Unethical Issue in Uber

This report analyzes the unethical issue of sexual assault allegations in Uber and provides recommendations for resolving the issue. It includes a PESTEL analysis to identify the root causes and explores the company's efforts to solve the problem. The report also suggests strategical recommendations to prevent such issues in the future.

Running head: UNETHICAL ISSUE IN UBER
Unethical Issue in Uber
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1UNETHICAL ISSUE IN UBER
EXECUTIVE SUMMARY
The primary aim of the given report is to analyse the unethical issue of sexual assault
allegations that were recorded in the working of the organisation of Uber. In this connection,
the presented report analyses the problem and the root cause behind the occurrence of the
same. Further, the report identifies the study of PESTEL analysis that helps in the
understanding of the factors that led to the presence of the issues in the concerned
organisation. Furthermore, the report is concentrated on investigating the manner the
company had solved the problems. Finally, the report suggests some possible strategical
recommendations that would help the company to resolve the issues in an effective manner
and eliminate the occurrence of the same in the near future.

2UNETHICAL ISSUE IN UBER
Table of Contents
Introduction................................................................................................................................3
The issue.....................................................................................................................................3
PESTEL analysis identifying the problem.................................................................................4
Solving the Issue........................................................................................................................8
Recommendations......................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

3UNETHICAL ISSUE IN UBER
Introduction
Uber Inc. is considered to be an American transportation network company in the
multinational business sector (Lasserre, 2017). The company under discussion here is
recorded to offer its clients with the peer ride sharing, hailing ride services through, food
delivery as well as a bicycle sharing system. The concerned company is headquartered in the
region of San Francisco and is known to operate its functions in over 785 metropolitan areas
all across the globe (Florida, Adler and Mellander 2017). The platforms for booking the same
is available via the use of the mobile application. Uber is recorded to have over 110 million
users connected to its operations in the global sector. However, the company had faced some
ethical issues regarding the behaviour of its employees. The same resulted in the damage in
the image of the company adversely. In this connection, the given report tends to investigate
the root cause and the entire scenario behind the occurrence of the problem.
The issue
As examined with the help of the study, it was analysed that the employees of Uber
were charged with the allegation of sexual harassment to its female employees as well as the
clients (Bull Schaefer and Crosswhite 2018). Many cases were recorded against the company
concerning the issue of sexual harassment. The first case was registered in the year of 2018
when a woman residing in the region of Washington, DC, has sued Uber for the negligence of
safety as well as a violation of consumer protection (Collier, Dubal and Carter 2018). This
was done in the concern that the female passenger was sexually assaulted by one of the
company’s driver while she was hailing the ride. The name of the victim was listed as Jane
Doe. The female was assaulted by a driver of Uber named Raul E. Rodriguez Vasquez dated
1st April 2018 as per recorded in the document of court. The female complained to a social
worker and then the same as investigated. During the investigation of his DNA sample, the

4UNETHICAL ISSUE IN UBER
reason behind the same was known that the driver was drunk on his duty. The driver was
found guilty and therefore, was jailed.
Moreover, just after the five months of the settlement of this case, an internal matter
of sexual harassment was recorded in the organisation. The current, as well as the former
employees connected to the Uber Company, reported a case that they were subjected to
sexual harassment as well as gender discrimination under their working conditions (Murray
2018). The same was recorded to be the latest scenario for the company that the female
employees are internally exploited in their working structure. The same is recognised to
affect the workplace culture of the company in an adverse manner. This, in turn, led to the
immediate firing of 20 employees from the organisation of Uber and the CEO was also
recorded to departure from the company (Weiling 2018). Along with these adverse
complaints, a total of 200 charges were lodged against the internal as well external
environment of Uber. Concerned with the concepts of organisational theory this issue can be
related to the workplace policies and systems and its impact (Macdonald, Burke and Stewart
2017). This is because the policies of the workplace of Uber of not being able to handle its
diversified employees and discriminating amongst the gender of employees had led to the
destructive problem as analysed above.
Based on the examination of these complaints lodged against Uber, the given report
tends to investigate the factors of the organisational behaviour that led to the occurrence of
the problem. The same is identified with the help of the study of PESTEL analysis.
PESTEL analysis identifying the problem
As opined by Brooks (2016), PESTEL analysis helps in the study of the macro-
environmental factors that impact the plans, processes and working structure of the cultural
heritage of a business entity. In this concern, the PESTEL analysis identifying the occurrence

5UNETHICAL ISSUE IN UBER
of the unethical practices in Uber concerning the organisational concept of perceptions and
impact on job performance (Vogel, Homberg and Gericke 2016). The same is specified as
below.
Political
The curbs of the government in the different regions of the world
The government connected with the internal activities of Uber are recognised to be
unclear about the model of work of Uber and thus fails in the regulation of the same (Das,
Bhatt and Path 2017). The matter of the fact that the regulations of work of the Uber that calls
the cabs for hailing the rides are based on the Transportation Network Companies. The same
is recorded to be a product of innovation of the current times, and therefore, the operation of
the same turns out to be a failure and often becomes flouted. This negligence of the
government towards the understanding of the Uber model leads to the occurrence of adverse
issues in the same as the employees become casual in their work. In this connection, the OB
concept of perceptions and impact on job performance states that the firm of Uber should
concentrate on legal implications and engage government as their stakeholders for the
betterment of their work and involvement of the employees.
Economic
Dynamic Pricing Model
The cost of the rides of Uber differs in its prices for the travel of the same route
because of the factors of the peak time and the availability of the drivers (Simoni et al. 2019).
This violates the rules of the fixed rate of taxi drivers. This gives freedom to the drivers to
work according to their wish and will. This, therefore, leads to the loss of interest of the riders
as they feel that they are charged high, and the issues and problems of customer
dissatisfaction occur in the same. Based on the concerned OB theory, it can be clearly

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implemented that the perception mentioned in this factor will be beneficial in impacting the
behaviour of the employees in a positive manner. Thus, the job performance of the
employees’ increases because of the monetary motivation they earn from the same.
The loss suffered by Uber
The company of Uber has been recorded to suffer colossal damage because of its
ineffective maintenance in the plans and processes and its contracted drivers (Kenney and
Zysman 2017). This lead to fraudulence issues and unethical behaviour of the drivers and
therefore, a loss to the company's economy. The concerned OB theory in this case states that
the perceptions of the Uber firm should be changed to managing its drivers who they appoint
on a contractual basis. This will help the firm to keep the drivers working as their employees
into ethical and legal considerations and they will be aware of performing unethical activities.
Thus, the job performance of the same would turn effective and efficient.
Social
Employee Diversity
The employees connected to the Uber organisation are of a diversified nature (Kuhn
2016). This is because the same operates in a global nature, and all the employees of the
company are not directly connected to the internal working environment of the company,
especially the drivers. This leads to the diversification in the nature of the employees and the
activities of all the employees becomes difficult for the company to measure. Therefore, the
unethical behaviour of the employees is recorded in the working of the organisation under
discussion. In this connection, the concerned OB theory states that the Uber firm should
appoint professional level of HRM in their working place in the case that the diversified
employees are managed at a significant level and prior rules and orders can be implemented
on the same. The HRM appointed differently to manage the diversified drivers will help the

7UNETHICAL ISSUE IN UBER
organisation to know their work and activities on a timely basis and thus keep an eye on their
job performance.
Technological
Building customer relationship
The multinational organisation of Uber is known to build its business relationship
with the customers with the platform of the online social media (Scholz 2016). This,
therefore, leads to the ineffectiveness in the maintenance of a healthy relationship with the
peer clients and the issues regarding customer protection is reported frequently from the
same. The concerned OB theory in this case states that the Uber firm should build a
perception of appointing a public relations manager who would recognisably build customer
relationship on a traditional basis and thereby look out at the feedbacks and complaints of the
customers and manage the same in order to gain higher customer loyalty. Thus, the entire job
performance level of the company would be affected positively.
Environmental
Eco-friendly services
The services related to the ride-hailing of the Uber car technology has been recorded
to disregard the environmental rules and laws (Rauch and Schleicher 2015). The hazardous
gases eliminated by the high number of Uber cars have damaged the sustainability of the
environment. The same is also recorded to have no take prior implications for the
improvement of the same in the past years of its operations. This has, therefore, led to the
occurrence of issues of violating environmental sustainability. However, in recent times the
same is recorded to the state to its shareholders that they would be implementing a pilot
project which would be termed as Uber Green. The concerned OB theory in this case states
that the perception of the firm should change towards sustaining the environment and the

8UNETHICAL ISSUE IN UBER
health of the society in the fastest time possible. This is because the Go Green facilities
would help the company to use the cars which provides with eco-friendly benefits and lesser
the emission of harmful gases. Therefore, the performance of the organisation would be
sustained concerned to the environmental factors.
Legal
Lawsuits
As opined by Stout and Blair (2017), legal compliance is necessary for any business
entity that is in its working. Thus, the same has turned out to be a massive challenge for the
company of Uber as the same works in an online perspective, and all the stakeholders
connected to the firm are not physically controlled. In this connection, Uber is recorded to
face legal problems not just related to tax payments but the unethical behaviour of its
employees too. The ineffective management of the employees and the elimination of the
drivers towards the legal considerations have led the same to be alleged of the sexual
harassment cases. The concerned OB theory in this case states that the Uber organisation
should implement the laws of transport and labour in their firm in order to keep the
performance of their employees into the strictness of the laws and orders. This will help in
the elimination of unethical practices done by the employees.
Solving the Issue
After the immense backlash faced by Uber because of the sexual harassment cases
cropping up that tarnished their reputation, Uber looked into the matter and came up with
specific safety measures and features that were not provided before. In this connection, the
OB theory Uber used for the betterment of their company is the theory of Employee
Motivation Theory and Practices (Shields et al. 2015). Therefore, the first thing Uber started
doing was supplied with the drivers with the training and development programs that ensured

9UNETHICAL ISSUE IN UBER
the drivers enhance and learn behavioural skills in order to promote good behaviour and
avoid the violence of any sort. Uber checks the criminal background of the drivers and has
come up with strict verification policies (Dills and Mulholland 2018). Uber has been keeping
an eye on the drivers and has come up with initiatives where they will be informed about the
drivers currently getting into any criminal or harmful activity and will verify it accordingly.
They have come up with specific guidelines that ensure the safety of women within the
organization. Another feature introduced by Uber ensures authorities contact the driver when
some consumer feels unsafe during the ride. Uber's team ensures SOS reaches for the safety
of the passengers. A new feature has been added where passengers can share their current trip
or ride status with their friends and family members so that they can be tracked by their close
ones when they feel uncomfortable (Stein et al. 2018). This feature has especially helped
women in order to protect them from any kind of harassment that many people, especially
women, have faced in Uber. There have been many cases of people duplicating accounts,
now Uber closely monitors these profiles and temporarily pauses them for verification
purposes that ensure safety. Uber has come up with a campaign "do the right thing" where the
company allows the victims of sexual harassment to sue the company rather than keeping it a
secret and provide reports of sexual violence and the steps they have taken for it for utmost
transparency to build a trust among people back again (Levin 2019).
Recommendations
The changes in the features of the app and in the operations of Uber have been active
as people especially women have regained their confidence in taking an Uber after the
introduction of the new safety guidelines and features (Forbes.com, 2019). This has been
effective and has lowered the crime rate in Uber by a minimal margin however these steps are
not enough to curb such a menace in the company as the guidelines are not concrete yet
(Forbes.com 2019). Based on the previous reports of the organization and the theory of

10UNETHICAL ISSUE IN UBER
Organisational values and change that suggests that changes are a mandatory requirement for
any business entity to improve its competitive advantage, the specific recommendation that
will help the concerned company to change its reputation in the market are specified as
below.
 Uber can make specific other changes in the features of the app.
 They should come up with the assistance of emergency numbers according to the
countries that will help in ensuring the safety of the passengers.
 Uber should check the background and also rerun the checks every six months to get
notified and be updated about their drivers.
 Strict laws and guidelines should be introduced aligning to the court as the
termination of the employees will not be the ideal solution in order to curb the
harassment. These changes if implemented, may prove to be more effective for Uber.
Conclusion
Based on the above shreds of evidence presented in the report, it can tend to state that
the financial stability of an organisation cannot always be termed to its paradigm of achieving
success. An organisation is critically accountable to all the stakeholders connected to the
internal as well as the external environment of the same. The safety and the protection of the
female employees, as well as the passengers, had to be on the priority checklist of the Uber
Company. However, the failure in the same led to the failure in the success of the firm and
also affected its brand image as well as the scale of economies in an adverse manner.

11UNETHICAL ISSUE IN UBER
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