State and describe "three factors" that may have contributed to the ethical violations at Uber as outlined in Illustration Capsule 9.1.
Breakeven Analysis
Break Even Analysis is a term used in business, cost accounting and economics. It refers to a point where the total cost incurred becomes equal to the total revenue earned. Break Even Analysis determines the number of units to be sold to earn the revenue required to cover the total costs. Total cost is a sum total of fixed and variable costs.
Process analysis
The term process analysis can be defined as breakdown of production process into different phases that converts inputs into output. A series of routine activities are incorporated using organizational resources with a view to achieve operational excellence.
1. State and describe "three factors" that may have contributed to the ethical violations at Uber as outlined in Illustration Capsule 9.1.
![ILLUSTRATION
CAPSULE 9.1
Ethical Violations at Uber and their Consequences
The peer-to-peer ridesharing company Uber has been
credited with transforming the transportation indus-
try, upending the taxi market, and changing the way
consumers travel from place to place. But its lack of
attention to ethics has resulted in numerous scandals, a
tarnished reputation, a loss of market share to rival com-
panies, and the ouster of its co-founder Travis Kalanick
from his position as the company's CEO. The ethical
lapses for which Uber has been criticized include the
following:
UBER
Arriving
Here
• Sexual harassment and a toxic workplace culture. In
June 2017, Uber fired over 20 employees as a result of an
investigation that uncovered widespread sexual harass-
ment that had been going on for years at the company.
Female employees who had reported incidents of sexual
harassment were subjected to retaliation by their man-
agers, and reports of the incidents to senior executives
resulted in inaction.
©TY Lim/Shutterstock
when a pedestrian was tragically struck and killed by one
of its self-driving vehicles in 2018.
• Unfair competitive practices. When nascent competi-
tor Gett launched in New York City, Uber employees
ordered and cancelled hundreds of rides to waste driv-
• Price gouging during crises. During emergencies situ-
ations such as Hurricane Sandy and the 2017 London
Bridge attack, Uber added high surcharges to the cost
of their services. This drew much censure, particularly
since its competitors offered free or reduced cost rides
during those same times.
• Data breaches and violations of user privacy. Since
2014, the names, email addresses, and license informa-
tion of over 7oo,000 drivers and the personal informa-
tion of over 65 million users have been disclosed as a
result of data breaches. Moreover, in 2016 the company
paid a hacker $100,000 in ransom to prevent the dissem-
ination of personal driver and user data that had been
breached, but it failed to publicly disclose the situation
for over six months.
er's time and then offered the drivers cash to drop Gett
and join Uber. Uber has been accused of employing simi-
lar practices against Lyft.
The ethical violations at Uber have not been without
economic consequence. They contributed to a significant
market share loss to Lyft, Uber's closest competitor in the
United States. In January 2017, when Uber was thought
to have gouged its prices during protests against legisla-
tion banning immigrants from specific countries, its mar-
ket share dropped 5 percentage points in a week. While
Uber's ethical dilemmas are not the sole contributor to
Lyft's increase in market share and expansion rate, the
negative perceptions of Uber's brand from its unethical
actions has afforded its competitors significant opportu-
nities for brand and market share growth. And without a
real change in Uber's culture and corporate governance
practices, there is a strong likelihood that ethical scan-
dals involving Uber will continue to surface.
• Inadequate attention to consumer safety. Substandard
vetting practices at Uber came to light after one of its
drivers was arrested as the primary suspect in a mass
shooting in Kalamazoo, Michigan, and after a series of
reports alleging sexual assault and misconduct by its
drivers. Uber's concern for safety was further questioned](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F672cd66c-bbe5-462c-b836-126ebda25708%2Fbbc590dc-bd34-4af5-8e81-624bf50fce7d%2F0wrwzk_processed.png&w=3840&q=75)
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