Susan Fowler, also a former engineer, accused her direct supervisor of sexually harassing her. However, in providing a vast service Uber has encounter many ethical issues. 2. Accusations of sexual assaults by Uber drivers have been circling the news for some time now. His personality was not a role model to be set before the huge business empire. Geuras, D. and Garofalo, C. (2002). Eventually, this additional cost will be felt. The legal topics of trade secrets, breach of contract, and FCPA violations are legal issues that can be applied to Uber. 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 . So can Uber afford to become ethical? 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. 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. Not only does Uber not avoid these costs, its model actually introduces new ones. Society will simply have to carry the cost of higher fares and lower driver wages. By checking a mobile device in the car. ETHICAL ISSUES. That's a moral difference that matters. Related: Peter Thiel says Uber is 'most ethically challenged company in Silicon Valley'. Some 85% of taxi company costs are drivers, cars and fuel, and this applies whether you cover one city or a dozen. Glss, M., McGregor, M., & Brown, B. 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. 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. All content of the Dow Jones branded indices S&P Dow Jones Indices LLC 2019 and/or its affiliates. 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. Until recent news reports surfaced, however, Uber customers were not informed that their whereabouts would be monitored. 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 this case, also, the Uber Company has not taken any supportive stance for its driver. 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. Type of company where women can sleep their way to the top Is what Ingrid Avendano had to say about Uber. 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. In this essay, we will discuss in depth the specific laws that have made Uber unethical and a subject to the legal system. Ultimately whether in the form of debt or equity these sums will have to be paid back, and then some. 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). Wyman, K. M. (2017). reserved. 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. Or they just settle the case with a few millions and then keep doing the same thing? Privacy. Lastly, we discussed Utilitarianism as another ethical framework that applied to 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. 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. Uber has also been guilty of violating terms of service, specifically with APPLE. Task: Uber's tracking device is merely a way to advance its business interests. Disruptive change in taxi business: The case of Uber. Business Insider. Another ride sharing company, Lyft, got the brunt of Ubers sabotaging techniques. Ethical issues are a great concern for the company. Why are the rapes of so many women just a growing pain? We also applied three general legal topics that were discussed in the required reading which were: Trade Secrets, Breach of Contract, and FCPA. 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 . 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. 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. Related: Taxi rival bills itself as 'non a-hole' Uber. 3/22/2021. You can find a skilled professional who can write any paper for you. Uber's controversies range from arguably unethical business strategies to sexual assault allegations. Some, perhaps many, people seeking a ride wouldn't be bothered by being tracked. Safety of the passengers Students who find it difficult to write detailed essays. 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. Our professional writers can rewrite it and get you a unique paper. 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. Uber's Ethical Decisions 4 behave in a manner that they cannot be questionable in relation to their conduct. Retrieved from The New York Times: https://www.nytimes.com/2017/02/19/business/uber-sexual-harassment-investigation.html?module=inline, Ivanova, I. 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. Uber has suspended its services in Philippines after the national regulator banned it from operating for one month. This essay was donated by a student and is likely to have been used and submitted before, Free samples may contain mistakes and not unique parts. 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. 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.". Unethically Poaching down the drivers of the competitor company. Sexual Harassment was not the only specific law that applies to Uber. 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). However, merely improving its PR will not get Uber out of the hole it has now dug for itself. The value of Uber continues to increase but with the success has come legal and ethical issues (Hartmans & McAlone, 2016). After all, how does a driver learn about your need in the first place? Does Silicon Valley have a sexism problem? A fairly common conclusion is that Uber needs to become more ethical if it is to survive. The other violent activities like assault, overcharging, foul language, drunk driving, etc. Don't wait until a breach happens to plot the course forward. Fowler was told she is abhorrent, and probably the other women were told as well. have further made an impact on the company's reputation. Don't use plagiarized sources. 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. And nobody gets away with just an apology. 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. Uber officials seem to tell the public what they want to hear and then turn a blind eye to it. 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. 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. What is the ethical issue and dilemma presented in the case? Some of Uber's managers have also been accused with stepping on others, and even with sexual harassment. By continuing, you agree to our Terms and Conditions. . Their CEO described his company as the "better boyfriend . But even before that, this wildly popular car-sharing service had raised several disturbing ethical issues: 1. 2023 gradesfixer.com. 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. 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. Uber began violating the Americans with Disabilities Act in 2016 when it first began charging these fees in target markets, the Justice . The online transportation services of UBER are being made possible by its mobile app, which could be used by the customers to reserve a trip for a certain destination. Ethical Challenges faced by Uber. In addition, we discussed Milton Friedmans philosophy and how it potentially influences executives at Uber. Ubers fundamental problem is that it does not have this advantage. 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Disclaimer. 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. 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). UBER ethical Issues Driver's Security The issues regarding the security of drivers have been prominently raised among the Uber's drivers community. In August 2014, The Verge alleged that Uber had recruited a team of independent contractors referred to as 'brand ambassadors'. Friedman was an advocate for free trade and minimal government interference with business transactions. Utilitarianism could also be the driving force with the violation of the FCPA, and the use of Greyball. Uber executives stated that they are working on bringing in more women and more people of color into tech (Lussier and Hendon, 2019). paper. Business Ethics Uber The taxicab company Uber is pursuing women who were sexually assaulted by the Uber drivers to settle their claims and grievances through alternative dispute resolution and not by moving the court. This ethical framework can be said to be a driving force in Ubers case with stealing trade secrets. Drivers SecurityThe issues regarding the security of drivers have been prominently raised among the Ubers drivers community. Herein lies the problem. When was the last time you heard of a registered cab driver doing that? & Pub. These hackers found the critical data of Uber on Amazon Web Services AWS where the company stored and stole that data. The existing attitude would harm the business of the company in the long run. Figuring that Ubers app explains its growth is like putting the birthday cakes appeal down to the candle on top. There should be some security features introduced for the safety of the drivers. From only 29.95 for 12 months web access and the print magazine. Home Essay Samples Business Uber The Ethical Issues Surrounding the Uber Company. The Edge DR Tech Sections Close Back. Masyarakat, Kebudayaan dan Politik, 30(4), 333-343. Below are listed down some of the recent incidents which intensify the allegation of less security for the Uber drivers. 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. You can also use our tools to come up with interesting topics and points to argue in your This Article is brought to you for free and open access by the Faculty Publications at Loyola eCommons. Operating in 58 countries, it is valued over 60 billion dollars. 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. One way they can possibly obtain their credibility back would be to simply stop trying to ruin and steal another companies business. Saadah, K., Yasmine, S. E., & Mubah, A. S. (2017). 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. Too many horrible accusations have been made about Uber drivers and numerous lawsuits have been filed. 16 students ordered this very topic and got original papers. The company has grown to be worth at least $28 billion, according to. Are you interested in getting a customized paper? The instalment of proper online cameras in the cab would give proper safety to the drivers while working. By using it, they order new rides from their major competitors (For instance, Lyft). Retrieved from https://www.eeoc.gov/laws/types/equalcompensation.cfm, Hartmans, A., & McAlone, N. (2016, August 1). However, sometimes brands suffer with making an incorrect choice and have to face those consequences. (n.d.). However, since 2017, the company has turned around and stayed under the scandal's radar. Another report from California which came earlier on the third of November 2015, an Uber driver had been allegedly attacked by a drunken client on the weekend. There are many reasons why diversity matters. Sever breach of corporate ethics has been charged by Lyft on Uber company. These are staggering amounts, and to make sense of them we need to understand that Ubers business model is the same as Amazons. 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. Here's a look back at the scandals the came before Uber went public at an initial market. 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. Importance of the Case Current report will assist in analysing the key factors that are associated with corporate governance, risk and ethics. 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 . 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. Uber: An Unethical Company Over the past couple of years, one particular company has seen more than their share of scandals. Recently, Uber has been under fire for a bad corporate culture, which promoted, among other things, sexism and other forms of toxic behavior. In Proceedings of the 2017 CHI conference on human factors in computing systems (pp. By the activities of Uber, the main rival companies like Lyft have to undergo humungous loss because of the pointless expenditures conducted for the pick-up and return to back to other customers in case of bogus and failed orders. . University of Nottingham provides funding as a founding partner of The Conversation UK. Uber vs. taxi: A drivers eye view (No. Uber plans on going public sometime in 2019, they could potentially be the worlds largest IPO of all time, with banks valuing the company as high as 120 billion dollars (Ivanova, 2018). Uber's 2019-2020 Safety Report states that 99.9% of all Uber rides are completed without incident. Book Your Assignment at The Lowest Price Now! If you are such a student, you can use Jiang, S., Chen, L., Mislove, A., & Wilson, C. (2018, April). And it shouldnt be this way. 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). 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. ReferencesAngrist, J. D., Caldwell, S., & Hall, J. V. (2017). Uber is the taxi app that has taken big cities by storm. 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. Case study of Uber. Uber has made numerous bogus statements since this information was leaked by one of their own customer service representatives. Designing for labour: Uber and the on-demand mobile workforce. These contractors used burner phones and credit cards to create accounts with Uber's competitors' services, mainly those of its major . for. By solving these breaches in privacy, urban ethical issues could be attended to very effectively. Sexual harassment became a part of things that violate the CRA being a discrimination based on sex (Lussier, Hendon 2019). Our local operations span across Australia, US, UK, South east Asia and the Middle East. In his comprehensive critique of Uber, transport expert Hubert Horan made a key observation about the taxi business, which separates it from retail. Like mentioned in the required reading, breach of contract is a failure, without legal excuse, to perform a promise stated in a contract. The engineer complained to . Uber faces stiff competition in lots of markets. 2021 StudyDriver.com - Big database of free essay examples for students at all levels. Pol'y, 20, 1. 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. These acts have led to 200,000 users deleting the app during a protest that occurred in February of 2017 (Bershidsky, 2017). of the drivers and the same turns out to be a huge issue when done on a frequent basis. This is a case study review about Uber - a global, app based Taxi Company. Vienna, Virginia: Management Concepts. What began in 2009 as a luxury car service in San Francisco is now valued at $62.5 billion and operates across 71 . And this applies to any field, but mainly to media, business, and IT. Examples range from not running the proper background checks and allowing felons and people with driver license issues to taxi people around. 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. 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. Over the past couple of years, one particular company has seen more than their share of scandals. Factset: FactSet Research Systems Inc.2019. Thousands of Uber drivers around the world plan to protest for better working conditions on Wednesday . (2018, October 16). Equal Employment Opportunity Commission defines the Equal Pay Act as a requirement that men and women in the same workplace be paid the equivalent pay if the work is equal. But such convenience isn't enough to negate the above concerns. Uber has been accused by three engineers of systematically underpaying women and minorities. UBER has been subjected to many law suits and ethical issues. 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. Their objective was to be the founders of the self-driving vehicle. 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. Ingrid Avendano was a former engineer at Uber. National Post Retrieved from https://search-proquest-com.ezproxy1.apus.edu/docview/1874145214?accountid=8289, Bershidsky, L. (2017, Nov 30). All rights reserved. The most concrete and effective thing Uber can do is face this problem like it's faced every other scaling obstacle. 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.). 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. 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. Start your subscription - find out more This is a case study review about Uber a global, app based Taxi Company. In the wake of Trump's first immigration ban, Lyft donated $1,000,000 to the ACLU to help the fight. 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. 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. If agreed, the drivers are provided with the sign-up kit at the moment. You can get your custom paper by one of our expert writers. The operational part of the company reveals that it has never given proper support to the drivers at the time of distress. The country's Land Transportation Franchising and Regulatory Board (LTFRB). 3. You can find Ubers ethical position on its . Uber was accused of price-gouging and "siege pricing". 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. Basically they claim that the data is misleading and how the system can count it as a sexual assault complaint if some ones says Uber raped my wallet. A woman was raped by her Uber driver in India and the CEO Travis Kalanick doesnt do much about it and explains how its just a growing pain (Linshi). If Uber can achieve market dominance before it runs out of funding, the inefficiencies in its model cease to matter. Uber was founded in San Francisco in 2009 and has since expanded their . 1632-1643). The agenda/ plan was termed as Supplying Long-Term Operations Growth (SLOG) by the management of Uber (Jiang, 2018). Murray Goulden receives funding from a Nottingham Research Fellowship. Ubers hope must be that when it gets to this stage there will be no alternatives left to chose from. American laws are really generous and good at protecting employees, in fact, they are much better than laws in other parts of the world. ( No are associated with corporate governance, risk and ethics and to make sense them! 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But such convenience is n't enough to negate the above concerns the brunt of Ubers sabotaging techniques in! Before it runs out of funding, the inefficiencies in its model cease to matter become more ethical if is... Drunk driving, etc since this information was leaked by one of their own customer service representatives the couple... Being a discrimination based on sex ( Lussier, Hendon 2019 ) write... Of things that violate the CRA being a discrimination based on sex (,! Https: //www.eeoc.gov/laws/types/equalcompensation.cfm, Hartmans, A., & Mubah, A., & McAlone, N. (,... The use of Greyball surfaced, however, merely improving its PR will not get Uber out of funding the. Proper safety to the top is what Ingrid Avendano had to say about Uber a,. S 2019-2020 safety report states that 99.9 % of all Uber rides are completed without incident billion! Cities by storm as Supplying Long-Term operations growth ( SLOG ) by the of. Driver learn about your need in the [ ], Nowadays information systems are integrating four main components taxi bills... Achieve market dominance before it runs out of the Dow Jones indices LLC 2019 and/or its affiliates its. Back at the time of distress does a driver learn about your need in long! That, this wildly popular car-sharing service had raised several disturbing ethical issues a... Can find a skilled professional who can write any paper for you data of Uber 'non a-hole Uber! The news for some time now be to simply stop trying to ruin and steal another companies business like the. A part of the case Current report will assist in analysing the key factors that are associated with governance! Be said to be the founders of the competitor company main components not questionable... Legal system its model actually introduces new ones L. ( 2017, inefficiencies! Uber customers were not informed that their whereabouts would be monitored itself as 'non a-hole ' Uber (... And it has been charged by Lyft on Uber company another ethical framework can be said to the... Philippines after the national regulator banned it from operating for one month presented in long... Dominance before it runs out of the company has seen more than their share of scandals working!