The inconsiderate background check before employing the drivers was the major reason which led to these unfortunate events. Sexual harassment became a part of things that violate the CRA being a discrimination based on sex (Lussier, Hendon 2019). Sexual harassment and Equal Pay are not the only two laws Uber has been accused of breaking. The true ethical dilemma with driverless cars isn't the trolley problemit's whether we should be testing them on public streets at all. The malicious intend towards competitive companies like ordering and cancelling the rides through bogus accounts should be terminated by the leadership of Uber Company. reserved. In a material breach, one of the parties receives something completely different from what was agreed on the contract. Effectively, what both companies surely rely on is investors subsidising the prices customers pay in the short term, in return for a long-term monopoly with higher prices. 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. One way they can possibly obtain their credibility back would be to simply stop trying to ruin and steal another companies business. American laws are really generous and good at protecting employees, in fact, they are much better than laws in other parts of the world. If Uber can achieve market dominance before it runs out of funding, the inefficiencies in its model cease to matter. B. As per a report from Miami on first January 2016, the customer (a doctor from Florida), assaulted the Uber driver. Get your custom essay from professional writers. Retrieved from New York Times: https://www.nytimes.com/2018/05/21/technology/uber-sexual-harassment-lawsuit.html, In, S. F. (2017, Mar 04). Another ride sharing company, Lyft, got the brunt of Ubers sabotaging techniques. . Uber was also accused of purchasing 1,000 defective cars in Singapore to rent out to their drivers (MacMillan & Viswanatha, 2017). It has been noted that Uber denies to the public that this tactic is playing dirty but how can they deny this? A professional writer will make a clear, mistake-free paper for you! 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 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. 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. If you are such a student, you can use We also applied three general legal topics that were discussed in the required reading which were: Trade Secrets, Breach of Contract, and FCPA. This group of individuals used credit cards and burner phones to build accounts with company's competitors . Designing for labour: Uber and the on-demand mobile workforce. We do this by: Fostering and enabling a culture of ethical decision-making Guiding the Uber workforce to comply with all applicable laws, policies, and regulations 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). The company has never made a profit, and in 2016 alone lost nearly US$3 billion. 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. 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. our extensive database of written samples to find the inspiration or research youre looking By checking a mobile device in the car. As of this writing, Kalanick has not publicly responded to the letter. She had text as evidence, where she said it was clear he was trying to have sex with her. Uber: An Unethical Company Over the past couple of years, one particular company has seen more than their share of scandals. The retrospective apologies - rather than pre-emptive plans to prevent ethical issues that could be easily avoided - is a common . 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). (n.d.). Too many horrible accusations have been made about Uber drivers and numerous lawsuits have been filed. The letter's . 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. Professional self-employment, new power and the sharing economy: Some cautionary tales from 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. 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. Some of Ubers managers have also been accused with stepping on others, and even with sexual harassment. Through all the legal and ethical issues Uber has had, it is still a tremendous success. Melvin Meads, my high school band director, used to tell me, "Straighten up and fly right!," after I acted up. 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. These hackers found the critical data of Uber on Amazon Web Services AWS where the company stored and stole that data. It's perfectly reasonable to stand on principle, and some will say it's even ethically required. Uber commissioned an investigation of its workplace practices by Covington & Burling, LLP ("Covington"), which was headed by Eric Holder, former Attorney General of the. Bearing the responsibility of securing their clients' private information when they utilize the Uber app will pose a significant problem for Uber. Still, there is no such thing as a free lunch. It is extremely important for corporations to be as ethical and legal in all of their actions as possible. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Even if the person accused is very valuable to the company. 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 was accused of price-gouging and "siege pricing". We use cookies to personalyze your web-site experience. The country's Land Transportation Franchising and Regulatory Board (LTFRB). Multitasking Drivers. 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. Uber Eats is an online food ordering and delivery platform launched by Uber in 2014. Copyright 2022. totalassignment.com. In general companies in Silicon Valley have been forced in many instances to release diversity reports. Multitasking 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. Uber has been accused of potentially violating the Foreign Corrupt Practices Act and is undergoing investigation. Ubers fundamental problem is that it does not have this advantage. Studies show that certain people (mostly older and of oriental origins) do not tolerate much female supervisors. Most dramatically, the costs of becoming established in new markets is vast. Utilitarianism could also be the driving force with the violation of the FCPA, and the use of Greyball. His perspective was that a corporate executive is an employee of the shareholders, or owners of the business, and has a responsibility to its shareholders to conduct business in accordance with their desires. By using it, they order new rides from their major competitors (For instance, Lyft). 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. The operational part of the company reveals that it has never given proper support to the drivers at the time of distress. There have been no specific parameters or guidelines mentioned by the company to become an Uber driver. The denials were a result of her reports of misconduct to the company. 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. 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. We will occasionally send you account related emails. HR and ethics and compliance functions are, by their nature, culture drivers and protectors. Friedman was an advocate for free trade and minimal government interference with business transactions. 16 students ordered this very topic and got original papers. Their objective was to be the founders of the self-driving vehicle. An example would be the 1,000 defective cars purchased in Singapore to rent out to drivers. First, we live in a very diverse country and why not include everyone in the work environment? Although Uber settled with Waymo, this was an example of unethical behavior to try to have the founder status of self-driving cars (Harvard JLOT, 2018). What HR is really good at is hiding these issues and standing up for their company in a lawsuit. In November, a New York court dismissed Uber's lawsuit challenging a city law limiting the number of licenses for ride-hailing services. Jiang, S., Chen, L., Mislove, A., & Wilson, C. (2018, April). There are many reasons why diversity matters. 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. For many, Uber is a sure thing. The instalment of proper online cameras in the cab would give proper safety to the drivers while working. Passenger SafetyThe high rate of accusations and lawsuits against Uber drivers all over the world prove the existence of Uber ethical issues of safety for the passengers. Our professional writers can rewrite it and get you a unique paper. Uber- Ethics & Legal Standards. 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. (2016). But there are two important differences between the God-view tool and what law enforcement officials do. Write an article and join a growing community of more than 160,300 academics and researchers from 4,571 institutions. Uber faces stiff competition in lots of markets. She adds that the department of human resources failed to take any measures regarding her complaints. Ubers problem: A culture of dishonesty. 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. Retrieved from CBS News: https://www.cbsnews.com/news/uber-ipo-could-value-the-company-at-120-billion-report/, Prysby, N. D. (n.d.). Uber disregarded the social responsibility of keeping their employees and consumers safe, to maximize profits. Uber's Ethical Decisions 4 behave in a manner that they cannot be questionable in relation to their conduct. 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. Sam Frizell of Times wrote that numerous Uber employees would call in rides from Lyft, wait until the rides got close to them and then cancel them. Lastly, we discussed Utilitarianism as another ethical framework that applied to Uber. High performance driven aggressive males could become an issue to the female employees at the company. The company did not respond to repeated requests for information about its drivers. 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 . 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. We have experts for any subject. Related: Uber sorry for 'hot chick' 20-minute ride promo. Uber has also been guilty of violating terms of service, specifically with APPLE. 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). Below are discussed some recent incidents which have revealed the existing Uber ethical issues. A wealth of data at your fingertips. The report understandably sparked outrage. Chicago Tribune Retrieved from https://search-proquest-com.ezproxy2.apus.edu/docview/1970209904?accountid=8289, MacMillan, D., & Viswanatha, A. 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 not addressed this issue, as far as I can determine, but perhaps that's not surprising. Ethical Issues at Uber . The safe ride fee is something Uber implemented in 2014 to finance their safety program. Drivers SecurityThe cases of assault on drivers have also been reported frequently like the cases of assault on passengers. Uber did not follow the precise terms of the agreement in relation to Safe Ride Fees. Morningstar: 2019 Morningstar, Inc. All Rights Reserved. I can help you save hours on your homework. Why would a multi-billion dollar company who can afford a standard background check on their employees, allow these dangerous people to drive innocent customer? Pol'y, 20, 1. 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. Even if it acceptable to practice bribery in the foreign country, the FCPA prevents US companies from doing so (Hask-Kelchner, 2006). Uber agreed to settle the discrimination suit and pay 10 million dollars (CBS News, 2018). I want to suggest that this may not be possible. Most stock quote data provided by BATS. When Fowler first reported this to the Human Resource Department, they seemed to cover up for the supervisor and accused her of being abhorrent. Some of Uber's managers have also been accused with stepping on others, and even with sexual harassment. The additional charge of rape was also charged since he tried to sexually assault her in a hotel room. 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. Uber faces many regulatory and legal issues outside . Don't use plagiarized sources. As this made her very uncomfortable, her sexual harassment claim would be characterized as a hostile work environment that goes against the 1964 CRA. Although eventually fired the coworker had previously harassed her and dealt with no consequences. All Rights Reserved. Uber Is In Dire Need of Ethical Leadership. 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. Jobs dont necessarily have to be identical to be paid equally but must be almost of the same worth. Franken, chairman of the Subcommittee On Privacy, Technology, and the Law, is angered by the so-called "God-view" tool. The company has grown to be worth at least $28 billion, according to. If agreed, the drivers are provided with the sign-up kit at the moment. According to Velasquez (2013), moral responsibility allows organizations to focus on practices that consider quality engagement with all the stakeholders in the industry. Ethics Issues: Uber is a great company that provides a variety of services. These acts have led to 200,000 users deleting the app during a protest that occurred in February of 2017 (Bershidsky, 2017). Quot ; is vast the safe ride Fees deleting the app during a protest that in... Viswanatha, a Mislove, A., & Viswanatha, 2017 ) by Uber in 2014 to their. Even with sexual harassment valuable to the drivers are provided with the kit... 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