An In-Depth Examination of Business Ethics at Uber: A Stakeholder View

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This report presents a comprehensive analysis of Uber's business ethics, examining various ethical dilemmas the company has faced, including customer safety, unethical practices, and corporate governance issues. The report begins with an introduction to business ethics, differentiating between normative and descriptive ethics, and then provides an overview of Uber's business operations and the challenges it encounters. The report then analyzes the perspectives of various stakeholders, including customers, employees, investors, communities, and the government, and how their interests are impacted by Uber's ethical conduct. Furthermore, the report investigates the importance of business ethics for Uber's long-term success, the role of sustainability and corporate social responsibility, and concludes with recommendations for improving ethical practices and mitigating risks. The report also discusses how Uber can apply normative and descriptive ethics theories to resolve its business ethics issues and improve overall performance. The analysis explores how Uber can integrate sustainability, environmental, economic, and social factors to create a more sustainable business model, and how to improve corporate social responsibility to enhance stakeholder perceptions.
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Business Ethics
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Reflection....................................................................................................................................3
TASK 2............................................................................................................................................4
Examine stakeholder on business behaviour of Uber.................................................................4
Importance of business ethics.....................................................................................................5
Normative and Descriptive business ethics.................................................................................6
Approaches to sustainability and corporate social responsibility in terms of UBER.................7
Judgements of business ethics dilemmas in case of Uber...........................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Business ethics mainly knowns as set of company principles, regulation and measure
which determine behaviour of respective individual in the enterprise. There are two forms of
business ethics one is normative and second is descriptive ethics. This examine moral and ethical
issues which occur in the environment of business. It conduct and govern all the concept of
individual and enterprise. In this report the chosen case study on business ethics is Uber. While
expanding its business operations Uber faces lots of issues related with business ethics. This
report is aim towards importance of business ethics from academic to managerial level. This
examine stakeholder orientation on business behaviour. It provide detail about normative and
descriptive ethics of business. This report includes several approaches like sustainability,
corporate governance and corporate social responsibility.
TASK 1
Company overview
Uber was established in 2009 with the name of UberCab Inc. in San Francisco by Garrett
Camp and Travis. They identify issues of taxi riders and start its own services for costumer
convenience. Company faces lots of business ethical issues like costumer safety, unethical
practices, sexual harassment, criminal probe etc. This degrade the market share and affect its
profitability. This will decrease image of company in the mindset of costumer.
Corporate governance- It consist of rules, laws through which business operations govern and
controlled (Astrachan and et.al., 2020). This influence organisation stakeholders, shareholders,
management, costumer, supplier etc.
Corporate social responsibility- It is one of the self regulation activity to facilitate social or
environment aspect in its business process (Boatright, 2017). The ultimate aim of CSR is to give
back to society as they are utilising society resources to improve positive value in the
community.
Sustainability- It refers to utilising current need without exploiting future needs. This enhance
quality of life and support ecological balance in the environment.
Reflection
From my point of view Uber practices unethical code of conduct such as costumer safety,
unethical practices, sexual harassment, criminal probe etc. As per the increase in the level
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competition they thought they can practices unethical way to compete its competitors. I think
Uber want to expand business operations and market in short time. But they forget that without
implementation of business ethics they can not achieve survival of company in long run.
Implementation of business ethics can aids company in accomplish long term goal of company.
I think they should not breach the code of ethics because it will deliver negative impact on the
mindset of consumer (Cho, 2020). As per my point of view Uber think only about short term
vision and beating existing competitors. They does not evaluate any background check of their
drivers. I think this the biggest mistake done by them because it encourages lots of criminal
activities like costumer safety, sexual harassment, criminal probe etc. Background check of
drivers is time taking process but this will help the company in building brand image. Company
utilise costumer data or information without consent this is another privacy and safety issue that
company practice unethical code of conduct. They track the location of consumer in the benefits
of company which is unethical practice. I think company must take some amendment or changes
in its operation and business process so that can practice business in ethical way.
TASK 2
Examine stakeholder on business behaviour of Uber
In the perspective of stakeholders, it has grater influence on the business behaviour and
performance of company. They are most essential elements for company success as they can
uplift the company or degrade the company. The whole performance and productivity is depend
on company stakeholders (Erlic, 2017). In Uber stakeholders are main leader who affect its
performance and profitability in respect of business ethics. Stakeholder has wholly interest in the
company interest, outcomes and actions. Here are some major stakeholders of Uber that
influence business behaviour.
Customers- In uber they are real stakeholders as they influence the quality of Uber cab
services and its value. Company have to ensure passengers safety as their lives rely on
them. So they play major role in behaviour and actions of business. High quality safety
services satisfied customers of company.
Employees- These are directly link with Uber stake as they generate income to support
the living of themselves. Uber has to think about employee safety, health, monetary and
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non monetary benefits because satisfy or motivated employee deliver better services to
costumer and improve business behaviour and performance.
Investors- These stakeholders invest huge capital in the business and earn through return
on investment (Freudenreich, Lüdeke-Freund and Schaltegger, 2020). Company utilise
the invested capital for the advantage and to earn more revenue.
Communities- These stakeholders are wide in context of business and influence business
behaviour in terms of job creation, development of society, health and safety.
Government- It also important as they imposed tax regime and take profit of GDP.
Company have to practices business operations as per laws of government.
Here are three perspective of stakeholders on business behaviour of Uber. First one is
Separation Perspective sate that managers are the broker of company owner so they must put
efforts in the interest of company. In this perspective it straightforward managers in the favour of
owner benefit along with other requirement of business. It manage funds and invest accordingly
to bring ease on business environment and behaviour. Second perspective is Ethical, in this Uber
is obliged to conduct business practices in appropriate ethical manner. It mainly aim towards
ethics responsibility along with profitability (Gurayah, 2021). Third one is integrated
perspective, which sated that Uber cannot perform independently, the engagement of
stakeholders is necessary in business decision making. This will brings integrity in the objective
of individual as well as owner. The engagement and involvement of each stakeholders affect
business operations and behaviour.
Importance of business ethics
The role and importance of business ethics is essential in the progress of company. It
consist of moral and ethical concept that delivers value, instructions, behaviour and guidance for
the decision making of enterprise. In context of Uber they take leverage of business ethics and
can strengthen its business management. For short term benefit and probability it is okay not to
implement any business ethics but for the survival for long run and accomplishment of
objective , Uber has to implement business ethics in its operations and process. The importance
of this concept is much wider as it enhance loyalty, morale and strengthen from academic level
to management level of company. It is directly link with the profitability and achievement of
long or short term goal of enterprise. Business ethics established strong brand image in the
perception of community. This will aid the company as investor will show commitment and
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show interest as branded image contributes worth of investment. It support overall operations
and business process of company. Through the implications of business ethics Uber can receive
lots of benefits such as ethical investing and responsible towards community aids company in
keep on growing (Kim, 2019). Ethical practices encourage investors to invest huge capital in the
company. This will improves public fame while practices continuous behaviour in context of
ethics. For the fulfilment of long term vision and positive image ethical foundation from
academic level to management improves business implications. In academic level ethics consist
in leadership, employee, industry for effective and efficient business process. The leaders,
employee and industry have to implant its operation as per ethical practices so that it will aid in
business decision and achieve long term goal of company. The management has to deliver
implication of business ethics in several levels and department of business such as marketing,
human resource, finance etc. This will improves overall performance of company.
Normative and Descriptive business ethics
Here are two types business ethics theories that Uber must includes in its business ethics
practices to improves its operations and overall performance.
Normative ethics- In this type of theory company can analysis all the aspect what is
ethical correct and what is incorrect. It examine individual how to act in right manner while
performing any task. This includes study of ethical activities. This will facilitate and generate
standards of morale and delivers how individual must response in appropriate ethical way. This
will examine what is right and wrong in terms of morality as per the morals standards. It aims
towards generating and evaluating moral principles (Halbert and Ingulli, 2020). In context of
Uber, this theory will aid in understanding what passenger should response and its existing moral
behaviour. By applying Normative ethics theory in its business practices they can easily resolve
the issues of costumer safety, unethical practices, sexual harassment, criminal probe etc. They
can easily examine ethical practices and standards along with its implication to resolve ethical
problems.
Descriptive ethics- It refers to the analytic thinking of individual perception that they
think is absolutely correct. This study combines individual perception or costumer viewpoint
about the concept of moral beliefs. It successfully examine the behaviour of consumer and
people and what kind of moral principles they implement in daily practices. Basically it
considered consumer view point and its believe about moral principles. By implications of
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descriptive ethics theory company can easily understand the behaviour of people as per its moral
principles and standard. Uber can resolve and manage its business ethics issues by the
interpretation of employee and costumer behaviour. It will facilitate to analyse moral practices of
people and their claim to improve performance of Uber (Lütge, 2019). This is one of the easiest
form of theory that consist how people react and behave as per moral standard. This will leads
towards easy flow of implication in business ethics that deliver positive impact in the community
minds. This study observe aspect of culture and societies. Both the theory are important to
resolve overall complications of business ethics. Uber can easily improve its practices in
costumer safety, unethical practices, sexual harassment, criminal probe etc. by adopting these
two business ethics theories.
Approaches to sustainability and corporate social responsibility in terms of UBER.
Sustainability- It refers to fulfilment of current needs without conciliatory the capacity
of up coming generations. For business practices company need natural, social, economic
resources. This aims towards maintaining equal balance of social and economic development. In
context of Uber their sustainability is depend on three concept that is environment, economy and
society. The company faces several problems costumer safety, unethical practices, sexual
harassment, criminal probe etc. It affect and influence its market share of company. There are los
of competitors of Uber in the market who are deliberately practices effective business ethics.
This will become major threat for the company so they need to practices and improves
sustainability for the survival in the long run (Plane, 2018). They have to maintain social
suitability that combines of health and security of community. This will improves costumer
safety, unethical practices, sexual harassment problems. It will aids in generating positive impact
on its stakeholders and can improves its quality of services. Where as economic sustainability
ensure Uber independence of resources and generate optimum utilisation for fulfilment of needs.
This will uplift the level of economy in the community. To maintain environment sustainability
Uber can facilitates ecological balance of company resources. By appropriate implementation of
sustainability in business operations, Uber can utilise optimum resources of present without
exploitation of future capability. This will generate the interest of investor and help in achieving
sustainable objective.
Corporate social responsibility- This is one of the self regulating actions of business to
ensure accountability of company towards its stakeholders. In context of Uber, while expanding
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its business process they have to manage business ethical problems. They can generate positive
influence in the perception of stakeholders. The ultimate aim of practices corporate social
responsibility is to fulfil social and community objective (Robinson-Easley, 2017). This will
leads towards attainable profitability of company and enhance market share of enterprise.
Basically Uber is utilising community resources so it is their responsibility to return something
valuable to the society. Uber must have to execute social corporate responsibility because due to
issue of harassment, unethical practices, costumer safety etc, this create negative image in the
market and decrease its market share. So it is essential for Uber to improve its brand image for
the long term survival of company. Corporate social responsibility deliver overall development
of business, employee and society. Enhancement in public image will ensure interest of investors
and company can gain competitive advantage.
Judgements of business ethics dilemmas in case of Uber.
The Uber company deliver services of taxi cab through mobile applications. Company
have to go through lots of challenges in terms of ethics, legal and social problems. They have to
handle ethical issues in its own business process and operations. Lots of problems like costumer
safety, unethical practices, sexual harassment, criminal probe etc. challenges faced by Uber
company. They have to examine right and wrong ethical practices to improves efficiency in
business operations. Ethical problems consist in the company is leadership, safety and privacy of
consumer, drivers multitasking. The company shows in adequacy in its leadership they practice
inappropriate laws in its business practices. Executives of company break the laws and tactics
for dealing its operations and compete competitors. They implement business activities that are
ethically wrong. The leaders fail to implement its jobs in practice ethical code of conduct.
Privacy is another essential ethical issues faced by Uber company. It break the law of people
privacy by utilising god view tool (Yuan and et.al., 2020). It is one the unethical practice done by
company to improve market share and profitability of company. They tracked the location of
people after the delivering services. This will leads towards the compromise in the privacy of
people data and affect the respect and believes of company. This is very serious issues as
company not done anything to remove this problem because the increase in competition they
practice unethical business operations. As per the code of conduct in regards of ethics and
confidentiality use of customer data without consent tends to be unethical practices. This will
deliver negative impact in the minds of consumer and will leads to decrease in its public image.
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Costumer safety is also one of the ethical problem faced by company. The Uber handle lots of
cases in against of company like sexual attempt, kidnapping, drank driving etc. The company
have to check the background of taxi drivers and hire on the basis of no criminal record. This can
resolve the problem of sexual attempt, kidnapping, drank driving etc. This will help company in
improving brand image and enhancement in the market share of the company. Company need to
practise all the ethical code of conduct to established positive impact on consumer.
CONCLUSION
From the above report it has been concluded that business ethics is essential part which
company must execute in its business operations for the survival of company in long run.
Company must ensure activities of sustainability, corporate governance and social responsibility
because it will enhance the public image. Practices of business ethics leads towards
accomplishment of long term objective of company. Positive public image increase interest of
investors and company can gain advantage to raise profit of entity. Appropriate code of ethical
business practices improve profitability and productivity of company.
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REFERENCES
Books and Journals
Astrachan, J.H. and et.al., 2020. Values, spirituality and religion: Family business and the roots
of sustainable ethical behavior. Journal of Business Ethics. 163(4). pp.637-645.
Boatright, J.R., 2017. Ethics and corporate governance: Justifying the role of shareholder. The
Blackwell guide to business ethics. pp.38-60.
Cho, S., 2020. Business ethics in marketing communication. International Journal of
Entrepreneurship. 24(1). pp.1-8.
Erlic, S., 2017. Would a Hippocratic oath of business encourage business leaders to make ethical
decisions? A study into what business students learn in business ethics class.
In Responsible leadership and ethical decision-making. Emerald Publishing Limited.
Freudenreich, B., Lüdeke-Freund, F. and Schaltegger, S., 2020. A stakeholder theory perspective
on business models: Value creation for sustainability. Journal of Business
Ethics. 166(1). pp.3-18.
Gurayah, J.R., 2021. Entrepreneurial Business Ethics and Good Governance. In Reshaping
Entrepreneurship Education With Strategy and Innovation (pp. 127-147). IGI Global.
Halbert, T. and Ingulli, E., 2020. Law and ethics in the business environment. Cengage Learning.
Kim, S., 2019. The process model of corporate social responsibility (CSR) communication: CSR
communication and its relationship with consumers’ CSR knowledge, trust, and
corporate reputation perception. Journal of business ethics. 154(4). pp.1143-1159.
Lütge, C., 2019. There is not enough business ethics in the ethics of digitization. In Ethical
Business Leadership in Troubling Times. Edward Elgar Publishing.
Plane, J.M., 2018. The Case of a Publication in Journal of Business Ethics. Intervention
Research: From Conceptualization to Publication. p.195.
Robinson-Easley, C.A., 2017. Through the Lens of Business Ethics. In Leadership for Global
Systemic Change (pp. 41-51). Palgrave Macmillan, Cham.
Yuan, Y. and et.al., 2020. Business strategy and corporate social responsibility. Journal of
Business Ethics. 162(2). pp.359-377.
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