Unethical Behaviour in Organisations

Assignment Brief

The questions are:

1. CAN AN ORGANISATION BE DESCRIBED AS SUCCESSFUL IF IT IS NOT ETHICAL? USE CASE STUDY TO ILLUSTRATE THE ANSWER
2. WHAT CAN THE ORGANISATION IN YOUR CASE STUDY DO TO PROTECT ITSELF AGAINST UNETHICAL BEHAVIOUR?

Questions will be based on your choosen case study.

Sample Answer

Can an Organisation Be Described as Successful if It Is Not Ethical? Use a Case Study to Illustrate the Answer

Success in a business context is traditionally associated with indicators such as profitability, growth, market share, and brand recognition. However, these measures often overlook the importance of ethical conduct. In contemporary business environments, success must also encompass corporate responsibility, transparency, stakeholder trust, and ethical integrity. An organisation that achieves financial growth through unethical means may suffer long-term reputational damage, legal consequences, and loss of stakeholder confidence. The case of Uber Technologies Inc. offers a compelling example of how an organisation can experience rapid growth and profitability, yet face serious ethical criticisms that challenge its overall definition of success.

Case Study: Uber Technologies Inc.

Founded in 2009, Uber quickly became a global leader in the ride-hailing industry, disrupting traditional transport services and introducing a digital platform that connects riders with drivers through a smartphone app. By 2023, Uber operated in over 70 countries and had diversified into food delivery, freight, and autonomous vehicle research. From a purely financial and operational standpoint, Uber could be described as successful. However, a closer analysis of its business practices reveals several ethical shortcomings that significantly undermined its image.

Unethical Practices Identified

1. Toxic Workplace Culture:
   Uber faced widespread criticism for fostering a workplace culture characterised by sexual harassment, discrimination, and intimidation. A 2017 blog post by former engineer Susan Fowler revealed systemic gender-based discrimination, leading to public outrage and internal investigations.

2. Exploitation of Drivers:
   Uber’s classification of drivers as independent contractors rather than employees allowed the company to avoid providing basic labour protections, such as minimum wage, sick leave, and health insurance. This model was widely criticised as exploitative, particularly in jurisdictions with weak labour laws.

3. Use of Questionable Technology – Greyball:
   Uber developed software known as “Greyball” that was used to evade regulators in cities where the company operated illegally. This move not only violated local laws but also damaged the company’s relationship with government bodies.

4. Data Privacy Breaches:
   In 2016, Uber concealed a data breach that exposed the personal information of 57 million users and drivers. The breach was only disclosed a year later, after paying hackers to keep it quiet. This raised serious concerns about user trust and data security.

5. Aggressive Expansion Tactics:
   Uber’s strategy often involved entering new markets without seeking formal regulatory approval, disrupting established taxi systems, and engaging in price wars with competitors, practices that many considered unethical and socially irresponsible.

Can Uber Still Be Considered Successful?

In the short term, Uber’s aggressive tactics led to rapid growth, billions in investment, and industry dominance. However, the long-term consequences of its unethical conduct suggest that true organisational success must go beyond profitability. Uber’s public image was significantly tarnished, leading to a series of lawsuits, fines, driver protests, and leadership upheaval, including the forced resignation of founder and CEO Travis Kalanick. Investor confidence wavered, and the company faced regulatory backlash in multiple countries. These outcomes demonstrate that while an organisation may achieve commercial success without ethical behaviour, such success is often unstable and unsustainable.

What Can the Organisation in Your Case Study Do to Protect Itself Against Unethical Behaviour?

In light of the significant ethical failures experienced by Uber, the company must implement a robust framework for ethical governance, compliance, and stakeholder engagement. The following measures are recommended:

Establish a Strong Ethical Culture

Uber must foster a workplace culture rooted in integrity, respect, and accountability. This begins with leadership demonstrating ethical behaviour and setting the tone for the rest of the organisation. Ethical values should be embedded into the company’s mission, decision-making processes, and performance evaluation systems.

Develop and Enforce a Code of Ethics

A clearly defined and widely disseminated code of ethics is essential. This document should outline expected behaviours, consequences of violations, and guidance for ethical dilemmas. Employees, drivers, and managers should receive regular training to ensure they understand and adhere to the code.

Strengthen Whistleblowing and Reporting Mechanisms

Uber must establish secure and confidential channels for employees and contractors to report unethical behaviour without fear of retaliation. An independent ethics committee should review complaints and ensure that appropriate action is taken.

Continued...