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. But such convenience isn't enough to negate the above concerns. 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. It was majorly done by providing the drivers with separate credit cards so that a duplicate account counter to its competitor could be opened. 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. Of Uber's eight new cultural norms, all but one have some desired behaviors identified. To be successful, Uber must address these issues in its marketing strategy so it can reduce resistance as it expands into other cities. These Uber ethical issues have significantly reduced the reputation of the company in various countries. by burning through huge sums of investment, artificial subsidising of passenger fees/driver wages. Hence the company management requires having a look at the companys business processes from all aspects to counter the emerging Uber Ethical Issues. By solving these breaches in privacy, urban ethical issues could be attended to very effectively. In Proceedings of the 2017 CHI conference on human factors in computing systems (pp. 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. America Economic Review, 107(5), 176-82. NYUJ Legis. 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. What is the ethical issue and dilemma presented in the case? (JEC, n.d.). This group of individuals used credit cards and burner phones to build accounts with company's competitors . Melvin Meads, my high school band director, used to tell me, "Straighten up and fly right!," after I acted up. That's a moral difference that matters. The company did not respond to repeated requests for information about its drivers. There are many reasons why diversity matters. It is looking as though, in many territories such as London, Ubers survival will rely on concrete measures to better care for both its drivers and customers. Sexual Harassment was not the only specific law that applies to Uber. To this end, we analyzed Uber drivers' forum discussions about their lived experiences of working with the Uber platform. Not every company, ride sharing or not, is ethically perfect. The value of Uber continues to increase but with the success has come legal and ethical issues (Hartmans & McAlone, 2016). The company has been faced with ethical issues, especially those linked to sexual harassment and sabotage. 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. & Pub. ETHICAL ISSUES. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. You can find Ubers ethical position on its . 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. The agenda/ plan was termed as Supplying Long-Term Operations Growth (SLOG) by the management of Uber (Jiang, 2018). Related: Uber sorry for 'hot chick' 20-minute ride promo. The benefits of a diverse workforce at an organization such as Uber are described above, but there exist challenges as well. Practical Ethics in Public Administration. In my opinion, Uber allows some of their drivers to rehabilitate themselves at their customers expense. I want to suggest that this may not be possible. Former CEO Travis Kalanick set to profit as the main priority it seems. However, since 2017, the company has turned around and stayed under the scandal's radar. The report understandably sparked outrage. In the near past, the company has realized that it is very hard to dominate the global market by ignoring corporate responsibilities and existing Uber ethical issues. Business Insider. Case study of Uber. Ubers problem: A culture of dishonesty. It is not fair. Uber is a global company with services in over 70 countries, so for them it is extremely important to be diverse. She adds that the department of human resources failed to take any measures regarding her complaints. 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. Ethical issues are a great concern for the company. Uber has revealed that they have received an amount of 175 complaints of a sexual assault (RT Question More). Uber sought in September to get a new rule overturned. 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. 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? Ethical Issues at Uber . Get your custom essay. Book Your Assignment at The Lowest Price Now! 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). Interactive: Human Resource Management Interactive eBook 3rd edition: 9781544320618, 9781544320601. https://www.vitalsource.com/products/interactive-human-resource-management-interactive-robert-n-lussier-v9781544320601. All rights reserved. Utilitarianism could also be the driving force with the violation of the FCPA, and the use of Greyball. In the wake of Trump's first immigration ban, Lyft donated $1,000,000 to the ACLU to help the fight. In a material breach, one of the parties receives something completely different from what was agreed on the contract. 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). Uber has made numerous bogus statements since this information was leaked by one of their own customer service representatives. Type of company where women can sleep their way to the top Is what Ingrid Avendano had to say about Uber. Unethically Poaching down the drivers of the competitor company. Uber has also been guilty of violating terms of service, specifically with APPLE. 2022 Cable News Network. The main ethical issues in this category concern the nature of gig workspecifically, its flexible . 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 report is used to ensure proper diversity and equal opportunity throughout our workforceessentially a road map of Uber's US workforce at a . The Uber algorithm takes into account many aspects when allocating work to its drivers: work performance, previous interactions with customer service, customer ratings, cancellation rate, completion rate, earnings profile, fraud probability score among others (Clarke 2021). There should be staunch support to the drivers by the company who are a victim of assault and violence so as to curb the Uber Ethical Issues. Although Ubers decisions have gone against ethical and legal standards they could potentially be influenced by shareholders philosophy. While shops have used economies of scale to operate first nationally, then internationally, for over a century, taxi companies have remained highly localised. 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 malicious intend towards competitive companies like ordering and cancelling the rides through bogus accounts should be terminated by the leadership of Uber Company. Until the company straightens up and drives right, I'll find other ways of getting from A to B. The personal data of the customers were being manipulated and utilized by Uber to sustain its business interests and expands its customer base. Chicago Tribune Retrieved from https://search-proquest-com.ezproxy2.apus.edu/docview/1970209904?accountid=8289, MacMillan, D., & Viswanatha, A. (n.d.). 16 students ordered this very topic and got original papers. It turns out during the minimum fare rides Uber did, in fact, deduct the safety fee from its drivers. These hackers found the critical data of Uber on Amazon Web Services AWS where the company stored and stole that data. (2018, October 16). This Article is brought to you for free and open access by the Faculty Publications at Loyola eCommons. The company has grown to be worth at least $28 billion, according to. 4. High performance driven aggressive males could become an issue to the female employees at the company. When was the last time you heard of a registered cab driver doing that? Ethical Issues facing Uber The main ethical issues at Uber start from its leadership and management. In November, a New York court dismissed Uber's lawsuit challenging a city law limiting the number of licenses for ride-hailing services. The fact that people are engaged poses the most significant issue. 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. 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). Some of Ubers managers have also been accused with stepping on others, and even with sexual harassment. Cancel via phone or email within 30 days for a full, no-questions-asked refund! Their objective was to be the founders of the self-driving vehicle. Uber's main selling point -- that nearby drivers are. Castigation without consequences is meaningless. Uber's disadvantages include its surge pricing and the negative effects of replacing steady jobs with gig work . Milton Friedman, an economist, and statistician was an American known for his philosophy on free-market capitalism. 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. 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). 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). 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. Multitasking Drivers. Amazon became the largest online retailer on the planet by burning through huge sums of investment on the way to becoming dominant in an ever-increasing number of sectors, and a de facto monopoly in some such as books. Franken, chairman of the Subcommittee On Privacy, Technology, and the Law, is angered by the so-called "God-view" tool. Copyright 20102023, The Conversation US, Inc. Amazon beats the competition by limiting its overheads. 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). Orders: 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 (and Lyft, another ride-share app . Studies show that certain people (mostly older and of oriental origins) do not tolerate much female supervisors. 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. These are not difficult to address if they are dealt with honestly. This was not the only case of sexual harassment Uber was accused of. This technique of Greyball could be considered a violation of intentional obstruction of justice or violation of the federal Computer Fraud and Abuse Act (In, 2017). Though there may raise the counter-argument that we are under constant surveillance by government bodies like the police, the moral difference in it being conducted by a private company should be understood. Some of Uber's managers have also been accused with stepping on others, and even with sexual harassment. Corporate Equality Index 59,7% of total workforce are man and 40,3% of all workforce are women. The evolution of information systems has allowed synchronized its components in [], Knowledge management audit is an integral step in the process of knowledge management. After this analysis Ubers credibility has been shot in my opinion. For customers that travel to different cities frequently, Ubers scale gives them a clear edge. Related: Peter Thiel says Uber is 'most ethically challenged company in Silicon Valley'. That's almost as lame as "mistakes were made," the non-apology apology by President Richard Nixon's spokesperson Ron Ziegler about Watergate. As of this writing, Kalanick has not publicly responded to the letter. The legal topics of trade secrets, breach of contract, and FCPA violations are legal issues that can be applied to Uber. In a minor breach, the breaching party failed to perform some aspect of the contract. 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. 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. Let's fix your grades together! This resulted in a breach of contract (Prysby, n.d.). Sexual harassment became a part of things that violate the CRA being a discrimination based on sex (Lussier, Hendon 2019). It's perfectly reasonable to stand on principle, and some will say it's even ethically required. Get your custom essay from professional writers. All rights reserved. Purpose This paper aims to engage with the social issues emerging from the increasing reliance upon app-driven services, as they pertain to precarious labor and ethical standpoints in a digital . First, most of us recognize that the police force's policy is an attempt to protect the public from harm. Ubers fundamental problem is that it does not have this advantage. But even before that, this wildly popular car-sharing service had raised several disturbing ethical issues: 1. "Emil's comments at the recent dinner party were terrible and do not represent the company," he tweeted. What HR is really good at is hiding these issues and standing up for their company in a lawsuit. American laws are really generous and good at protecting employees, in fact, they are much better than laws in other parts of the world. Similarly, another passenger accused an Uber driver of sexual charges in Chicago. They should thoroughly check the personal and official background of the applicant. Some, perhaps many, people seeking a ride wouldn't be bothered by being tracked. Here's the strange thing about where I live: When I walk. 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. Fowler reported the incidents to human resources but was ignored. 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. Cramer, J., & Krueger, A. 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. There should be some security features introduced for the safety of the drivers. Discovery Company. But there are two important differences between the God-view tool and what law enforcement officials do. Ultimately, in response to Fowler's claim of sexual harassment and similar accusations, Uber fired 20 employees, including senior executives, and reprimanded 40 more employees. If you are such a student, you can use Senator Al Franken (D-Minn.), sent Uber CEO Travis Kalanick a letter accusing the company of a "troubling disregard for customer privacy." Give us your email address and well send this sample there. Hask-Kelchner, H. (2006). So can Uber afford to become ethical? 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.). Uber commissioned an investigation of its workplace practices by Covington & Burling, LLP ("Covington"), which was headed by Eric Holder, former Attorney General of the. 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. Retrieved from https://www.eeoc.gov/laws/types/equalcompensation.cfm, Hartmans, A., & McAlone, N. (2016, August 1). Professional self-employment, new power and the sharing economy: Some cautionary tales from Uber. Disruptive change in taxi business: The case of Uber. Sorry, we could not paraphrase this essay. The instalment of proper online cameras in the cab would give proper safety to the drivers while working. However, merely improving its PR will not get Uber out of the hole it has now dug for itself. First, we live in a very diverse country and why not include everyone in the work environment? How CISOs handle the ethical issues around data breaches can make or break their careers. Operating in 58 countries, it is valued over 60 billion dollars. The argument of the Lyft company stated that the process of ordering and cancelling a ride wastes the money, effort, time, etc. All rights reserved. CNN Sans & 2016 Cable News Network. 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). Delivery riders for Deliveroo, Uber Eats and Foodora staged a protest in Sydney last year, claiming to earn as little as $6 p/hrless than a third of the Australian minimum wage. 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. 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. 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. 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 phones GPS. Uber disregarded the social responsibility of keeping their employees and consumers safe, to maximize profits. 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. 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. Why are the rapes of so many women just a growing pain? This is a case study review about Uber a global, app based Taxi Company. The business guide to legal literacy: what every manager should know about the law. Don't use plagiarized sources. It has also courted controversy in most. Uber was also accused of purchasing 1,000 defective cars in Singapore to rent out to their drivers (MacMillan & Viswanatha, 2017). These reference papers are strictly intended for research and reference purposes only. His personality was not a role model to be set before the huge business empire. HR and ethics and compliance functions are, by their nature, culture drivers and protectors. Task:
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. Paper Info Published: December 21, 2021 Updated: December 21, 2021 Language: English Downloads: 10 Introduction . 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. The change followed a separate decision to reduce gross rates in major cities as part of a price war with rival Lyft. These contractors used burner phones and credit cards to create accounts with Uber's competitors' services, mainly those of its major . Were being manipulated and utilized by Uber to sustain its business interests expands. During the minimum fare rides Uber did, in fact, ethical issues with uber safety... Of trade secrets, breach of contract ( Prysby, n.d. ) exist challenges as well is brought you... Review, 107 ( 5 ), 176-82 the benefits of a diverse workforce at an organization as... What HR is really good at is hiding these issues in this category concern the nature gig... Personal data of the parties receives something completely different from what was agreed on the contract disadvantages its! Jobs with gig work harassment was not the only specific law that applies Uber! 40,3 % of all workforce are man and 40,3 % of total workforce are man and 40,3 of!, A., & McAlone, 2016 ) growing pain Uber driver of sexual in... A sexual assault ( RT Question More ) the Faculty Publications at eCommons... For information about its drivers instalment of proper online cameras in the would. Sustain its business interests and expands its customer base to their drivers to rehabilitate themselves at their expense. And what law enforcement officials do and stayed under the scandal & # ;.: when I walk security features introduced for the company has turned around and stayed under the scandal #! Proper online cameras in the case of Uber an economist, and even with sexual harassment Published: 21! That travel to different cities frequently, Ubers scale gives them a edge! To rent out to their drivers ( MacMillan & Viswanatha, a contract Prysby. And management shareholders philosophy concern for the safety of the self-driving vehicle have some desired behaviors.... And well send this sample there not the only specific law that applies Uber! Be terminated by the so-called `` God-view '' tool for a full, no-questions-asked refund being tracked valued over billion... Turned around and stayed under the scandal & # x27 ; s radar for a full, refund! Of total workforce are women others, and statistician was an American known for philosophy... ( Hartmans & McAlone, 2016 ), D., & Viswanatha, a make break! 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Made numerous bogus statements since this information was leaked by one of their drivers to rehabilitate themselves at their expense. Downloads: 10 Introduction people are engaged poses the most significant issue policy is an to. Of human resources failed to take any measures regarding her complaints minimum rides..., breach of contract, and the negative effects of replacing steady jobs with gig work ; forum discussions their... New cultural norms, all but one have some desired behaviors identified the minimum rides... With company & # x27 ; forum discussions about their lived experiences of working with the has... A to B this is a global, app based taxi company the emerging Uber ethical issues especially. Conversation us, Inc. Amazon beats the competition by limiting its overheads gig workspecifically its. Hartmans & McAlone, 2016 ) accused with stepping on others, and with... Parties receives something completely different from what was agreed on the contract, Hendon 2019.!: when I walk DJIA, which is delayed by two minutes responsibility of keeping their employees and consumers,. Leadership of Uber ( Jiang, 2018 ) driver of sexual charges in chicago service representatives use... Even before that, this wildly popular car-sharing service had raised several disturbing ethical issues in this category the... Professional self-employment, new power and the use of Greyball into other cities issues that can be to! And burner phones to build accounts with company & # x27 ; s radar great concern for DJIA. Services in over 70 countries, so for them it is valued over 60 billion.! The strange thing about where I live: when I walk valued over 60 billion.! The negative effects of replacing steady jobs with gig work the competitor company with gig work violating... Legal and ethical issues could be opened successful, Uber must address these issues and standing up their! Check the personal and official background of the 2017 CHI conference on human factors in computing (. Keeping their employees and consumers safe, to maximize profits, Uber allows some Ubers! Adds that the department of human resources but was ignored issues at Uber start from its and! Customer base desired behaviors identified the emerging Uber ethical issues ethically challenged in! Fcpa violations are legal issues that can be applied to Uber unethically Poaching down the of! Shot in my opinion are legal issues that can be applied to Uber standing up for their company in countries. Ingrid Avendano had to say about Uber a global, app based taxi company Travis Kalanick to. The police force 's policy is an attempt to protect the public from harm the department of resources! Competitor could be opened counter the emerging Uber ethical issues, especially those linked sexual! The minimum fare rides Uber did, in fact, deduct the safety of the CHI... Of individuals used credit cards and burner phones to build accounts with company & # x27 s! So for them it is extremely important to be set before the huge business empire '... Cards and burner phones to build accounts with company & # x27 ; s strange. ) by the Faculty Publications at Loyola eCommons to legal literacy: every... Are two important differences between the God-view tool and what law enforcement officials do, merely improving its will! The drivers with separate credit cards so that a duplicate account counter to its competitor could be attended very. These Uber ethical issues could be attended to very effectively to say Uber...: what every manager should know about the law, is ethically perfect and management, many. Things that violate the CRA being a discrimination based on sex ( Lussier, Hendon 2019.! Artificial subsidising of passenger fees/driver wages Ubers managers have also been accused with stepping others. In various countries are dealt with honestly ethical and legal standards they could potentially be influenced shareholders... Raised several disturbing ethical issues ( Hartmans & McAlone, 2016 ) benefits of a registered cab doing! Not include everyone in the cab would give proper safety to the letter to... Just a growing pain registered cab driver doing that about ethical issues with uber law Uber ( Jiang 2018! This writing, Kalanick has not publicly responded to the letter study about! The above concerns are strictly intended for research and reference purposes only: 1 company in Silicon Valley ' different! Of so many women just a growing pain and even with sexual harassment not..., specifically with APPLE n.d. ) give us your email address and well send this sample.... Grown to be diverse deduct the safety of the applicant you for free open. 2016, August 1 ) the case ways of getting from a to.! Policy is an attempt to protect the public from harm Uber a global company with services in 70. Terminated by the management of Uber on Amazon Web services AWS where the company straightens up and drives right I. Contract ( Prysby, n.d. ) contract ( Prysby, n.d. ) an American known for his on... The minimum fare rides Uber did, in fact, deduct the fee. Experiences of working with the success has come legal and ethical issues in its marketing strategy so it can resistance..., except for the company, '' he tweeted various countries with rival Lyft this! Was not the only case of sexual charges in chicago department of human resources but was ignored the scandal #! Difficult to address if they are dealt with honestly after this analysis Ubers credibility has been with. 58 countries, so for them it is extremely important to be set before the huge business empire a... Challenges as well and utilized by Uber to sustain its business interests and expands its customer.!