Report On Corporate Governance | Uber Study

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Governance
TABLE OF CONTENTSCASE STUDY.................................................................................................................................3Introduction............................................................................................................................3Purpose of study.....................................................................................................................3Importance of the Case...........................................................................................................3Structure of case study............................................................................................................3Company profile.....................................................................................................................3Governance Structure.............................................................................................................4Board of directors...................................................................................................................5Risk.........................................................................................................................................5Scandals..................................................................................................................................6CASE STUDY ANALYSIS............................................................................................................61. Corporate governance issues..............................................................................................62. Theoretical, Academic, professional or legal literature/ regulation and justification........83. Response to the issues........................................................................................................94. Possibilities of happening similar events and their reasons.............................................115. Lessons learnt from personal perspective.........................................................................126. Investment decision in firm.............................................................................................13CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................16APPENDIX....................................................................................................................................18Financial governance............................................................................................................18Policies and procedures........................................................................................................19Uber incentives.....................................................................................................................19
CASE STUDYIntroductionPurpose of studyIn order to understand the concept of corporate governance the current study on Uber istaken into account. Uber is venture founded firm which plays a key role in public transportbusiness. Organisation is offering taxi services to the customers at low cost so that better supportcan be provided to day to day activities (Rogers, 2015). Uber is also holding long history inrespect to the corporate governance, risk and ethics. It means by having focus on the currentreport the understanding in regard to corporate governance can be developed effectively.Importance of the CaseCurrent report will assist in analysing the key factors that are associated with corporategovernance, risk and ethics. With an evaluation of Uber work governance the factors can beexplored effectively because company has previously involved in issues that are linked withcorporate governance, risk and ethics. Since the company has founded it has achieved variousfactors but also considered as most criticised firm that offer transportation facilities to customers.Structure of case studyPresent analysis of the case study will provide in-depth understanding in respect to thecorporate governance and issues that impacts the business of Uber. It will also focus on academictheories that are presented by professionals in regard to the subject. Application of governancetheories in context to Uber is also referred as critical factor. Corporate governance issues arebeing considered and application of governance theories in respect to similar events is alsoevaluated. It also concludes the policies of Uber which relates with the governance aspects.Company profileUber is considered as leading taxi service provider in the industry that offers an betteropportunity to customers to order taxi at low cost. Company is offering services on the single tapof the phone in which GPS map technology plays a critical role. Uber application is also wellstructured that provides a prior information about journey plan (Sundararajan, 2014). Paperlessworking is also being promoted by company and management is taking 20 percent commissionfrom drivers on each ride. However, with an extreme growth the business firm is also considered
as most criticised transportation service provider firm.The company had grown incrediblyquickly and spread its business at worldwide level.Governance StructureUber is one of leading taxi service provider and company is operating in diverse nations.It has been noticed that company is operating in 58 countries and became one of the world’svaluable private transportation service. In order to manage the services more effective thecompany has designed systematic approach of governance. In this, major control is of globalmarket CEO who control global line of business, regions and staff functions (Schmidhuber,2013). However, all these kinds of working is lastly dependent upon network stakeholders. Inthis, cab drivers network is also considered as critical aspect for accomplishment of objectives.Regional line of businesses is also governed with a help of regional equity CEO, regional ratesCEO, regional credit CEO. Line manager is accountable to built better relationship with regionalcab drivers (Durif, 2016).
Board of directorsUber is holding high market share in the US and company is operating businesses with ahelp of its key board of directors. However, the board of directors are classified in diversemanner such as CEO and three directors that provide support to the decisions of CEO. CurrentCEO of US Uber is Travis Kalanick and other directors are named as Yasir Al Rumayyan, DavidBonderman, Bill Gurley and Ariana Huffington (Organisational chart,2016). It indicates that thegovernance is mainly dependent on the board of directors that provide great support to other subcategories. Working is also classified in diverse sections like operations, product, security, Cto,legal, growth, etc.RiskThere are number of risk which is associated with the business of Uber which mightimpact the overall business in diverse manner. Uber is taking a risk to not accept the liability onbehalf of unethical practice done by cab driver (Verret, 2016). For example, in 2013 the six yearold girl was killed by Uber driver in accident but company has denied to accept liability andstated that driver has not log in the application during drive so it is not considered as act ofcompany. It impacts brand image in negative manner. Another risk which is associated with theUber business is passenger safety. Passenger safety measures are also not well maintained thatalso influences the business growth in negative manner.In addition to this, it can be said that business firm need to ensure that risk assessmenttool is being accomplished effectively. It means proper observation of cabs and transportationservices is being required so that goals and objectives can be accomplished effectively.Moreover, the customer feedback is also a critical aspect which can be considered by businessfirm in order to ensure about the risk. It will provide a prediction of risk which might occur inregard to services and impact the overall effectiveness of the business. It also impacts the brandimage of Uber so management need to focus on risk assessment tool. Along with this, riskmanagement isforecasting and evaluation of financial risks together with the identification ofprocedures to avoid or minimize their impact. By having an improved focus on the riskmanagement tool the issue of passenger safety can be overcome effectively. According to riskassessment tool the diverse changes can be taken into account for sustainable development.
ScandalsUnethical practice is being occurred that impact development of Uber. Sexual assaultedwith 26 year old women in Delhi is an unethical practice which can be considered as unethicalgovernance practice of Uber. Another unethical behaviour is practised by CEO of Uber. CEOTravis Kalanick has allowed to hire hot chicks with drivers in order to promote services inFrance. It is referred as unethical behaviour of CEO.Along with this, Emil Michael the vice president of Uber has also hired research team toinvestigate personal information about news reporters so that information can be used to blackmail the reporters. Key motive was to not issue any kind of information about Uber in presswhich might affect brand image.Uber’s drivers-partners has sued the company in federal courtin San Francisco, claiming that they should be classified as employees and not independentcontractors.Uber is considered as one of leading taxi service provider firm in world. However,company has historically involved in diverse unethical practices. It has also impacted thestandards of corporate governance which has influenced brand image in negative manner. Act ofCEO and Vice president is considered as unethical aspect which holds the liability of company.It means management need to improve the governance standards and system so that such kind ofissues might be overcome in desired manner.CASE STUDY ANALYSIS1. Corporate governance issuesThe corporate governance defines the rules and regulations of any company that ispractised to direct the organisation. The corporate governance use to involve all the stakeholdersof a firm so that their interest in the venture can be balanced. The concept is not a new one buthas come up in the light from recent times. The mentioned concept also use to include ethicaland moral practices along with CSR activities of any enterprise. In the present case of Uber,company is mainly controlled by board of directors (Harford, Mansi and Maxwell, 2012). Thecited company is very ambitious as it wants to indulge in city governance. It use to ignore thetraditional systems of governance where every rule and regulations were made in accordance togovernment. The enterprise has a great vision according to which it is aiming to shape thebusiness according to urban development taking place in cities. This will make the saidorganisation a smart data based system where all operations will be executed on the basis of
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