Governance risk & control for Uber

This article discusses corporate governance, risk, and ethical principles for Uber. It evaluates the differences in aligning among the private and public sector making collaboration with local government in Dallas and Los Angeles. It also elaborates on the concept of “tone at the top” for effective risk management at Uber and discusses key performance indicators which Uber can report.

Running Head: Governance risk & control 0
Uber
Governance risk & control
12/26/2018

Governance risk & control 1
Introduction
Uber Technologies Inc. is a transportation network; taxicab, car-pooling, food delivery, and
ridesharing company headquartered in California with operations in other metropolitan areas
internationally. They utilize a smartphone app to associate to driver and riders as the
customers utilize the app in requesting a ride. The case talks about the chaos at ride-hailing
service of Uber Technologies Inc., which has come out with a strategic change as investing in
new segments involving electric bikes, freight delivery, also flying cars with the opportunities
of integration with possible networks (Paul, 2017). In the following, an effort has been made
to discuss corporate governance, risk, and ethical principles.
Part-1: Corporate governance principles
a) Utilizing Carroll’s model, which level of corporate social responsibility Uber reveals
while working with corporate bodies on the UberElevate project?
Ans. Uber is working on the UberElevate project as they are maintaining an urban aviation
ridesharing project, which is stated as Uber Air. With the initiative taken by Uber, ethical
responsibilities should be maintained with customers. They also provide their customers a
flight on demand with Uber Air in corporate and public bodies in Los Angeles, Dallas, and a
new international market. In the next few years, Uber is predicted to maintain an association
with other nation shareholders to develop a network with aviation rideshare industry which is
environmentally conscious and profitable for the industry (Verret, 2015).
Carroll’s domains of Corporate responsibility depict ethical responsibilities in order to
maximize profits and ethical sustainability within the extent of the law and minimal ethical
social constraints. They should deliver a channel in encouraging the inclusion and provide the
customer with better and effective service, which is the main mission and vision of
strengthening corporate social responsibility (Watanabe et al., 2017).
b) Evaluate the differences in aligning among the private and public sector making
collaboration with local government in Dallas and Los Angeles?
Ans. It is stated that the study of governance with the processes and systems for decision-
making. It is seen that in the public sector in Dallas and Los Angeles, Uber has to face so
many challenges. The differences are assessed as in the private sector it is regulated by the
Corporation Act and in the public sector, it is regulated and governed by Statutory legislation.

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The independence is seen as a vast difference is delivering customers an excellent service.
They should maintain support with public transit agencies to offer technologies to the private
sector that tends to more effective and efficient service delivery by Uber. There are many
challenges as battery challenge, which is capable to maintain a 100-km flight. Uber is trying
to plan the skyports in distinction to traditional airports (Pangbourne et al., 2018).
Another major challenge is that aviation should give a positive signal towards this new and
innovative concept. As Uber should focus on public transport operators and commercial ride-
sharing so that develop a cordial relationship and integration. They should empower various
choices to car ownership, which is less costly than other taxi company (Cohen and
Kietzmann, 2014).
c) Analyzing Stakeholder theory of Uber and maintain a relationship with Dallas city wildlife
and Dallas administration?
Ans. The stakeholders of the organization incorporate progress and survival as Uber has to
compete with various stakeholders. It also incorporates all those impacted by the companies’
policies, performance, and activities. It involves:
 Driver-Partner-It is stated that customers and drivers will get benefit from partnering.
The organization deal with severe competition from drivers in respect to Dallas
authorities and host countries.
 Governmental authorities- It is stated that Dallas authorities have to deal with
investigations regarding attacks on Uber drivers, communication with the concerned
taxi association with Uber, and adherence to Dallas city wildlife and Dallas state
authorities (O’Riordan, 2017).
 Customers/Clients- Customer is the significant stakeholder and security, as well as
safety, is the main concern while riding with Uber. They should listen and resolve
complaints regarding harassment by drivers of Uber which should be reported to
Dallas authorities.
 Directors of Uber- They should develop ethical responsibilities and defend the Uber
through proceedings in regards to maintaining profitability and respect for the
company (Dreyer et al., 2017).
There have been major grievances from the Dallas authorities of Uber’s utilization of
unlicensed UberElevate venture. There have several cases about violent demonstration as

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well as a customer being thrown out of their cab and drivers are threatened (Laczko et al.,
2018).
d) Elaborate the significant areas of annual reporting under the Sarbanes Oxley Act with
Uber?
Ans. The key areas which Uber has to report under the Sarbanes Oxley Act are: -
 Registration is a milestone for Uber which is a starting of the reporting relationship
and it should be subjected to annual and reporting standards of the Uber.
 Form 10-K is another area, which Uber need to report that they should deliver to their
stakeholders and provide opportunities to achieve growth and success in the coming
years.
 They should maintain disclosure in ownership by stakeholders, management, and
executives and follow a specified code of ethics and principles.
 Form-10-Q under Sarbanes Oxley Act with Uber should deliver a specified
disclosure of financial and economic performance, which should be released by
management.
 They should also focus on Form 8-K, which concentrates on ceasing of commercial
processes and accomplish profitability by the trust and faith by customers on Uber
(Velte and Freidank, 2015).
Part-2 Risk and Controls
a) Elaborate the concept of “tone at the top” for effective risk management at Uber?
Ans. It is stated that developing the concept of “tone at the top” is much more a process of
compliance as it is effective and efficient to maintaining the Uber reputation and its potential
and progressive relationship with stakeholders. The sub-optimal performance and corporate
failures should develop the advancement of the culture of integrity and prosperity. They
should maintain vision, mission, leadership, and guidance so that trust and faith are built with
a mutual understanding among people. Tone at the top discovers means and ways to associate
with people in the Uber and leaders should communicate effectively and define their values
and convictions utilizing diverse platforms and distribution framework (Uzunca, Rigtering
and Ozcan, 2018).

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They should maintain a sense of shared values and convictions, by which all decision can be
effectively measured. They should successfully execute long-term strategies and ethical
considerations to secure the profitability of Uber. They should contribute to the development
of Uber sales capability and growth. In 2018, Dara Khosrowshahi reshapes Uber with an eye
towards an IPO, which is essential to address safety, security, driver, as well as customer
rights to raise the position in London. Risks are increasing at a very fast pace and tone at the
top is an effective step in maintaining compliance and ethical framework (Anwar, 2018).
b) Elaborate the practical activities which Uber may accept to change its risk culture and
challenges in executing the change?
Ans. It is stated that Uber Technologies should provide an exceptional opportunity for
success, growth, and preventing an array of risks. Uber should relate the sharing economy to
the transportation market, and it is the initial stage to research and development and maintain
the autonomous technology to further transform Uber. The success mantra of Uber is its risk
culture, which should not characterize it as detrimental, toxic, and unhealthy (Bottiani,
Bradshaw and Gregory, 2018).
The possible challenges in executing the change are: -
 Acquisitions and mergers- Uber faces this challenge in executing the change as
cultural integration is vital to mitigate risk and safeguard that customer does not feel
occupied, exploited, and harassed.
 Institutionalization- It is stated that institutionalization of beliefs and convictions is
the essential step towards administration and assist in setting the tone at the top by
maintaining culture and values.
 Decentralized operations- Uber faces the challenge of decentralized and
autonomous operations. They should understand customers’ needs and preferences
and respect their culture of integrity and trust. They should also pay equal attention
to the individual that works with specified autonomy.
 Discontents- Uber faces the challenge of discontents as they have to deal with
individual beliefs and convictions (Capstick et al., 2015).
Part-3 Ethics
a) Evaluate the strategic positioning of Uber as the green alternative to London?

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Ans. Uber will offer electric cars to Londoners as an initiative to promote “go green”. The
ride-hailing service maintains £1,500 of Uber credits to inspire almost half of its customers to
utilize electric vehicles by 2025. It is normative as Uber predicts that the clean air on the
average ride and normal fares assist drivers to enhance their vehicles and encourage towards
the green initiative. They continue its efforts and initiatives towards go green and develop its
responsibility towards Uber. They should be committed to partnering and maintain the
association to Clean Air Project in London (Brand, 2016).
Under the new scheme of Uber, they should promote electric vehicles and expect to develop
new non-polluting vehicles in the next prospective years. They should also take an initiative
in adding more values and beliefs to ride-sharing service to change upon the expectations of
the customer. They should also offer a diesel credit of £1,500 for 1,000 customers in London
to scrap a pre-Euro diesel-electric vehicle. They are very much focused on maintaining public
relation and maintain struggle to expensive electric vehicles to decrease pollution and
congestion issue. They should be committed to maintaining their social responsibility towards
London people and promote go green initiative (Dörry and Schulz, 2018).
b) Discuss Key performance indicators which Uber can report and advantages and challenges
of external KPI reporting?
Ans. Key performance indicators are-
 Customer Satisfaction Score- Uber should maintain a track record of their customer
satisfaction (CSAT) score, which evaluates the performance of the customer service
department.
 Net Promoter Score (NPS)- It is stated that customers who are delighted and satisfied
with the customer service can be evaluated with the help of Net promoter score. This
is an effective step to evaluate the performance of customer service.
 Number of Complaints-It is significant to evaluate the number of complaints
generated every weak, month, and year.
 First Contact Resolution (FCR)- It evaluates the percentage of issues solved by the
department of customer service upon the first contact with the client (Wagner, 2017).
Benefits: -
 It provides a systematic and descriptive approach to KPI reporting and empowers
Uber and their customers to make an effective decision.

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 It also delivers an automated approach to increase productivity towards driver fleet
turning fully electric cars of London (Cohen and Hopkins, 2019).
Challenges: -
 They face the challenge of involvement of managers, directors, and stakeholders of
Uber, which can result in higher costs.
 They face the challenge of consistency and reliability (Labucay, 2015).
c) Discuss one Kohlberg level and Khosrowshahi motivations in enhancing Uber green
image?
Ans. It is stated that Kohlberg level 2: Conventional is the stage, which motivates
Khosrowshahi in enhancing the reputation of Uber towards green image in London as this
stage depicts a sense of morality which is connected to a societal and personal relationship.
Uber should continue to accept the regulation and authority and maintain the belief to secure
a positive relationship with the customers so that to make them happy and safe. They should
adhere to rules and regulations and maintain the ethical consideration of green image in
London (Hagström and Backström, 2017).
Conclusion
Uber is starting with UberElevate project to get ridesharing service by 2023 and also promote
electric cars to reduce congestion and pollution with the opportunities of integration and
corporate social responsibility. They should also develop the concept of “tone at the top”,
which aimed for effective risk management and safety, security as well as rights will be
governed. They should also promote “go green” and take initiative for clean air project. There
are several challenges and issues are faced by Uber, which should be resolved and deliver
customers with excellent customer service. They are also planning further for Uber “flying
car” project to achieve greater customer satisfaction and accomplishment.

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