Uber- The Most Ethically Challenged Tech Company

Uber- The Most Ethically Challenged Tech Company

I agree with Thiel’s statement regarding Uber’s ethical standards and position. While the company’s growth observed in Silicon Valley, the sudden boom in market dominance, and the outreach of its services on a global scale, the company’s moral and ethical compass has been lost over time. The company’s historical records, in the long run, are evidence of the long-due unethical path that the company has followed over the years since its establishment (Rothaermel, 2017). In this regard, the case under consideration outlines the intentional unethical practices that the company had adopted over the years. The decision to stay quiet even after knowing that crucial information had been accessed illegally after the hack proves that the business ethics of Uber were on a different path they were not willing to follow (Bensinger & McMillan, 2017).

From a personal perspective, it can also be deemed that Dara, the Uber CEO, might have evaluated the implications of the major hack. These implications majorly involved its reputation to its stakeholders and the extent to which social media would influence how the market would receive the news. However, in this case, the professional code of conduct would have drawn a clear line that the CEO could have used to respond to the threat. In this case, the CEO’s decision did not fall under the professional code of conduct, thus overly choosing unethicality in the firm. According to Schechner, 2017, Uber’s license to operate would be revoked in London due lack of corporate social responsibility. In addition, the typical business environment and social relations created by Uber over time stipulate the failure of the company to take responsibility and yield unhealthy competitive techniques in the market, especially against Lyft (Rothaermel, 2017).

References

Bensinger, G., & McMillan, R. (2017). New Uber CEO Knew of Hack for Months. The Wall Street Journal. Retrieved July 1, 2022, from https://www.wsj.com/articles/ubers-hack-disclosure-raises-questions-about-timing-1511462671

Schechner, S. (2017). Uber Tries Compromise with London regulators. The Wall Street Journal. Retrieved July 1, 2022, from https://www.wsj.com/articles/uber-tries-compromise-with-london-regulators-1506275095

Rothaermel, F. T. (2017). Strategic Management: Concepts (3rd ed.). McGraw-Hill Education.

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Uber: Most Ethically Challenged Tech Company?

The opening chapter discusses the numerous ethically questionable practices under its founder CEO Travis Kalanick. The founder was forced to resign from the CEO seat during a stormy time in the summer of 2017.

Uber- The Most Ethically Challenged Tech Company

In August 2017, Uber announced Dara Khosrowshahi (formerly CEO at Expedia) as its new CEO. One of many changes he looks to bring to the firm is a more conciliatory tone with regulators. As an example, see “Uber Tries Compromise with London Regulators,” The Wall Street Journal, September 2, 2017. That said, there is a lot of damage to work through for the firm and the new CEO. For example, in the fall of 2107 Uber disclosed a major hack of 57 million accounts…which had happened a full year earlier. The new CEO took some time to get the announcement out even once he found out about it himself. (see “New Uber CEO Knew of Hack for Months,” The Wall Street Journal, November 13, 2017.)

Do you agree with Peter Thiel’s assessment that Uber is the “most ethically challenged company in Silicon Valley”? Why or why not? Explain.