Uber officials seem to tell the public what they want to hear and then turn a blind eye to it. Rapid growth saw Uber in 100 cities [], OReilly started as a part store in Missouri in 1957. 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). First, we live in a very diverse country and why not include everyone in the work environment? 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. Your time is important. 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. Even if it acceptable to practice bribery in the foreign country, the FCPA prevents US companies from doing so (Hask-Kelchner, 2006). Jobs dont necessarily have to be identical to be paid equally but must be almost of the same worth. Total Assignment Help Rated 4.8/5 based on 10542 reviews. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. This ethical framework can be said to be a driving force in Ubers case with stealing trade secrets. These requests would be put forward to the registered Uber drivers who are currently not on a trip and are at the nearest destination. Their CEO described his company as the "better boyfriend . What concerns me, however, is not the invasion of privacy per se, but the fact that most consumers don't know it's going on. Below are listed down some of the recent incidents which intensify the allegation of less security for the Uber drivers. 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). The Uber Company has appointed some of the independent contractors who use dummy accounts in their burner phones. ETHICAL ISSUES. Thousands of Uber drivers around the world plan to protest for better working conditions on Wednesday . 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 was accused of price-gouging and "siege pricing". Write an article and join a growing community of more than 160,300 academics and researchers from 4,571 institutions. These hackers found the critical data of Uber on Amazon Web Services AWS where the company stored and stole that data. Senator Al Franken (D-Minn.), sent Uber CEO Travis Kalanick a letter accusing the company of a "troubling disregard for customer privacy." It was upsetting enough when Michael made his crack about digging up dirt on journalists who dared to criticize the company. The legal topics of trade secrets, breach of contract, and FCPA violations are legal issues that can be applied to Uber. 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. Here's the strange thing about where I live: When I walk. Retrieved from The New York Times: https://www.nytimes.com/2017/02/19/business/uber-sexual-harassment-investigation.html?module=inline, Ivanova, I. 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. With an evaluation of Uber work governance the factors can be explored effectively because company has previously involved in issues that are linked with corporate governance, risk and ethics. Our professional writers can rewrite it and get you a unique paper. Students who find writing to be a difficult task. Most dramatically, the costs of becoming established in new markets is vast. 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). (n.d.). This group of individuals used credit cards and burner phones to build accounts with company's competitors . 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. Don't wait until a breach happens to plot the course forward. Now Amazon is able to use its position to generate the vast profits expected by those that funded its expansion. Sexual harassment became a part of things that violate the CRA being a discrimination based on sex (Lussier, Hendon 2019). 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.). 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. We can write you a custom essay that will follow your exact instructions and meet the deadlines. America Economic Review, 107(5), 176-82. Ethics made easy - comprehensive, simple to use, transparent and reliable ethical rankings. (n.d.). Uber Eats. Uber Collides with Controversy INTRODUCTION Uber Technologies Inc. is a multinational transportation company that provides ride-sharing services, food delivery, and more. These acts have led to 200,000 users deleting the app during a protest that occurred in February of 2017 (Bershidsky, 2017). Melvin Meads, my high school band director, used to tell me, "Straighten up and fly right!," after I acted up. The other violent activities like assault, overcharging, foul language, drunk driving, etc. She started working at the company in 2014 and left the company in 2017. Uber began violating the Americans with Disabilities Act in 2016 when it first began charging these fees in target markets, the Justice . By June, the CEO had retired and the company needed to completely regroup. Operating in 58 countries, it is valued over 60 billion dollars. Society will simply have to carry the cost of higher fares and lower driver wages. The country's Land Transportation Franchising and Regulatory Board (LTFRB). The retrospective apologies - rather than pre-emptive plans to prevent ethical issues that could be easily avoided - is a common . 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. 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. Hask-Kelchner, H. (2006). China, being the most populous country in the [], Nowadays information systems are integrating four main components. Why are the rapes of so many women just a growing pain? Passenger Safety. The incident was being video-taped by the bystanders, which later went viral on social media platforms. What defines a substantially equal job is job content, not the title. Like mentioned in the required reading, breach of contract is a failure, without legal excuse, to perform a promise stated in a contract. What is the ethical issue and dilemma presented in the case? 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. University of Nottingham provides funding as a founding partner of The Conversation UK. UBER has been subjected to many law suits and ethical issues. Ubers CEO Dara Khosrowshahi, has said he wants to preserve what works, but it seems that what works includes long legal battles where Uber is wrong in principle. The value of Uber continues to increase but with the success has come legal and ethical issues (Hartmans & McAlone, 2016). The high success and perfect business model of the company have inspired a lot of entrepreneurs who eventually started to copy its format. 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 . As mentioned in the earlier section of this report on UBER ethical issues, the company had to witness many lawsuits from different counties. 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. 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. Either the driver has to bear it, and so is motivated to look to rival employers, or the customer does, with the same outcome. Loading. World news: Uber faces probe under U.S. bribery law justice looks at whether managers breached foreign corrupt practices act. The competitive effects of sharing economy: how is Uber changing taxis. These contractors used burner phones and credit cards to create accounts with Uber's competitors' services, mainly those of its major . We have experts for any subject. In March of 2009 UberCab initiated out San Francisco allowing customers to access a cab with your smartphone. So can Uber afford to become ethical? Recently, Uber has been under fire for a bad corporate culture, which promoted, among other things, sexism and other forms of toxic behavior. 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. 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. Related: Taxi rival bills itself as 'non a-hole' Uber. Utilitarianism could also be the driving force with the violation of the FCPA, and the use of Greyball. Why exclude someone just because their gender is different, or their skin color, or religion, or birthplace? That's a moral difference that matters. Later on in the 1980s, after a few Court rulings, sexual harassment went under that same umbrella. In 2017, Uber had a mixed response to the scandals. She sued the company, claiming to be sexually harassed by a co-worker. Uber has also been guilty of violating terms of service, specifically with APPLE. In the wake of Trump's first immigration ban, Lyft donated $1,000,000 to the ACLU to help the fight. Ethical Challenges faced by Uber. Ubers tool of deception; grey ball system allows drivers to identify and evade enforcement officials. The first branch store opened in 1964 in Missouri. Ubers fundamental problem is that it does not have this advantage. By solving these breaches in privacy, urban ethical issues could be attended to very effectively. Drivers SecurityThe cases of assault on drivers have also been reported frequently like the cases of assault on passengers. Through all the legal and ethical issues Uber has had, it is still a tremendous success. After all, how does a driver learn about your need in the first place? Uber is a global company with services in over 70 countries, so for them it is extremely important to be diverse. Uber was founded in San Francisco in 2009 and has since expanded their . Should Uber ultimately fail, it would open up the possibility of a taxi company fit for the 21st century. Unethically Poaching down the drivers of the competitor company. As of this writing, Kalanick has not publicly responded to the letter. And it shouldnt be this way. Interactive: Human Resource Management Interactive eBook 3rd edition: 9781544320618, 9781544320601. https://www.vitalsource.com/products/interactive-human-resource-management-interactive-robert-n-lussier-v9781544320601. These are staggering amounts, and to make sense of them we need to understand that Ubers business model is the same as Amazons. Don't use plagiarized sources. paper. One of the reasons for this is improper background . 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. 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. 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. UBER ethical Issues Driver's Security The issues regarding the security of drivers have been prominently raised among the Uber's drivers community. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. 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. Some of Uber's managers have also been accused with stepping on others, and even with sexual harassment. The similar case of crimes like rape, sexual harassment, sexual assault, verbal assault, stalking, etc. 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. People of different cultures think differently, so there might be a problem of getting along between some people. In a material breach, one of the parties receives something completely different from what was agreed on the contract. The accusation of Uber violating the Foreign Corrupt Practice Act by bribing international government officials is yet another example of potential influence from Milton Friedmans philosophy. Glss, M., McGregor, M., & Brown, B. 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. 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. How CISOs handle the ethical issues around data breaches can make or break their careers. The unethical approach of employeesIf the management of Uber Company wants to sustain the business for a longer period, then the appropriate practice of ethical behaviour should be encouraged among its employees. Are you interested in getting a customized paper? All rights We use cookies to personalyze your web-site experience. 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. The engineer complained to . This Article is brought to you for free and open access by the Faculty Publications at Loyola eCommons. We will occasionally send you account related emails. This is a mistake. Uber was accused of unscrupulous recruitment tactics. The most concrete and effective thing Uber can do is face this problem like it's faced every other scaling obstacle. Students who find it difficult to write detailed essays. Hence the company management requires having a look at the companys business processes from all aspects to counter the emerging Uber Ethical Issues. 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. Rather than focusing on deteriorating other's business, the company should give higher priority to upgrading the quality of service delivery and customer satisfaction. Users can read menus, reviews and ratings, order, and pay for food from participating restaurants using an application on the iOS or Android platforms, or through a web browser ()Key features: Uber has revealed that they have received an amount of 175 complaints of a sexual assault (RT Question More). Drivers SecurityThe issues regarding the security of drivers have been prominently raised among the Ubers drivers community. Retrieved from https://www.eeoc.gov/laws/types/equalcompensation.cfm, Hartmans, A., & McAlone, N. (2016, August 1). 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). And nobody gets away with just an apology. Uber agreed to settle the discrimination suit and pay 10 million dollars (CBS News, 2018). All rights reserved. Don't use plagiarized sources. By checking a mobile device in the car. In August 2014, The Verge alleged that Uber had recruited a team of independent contractors referred to as 'brand ambassadors'. our extensive database of written samples to find the inspiration or research youre looking Get your custom essay. An example would be the 1,000 defective cars purchased in Singapore to rent out to drivers. 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. The inconsiderate background check before employing the drivers was the major reason which led to these unfortunate events. 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. Below, we will . 16 students ordered this very topic and got original papers. 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 month, the company is rolling out an option that lets customers round up their bill with the proceeds going to charity. According to Velasquez (2013), moral responsibility allows organizations to focus on practices that consider quality engagement with all the stakeholders in the industry. 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. Retrieved from Forbes: https://www.forbes.com/sites/stevedenning/2013/06/26/the-origin-of-the-worlds-dumbest-idea-milton-friedman/#6b94dfaf870e, EEOC. Wallsten, S. (2015). In a minor breach, the breaching party failed to perform some aspect of the contract. Retrieved from Employment Law Daily: http://www.employmentlawdaily.com/index.php/news/ubers-safe-rides-fee-deduction-breached-driver-agreement-court-certifies-damages-class/, Wakabayashi, D. (2018, May 21). A fairly common conclusion is that Uber needs to become more ethical if it is to survive. Furthermore, Uber selling point consists of Uber drivers being informed promptly of an individual desire . 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 . After the calamitous year Uber has had, it should. Retrieved from Harvard JLOT: https://jolt.law.harvard.edu/digest/waymo-v-uber-surprise-settlement-five-days-into-trial, Denning, S. (2013, June 26). It could be inferred from this decision that to address the existing Uber ethical issue, the management and leadership needs to change its tone and approach primarily. 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.). This essay has been submitted by a student. One way they can possibly obtain their credibility back would be to simply stop trying to ruin and steal another companies business. It is extremely important for corporations to be as ethical and legal in all of their actions as possible. . 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. To this end, we analyzed Uber drivers' forum discussions about their lived experiences of working with the Uber platform. The fee for the safety program was to be charged to the customer. You can get your custom paper by one of our expert writers. The malicious intend towards competitive companies like ordering and cancelling the rides through bogus accounts should be terminated by the leadership of Uber Company. Wyman, K. M. (2017). 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. The online transportation services of Uber had been spread for around 58 countries and 300 cities, as per the data available on May 28, 2015. Benefits/Challenges of a Diverse Workforce. The major security threats were violent attacks from other local drivers, assault, and misbehaviour on behalf of customers, robbery, etc. But you can one from professional essay writers. Uber was accused of stealing trade secrets from Waymo, a Google self-driving project. Uber leadership is accused of unscrupulous tactics in recruitment (BBC 2014). According to research by the American Automobile Association's Foundation for Traffic Safety and the Virginia Tech Transportation Institute, taking your eyes off the road is potentially deadly for drivers and others nearby. The benefits of a diverse workforce at an organization such as Uber are described above, but there exist challenges as well. Retrieved from CBS News: https://www.cbsnews.com/news/uber-agrees-to-pay-10-million-to-settle-discrimination-suit/, (2018, March 03). 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. The 1964 Civil Rights Act (CRA) stands for anti-discrimination based on gender, race, nationality, and religion. Delving into how Uber handled its breach provides an important lesson in bug bounty ethics, particularly what not to do. Multitasking Drivers. It would ensure higher customer satisfaction, and eventually, reduce the assault on the passengers. Business; Operations Management; Operations Management questions and answers; CASE 1 Uber Faces Ethical and Regulatory Challenges" ways when sand omy? Leighton, P. (2016). Most stock quote data provided by BATS. Disclaimer. By continuing, you agree to our Terms and Conditions. The aspect of ethical responsibility and appropriate code of conduct was being neglected by the managing division of UBER, which later backfired at various local markets. 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. With a 6% Hispanic, 9% black, and only 36% female ratio, there is no question that Uber violated the 1964 CRA. 3. 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. Isaac, M. (2017, February 19). In this essay, we will discuss in depth the specific laws that have made Uber unethical and a subject to the legal system. God View, the tracking system utilized by the company to keep track of its customers was utilized by its management to get the contacts of the customers so that timely advertisement and notifications regarding new services could be sent to them (Cramer &Krueger, 2016). Copyright 2022. totalassignment.com. 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. Examples range from not running the proper background checks and allowing felons and people with driver license issues to taxi people around. Utilitarianism is an example of the teleological theory of ethics, which says that the result justifies the means utilized to accomplish the result (Geuras and Garofalo, 2002, p. 50). Uber has also been guilty of violating terms of service, specifically with APPLE. Previously, Ghaffary worked at BuzzFeed News, the San Francisco Chronicle, and TechCrunch. Ingrid Avendano was a former engineer at Uber. 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. UBER has been subjected to many law suits and ethical issues. 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. 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. Vienna, Virginia: Management Concepts. With extensive experience in academic writing, Total assignment help has a strong track record delivering quality writing at a nominal price that meet the unique needs of students in our local markets. Orders: 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. 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. 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. The leaders, right from its former CEO and co-founder, Travis Kalanick, and senior management have been accused of sexual harassment and discriminating employees from certain races (Stark, 2017). Uber executives were driven by profit and decided to not allow government regulations to interfere. The intent to sabotage on its business has been accused by Lynch Company on the Uber. 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