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Ethical Business And Implementation

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Question:

Discuss About the Ethical Business and Implementation?

 

Answer:

Introducation:

Uber is a transportation company which has its headquarters in California which operates in the major cities around the world. The vision of the company is to provide timely pickup services to passengers at affordable prices. The organisational structure and mission of the company is to conduct business in ethical and competitive ways.

The organisation structure of Uber is led by CEO and the board of directors. The departments like operations, products, securities, legal and finance report to the CEO and the board. The management of these departments are segregated according to the markets like the United Kigdom, Canada and Western Europe. Uber employs drivers from the host countries which attributes to its multicultural image. The overall objective of Uber like any other multinational private organisation is to earn profit and contribute towards the benefit of its stakeholders.

 


Uber as researches point out, is responsible for bring in disruptive innovation by providing doorstep transport services at affordable prices. This profited the stakeholders tremendously and the company earned huge revenue which added to the capital of the shareholders (Cramer and Krueger 2016).

The research says that Uber has promoted reduction in pollution by encouraging passengers to use public transport. However all is not well and ethical when it comes to business practices.

The company was charged for using software called Hell to track the drivers of its competitor Lyft (Kharpal 2017). The company used the software to track drivers and lifted them from service of Lyft. They tried to cover their unethical practice by paying the driver high salary and bonuses. The law firms warned Uber of looming legal troubles like breach of contract, unfair trade practices and Computer Fraud and Abuse Act but Uber did not abide by them.   This act by Uber could attract legal and ethical charges which would taint its goodwill. Uber’s unethical conduct has put the entire riding industry under suspect of unethical practices because it is totally driven by applications and such incidences are liable to happen even in the future.

Uber is a great brand and should act in an ethical manner to compete in the market. The company has the potential to improve the transport industry and earn more revenue.

 

References:

Cramer, J. and Krueger, A.B., 2016. Disruptive change in the taxi business: The case of Uber. The American Economic Review, 106(5), pp.177-182.

Kharpal, A. 2017. Uber reportedly used secret software called ‘Hell’ to track rival Lyft drivers. [online] CNBC. Available at: https://www.cnbc.com/2017/04/13/uber-lyft-hell-software-track-drivers.html [Accessed 23 Apr. 2017].

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