This part of the Uber continuing case focuses on Chapter 3 and discusses the company work environment and ethical responsibilities. This cumulative case’s real-world application of management knowledge and skills is designed to help you develop your critical thinking ability and realize the practical power of sound managerial skills for solving problems in your job and career.
Read the cumulative case and respond to the questions that follow.
Uber is known for doing whatever it needs to succeed. The company has a history of taking action and then asking forgiveness, rather than seeking permission before acting. But this approach begs the question of whether this is the best way for a company to interact with its internal (employees, stockholders, and company directors) and external (customers, competitors, allies, lenders, and governments among them) stUtilize the triple bottom line to measure Uber’s performance. Make sure to incorporate examples from the case in your response.
To evaluate Uber's performance using the triple bottom line framework, we need to consider three key dimensions: social, environmental, and economic impacts. This approach allows us to assess how Uber's actions affect not only its profitability but also its stakeholders and the broader community.
Uber's work environment has been characterized by a culture that prioritizes aggressive growth and innovation, often at the expense of ethical considerations. This has led to various controversies, including allegations of harassment, discrimination, and a toxic workplace culture. For instance, the case highlights incidents where employees felt pressured to conform to a high-stakes, competitive environment that discouraged reporting unethical behavior.
From a social perspective, Uber's treatment of its drivers also raises ethical questions. While the company provides flexible job opportunities, it has faced criticism for its classification of drivers as independent contractors, which limits their access to benefits and protections typically afforded to employees. This has sparked debates about workers' rights and the gig economy's sustainability.
Uber's environmental impact is multifaceted. On one hand, the company promotes ridesharing as a way to reduce the number of vehicles on the road, potentially lowering carbon emissions. However, studies have shown that Uber's operations can lead to increased traffic congestion and emissions, particularly in urban areas where ridesharing services are prevalent. For example, the case may reference how the convenience of ridesharing can encourage more people to use cars instead of public transportation, counteracting potential environmental benefits.
Additionally, Uber has made commitments to sustainability, such as pledging to become a zero-emission platform by 2040. However, the effectiveness of these initiatives remains to be seen, and the company must balance its growth ambitions with genuine efforts to minimize its environmental footprint.
Economically, Uber has been a disruptive force in the transportation industry, creating significant value for its shareholders and investors. The company's rapid growth and market expansion have led to substantial revenues, making it one of the most valuable startups in history. However, this growth has often come at the cost of ethical considerations and regulatory compliance, leading to legal challenges and fines in various jurisdictions.
Moreover, Uber's business model has raised questions about long-term sustainability. The company has faced mounting losses, and its reliance on aggressive pricing strategies to capture market share has led to concerns about profitability. The case may illustrate how Uber's focus on growth over profitability has created a precarious economic situation, particularly as competition intensifies.
In summary, while Uber has achieved significant economic success, its social and environmental impacts raise critical ethical questions. The company's aggressive approach to business has led to a culture that may undermine its long-term viability and stakeholder trust. To truly measure its performance through the triple bottom line, Uber must address these social and environmental challenges while continuing to innovate and grow economically. This holistic approach will not only enhance its reputation but also ensure sustainable success in the future.