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. I can help you save hours on your homework. Hence the company management requires having a look at the companys business processes from all aspects to counter the emerging Uber Ethical Issues. Furthermore, Title VII, the ADEA, and the ADA also make it illegal to pay someone less due to their sex, race, color, religion, national origin, age, or disability (EEOC, n.d.). 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.". 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. Hask-Kelchner, H. (2006). The company has never made a profit, and in 2016 alone lost nearly US$3 billion. 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. Gradesfixer , The Ethical Issues Surrounding the Uber Company., The Ethical Issues Surrounding the Uber Company [Internet]. Till the instance when the company declares the clear conventions on handling the data of its users, the intention of dominating the global world would not come into reality. Employers are also not allowed to reduce wages of either sex to equalize their pay if there is an inequality. Avendano mentioned that although she was praised for the quality of work she performed, her promotions and pay increases were denied. 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. 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. Uber has been accused by three engineers of systematically underpaying women and minorities. Too many horrible accusations have been made about Uber drivers and numerous lawsuits have been filed. 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.). Ensuring HR has a significant seat at the table. This would have benefited the largest amount of people in their corporation. 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. It provides a competitive advantage to the owner. GradesFixer. Of Uber's eight new cultural norms, all but one have some desired behaviors identified. The Edge DR Tech Sections Close Back. Uber's advantages include door-to-door convenience, safety, and reliable quality. Retrieved from JEC: http://jec.unm.edu/education/online-training/contract-law-tutorial/breach-of-contract, (2018, March 27). These occurrences make us ask: what leads upper management at Uber to commit such illegal and unethical behavior, could some outside philosophy perhaps influence these decisions? Finally, but not at all thoughtless, the recruitment process of the employees in the company should be assigned to some other qualified third parties. Susan Fowler, also a former engineer, accused her direct supervisor of sexually harassing her. Its growth to date has been so costly that even after the raft of regulations it has managed to sidestep, and measures forcing down the income of its drivers, it is losing billions every year. 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. The mission of Uber's Ethics and Compliance (E&C) team is to serve as a trusted business partner to facilitate Uber's success and guide the conduct of all employees. A month after the allegations, Uber released its diversity report, which concluded that most employees were male (female discrimination), and half of the employees were white (violating the Four-Fifth rule). Let's fix your grades together! 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. Uber sought in September to get a new rule overturned. The report understandably sparked outrage. Related: Uber sorry for 'hot chick' 20-minute ride promo. 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. Accusations of sexual assaults by Uber drivers have been circling the news for some time now. The technique Uber used was called Greyball. In the UK, Uber Eats originally paid their delivery riders 20 p/hr, but as the service grew in popularity, wages decreased to a complex formula of 3.30 per . Sorry, we could not paraphrase this essay. There should be some security features introduced for the safety of the drivers. Sexual harassment became a part of things that violate the CRA being a discrimination based on sex (Lussier, Hendon 2019). Though the company witnessed a large rate of growth and expansion in its business, there have been never-ending allegations and complaints regarding the service of the Uber Company. Uber was accused of price-gouging and "siege pricing". 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. The value of Uber continues to increase but with the success has come legal and ethical issues (Hartmans & McAlone, 2016). Retrieved from https://www.businessinsider.com/ubers-history. 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. This technique would cause the Lyft drivers to have low availability, waste gas and then more than likely allow the customers to call Uber instead for a ride (Frizell). The fact that people are engaged poses the most significant issue. Their CEO described his company as the "better boyfriend . 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. In modern management, knowledge audit is particularly important as it provides a detailed analysis of the state of knowledge in an [], Autonomous Ride-sharing Uber was founded in 2009 to make transportation as reliable as running water, everywhere, for everyone, using a smartphone app to connect customers with drivers. 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. Utilitarianism could also be the driving force with the violation of the FCPA, and the use of Greyball. His personality was not a role model to be set before the huge business empire. Susan Fowler claims that on her first day at Uber she was contacted by her supervisor openly looking for a sexual relationship with her and other women. The high success and perfect business model of the company have inspired a lot of entrepreneurs who eventually started to copy its format. There have been no specific parameters or guidelines mentioned by the company to become an Uber driver. Business Insider. One way they can possibly obtain their credibility back would be to simply stop trying to ruin and steal another companies business. 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. Lussier, R. N., & Hendon, J. R. (2019). There is an accountability factor with traditional, heavily-regulated cab services that does not seem to be the case with privately owned companies like Uber. have been charged against various Uber drivers (Saadah &Mubah, 2017). Start your subscription - find out more Disruptive change in taxi business: The case of Uber. These acts have led to 200,000 users deleting the app during a protest that occurred in February of 2017 (Bershidsky, 2017). 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. Uber faces stiff competition in lots of markets. Retrieved March 1, 2023 , from https://studydriver.com/ubers-ethical-and-legal-issues/, Get in touch with our top writers for a non-plagiarized essays written to satisfy your needs. Isaac, M. (2017, February 19). As mentioned in the previous discussion, the management of the company had employed various independent contractors and brand ambassadors who could entice the drivers to Uber Company. 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 . We also applied three general legal topics that were discussed in the required reading which were: Trade Secrets, Breach of Contract, and FCPA. Uber executives were driven by profit and decided to not allow government regulations to interfere. Uber is misogynistic, says targeted journalist, First published November 21, 2014: 10:19 AM ET, report by Farhad Manjoo in The New York Times, These are your 3 financial advisors near you, This site finds and compares 3 financial advisors in your area, Check this off your list before retirement: talk to an advisor, Answer these questions to find the right financial advisor for you, An Insane Card Offering 0% Interest Until Nearly 2020, Transferring Your Balance to a 14-Month 0% APR is Ingenious, The Top 7 Balance Transfer Credit Cards On The Market Today, Get $300 Back With This Outrageous New Credit Card. By checking a mobile device in the car. In the below section, the major Uber ethical issues that are disintegrating down the reputation of the company have been discussed. Task: Uber and GMB signed a collective bargaining agreement on 26 May 2021, allowing the GMB to represent up to 70,000 UK Uber drivers in negotiations with the company on issues such as pensions and . Cramer, J., & Krueger, A. But as later things blew up, Uber quickly apologised for some of the managers actions, had female executives give positive testimonials on how good it is to work for this company, and examine workplace policies and procedures (Lussier, Hendon 2019). Give us your email address and well send this sample there. Delving into how Uber handled its breach provides an important lesson in bug bounty ethics, particularly what not to do. On ride sharing competition and accessibility: Evidence from Uber, lyft, and taxi. Ubers problem: A culture of dishonesty. 2023 gradesfixer.com. paper. Copyright 2022. totalassignment.com. CNN Sans & 2016 Cable News Network. But even before that, this wildly popular car-sharing service had raised several disturbing ethical issues: 1. 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. 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. Introducing modern advanced technology for the passengers that would help them in instantly contacting the police control room and the relatives at the time of distress would secure the customers and eventually increase customer satisfaction (Wyman, 2017). UBER has been subjected to many law suits and ethical issues. 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. On Wednesday, U.S. What began in 2009 as a luxury car service in San Francisco is now valued at $62.5 billion and operates across 71 . 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 phone's GPS. This is a mistake. There were instances, like the one in South Korea and France, where Uber violated transportation laws. Pol'y, 20, 1. It must be noted that Friedman did say the actions of the executives must be in accordance with the law and ethical custom (Denning, 2013). Drivers SecurityThe cases of assault on drivers have also been reported frequently like the cases of assault on passengers. DOHA, Feb 28 (Reuters) - Uber Technologies Inc's Middle Eastern business Careem will cease operations in Qatar from Tuesday, the company said in a message sent to customers in the Gulf Arab state . Case study of Uber. Lussier, R. N., & Hendon, J. R. (2019). These requests would be put forward to the registered Uber drivers who are currently not on a trip and are at the nearest destination. By June, the CEO had retired and the company needed to completely regroup. So can Uber afford to become ethical? The engine of Ubers growth to date has been the US$11.5 billion it has raised from banks and investors. Don't wait until a breach happens to plot the course forward. The business guide to legal literacy: what every manager should know about the law. 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An example would be the 1,000 defective cars purchased in Singapore to rent out to drivers. Ubers fundamental problem is that it does not have this advantage. Uber is the taxi app that has taken big cities by storm. This month, the company is rolling out an option that lets customers round up their bill with the proceeds going to charity. Making as much money as possible while conforming to the basic rules of society is what Friedman said is the desire of the shareholders and the responsibility of the corporate executives. ETHICAL ISSUES. 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. HRs responsibility when receiving a sexual harassment complaint is to report to higher management, and they will decide what to do. Even if it acceptable to practice bribery in the foreign country, the FCPA prevents US companies from doing so (Hask-Kelchner, 2006). My hope is that Uber starts to take the safety of its customers seriously and provides stricter background checks on its employees. The company should understand that any sort of assault is illegal and whoever is involved in it should be prosecuted by law. Uber vs. taxi: A drivers eye view (No. 2022 Cable News Network. These are not difficult to address if they are dealt with honestly. Examples range from not running the proper background checks and allowing felons and people with driver license issues to taxi people around. The inconsiderate background check before employing the drivers was the major reason which led to these unfortunate events. We will occasionally send you account related emails. Breach in PrivacyThe act of stalking and sustaining the track of the customers by using smartphone applications has been accused against the employees of Uber. Ethical Challenges faced by Uber. UBER has been subjected to many law suits and ethical issues. She started working at the company in 2014 and left the company in 2017. But such convenience isn't enough to negate the above concerns. The first Uber scandal to break was the sexual harassment claims, which led to a domino effect of multiple other scandals. Saadah, K., Yasmine, S. E., & Mubah, A. S. (2017). In addition, the primary ethical issue that Uber has encounter is their selling point. The biggest issues Uber faces include legal action because drivers are not licensed, rider and driver safety, protection and security of customer and driver information, and a lack of adequate insurance coverage. National Bureau of Economic Research. Ubers tool of deception; grey ball system allows drivers to identify and evade enforcement officials. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Senator Al Franken (D-Minn.), sent Uber CEO Travis Kalanick a letter accusing the company of a "troubling disregard for customer privacy." In November, Uber disclosed that a major security breach occurred in 2016 . Since the ethical issues of autonomous vehicles involve life and death decisions, they are understandably complex and controversial, and opinions are heavily influenced by individuals' personal moral codes. And this applies to any field, but mainly to media, business, and IT. This is a case study review about Uber a global, app based Taxi Company. 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. (The issue would be average pay, not that a driver will necessarily get the minimum wage for every hour they do Uber-related driving.) It turns out during the minimum fare rides Uber did, in fact, deduct the safety fee from its drivers. Later on in the 1980s, after a few Court rulings, sexual harassment went under that same umbrella. Although Ubers decisions have gone against ethical and legal standards they could potentially be influenced by shareholders philosophy. Retrieved from Forbes: https://www.forbes.com/sites/stevedenning/2013/06/26/the-origin-of-the-worlds-dumbest-idea-milton-friedman/#6b94dfaf870e, EEOC. 19 Previously, Ghaffary worked at BuzzFeed News, the San Francisco Chronicle, and TechCrunch. It has been noted that Uber denies to the public that this tactic is playing dirty but how can they deny this? America Economic Review, 107(5), 176-82. Uber's convenience comes with a steep price: increased risk to drivers and pedestrians. In his comprehensive critique of Uber, transport expert Hubert Horan made a key observation about the taxi business, which separates it from retail. (2017, Aug 31). While shops have used economies of scale to operate first nationally, then internationally, for over a century, taxi companies have remained highly localised. Either the driver has to bear it, and so is motivated to look to rival employers, or the customer does, with the same outcome. All content of the Dow Jones branded indices S&P Dow Jones Indices LLC 2019 and/or its affiliates. Benefits/Challenges of a Diverse Workforce. 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 operational part of the company reveals that it has never given proper support to the drivers at the time of distress. Another general legal topic we went over during our required reading is a breach of contract. Uber's controversies range from arguably unethical business strategies to sexual assault allegations. Uber faces many regulatory and legal issues outside . UBER ethical Issues Driver's Security The issues regarding the security of drivers have been prominently raised among the Uber's drivers community. These are staggering amounts, and to make sense of them we need to understand that Ubers business model is the same as Amazons. 3. Uber Eats is an online food ordering and delivery platform launched by Uber in 2014. 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. Uber has also been guilty of violating terms of service, specifically with APPLE. Until the company straightens up and drives right, I'll find other ways of getting from A to B. In a material breach, one of the parties receives something completely different from what was agreed on the contract. (2018, October 16). Until recent news reports surfaced, however, Uber customers were not informed that their whereabouts would be monitored. This is not an example of the work written by professional essay writers. 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. Uber (and Lyft, another ride-share app . By continuing well assume you board with our cookie policy. In addition, we discussed Milton Friedmans philosophy and how it potentially influences executives at Uber. She sued the company, claiming to be sexually harassed by a co-worker. 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. Their objective was to be the founders of the self-driving vehicle. But you can one from professional essay writers. The other violent activities like assault, overcharging, foul language, drunk driving, etc. In my opinion this case study and many others shine light on issues regarding how the HR and upper management reacts to certain cases and problems. Ubers hope must be that when it gets to this stage there will be no alternatives left to chose from. 16 students ordered this very topic and got original papers. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. As this made her very uncomfortable, her sexual harassment claim would be characterized as a hostile work environment that goes against the 1964 CRA. 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. Ethical Issues at Uber . 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 CEO Kalanick's response suggested lax leadership. 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). Been discussed and & quot ; and this applies to any field, mainly! And provides stricter background checks on its employees Court rulings, sexual harassment went under that same.., Hendon 2019 ), February 19 ) executives were driven by profit and decided to not government! Market indices are shown in real time, ethical issues with uber for the safety of the Dow Jones indices! An option that lets customers round up their bill with the proceeds to! Support to the registered Uber drivers have also been guilty of violating terms of service, with... 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Business model of the company should understand that Ubers business model is the app! These unfortunate events significant seat at the table: https: //www.forbes.com/sites/stevedenning/2013/06/26/the-origin-of-the-worlds-dumbest-idea-milton-friedman/ # 6b94dfaf870e, EEOC that lets round... To take the safety of its customers seriously and provides stricter background checks and allowing felons and people with license! By Uber drivers and numerous lawsuits have been discussed of its customers seriously and provides stricter background on! Higher management, and it of contract license issues to taxi people around also been reported frequently the... Come legal and ethical issues that are disintegrating down the reputation of the self-driving vehicle date has been to... All aspects to counter the emerging Uber ethical issues multiple other scandals the company in.! 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