Ethical Issues and Corporate Social Responsibility in Uber

This business report discusses the ethical issues faced by Uber, such as drivers' security and safety of customers. It also explores how the company can handle these issues and the importance of corporate social responsibility in Uber's operations.

Business Report

Table of Contents
INTRODUCTION.......................................................................................................................................3
Part 1...........................................................................................................................................................3
Introduction.............................................................................................................................................3
Explain the ethical issue..........................................................................................................................3
How company can handle this ethical issue.............................................................................................4
Corporate social responsibility................................................................................................................4
Part 2...........................................................................................................................................................7
Normative theory.....................................................................................................................................7
Descriptive theory...................................................................................................................................7
Part 3...........................................................................................................................................................8
Ethical practices affect the selected company internal and external stakeholder.....................................8
Unethical practices affect the company internal and external stakeholders.............................................9
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
Business report refers to the framework that is used to examine the real situation or a case
study and for this organization apply business theories and give various recommendations to
improve the situation. The main purpose of making this report is to analyze and learn the facts
related to the business scandals and for this give some suggestion so that they work very
effectively and efficiently and work as a long term sustainability. This project report includes the
models and theories to solve the problem. It also helps in understanding the nature issue and that
gives the clarity of expression. It helps in increasing the profits and sales in the market. It
includes the various cases and gives the recommendation from that. The main objective of
making this report is to enhance the knowledge about the various companies and for this give
their suggestions to the problems that was arising in the firm(Alpar, Engler and Schulz, 2015)
Part 1
Introduction
Uber is one of the famous American multinational ride-hailing organization that offers
services to their customers by using their smart phones. It can work worldwide and have a
number of employees approximately 22,263. Because of increasing demand of the services firm
faces many law suits and protests in all over the universe. Their main goal is to expand and
explore the business and its market only rather can focusing on corporate responsibility(Besley,
2015).
Explain the ethical issue
Uber has many ethical issues that they face when they are at succession point. It has been
subjected to many ethical issues and facing the lawsuits and some of this lawsuits are highlighted
below.
 Drivers’ security – It is one of the main scandal that was face by the Company is that
many times drivers can face the problems from passengers side like they misbehave, beat
the drivers and also assaults of drivers. Sometimes customers can destroy the driver
vehicle and business entity cannot take any legal action and responsibility by the side of
Drivers. For this firm cannot take any action for their security(Broekemier, Chau and
Seshadri, 2015).

 Safety of customers - The main ethical issue that was face by the Uber is that the drivers
are guilty with the sexual harassment of the customers who take the service of car. This
can be done because of improper examine the drivers background. Therefore, firm cannot
make proper set guidelines for the drivers and because of this they can’t understand that
the driver is a genuine man or not and the vehicles they use are right or valid. Some other
cases also filling on the Uber drivers like misbehavior with the passengers(Chládková,
2015).
How company can handle this ethical issue
Uber is one of the largest service companies in all over the world and because of this reason it is
very important to resolve and handle all this situation so that customers and drivers both feel
safe. Because of this ethical issues facing by the company Uber , it will affects its business and
profits. To resolve the problem related to the women’s safety and sexual harassment organization
may partner tier firm with women’s safety groups, promoting awareness to the passengers,
empowering the community of users and builds effective tools and policies. They also install a
24*7 support system on their app with the specialized team who are well professionals to handle
this type of situation. Also install a feature related to the emergency button in the Uber app safety
toolkit(Fontell and Heikkilä, 2017).
To handle this situation related to the passengers and drivers they follow a transparency. In this
victims are free to bring individual claims in court where they share their issues without any fear.
To handle this ethical issue company always improving their technology by meeting up different
industries so that they provide brainstorm ways to create meaningful change. And also they
partnered with the national sexual violence center where they show all the cases related to
misbehaving, sexual harassment so that firm can take initiative to solve this by investing their
minds and funds.
Corporate social responsibility
a. Explain corporate social responsibility

It refers to a self – regulating business model which helps individual and stakeholders in
the organization to be socially accountable and also the public of the country. in this firm can be
very conscious of the impact they have face including the society, economic, environmental and
social factor. It can be depending on the company and industry. It can help to stronger the bond
between the employees and the corporations, it also boost morale and connected the world very
effectively. In Uber this corporate social responsibility can be followed very effectively so it can
enhance the profits and longer sustainability of the firm in the market(Haynes, 2015).
b. Carroll’s pyramid model in framing the answer
This model helps the Uber to know their responsibility and at the same time make profits
and revenues. This model includes four factors i.e. philanthropic responsibility, ethical
responsibility, legal responsibility, economic responsibility. All of this can be explained
below.
 Economic responsibility - This step is concern with the responsibility of the firm
at the time of producing product and services needed by the society and then sell
to the people of the society to earn profits and revenues. This quadrant is used in
Uber as they offers services to the customers in this a person can book a car
according to their need and their destination through mobile app it is very useful
and convenient to the individual person and from this a company can earn a
profits and longer sustainability in the market(Hair and et. al., 2019).
 Legal responsibility – This concept of the CSR model suggests that the
organization can focus on the legal responsibility and follows all the rules and
regulation that helps in making the employee and customer loyal towards the
business entity. In UBER, they can follow the rules and regulation related to their
employees and drivers that they can fairly pay for their work without any
complication and as well as for the customers they make them right to sue the
case in any misbehave is conduct(Mergaerts and Vander Vennet, 2016).
 Ethical responsibility – It can cover a wide range of responsibility because
without it no one enterprise can stay in the market for longer term. It includes
economic and legal responsibility to fulfills all their activities. in Uber, company
can follow a ethical responsibility as they provide a services of the car and the

driver to their passengers at the same time in this passengers and drivers face
many issues and because of this society can refuse to use it. But firm can take a
step to reduce the problem so that they make their brand image strong once again.
 Philanthropic responsibility – it is one of the most important on the Carroll
pyramid of CSR that includes the responsibility focuses on luxurious things like
better employees life, local communities and most importantly society. In this
Uber can decide to spend the more money on technological improvement so that
they can solve the customers and the drivers problems and for this they make
some decisions which is very beneficial for future terms(Ortega, International
Business Machines Corp, 2015).
c. Claims of organization regarding the CSR and actual activities
Corporate social responsibility is used by the business that shows the good corporate citizen
in the day to day activities. Uber is rapidly expanding their ride-hailing business that allows
the people to book a cab and pay for it by using their smart phones. In this company can use
the CSR model so that they cannot harm the society and its people. There are some claims
that a Uber can follow and learns(Rakshit and Kritt, International Business Machines Corp,
2015).
 Important to align with global best practices– Uber is the long term player in the
world and follow both local and international guides, standards and the policies. It
includes the risk management, corporate governance, labor rights, safety ethics and
health all this criteria can be set from the very beginning by using of CSR. It is the
claim that was done by the business regarding the corporate social responsibility.
 Accepts criticism and respond appropriately - In this company can face many
criticism and trap under the many scandal that will affects its existence in the market.
It includes the general public, government and the employees. If a firm can
proactively face the problem and make a strategies to avoid this than it will create a
good impact on their image. Uber can accept the scandals and positively make the
strategies so that it can be remove the negativity in an individual person mind. In this
London can licensed approx 40k drivers and they work for the right things.
d. Is the organization practice consistent with its claimed value

Yes, If Uber can properly follow the claimed values related to the corporate social
responsibility that its practice should be constant. In this they can follow the all set rules,
guidelines, regulation, advanced technology so that no customer can face any problem as
well as no driver can misbehave with the passengers. Sexual harassment is the major
scandal that was face by the society and because of this they can make strategies to
reduce it by using the carroll model of CSR. Using this model helps all the individual that
they are very aware towards the responsibility(Sadgrove, 2016).
Part 2
Normative theory
It refers to the decision theory that is used to identify the optimally taking decisions and
make an ideal decision maker that is able to calculate the perfection and accuracy at the time of
making decision which is fully rational. Uber could use this theory at the time of taking the
decisions related to the accuracy and perfection(Slemrod and et. al., 2017).
 Ethical egoism - It refers to that act which is determines individually and benefited the
agent of doing it. In this Uber, determined the act which is benefited to their drivers by
providing the right of law suits if they face any problems.
 Utilitarianism – It shows the right action that a organization can choose to produce the
overall happiness. In this Uber can make an ethical code of conduct by following
corporate social responsibility, treat everyone with respect, importance to feedback that
was given by the customers and the employees.
 Virtue ethics – It shows the statements of character that are desirable to take the
corrective actions in terms of the virtues. In this a leader can perceive the situation and
acts according to those issues. In this leader can use the cameras or audio recording
devices to track their employees so that they do not make any mistakes. And if they
make some mistake than they alert the drivers so that they stop doing any misconduct.
Descriptive theory
It refers to an activities that is concerned with explaining the regularities and choices that
person are disposed to make. This theory is used to understand the capturing and understanding

the facts that is related to the decisions that an individual make. This theory is also called
positive theory that describes the observed behavior(Wang, Pauleen and Zhang, 2016).
 Individual factor - It refers to the contribution to the success of the system related to the
information according to the organizational characteristics, enhancing knowledge by
human resource information systems. In this Uber can focus on individual activities so
that they earn more and more profits. In this they could understand the functions and laws
so that they all benefitted the organization sustainability. They can share their account
within the employees so that no one faces issues.
 Situational factor- It shows the external factors that influences the environment instead
of individual person. It includes various functions like work and school, people around
school. In Uber the external situation suggest the ethical issue that focuses the global
transportation technology. It can provide the ethical channels where everyone can share
their problem step by step.
Part 3
Ethical practices affect the selected company internal and external stakeholder
Internal stakeholders Ethical practices Unethical practices
Employees Uber can make some ethical
practices for their employees
as they are drivers who
provide services to the
passengers. For them they
follow a legal laws by giving
equal pay to them(Yunus,
2017).
In unethical company cannot
focuses the problems that was
done by the side of the
customers as they destroy the
drivers vehicles and Uber
cannot notice them.
Directors In this Uber can follow the
ethical practice that is related
to the directors in this they
give them top priority and
every employees and leaders
Unethical practices frim
cannot make proper decisions
and not properly focus on the
activities. this will lead to loss
for the business entity.

can listen them.
Shareholders Internally shareholders can
follow code of conduct that is
a social responsibility of them.
This make them in this they
majorly focus on the security
then is important for the firm.
In unethical terms they create
a duplicate accounts by which
they hired a employees to
beat the competition.
Unethical practices affect the company internal and external stakeholders
External stakeholder Ethical practices Unethical practices
Customers In ethical terms passenger
safety is one of the prominent
practice done by the Uber
company.
In unethical terms, sexual
harassment done by the
Drivers with the customers
shows bad image of the
company.
Directors In this ethical terms related to
the external factor directors
can talk to their investors out
of raising money from some
other source.
In unethical term, directors
cannot majorly focus on the
growing their image rather
than effectively performing of
task.
Shareholders In ethical terms, they can
invest their money by using
proper laws and rules and
regulations
In unethical terms
shareholders don’t focus on
the firm benefits they only
noticed that they get more and
more returns which they invest
in the business.

CONCLUSION
From the above business report it is to be concluded that by making this project on Uber
helps in enhancing the knowledge related to the company and its scandal and how this can be
affect its revenue and the sales. It suggested the various factors like corporate social
responsibility and by using this firm can reduce the problem and contribute towards the social
responsibility by using effective code of conduct. It also shows the decision theory that includes
two types like normative and descriptive where organization can shows their ethical values. At
last it analyze the ethical and unethical terms by using internal and external factors.

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