Digital collaborative consumption and social issues: The clash of taxi and Uber driver in Surabaya and Taipei. 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. (n.d.). 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). 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. Copyright 20102023, The Conversation US, Inc. Amazon beats the competition by limiting its overheads. Recently, Uber has been under fire for a bad corporate culture, which promoted, among other things, sexism and other forms of toxic behavior. 2. The company has never made a profit, and in 2016 alone lost nearly US$3 billion. Ethical Issues at Uber . If you are such a student, you can use Let us write you an essay from scratch, Order a custom essay from our writers and get it on time. We can write you a custom essay that will follow your exact instructions and meet the deadlines. 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. Disclaimer: The reference papers provided by totalassignment.com should be used as model papers only. Fowler reported the incidents to human resources but was ignored. Uber was accused of unscrupulous recruitment tactics. Eventually, this additional cost will be felt. Let's fix your grades together! Privacy IssuesThe activities of the company should be limited by the appropriate Information and Technology laws so that the personal information of the passengers could not be mishandled or shared with the other irresponsible units. The business guide to legal literacy: what every manager should know about the law. 3. Below are discussed some recent incidents which have revealed the existing Uber ethical issues. 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. (2016). 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. 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. The safe ride fee is something Uber implemented in 2014 to finance their safety program. Uber is a brand that has faced both ethical and legal issues. As per a report from Miami on first January 2016, the customer (a doctor from Florida), assaulted the Uber driver. Until the company straightens up and drives right, I'll find other ways of getting from A to B. Software, hardware, people and data those components will be analyzed further. (2018, October 16). As per the report from the United States, a Washington based nonprofit organization, Electronic Privacy Information Center, charged Uber against the mishandling and breaching the privacy terms in June 2015. Retrieved from New York Times: https://www.nytimes.com/2018/05/21/technology/uber-sexual-harassment-lawsuit.html, In, S. F. (2017, Mar 04). In November, a New York court dismissed Uber's lawsuit challenging a city law limiting the number of licenses for ride-hailing services. Through all the legal and ethical issues Uber has had, it is still a tremendous success. 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. 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 . reserved. (2016, May). 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. Are you interested in getting a customized paper? 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. This ride sharing company is deliberately seeking out the demise of another company. Uber- Ethics & Legal Standards. Retrieved from https://www.businessinsider.com/ubers-history. The inconsiderate background check before employing the drivers was the major reason which led to these unfortunate events. Uber is a global company with services in over 70 countries, so for them it is extremely important to be diverse. The Uber Company has appointed some of the independent contractors who use dummy accounts in their burner phones. Although Ubers decisions have gone against ethical and legal standards they could potentially be influenced by shareholders philosophy. Chicago Tribune Retrieved from https://search-proquest-com.ezproxy2.apus.edu/docview/1970209904?accountid=8289, MacMillan, D., & Viswanatha, A. Center for Ethical Organizational Cultures . Retrieved from CBS News: https://www.cbsnews.com/news/uber-ipo-could-value-the-company-at-120-billion-report/, Prysby, N. D. (n.d.). Uber executives were driven by profit and decided to not allow government regulations to interfere. 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. 9/1 Pacific Highway, North Sydney, NSW, 2060, Corporate Finance Planning Assignment Help, Financial Statement Analysis Assignment Help, Activity-Based Accounting Assignment Help, (EUB020L007A) Management assignment on the benefits of adopting sustainable strategies as the CSR approaches in the fashion businesses, Strategic management assignmentanalysing the strategies and competiveness of Commonwealth Bank of Australia, (EMP6110) Environment management assignment for Bunbury outer ring WA to reduce environmental issues, Intrapreneurship assignment on how an intrapreneur can help to identify the innovations and help to build the company, (GDECE102) early childhood learning and teaching strategies assignment, (MBA401) Leadership assignment analysing the leadership of Melanie Perkins as an entrepreneur, Early Childhood Education Assignment on the role early childhood scaffolding has on language and literacy development, (MG628) International marketing management assignment identifying international market expansion strategy for Graze, Customer service assignment on the evaluation of a customer service experience, Leadership assignment on leader-member exchange theory of leadership in contemporary organisations, (ONL701) Emphasizing the environmental issues and concerns in this environment assignment, (MG629) Leadership and management assignment discussing the management of Theranos under the leadership style of Elizabeth Holmes, (INT101) Community service assignment on the work process of government and non-government organization, (MGMT8004) international business assignment analysing the Concept of Transaction Cost Economics (TCE), (SVY1500) Spatial science assignment for examination questions related to spatial science, (WRIT1 - Coursewor) Operations management assignment critically analysing issues faced by Dhofar Power Company, A Comprehensive Guide to Writing on synthesis essay topics, Distribution strategy at Nestle Corporation and transportation of Maggi noodles, Sustainable supply chain management assignmenton managing environmental issues in business, (SCI5110) Waste management assignment on how to reduce waste in One Tree Hill, Organization assignment understanding the business of Burberry by applying organizational theories, Supply chain management assignment on the challenges faced by Cincinnati Seasonings Company, Entrepreneurship assignment reviewing the entrepreneurial journey of Jeff Bezos, Management and leadership assignment analysing the management and leadership style of Elizabeth Holmes, Business strategy assignment determining business strategy of Unilever using Porters Generic Competitive Strategies framework. 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. Uber Is In Dire Need of Ethical Leadership. Book Your Assignment at The Lowest Price Now! Students are not to copy or submit them as is. To win over California voters, Uber and Lyft were considering to shut down their services "temporarily" in California as a means to appeal to voters who vote on Proposition 22 in the November . If it fails to achieve near monopoly status and has to continue to compete against local firms, in my view it has little hope of ever repaying its investors. By continuing well assume you board with our cookie policy. The major complaints regarding the company which is frequently raised in media are related to safety hazards for the society which is being focused specifically in this report so that effective measures can be taken to enhance the goodwill and reputation of the company. 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. The investors were being influenced and misinformed to stay away from funding in the venture capital of Lyft company. Type of company where women can sleep their way to the top Is what Ingrid Avendano had to say about Uber. 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. Senator Al Franken (D-Minn.), sent Uber CEO Travis Kalanick a letter accusing the company of a "troubling disregard for customer privacy." Uber has also been guilty of violating terms of service, specifically with APPLE. Senior Research Fellow, University of Nottingham. You can get your custom paper by one of our expert writers. Retrieved from The New York Times: https://www.nytimes.com/2017/02/19/business/uber-sexual-harassment-investigation.html?module=inline, Ivanova, I. There have been no specific parameters or guidelines mentioned by the company to become an Uber driver. By continuing, you agree to our Terms and Conditions. The fee for the safety program was to be charged to the customer. The company has grown to be worth at least $28 billion, according to. Multitasking Drivers. The phenomenon is termed as UBERification in the global market (Angrist, 2017). Uber uses a company called Checkr to run background checks on prospective employees but Checkr only goes as far back as seven years, Uber believes this allows people to rehabilitate themselves, written by Tracey Lien of The Los Angeles Times. Here's the strange thing about where I live: When I walk. She sued the company, claiming to be sexually harassed by a co-worker. But CEO Kalanick's response suggested lax leadership. 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. Ubers tool of deception; grey ball system allows drivers to identify and evade enforcement officials. for. 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. 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 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. of the drivers and the same turns out to be a huge issue when done on a frequent basis. Does Silicon Valley have a sexism problem? Uber has had numerous examples of a culture guilty of misleading others. All rights She started working at the company in 2014 and left the company in 2017. Uber Eats. In November, Uber disclosed that a major security breach occurred in 2016 . We use cookies to personalyze your web-site experience. Ubers problem: A culture of dishonesty. 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's Ethical Decisions 4 behave in a manner that they cannot be questionable in relation to their conduct. 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. Corporate Equality Index 59,7% of total workforce are man and 40,3% of all workforce are women. First, we live in a very diverse country and why not include everyone in the work environment? The technique Uber used was called Greyball. In our post-9/11 world, city governments have cameras in an increasing number of public places. In this essay, we will discuss in depth the specific laws that have made Uber unethical and a subject to the legal system. 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. If agreed, the drivers are provided with the sign-up kit at the moment. Ever since, the company now known as Uber has exponentially grown through the entire world. World news: Uber faces probe under U.S. bribery law justice looks at whether managers breached foreign corrupt practices act. IntroductionThe present report majorly focuses on addressing the ethical issues faced by the managing body of Uber Company, and on providing some relevant and practical solutions to tackle them. 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. 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. 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. 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. Sexual harassment and Equal Pay are not the only two laws Uber has been accused of breaking. We also applied three general legal topics that were discussed in the required reading which were: Trade Secrets, Breach of Contract, and FCPA. With a value of about 72 billion dollars, it is considered the worlds most valuable startup. Another general legal topic we went over during our required reading is a breach of contract. Discovery Company. 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. have been charged against various Uber drivers (Saadah &Mubah, 2017). In a minor breach, the breaching party failed to perform some aspect of the contract. 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. Examples range from not running the proper background checks and allowing felons and people with driver license issues to taxi people around. The EEO-1 report, also known as an employer information report, is mandated by the US federal government and requires companies to report employment data by race/ethnicity, gender, and job category. 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. Disruptive change in taxi business: The case of Uber. Wyman, K. M. (2017). According to the U.S. Sexual harassment became a part of things that violate the CRA being a discrimination based on sex (Lussier, Hendon 2019). 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. Below, we will examine Susan Fowlers case, who was an employee at Uber and claimed that her supervisor sexually harassed her and other women at the company. Journal of Management & Organization, 22(6), 859-874. Get your custom essay. 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). Uber, unfortunately, is also guilty of breaching a contract. 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). 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. 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.). Disclaimer. 19 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. We will occasionally send you account related emails. These reference papers are strictly intended for research and reference purposes only. I want to suggest that this may not be possible. By June, the CEO had retired and the company needed to completely regroup. Uber did not follow the precise terms of the agreement in relation to Safe Ride Fees. Uber agreed to settle the discrimination suit and pay 10 million dollars (CBS News, 2018). The scenario has changed, the attitude hasn't. Uber continues to try and claw its way up the ladder at the cost of bad reputation and a poor public image, and the recent upsurge about the . Task: 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. What has Uber done about this? Wallsten, S. (2015). This example has been uploaded by a student. The company did not respond to repeated requests for information about its drivers. Stop wasting your time searching for samples! Milton Friedman, an economist, and statistician was an American known for his philosophy on free-market capitalism. 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