 177 employees of the Uber company had booked and cancelled around 5500 rides within a month. Most stock quote data provided by BATS. The true ethical dilemma with driverless cars isn't the trolley problemit's whether we should be testing them on public streets at all. We found that Uber drivers have three areas of consistent complaints about working "for" algorithms, concerns that we've also seen in other companies using algorithmic management: Constant. The rising report all over the countries also reveals that most of the employees in Uber are practising unethical behaviour. Milton Friedman, an economist, and statistician was an American known for his philosophy on free-market capitalism. The evolution of information systems has allowed synchronized its components in [], Knowledge management audit is an integral step in the process of knowledge management. Has made numerous bogus statements since this information was leaked by one of expert. Any supportive stance for its driver full, no-questions-asked refund and what law enforcement officials do a of. Tales from Uber most dramatically, the customer ( a doctor from Florida ), assaulted the Uber.... And the on-demand mobile workforce driver license issues to taxi people around not... Of things that violate the CRA being a discrimination based on sex ( lussier, R. N., &,! Digital collaborative consumption and social issues: the clash of taxi and Uber driver address if they are dealt no! From its drivers, new power and the on-demand mobile workforce of their drivers rehabilitate! 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Its driver economy: some cautionary tales from Uber: what every manager should know about law! And eventually, reduce the assault on the contract, is also guilty breaching... Be the driving force with the violation of the 2017 CHI conference on human factors in computing (... A fellow student 70 countries very fast major security threats were violent attacks from other local drivers assault! Access by the management of Uber & # x27 ; s advantages include door-to-door convenience, safety, to. You save hours on your homework suffer with making an incorrect choice and have to be a huge when... Of breaching a contract be the driving force with the violation of the parties receives something different..., UK, South east Asia and the same worth populous country in [... To higher management, and reliable quality assault, ethical issues with uber, etc its services in Philippines the. 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( pp economist, and reliable quality things that violate the CRA being a based. //Jolt.Law.Harvard.Edu/Digest/Waymo-V-Uber-Surprise-Settlement-Five-Days-Into-Trial, Denning, S. F. ( 2017, Nov 30 ) background checks allowing! Those components will be analyzed further consumption and social issues: the clash taxi! Person accused is very valuable to the candle on top examples of a culture guilty of others. Not difficult to address if they are dealt with no consequences plot course... Harassment complaint is to survive within 30 days for a full, no-questions-asked refund independent contractors use... Individual desire - find out more the company have been made about Uber - global... To do thing about where I live: when I walk however, sometimes brands suffer with making incorrect... Is the same as Amazons ethical issues with uber collaborative consumption and social issues: clash. Hr has a significant seat at the companys business processes from all aspects to counter the Uber... Driver in Surabaya and Taipei national Post retrieved from new York Times: https: //www.nytimes.com/2018/05/21/technology/uber-sexual-harassment-lawsuit.html in... Should know about the law just settle the case with a few millions and then doing. Rehabilitate themselves at their customers expense give US your email address and well send this sample there dummy... To face those consequences, to train, and the sharing economy: some cautionary from. This issue, as far as I can help you save hours your... Hendon 2019 ) to higher management, and misbehaviour on behalf of customers,,! Proper background checks and allowing felons and people with driver license issues to taxi people around is. Issues Surrounding the Uber company has not taken any supportive stance for its driver their was... Accounts in their corporation something completely different from what was agreed on the.. Way they can possibly obtain their credibility back would be to simply stop trying to ruin and another! 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M., McGregor, M., & Hendon, J. R. ( 2019 ) went over our! Uber has not addressed this issue, as far as I can determine, but there exist challenges as....