Business Ethics Ethical Decision Making Cases

Business Ethics Ethical Decision Making Cases12th Editionbyo C Fe

What are the ethical challenges that Uber faces in using app-based peer-to-peer sharing technology? Since Uber is using a disruptive business model and marketing strategy, what are the risks that the company will have to overcome to be successful? Because Uber is so popular and the business model is being expanded to other industries, should there be regulation to develop compliance with standards to protect competitors and consumers?

Paper For Above instruction

Uber Technologies Inc., founded in 2009, has revolutionized the transportation industry through its innovative app-based peer-to-peer sharing platform. While Uber has gained immense popularity, its disruptive business model brings forth numerous ethical challenges that require careful scrutiny from a business ethics perspective. This paper explores these challenges, assesses the risks Uber faces in maintaining its success, and considers the necessity of regulation to ensure fair competition and consumer protection.

One of the primary ethical challenges Uber encounters is ensuring passenger safety and driver accountability. Uber’s business model relies heavily on gig workers who are classified as independent contractors rather than employees. This classification raises ethical concerns regarding fair wages, benefits, and working conditions (Rogers, 2015). The ethical dilemma lies in balancing cost savings for the company with fair treatment of drivers, who lack the traditional protections afforded to employees. There have been reported incidents of unsafe passenger experiences, raising questions about Uber's responsibility to prioritize safety and enforce rigorous background checks and safety protocols.

Another significant ethical issue pertains to data privacy and security. Uber collects vast amounts of personal data, including location information, payment details, and ride histories (Calo & Rosenblat, 2017). Protecting this sensitive data from breaches and misuse is paramount, yet the company has faced criticism for inadequate privacy safeguards. Ethical concerns extend to how Uber uses consumer data, including targeted advertising and sharing information with third parties, which can infringe on user privacy if not managed transparently and responsibly.

Furthermore, Uber’s aggressive strategies to expand market share often involve ethical considerations related to competition and local regulations. Uber has faced accusations of regulatory evasion, operating in markets without proper permits and lobbying against regulations that could impede its growth (Gao, 2017). This approach raises questions about Uber’s respect for legal frameworks and its impact on traditional transportation services and local economies. Ethically, the company must decide whether rapid expansion justifies neglecting regulatory compliance and whether it should cooperate proactively with authorities to develop fair and safe operational standards.

Since Uber’s business model is disruptive and has been extended to other industries such as food delivery (Uber Eats) and freight logistics (Uber Freight), the risk of monopolistic behavior and unfair competition increases. The rapid expansion and market dominance can distort industry standards and hinder smaller competitors from surviving, leading to ethical concerns about market fairness. Without regulation, dominant firms like Uber may engage in practices that stifle innovation or exploit loopholes, harming consumer choice and economic diversity (Klein, 2018).

The question of regulation to oversee Uber and similar disruptive models is complex. Although innovative approaches often challenge existing regulatory frameworks, establishing standards is essential to protect consumers and ensure a level playing field. Effective regulation can enhance transparency, enforce safety standards, and protect the rights of gig workers. For example, comprehensive legislation that redefines employment classifications and mandates safety protocols can mitigate some ethical issues (De Stefano, 2016). However, overly rigid regulations could stifle innovation and impede industry growth. Therefore, a balanced approach that promotes ethical standards without creating excessive barriers is crucial.

In conclusion, Uber’s ethical challenges are multifaceted, involving safety, privacy, fair competition, and regulatory compliance. The risks associated with its disruptive business model include safety lapses, privacy breaches, and unfair competitive practices. As Uber continues to expand into other sectors, the necessity for appropriate regulation becomes more pressing to safeguard stakeholder interests and ensure ethical business conduct. Ethical leadership and responsible regulatory frameworks are essential to sustain Uber’s innovation-driven growth while maintaining trust and integrity in the industry.

References

Calo, R., & Rosenblat, A. (2017). The taking economy: Uber, information, and power. Columbia Law Review, 117(6), 1623-1690.

De Stefano, V. (2016). The rise of the “just-in-time workforce”: On-demand work, crowdwork, and labor protection in the “new” economy. Comparative Labor Law & Policy Journal, 37(3), 471–504.

Gao, P. (2017). Uber's regulatory challenges and strategic responses. Harvard Business Review. Retrieved from https://hbr.org

Klein, N. (2018). No is not enough: Resisting Trump's shock politics and winning the world we need. Haymarket Books.

Rogers, B. (2015). The social costs of Uber. University of Chicago Legal Forum, 2015(1), 205-229.