Case 3: You Can't Get There From Here - Uber Slow On Diversi ✓ Solved
Case 3 1 You Cant Get There From Here Uber Slow On Diversity
Established in 2009, Uber provides an alternative to taxi cab service in 460 cities and nearly 60 countries worldwide. The trick? Their mobile application for smartphones allows riders to arrange for transportation with drivers who operate their personal vehicles. A dual rating system (drivers and customers rate each other) serves as a quality control device keeping Uber standards high.
As an international technology firm, Uber has been challenged, along with other tech giants like Google and Twitter, to demonstrate that they are attuned to the specific needs of their employees, more specifically people of color and women. In Uber’s own words: At Uber, we want to create a workplace that is inclusive and reflects the diversity of the cities we serve: where everyone can be their authentic self, and where that authenticity is celebrated as a strength.
Yet actions speak louder than words. Uber employees describe the firm’s work environment amid some managers as Machiavellian and merciless. Many blame Travis Kalanick, Uber’s founder and former chief executive, for establishing such a negative culture. Uber’s fast growth approach to the market has rewarded employees and managers who have aggressively pushed for greater revenues and fatter profits at the seeming cost of human dignity. For example, Uber has had its share of troubles addressing issues of sexual misconduct and workforce diversity.
These issues came to light when a former employee, Susan Fowler, reported in her personal blog that she was being sexually harassed by her manager and that human resources had been informed of these infractions. Susan Fowler said in her blog: On my first official day rotating on the team, my new manager sent me a string of messages over company chat. He was in an open relationship, he said, and his girlfriend was having an easy time finding new partners but he wasn’t. He was trying to stay out of trouble at work, he said, but he couldn’t help getting in trouble, because he was looking for women to have sex with. It was clear that he was trying to get me to have sex with him, and it was so clearly out of line that I immediately took screenshots of these chat messages and reported him to HR.
Uber’s first reaction was to call Ms. Fowler’s accusations as “abhorrent and against everything Uber stands for and believes in.” Ms. Fowler purported that her manager was not punished because he “was a high performer”; yet other female employees reported similar incidents with the same manager, leading Ms. Fowler to believe that HR was covering up for her manager. Uber was in trouble as more and more scandals emerged and they quickly took the following actions: (a) apologized for some of their managers’ actions, (b) had a board member and several female executives provide testimonials on the firm’s positive work environment, and (c) began to probe workplace policies and procedures. Arianna Huffington, a board member, repeatedly labeled new employees as “brilliant jerks.” Huffington said that this investigation would be different when Eric H. Holder Jr., the former United States Attorney General (as well as some others) were hired to conduct their investigation.
Uber released its first diversity report on March 28, 2017, one month after these allegations. This report indicated that women and nonwhite employees are underrepresented at the firm, not overly dissimilar from other technology-based firms. Some of the most egregious statistics include: (a) racial configuration—6% Hispanic, 9% black, 50% white, and (b) 85% of all technology jobs are held by men, with a mere 36% of the total workforce comprised of women. Liane Hornsey, Uber’s chief human resource officer, acknowledged, “We need to do better and have much more work to do.”
Here are Uber’s next steps: We’re dedicating $3 million over the next three years to support organizations working to bring more women and underrepresented people into tech. This year, our recruiting team is also embarking on a college tour to recruit talented students at colleges across the country, including a number of Historically Black Colleges and Universities (HBCUs) and Hispanic Serving Institutions (HSIs). Our employee resource groups play a huge role in all our recruiting events that are focused on hiring women and people of color at Uber.
In recruiting, we’ve updated our job descriptions to remove potentially exclusionary language, and we are running interview training to make our hiring processes more inclusive for women in tech. We’re also rolling out training to educate and empower employees, covering topics like “why diversity and inclusion matters,” “how to be an ally,” and “building inclusive teams.” Training is not a panacea, but educating employees on the right behaviors is an important step in the right direction.
This is just the beginning of our efforts. Whether you’re a veteran returning from service or a person with a disability and regardless of your religious beliefs, your sexual orientation, your gender identity, or the country you call home, at Uber, we want to create an environment where you can be yourself. By deepening our commitment to diversity, we will strengthen our business and better serve our customers in over 450 cities in more than 70 countries. Only time will tell if this fast growth firm can manage its aggressive culture and diversity as it continues to expand into new marketplaces and those with differing cultures.
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The narrative of Uber’s diversity issues, especially highlighted by the voice of former employee Susan Fowler, presents a complex picture of a rapidly growing technology company. Established in 2009, Uber has revolutionized transportation across the globe but has faced increasing scrutiny regarding its workplace culture and diversity practices. The dual rating system of drivers and passengers symbolizes a significant leap in quality control, yet beneath the surface lies a troubling lack of representation among employees.
Uber has pledged to foster an inclusive environment where employees, especially women and people of color, feel valued. The company's commitment to diversity is evident in their investments and targeted recruiting strategies by allocating $3 million over the next three years towards organizations that aim to increase representation in technical roles (Uber, 2017). Such initiatives must be more than mere rhetoric; they require accountability and persistent evaluation of internal policies and hiring practices.
One significant incident that spurred the conversation on diversity and inclusion was Fowler’s account of sexual harassment in the workplace. In her blog post, she underscored a culture that silenced and penalized victims rather than addressing grievances publicly. This culture of silence is endemic in many tech firms and calls for a systemic approach to workplace safety and respect. According to the 2017 diversity report, women comprised only 36% of Uber’s total workforce, indicating a stark underrepresentation (Uber, 2017). This discrepancy points to potential systemic barriers that prevent equal opportunities for women and minorities in the tech sector.
Moreover, the statistics reveal an alarming racial disparity within Uber's workforce, with only 9% of employees identifying as black and 6% as Hispanic (Uber, 2017). These figures are not isolated; they reflect broader trends in the technology sector where minority groups continue to be disproportionately affected. To address these disparities, the company has initiated several programs focused on recruitment from Historically Black Colleges and Universities (HBCUs) and Hispanic Serving Institutions (HSIs). By actively engaging with diverse educational institutions, Uber aims to cultivate a more representative workforce capable of driving innovation and creativity.
In conjunction with refining recruitment practices, Uber has sought to improve internal dynamics through training programs aimed at inclusivity. Recognizing that diversity training is not a cure-all, they emphasize the importance of creating an environment where employees are empowered to be allies and advocates for one another (Uber, 2017). Such initiatives, while necessary, require follow-through with actionable policy changes and transparent reporting mechanisms to ensure accountability.
As Uber moves forward, it must balance its aggressive growth model with a commitment to equitable practices. Cultivating a culture that not only invites diversity but champions it requires a shift from transactional to transformational leadership. Leaders at Uber need to embody the principles of inclusion and actively model behaviors that promote diversity within their ranks.
Furthermore, research shows that diverse teams are more effective in problem-solving and driving business growth (Hunt, Dyberg, & Prince, 2018). Therefore, investing in diversity is not merely a moral imperative but a strategic business decision. Uber's growth trajectory may depend on its ability to attract and retain a diverse workforce that represents its global customer base.
In conclusion, Uber stands at a crossroads where it has the opportunity to redefine its organizational culture and practices towards inclusivity. The journey towards a truly diverse workplace is complex and often fraught with challenges, but it’s essential for Uber's long-term success and reputation. By fostering an environment that encourages authentic contributions from all employees, Uber can not only thrive as a company, but also serve as a leading example in the tech industry.
References
- Hunt, V., Dyberg, R., & Prince, S. (2018). Delivering through diversity. McKinsey & Company.
- Uber. (2017). Diversity and Inclusion Report. Retrieved from https://www.uber.com/newsroom/diversity-report/
- Featherston, R. (2017). Uber’s sexual harassment controversy: Lessons on company culture. Harvard Business Review.
- Nisen, M. (2017). Uber’s diversity efforts aren’t working. Business Insider.
- Wired. (2017). Uber’s diversity report: A shocking lack of diversity in tech. Wired.
- McKinsey & Company. (2015). Why diversity matters. McKinsey & Company.
- Catalyst. (2020). Women in the workforce. Catalyst.
- Pew Research Center. (2018). The state of diversity in the tech industry. Pew Research Center.
- Fortune. (2019). Why diversity is a business imperative. Fortune.
- Smith, N. (2019). The failure of diversity initiatives: Causes and solutions. Diversity Journal.