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. 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. On Wednesday, U.S. Uber sought in September to get a new rule overturned. It is not that Uber is incapable of such ethical measures. Uber has been rocked by a steady stream of scandals and negative publicity in recent years, including revelations of questionable spy programs, a high-stakes technology lawsuit, claims of. 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. All Rights Reserved. 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. 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. Uber's 2019-2020 Safety Report states that 99.9% of all Uber rides are completed without incident. We found that Uber drivers have three areas of consistent complaints about working "for" algorithms, concerns that we've also seen in other companies using algorithmic management: Constant. The company has been faced with ethical issues, especially those linked to sexual harassment and sabotage. 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. Software, hardware, people and data those components will be analyzed further. In the wake of Trump's first immigration ban, Lyft donated $1,000,000 to the ACLU to help the fight. Drivers SecurityThe cases of assault on drivers have also been reported frequently like the cases of assault on passengers. Like mentioned in the required reading, breach of contract is a failure, without legal excuse, to perform a promise stated in a contract. But doing so dramatically increases the rate of having an accident. (2017, Aug 31). 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. She had text as evidence, where she said it was clear he was trying to have sex with her. Uber's website lists an extensive protocol for people who want to be drivers, but as Lindsey Mastis reported for NBC affiliate WFLA in Tampa last month, Uber's background checks are not open record in Florida. Trade secrets are something not generally known. ReferencesAngrist, J. D., Caldwell, S., & Hall, J. V. (2017). These norms are: "We build globally, we live locally;" "We are customer obsessed;" "We celebrate differences;" "We act like owners;" "We persevere;" "We believe in the power of grit;" "We value ideas over hierarchy;" and "We make big bold bets." Jiang, S., Chen, L., Mislove, A., & Wilson, C. (2018, April). 3. 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. It is categorized as either a material breach or a minor breach. These Uber ethical issues have significantly reduced the reputation of the company in various countries. Former CEO Travis Kalanick set to profit as the main priority it seems. Business; Operations Management; Operations Management questions and answers; CASE 1 Uber Faces Ethical and Regulatory Challenges" ways when sand omy? Retrieved from JEC: http://jec.unm.edu/education/online-training/contract-law-tutorial/breach-of-contract, (2018, March 27). We use cookies to personalyze your web-site experience. Book Your Assignment at The Lowest Price Now! Another challenge could be the sexual harassment problem. 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. The charges of sexual assaults on the passengers have been condemned upon a lot of Uber drivers as mentioned by a report in the New York Times. Related: Taxi rival bills itself as 'non a-hole' Uber. Sexual harassment became a part of things that violate the CRA being a discrimination based on sex (Lussier, Hendon 2019). Factset: FactSet Research Systems Inc.2019. Most dramatically, the costs of becoming established in new markets is vast. Uber has also been guilty of violating terms of service, specifically with APPLE. 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. You can get your custom paper by one of our expert writers. Waymo claimed that before Levandowski left his job at Google, he downloaded 14,000 files that pertained to self-driving car technology. Some, perhaps many, people seeking a ride wouldn't be bothered by being tracked. 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. Retrieved from The New York Times: https://www.nytimes.com/2017/02/19/business/uber-sexual-harassment-investigation.html?module=inline, Ivanova, I. w23891). The fee for the safety program was to be charged to the customer. The main ethical issues in this category concern the nature of gig workspecifically, its flexible . Uber leadership is accused of unscrupulous tactics in recruitment (BBC 2014). Lussier, R. N., & Hendon, J. R. (2019). 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). Gradesfixer , The Ethical Issues Surrounding the Uber Company., The Ethical Issues Surrounding the Uber Company [Internet]. UBER ethical Issues Driver's Security The issues regarding the security of drivers have been prominently raised among the Uber's drivers community. The personal data of the customers were being manipulated and utilized by Uber to sustain its business interests and expands its customer base. It was upsetting enough when Michael made his crack about digging up dirt on journalists who dared to criticize the company. have been charged against various Uber drivers (Saadah &Mubah, 2017). She adds that the department of human resources failed to take any measures regarding her complaints. Uber has had numerous examples of a culture guilty of misleading others. for. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. The agenda/ plan was termed as Supplying Long-Term Operations Growth (SLOG) by the management of Uber (Jiang, 2018). UBERs Ethical and Legal Issues. Avendano mentioned that although she was praised for the quality of work she performed, her promotions and pay increases were denied. Retrieved from https://www.eeoc.gov/laws/types/equalcompensation.cfm, Hartmans, A., & McAlone, N. (2016, August 1). But even before that, this wildly popular car-sharing service had raised several disturbing ethical issues: 1. Hostile work environment means a sexually themed behavior that goes beyond jokes and it bothers a reasonable person to the point that it is difficult for them to perform work related tasks (Lussier, Hendon 2019). Retrieved from https://www.eeoc.gov/laws/types/sexual_harassment.cfm, EEOC. 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 . What has Uber done about this? 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. Get your custom essay. Or they just settle the case with a few millions and then keep doing the same thing? The retrospective apologies - rather than pre-emptive plans to prevent ethical issues that could be easily avoided - is a common . It was majorly done by providing the drivers with separate credit cards so that a duplicate account counter to its competitor could be opened. This is a case study review about Uber - a global, app based Taxi Company. Ubers hope must be that when it gets to this stage there will be no alternatives left to chose from. Total Assignment Help Rated 4.8/5 based on 10542 reviews. Ethical issues are a great concern for the company. Senator Al Franken (D-Minn.), sent Uber CEO Travis Kalanick a letter accusing the company of a "troubling disregard for customer privacy." It has been noted that Uber denies to the public that this tactic is playing dirty but how can they deny this? The first branch store opened in 1964 in Missouri. 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. Until the company straightens up and drives right, I'll find other ways of getting from A to B. Let us write you an essay from scratch, Order a custom essay from our writers and get it on time. 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. Uber Eats. 16 students ordered this very topic and got original papers. Uber- Ethics & Legal Standards. 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. 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. 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). 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. Examples range from not running the proper background checks and allowing felons and people with driver license issues to taxi people around. This technique would cause the Lyft drivers to have low availability, waste gas and then more than likely allow the customers to call Uber instead for a ride (Frizell). Wall Street Journal Retrieved from https://search-proquest-com.ezproxy2.apus.edu/docview/1933837150?accountid=8289. 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. Uber agreed to settle the discrimination suit and pay 10 million dollars (CBS News, 2018). Utilitarianism was introduced in the 18th century. 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. National Bureau of Economic Research. The company has never made a profit, and in 2016 alone lost nearly US$3 billion. Lyft is positioning itself as the ethical alternative to Uber. 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. Uber Is In Dire Need of Ethical Leadership. Retrieved from CBS News: https://www.cbsnews.com/news/uber-ipo-could-value-the-company-at-120-billion-report/, Prysby, N. D. (n.d.). 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). How CISOs handle the ethical issues around data breaches can make or break their careers. 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. Over the past couple of years, one particular company has seen more than their share of scandals. 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. Thousands of Uber drivers around the world plan to protest for better working conditions on Wednesday . We will occasionally send you account related emails. 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. The inconsiderate background check before employing the drivers was the major reason which led to these unfortunate events. It all comes down to the economic model on which Uber is built. . For everyone else, is an app slightly shinier than its competitors clones enough to outweigh the higher fares that should come with Ubers model? 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. All rights reserved. But such convenience isn't enough to negate the above concerns. In a minor breach, the breaching party failed to perform some aspect of the contract. 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. (2018, October 16). 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. 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. As a result of over three years of ongoing research and analysis, this paper is a comprehensive assessment of a number of social issues facing the integration of practices both signified and enacted in an economy driven by apps such as Uber. Uber vs. taxi: A drivers eye view (No. Uber executives stated that they are working on bringing in more women and more people of color into tech (Lussier and Hendon, 2019). 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. The business guide to legal literacy: what every manager should know about the law. 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. What defines a substantially equal job is job content, not the title. Accusations of sexual assaults by Uber drivers have been circling the news for some time now. But you can one from professional essay writers. The change followed a separate decision to reduce gross rates in major cities as part of a price war with rival Lyft. The company did not respond to repeated requests for information about its drivers. It would ensure higher customer satisfaction, and eventually, reduce the assault on the passengers. First, here are the facts. 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. 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). Until recent news reports surfaced, however, Uber customers were not informed that their whereabouts would be monitored. Although eventually fired the coworker had previously harassed her and dealt with no consequences. Stop wasting your time searching for samples! Ethical Issues at Uber . Students who find writing to be a difficult task. 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.". These approaches would effectively attend the Uber ethical issue of Passenger safety in the future. Isaac, M. (2017, February 19). Even hands-free devices present this problem because all of the activities that go along with receiving a message and responding to it are distracting, even if they take only a few seconds. As of this writing, Kalanick has not publicly responded to the letter. Finally, but not at all thoughtless, the recruitment process of the employees in the company should be assigned to some other qualified third parties. You can find Ubers ethical position on its . It provides a competitive advantage to the owner. 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. Wallsten, S. (2015). 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. These reference papers are strictly intended for research and reference purposes only. This is not an example of the work written by professional essay writers. These are not difficult to address if they are dealt with honestly. Multitasking Drivers. Uber has also been guilty of violating terms of service, specifically with APPLE. Retrieved from FindLaw: https://corporate.findlaw.com/intellectual-property/patent-law-you-can-use-part-1.html, (n.d.). 16 students ordered this very topic and got original papers. 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. ETHICAL ISSUES. Designing for labour: Uber and the on-demand mobile workforce. World news: Uber faces probe under U.S. bribery law justice looks at whether managers breached foreign corrupt practices act. 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. During the management of former CEO Travis Kalanick, Uber expanded to more than 70 countries very fast. This was not the only occurrence of sexual harassment, according to Ms. Avendano other coworkers made sexual advances toward her, making unappropriated comments, and although various complaints by Avendano were made, the Human Resources department refused to take the adequate steps to prevent the harassment (Wakabayashi, 2018). A Warner Bros. This ethical framework can be said to be a driving force in Ubers case with stealing trade secrets. Safety of the passengers In March of 2009 UberCab initiated out San Francisco allowing customers to access a cab with your smartphone. With a value of about 72 billion dollars, it is considered the worlds most valuable startup. Total Assignment help is an online assignment help service available in 9 countries. From only 29.95 for 12 months web access and the print magazine. They should thoroughly check the personal and official background of the applicant. Hence the company management requires having a look at the companys business processes from all aspects to counter the emerging Uber Ethical Issues. But as later things blew up, Uber quickly apologised for some of the managers actions, had female executives give positive testimonials on how good it is to work for this company, and examine workplace policies and procedures (Lussier, Hendon 2019). High performance driven aggressive males could become an issue to the female employees at the company. Cramer, J., & Krueger, A. Our local operations span across Australia, US, UK, South east Asia and the Middle East. On ride sharing competition and accessibility: Evidence from Uber, lyft, and taxi. What is the ethical issue and dilemma presented in the case? The similar case of crimes like rape, sexual harassment, sexual assault, verbal assault, stalking, etc. This essay has been submitted by a student. 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). Uber was accused of price-gouging and "siege pricing". 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. The reason for this, argued Horan, is that the economies of scale are not there for the taking in this market. Uber's advantages include door-to-door convenience, safety, and reliable quality. And nobody gets away with just an apology. 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. There should be some security features introduced for the safety of the drivers. Pol'y, 20, 1. All rights reserved. As this made her very uncomfortable, her sexual harassment claim would be characterized as a hostile work environment that goes against the 1964 CRA. Uber has been a major success story, reaching a valuation of $50bn after just five years. Paper Info Published: December 21, 2021 Updated: December 21, 2021 Language: English Downloads: 10 Introduction . What began in 2009 as a luxury car service in San Francisco is now valued at $62.5 billion and operates across 71 . 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. Business Insider. 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. B. Fowler reported the incidents to human resources but was ignored. Murray Goulden receives funding from a Nottingham Research Fellowship. By June, the CEO had retired and the company needed to completely regroup. Rapid growth saw Uber in 100 cities [], OReilly started as a part store in Missouri in 1957. Uber faces stiff competition in lots of markets. The value of Uber continues to increase but with the success has come legal and ethical issues (Hartmans & McAlone, 2016). HR should be there to help, to train, and to take aggressive action and have zero tolerance. The fare is charged directly to your credit card. The famous modern taxi cab company has been in unethical scandals ranging from sabotaging other ride sharing companies to their drivers sexually assaulting their customers. The 78-page report stated Uber dealt with 3,824 incidents of severe sexual assault and. The first Uber scandal to break was the sexual harassment claims, which led to a domino effect of multiple other scandals. The competitive effects of sharing economy: how is Uber changing taxis. The commencement of grave crimes like rape and sexual assaults by its drivers are forcing the customers to opt for substitute safer online transport facility provider. Uber was accused of unscrupulous recruitment tactics. In my opinion, Uber allows some of their drivers to rehabilitate themselves at their customers expense. The open letter continues, "Making changes only at the corporate leadership level creates a dangerous likelihood that Uber's sustained ethics challenges will resurface.". 1632-1643). Students are not to copy or submit them as is. our extensive database of written samples to find the inspiration or research youre looking Uber executives were driven by profit and decided to not allow government regulations to interfere. Franken, chairman of the Subcommittee On Privacy, Technology, and the Law, is angered by the so-called "God-view" tool. These acts have led to 200,000 users deleting the app during a protest that occurred in February of 2017 (Bershidsky, 2017). Ubers problem: A culture of dishonesty. Get your custom essay from professional writers. Many of her complaints went ignored, according to Ms. Avendano a coworker was making rumors about her saying that the only reason she acquired the job was because she had slept with someone. Senior Research Fellow, University of Nottingham. Society will simply have to carry the cost of higher fares and lower driver wages. 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. Don't use plagiarized sources. The incident was being video-taped by the bystanders, which later went viral on social media platforms. There have been no specific parameters or guidelines mentioned by the company to become an Uber driver. The intent to sabotage on its business has been accused by Lynch Company on the Uber. Eventually, this additional cost will be felt. 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. Orders: 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 . Don't use plagiarized sources. 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. Passenger Safety. Uber's disadvantages include its surge pricing and the negative effects of replacing steady jobs with gig work . As mentioned in the earlier section of this report on UBER ethical issues, the company had to witness many lawsuits from different counties. If agreed, the drivers are provided with the sign-up kit at the moment. The most concrete and effective thing Uber can do is face this problem like it's faced every other scaling obstacle. In our post-9/11 world, city governments have cameras in an increasing number of public places. They have become a challenge when dealing with the case that has . Disruptive change in taxi business: The case of Uber. So can Uber afford to become ethical? Retrieved from https://www.businessinsider.com/ubers-history. Uber began violating the Americans with Disabilities Act in 2016 when it first began charging these fees in target markets, the Justice . (The issue would be average pay, not that a driver will necessarily get the minimum wage for every hour they do Uber-related driving.) Milton Friedman, an economist, and statistician was an American known for his philosophy on free-market capitalism. 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). If you fit this description, you can use our free essay samples to generate ideas, get inspired and figure out a title or outline for your paper. Does Silicon Valley have a sexism problem? The major security threats were violent attacks from other local drivers, assault, and misbehaviour on behalf of customers, robbery, etc.
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