Uber: Ethical Analysis of Business Model, Legal Issues, and Impact

This report provides an ethical analysis of Uber, focusing on the company's business model, legal challenges, and social impact. It examines the ethical behavior of Uber, particularly concerning the actions of its CEO, Travis Kalanick. The report delves into the business model, highlighting its aggregator approach and issues related to licenses and taxes. It applies ethical theories like Utilitarianism, Deontology, and Justice to assess Uber's practices, evaluating the company's adherence to ethical principles and the consequences of its actions. The report explores the application of these theories in addressing ethical concerns and proposes the need for improved ethical management within the company. The analysis includes a discussion of how the theories relate to customer satisfaction, employee well-being, and the overall sustainability of the business. The report concludes with a summary of the ethical considerations and their implications for Uber's future.

Ethics, Sustainability and
Social Impact

Table of Contents
INTRODUCTION...........................................................................................................................1
Main body...............................................................................................................................1
Application of theories:..........................................................................................................6
Semiotic Square......................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

Illustration Index
Illustration 1: Semiotic square.........................................................................................................5

INTRODUCTION
This report will emphasis on the need of the ethical behaviour at Uber, a UK based Taxi
service firm. The report will focus on the unethical behaviour of the CEO and founder of Uber,
Mr. Travis Kalanick. The company is the world's eighth largest internet company by the revenue
generation. It has a website and a mobile app, used for the booking of taxis by the customers. It
has a wide portfolio of the various services it offers such as UberGo, Uber Pool, UberX, UberEat
etc., which helps the company to cater a wide variety of customers, based on their specific
requirements (Armstrong and et.al., 2015). This report will focus on the business model of the
Uber and the legal and ethical issues such as the cases related to the licence and taxes, that are
been caused by the various factors in regard to the Uber and will depict the ethicalness and social
sustainability from the perspective of various theories and models with their definition, in
support to the business operations of the cited firm (Epstein and Buhovac, 2014). Besides this, an
argument will be presented on the basis of the various theories that are been taken into the
consideration and then the details of Semiotic square and position of Uber on it is been discussed
in the report. The ethical behaviour is very necessary for a company to gain a better customer
satisfaction and maintaining of the business relation (Carroll and Buchholtz, 2014).
Main body
Business model of Uber
The Uber has a very extensive business model to cater a wide variety of the customer's. It
is an 'On the Demand' transportation service, which helps and allow the user to get a cab or taxi,
on their location, by the use of their web application and mobile apps. It uses a specific business
model also known as the Aggregator Business model or Uber for X model. In this type of
business model, they don't deny the service to any of the customer, unless in the extreme cases.
According to the theories that are been practised in them will lead to the effective handling of the
various operations in the company and is required to meet the demands of the customers in more
elaborative and efficient way (Brueckner, Spencer and Paull, 2018). On the other hand, the Uber
also don't employ any driver, it partners with them. The drivers just provide their services for a
nominal period, under a contract with the cited firm. It collaborates with the partners, or drivers
on the minimum service charges and share the revenue of the profit with them on the basis of
commission (Crane and Matten, 2016). The effective handling of the various operations will help
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the company to effectively meet the requirements and fulfil the requirements of the customers in
a very effective manner to provide a better customer satisfaction level.
Issues with licence and taxes
The partners can provide their cars for the service to use as the taxi, but in the recent
time, there have been occurred many cases regarding the licensing of the taxies of Uber. For
instance, in a survey and investigation, it was found that many of the cab drivers of company
doesn't own the legal licence to drive in the city (Carroll and Buchholtz, 2014). Even many of the
cabs are been unregistered for service. Besides this, the non-clear segmentation of the
commission has caused the issues in the payment of the taxes, affecting the ethicalness of Uber.
Some major ethical factors that are to be taken into consideration by the Uber, based on the
various theories are as follows:
 Utilitarianism is form of discussion that takes place in the business organisation such as
effective handling of the various operations and makes an effective action or behaviour
right or wrong, measuring the utility of every action or behaviour carried out in company.
It helps the company to deeply analyse its operations and effectively meet the ethical
needs and requirements of Uber (Chell and et.al., 2016). It is deeply based on the
individual actions and the type of the actions that are been taken into the consideration by
the individual. The rule utilitarianism is based on the consequences or effects of the
actions taken by the individual or the firm. In this case the denial and the unethical
behaviour of the CEO of Uber is the major cause. They have to look after the effective
management of the various operations that are been taken into the consideration by the
cited firm in order to maintain the morality and goodwill with its customer's (Durkin,
2016). The rule utilitarianism involves the usage and the implementation of the decided
moral rules to maintain the level of the morality in the firm and avoid any event or action
that can affect the operations and relationship of the partners or customers of Uber on
wider scale. It in bides the individual or a firm to have a better idea of the various
operations that can be taken into the consideration by the cited business organisation to
gain a better idea of the customer's requirements and maintain the standard of the
morality in the firm. The effective and ethical behaviour of the CEO and other senior
executives of the company are required to be effectively monitored and improved to
provide better trust and satisfaction level to its customers (Crane and Matten, 2016).
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Besides this, it will make it much clear for the individual to improve the effective
management of the various operations that are been carried out at Uber. But in this case,
the CEO of Uber is asked to resign from the job due to the mishandling of the cases of
sexual harassment and other unethical practices in the firm(Durkin, 2016). This theory is
used for the better management of the costing of the services that are been provided by
Uber to its customer's. It helps in the better measuring and controlling of the good and
bad principles in the company. The Utilitarianism will help in performing the right acts
and actions to give a sense of happiness to its customers (Crane and Matten, 2016). Uber
has improved the number of taxies available to people and provided with the better sense
of satisfaction and happiness to them. This happiness can be measured using the feedback
or the reviews that are been received from the users. This can be seen by the increase in
the number of users of services of Uber. On the other hand, the rule Utilitarianism will
see through the keeping a check whether the act is right or not and will see through the
effective handling of the various operations that will help in the better establishment of
the moral principles at Uber (Setó-Pamies and Papaoikonomou, 2016). The effective
measuring can be done using the feedbacks and the reviews that are been given by the
users or the clients of the taxies. The higher rating depicts the happiness and satisfaction
level of the customer.
 Deontology:The approach of the Deontology has affected the various measures of the
establishment of the various ethics and morals in the organisation, by focusing on the
rightness and wrongness of the various operations that are been taken into the
consideration, by the business firm (uarshie, Salmi and Leuschner, 2016). The core idea
behind it is the right or wrong actions that give rise to these conditions. It is basically
duty or the obligation based system that helps the individual or the firm to take into
consideration the various measures that helps the firm to carry out the various operations
affecting the well-being of the employee's or the customers of the organisation. For
instance, Uber has to look after the effective measurement of the various operations that
helps the individual employee to gain a better idea about the needs and the requirements
of the company. Besides this, it has to avoid or prevent any sort of the measure that can
affect the trust level and goodwill of the company. The approach of deontology will bind
the firm into a duty or the moral obligation that will help the company to meet the
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requirements of the company as well as the customer's in a better way (Armstrong and
et.al., 2015). The approach of getting bound by the moral obligations and duties will lead
the Uber to carry out its various business operations in a better way and helps the
company to meet the requirements of the company in a better way that will help the
company to fulfil the requirements of the company in a very effective way, without
performing a wrong or unmoral deed. The effective implementation of the various
deontological principles will help the CEO and other effective senior executives of the
authority to give out the better and ethical following of code of conduct. Besides, it will
look after the various principles that will prevent any sort of the unethical operations by
Uber or its partners. But as the CEO and other senior executives of the company fails to
provide the better management and following of the rules and regulation at Uber, they
must resign from the duty. The ruthless behaviour will take a toll over the company. It is
generally based on the rules and regulations that can be generally universalised. It is the
effective method of handling and discussion of the various rights and rules or regulations
at Uber. The agent centred or patient centred rights theories will help the cited firm to
effectively manage the Deontology in the firm. Discussion of Rights and duties will also
act as the integral part of it. The various legal and the lawful measures are been required
to be taken into the consideration by the cited firm to maintain its goodwill and the trust
level among its employee's and the customers, and helps in building a better relationship
with them. The rights are required to be observed and the duties are meant to be fulfilled
in order to have a better sustainability in the market (Schermerhorn and et.al., 2014).
Various laws or acts can be observed and can be taken into the consideration for the
better development of the operations by the company. Other than this, the rights and the
duties will help the individual or the firm to have a better understanding of the various
ethical and moral business operations and how to manage and carry them in a very
effective way to meet the requirements of the customers as well as the partners of Uber.
The CEO and other senior executives of the cited firm can take into the consideration the
various measures that help the company to meet the requirements of its clients and
maintain its business relations with them, contributing the rise in the productivity and
profitability (Setó-Pamies and Papaoikonomou, 2016). Other than this, the effective
fulfilment of the duties will give the employee's and the customer a sustainable
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satisfaction level and develop a better goodwill and trust for the firm. This can be done
by effective setting up of the various roles in the company and provide them with the
duties and effective handling of duties and operations in the company. Other than this, it
helps in the better management of efficient operations in the company.
 Justice: Various theories are being practised to maintain the level of justice in the
organisation by the individual. Various theories like utilitarianism, compensation and
distribution is required to be taken into the consideration by the individual or the cited
firm. The better management of the various operations that lead to the fulfilment of the
justice will help the firm to meet the requirements of the individual or the firm in a better
way. The core idea behind it is that if a wrong deed is being done by the individual or the
firm, that has put some sort of harm on the individuals, is meant to be provided with the
proper justice (Chell and et.al., 2016). For instance, if a customer gets hurt or injured in
an accident, due to the irresponsibility of driver of the cab or taxi, it is the obligation of
the Uber to provide him with the proper compensation as the gesture of justice towards
its customers. Besides this, the better providing of the justice will help the firm to
develop a better trust level and provide the better satisfaction level to the client or the
user. Besides this, the maintaining of the practices of justice by the CEO and the senior
executives of Uber will help the firm to meet the legal aspects that will help the company
to increase its legal understanding of the company and tackle any sort of legal issue that
can occur in the company and affects its operations. Other than this, the better fulfilment
of the various legal obligations will help the company to fulfil the legal obligation that
will improve the trust level of the customer's towards the company (Schaltegger and
Wagner, 2017). Proper justification to the various actions and operations helps in the
effective handling of the various operations that helps the firm to meet the effective
handling of the different operations that are been taken into the consideration by the
Uber, increasing the customer’s trust and satisfaction level. The approach of distributive
justice will help in the effective management of ethical operations in the company. It
states that the good practices or ethics will be distributed in the society in one or other
way. It is the concept of ownership of goodness in society. It involves the equlity,
proportionality and fair practices (Setó-Pamies and Papaoikonomou, 2016).
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Application of theories:
This all theories and the factors will help the company to meet the requirements of the
company to meet the legal aspects of the company and avoid any sort of the moral or ethical loss
of the Uber. It will help the company to fulfil its legal obligation and duties and provides the
employee's and the customer's with the suitable rights that will help them to have a better
satisfaction level and relationship with the cited firm. As compared to the above discussed
factors, Uber have been very contrasting. The CEO and the senior executives of the company has
failed miserably to maintain the ethical and moral well-being of the company. Other than this,
the application of these factors like utilitarianism or Deontology, will help Uber to develop better
ethical business practices (Kolk, 2016). Other than this, it will help the Uber to perform various
business operations that can act as the utility to the organisation as well as the society.
The theory of Utilitarianism and rule utilitarianism will help in the effective management
of different ethical operations at Uber. It will help the CEO and other officers of higher authority
to take into consideration the effective measures to maintain the ethical practices in the
organisation. It will guide the employees of the firm to have a rightful behaviour. Theory of
Deontology will help in the establishment of the ethical moral and have lawful practices to
maintain the ethics of the business organisation. Apart from this, the rights and duties and
distributive justice will help in the better management of the ethical practices at Uber.
Semiotic Square
Semiotic square: It is an approach or a tool that helps the company that helps the company to
analyse and keep a check on its ethical position in the market. Besides this, it helps in the better
implementation of the various ethical practices in firm.
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The diagonal lines show the contradiction with the relationships and the effective failure
of the system while, the complimentary relationship between the various components of the
company is been shown by the means of vertical line (Schaltegger and Wagner, 2017). It states
that the various differences can co-exist in the system, helping the Uber to increase the work
efficiency, ethicalness and moral sustainability in the market, building better trust level with its
consumers.
CONCLUSION
Thus, from the report it can be concluded that the CEO and other senior executives of
Uber has to take into the consideration the effective management of the various ethical measures
like utilitarianism and rule utilitarianism, deontology and rights and duties regarding to justice
has to be taken in consideration for the better understanding of the various ethical and moral
aspects of the company and the changes it requires making to have a better trust level of the
customers. This will help Uber to get better customer satisfaction and trust level of the
customer's.
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Illustration 1: Semiotic square
Source: (Drujkov,2014)

REFERENCES
Books and journals
Armstrong, G. and et.al., 2015. Marketing: an introduction. Pearson Education.
Brueckner, M., Spencer, R. and Paull, M. eds., 2018. Disciplining the Undisciplined?:
Perspectives from Business, Society and Politics on Responsible Citizenship, Corporate
Social Responsibility and Sustainability. Springer.
Carroll, A. and Buchholtz, A., 2014. Business and society: Ethics, sustainability, and
stakeholder management. Nelson Education.
Chell, E. and et.al., 2016. Social entrepreneurship and business ethics: Does social equal
ethical?. Journal of business ethics 133(4). pp.619-625.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Durkin, C., 2016. Social entrepreneurship: A skills approach. Policy Press.
Epstein, M.J. and Buhovac, A.R., 2014. Making sustainability work: Best practices in managing
and measuring corporate social, environmental, and economic impacts. Berrett-Koehler
Publishers.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Quarshie, A.M., Salmi, A. and Leuschner, R., 2016. Sustainability and corporate social
responsibility in supply chains: The state of research in supply chain management and
business ethics journals. Journal of Purchasing and Supply Management. 22(2). pp.82-
97.
Schaltegger, S. and Wagner, M. eds., 2017. Managing the business case for sustainability: The
integration of social, environmental and economic performance. Routledge.
Schermerhorn, J. and et.al., 2014. Management: Foundations and Applications (2nd Asia-Pacific
Edition). John Wiley & Sons.
Setó-Pamies, D. and Papaoikonomou, E., 2016. A multi-level perspective for the integration of
ethics, corporate social responsibility and sustainability (ECSRS) in management
education. Journal of Business Ethics. 136(3). pp.523-538.
Online
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Drujkov, R, Semiotic Square: Easy-Complex-Simple-Hard. 2014. [Online]. Available through:
<https://naturalmath.com/2014/04/semiotic-square-easy-complex-simple-hard/>
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