ACTIVIST DESIGN COMPANY AUDIT:
THE ABSENCE OF CSR
02.O2.2015
“Creating a strong business and building a better world are not conflicting goals. They are both essential ingredients for long-term success� William Clay Ford Jr.
TABLE OF CONTENT [KEY POINTS INTRODUCED]
EXPLORATION LAUNCH: INTRO TO UBER
FRAMEWORK OF PROCESS: STRUCTURED SELECTION
DEFINING CSR
PRODUCT & SERVICE BREAKDOWN: HOW IT WORKS: MAP SYSTEM IMPACT: MAP
COMPANY SELECTION: PROSPECTIVE ARGUMENTS
INTRODUCTION TO EVIDENCE: RESPONSIBILITY PRIVACY SAFETY
FINAL THOUGHTS
OPPORTUNITIES: OPPORTUNITY IMPACT: MAP EXPLENATION
REFERENCES
IS UBER BREACHING ITS CORPORATE SOCIAL RESPONSIBILITY?
CORPORATE ANALYSIS: UBER [INTRODUCTION] Uber is an app-based transportation network and taxi company founded in 2009 and headquartered in San Francisco. The company uses a smartphone application to receive rides and then sends these trip requests to their drivers. As of December 2014, the service was available in 53 countries and more than 200 cities worldwide. Uber states “we make cities more accessible and bring people and their cities closer”. Uber’s pricing is similar to metered taxes, although all hiring and payment is handled exclusively through Uber and not the driver personally. At the end of a ride, the complete fare (which is not supposed to include a tip) is automatically billed to the customer’s credit card. Uber has said its prices are the premium that the customers pay for a cab service that is not only reliable, but also punctual and comfortable.
“Wherever you are around the world, Uber is committed to connecting you to the safest ride on the road. That means setting the strictest safety standards possible, then working hard to improve them every day. The specifics vary depending on what local governments allow, but within each city we operate, we aim to go above and beyond local requirements to ensure your comfort and security - what we’re doing in the US is an example of our standards around the world.” [1] SAM FRIZEL
BUILDING THE FOUNDATION FOR PROGRESS.
FRAMEWORK
CSR DEFINED
FOR SELECTION
OBJECTIVE
CORPORATE EXPLORATION
This is our initial exploration phase where we familiarize ourselves with recent impactful news and events that have connections to corporate entities to create a pool of companies we believe have deficient corporate social responsibility.
SOCIAL RESPONSIBILITY
TECHNOLOGICAL RESPONSIBILITY
ENVIRONMENTAL RESPONSIBILITY
ECONOMICAL RESPONSIBILITY
POLITICAL RESPONSIBILITY
Our continuing research focuses on the way our selected companies effect social structures and how they disrupt societal norms. We look into the companies social, technological, environmental, economical, and political responsibilities to gain knowledge of what can be improved upon, in their respected business models.
GEOGRAPHICAL IMPACTS
DEVELOPING WORLD IMPLICATIONS
DEVELOPED WORLD IMPLICATIONS
While we investigated through recent events and current happenings, we noticed that many problems or concerns were occurring outside developing countries. This transitioned our primary focus to the certain products and services effecting other nations in a big way.
REVIEW: COMPANY SELECTION
UBER.
DEFINING CORPORATE SOCIAL RESPONSIBILITY.
Corporate social responsibility reflects a company’s awareness and initiative towards achieving a sustainable business model.
OBJECTIVE: Explore through various corporate infrastructures, and research into the process of how the companies deliver their service or product. Find major social and economical impacts that have negative repercussions on society. Create opportunities for change and improvement.
MAP
MAP
HOW IT WORKS.
MAP
CUSTOMER EXPERIENCE
GOOD RATING
CUSTOMER
CREDIT CARD INFO
ACCEPTED
TURN ON APP
LOCATION/DESTINATION
PICKED UP
BAD RATING
NO MORE RIDES
DRIVER EXPERIENCE
VEHICLE INSPECTION GOOD RATING
DRIVER
BACKGROUND CHECK
ACCEPTED
TURN ON APP
ACCEPT JOBS
PICK UP CUSTOMER
BAD RATING INSURANCE CHECK
NO MORE JOBS
SYSTEM IMPACT.
MAP
SERVICE BREAKDOWN UBER APPLICATION
HUMAN DELIVERY
DRIVER
CUSTOMER
COLLABORATIVE CONSUMPTION
INFRASTRUCTURE
SMART DEVICES
INCREASED PHONE BILLS
CREDIT CARD COMPANIES
CARS
ALTERNATE CAREERS
ROADS
PRIVACY
TRAFFIC
CONSTRUCTION
MAINTENANCE
GASOLINE
OPERATORS
CHARGING STATIONS LOSE JOBS
CONSTRUCTION
GOVERNMENT
RAISED TAXES
POLICY
COMPANY EXPLORATION
LACK OF CUSTOMER SERVICE
LARGE AMOUNT LAYOFFS
EBAY HIKE IN ELECTRICITY PRICING
PAYING TO GIVE AWAY OUR ENERGY
FALSE ADVERTISING
GOV’T OF ONTARIO
RED BULL
TINDER
TRIDEL (CONDO DEV.)
PROSTITUTION USE
NOT RIDING THE HEALTH & WELLNESS TREND
OVER SATURATED DEVELOPEMENT BUILDING FOR THE SAKE OF BUILDING
FAKE PROFILING
MAPLE LEAF FOODS
PRODUCTION CUT
FOOD CONTAMINATION ON MARKET
UBERS DEFICIENT CSR.
INVESTIGATION: [NEXT PHASE]
While deciding to dig deeper into Uber, we separated all of our evidence into three different categories, which we collectively believed represented certain issues in a more holistic view: responsibility, privacy, and safety
RESPONSIBILITY.
Uber as a technology company has disrupted the current model of public transportation with the creation of a single mobile application. Uber’s website boasts in large font “Safest Rides on the Road – Going the distance to put people first”. Uber goes on to say that “the Uber experience has been designed from the ground up with your (reference to the rider) safety in mind”. Further Uber wants the rider to be assured that they have conducted background checks on their drivers that the rider can trust. Since the inception of their service in 2009, Uber has been faced with a multitude of legal and social issues as they’ve expanded across the globe. They’ve been fined or banned in almost every city they’ve stepped foot in, based on the safety and legality of their service [2]. They introduced their app to a heavily regulated taxi market, with the hopes of seamlessly connecting riders to drives through their app, making cities more accessible. The question now is whether Uber has been socially responsible in doing so. Social responsibility is defined as “altruism, compassion, cooperation, fairness, equity and conscience in the context of community and inclusive explicitly of others” [3]. Although Uber’s main objective is to help people find a means of transportation, they’ve fallen through with acting socially responsible with how they’ve operated their service and how they’ve represented themselves in the media. Uber is first and foremost a technology company and not a transportation company. They are technically only involved in the process of connecting a rider to a driver and facilitating the monetary transaction between the two. Uber’s terms and conditions state that, “Uber makes no representation, warranty, or guarantee regarding the reliability, timeliness, quality, suitability, or availability of the services or any goods or services obtained through the use of the services, or that the services will be uninterrupted or error-free. You agree that the entire risk arising out of your use of the services, and any third party good or services obtained in connection therewith, remains solely with you, to the maximum extent permitted by applicable law.” [4]
Uber’s terms above seem to contradict their own message to the rider that they should feel safe using Uber. If Uber is to be socially responsible, their service and responsibilities to the rider shouldn’t stop at the time a taxi is hailed on their app. To be socially responsible and accountable to the rider, their responsibility should extend to the time the fare is paid and the rider leaves the car safely. However while Uber might believe their responsibilities end when the rider gets in the car after getting a cab using their app, the problems Uber has been experiencing start when the rider gets in the cab. Uber also has issues before a reider even gets in a cab. For example, an advocacy group in the U.S. for the blind is currently suing Uber, for allegedly discriminating against passengers with service dogs [5]. Blind Uber customers would be refused a ride once the driver saw them with a service dog, and in some instances even charged cancellations fees after denying them rides. Uber currently has nothing written in their terms and conditions about handling these types of situations. This is only one example but one could summarize that Uber is not socially responsible to those blind riders. Yet society has taken many steps to accommodate the blind with service dogs. They are allowed in most buildings, regulated taxis must take them in their car and public transit provides a number of services. Uber’s website has no mention or statement on “social corporate responsibility”. Most companies and in particular public companies usually have mission statements and a statement on corporate social responsibility. At the moment Uber has no director of corporate social responsibility, and has a job posting available for it on their website. By the language of posting stating the responsibilities of the position, Uber has no defined CSR program that is being implemented. The posting states that the position will “develop the CSR playbook for Uber and roll the program out globally” [6]. The company seems to be responding to a significant amount of recent criticism and is taking action to develop a corporate social responsibility statement and policy. The criticisms and complaints relate primarily to concerns from competitors, riders, and municipal or government authorities regulating the taxi industry.
Recently Uber has been accused by their competitor Lyft, for having Uber employees order and deliberately cancelled 5,560 Lyft rides since October of last year [7]. False requests like this cost Lyft drivers time and gas, and also reduce the availability of the company’s cars, which would increase demand for Uber cars. Uber has also used contractors that they call “brand ambassadors”, who requests rides from Lyft and other competitors, recruits their drivers, and take multiple precautions to avoid detection [8]. Through this instance Uber has not only purposely damaged the image of Lyft to give them an unfair advantage, but they’ve also placed the jobs of those who rely on Lyft as a means of income in jeopardy. Uber faces many challenges from regulators in many cities around the world. There are too many to mention but a sample includes: Parts of Australia have issued number of infringements notices against Uber drivers; Bressels has banned Uber; Vancouver and Toronto regulators as well as taxi companies) are in public disputes with Uber; the national transport authority in Denmark filed a police complaint against Uber siting consumer safety and employee training as key concerns; France has banned Uber service; This is only a partial list as Uber seems to be facing issues in many countries now. Uber’s problems also extend to public statements that are demeaning and certainly don’t display any sort of responsibility to society. At a private dinner in November 2014 a senior vice president of Uber, suggested that Uber hire a team of with a million-dollar budget, to dig into the personal lives and backgrounds of media figures who reported negatively about Uber. While Uber later issued an apology, the damage was done [9]. There are many large companies that operate in many countries and cities. Some companies face issues in some parts of the world but it is difficult to believe a company can face so many complaints in many countries and also face bans as Uber does. Clearly, Uber does not have sufficient policies that can be applied globally to limit the number of complaints. Uber should take actions to develop policies to: operate properly and follow regulatory guidelines in each area it operates in; address safety issues and to demonstrate its social responsibility. The corporate social responsibility includes following local laws and showing compassion for riders.
PRIVACY.
Privacy is a concept that might be described as autonomy within society [10]. “We have never in history been at a point in society where we were more extortable. We have to think about how the service provider itself can be a threat.” Said Chris Hoofnagle, a law professor at the University of California at Berkley who specializes in online privacy [11]. Tech companies are accumulating detailed records of user’s communications, Internet traffic and even physical movements. As mentioned above, Uber Senior Vice President, Emil Michael, spoke about his desire to spend $1 million to hire opposition research to dig up information on “personal lives and families” of journalists who write critically about Uber. This was said to specifically target a female journalists who has criticized the company. In statement through Uber, he said he regretted them and that they did not reflect his or the company’s views. CEO Travis Kalanick posted a series of 13 tweets apologizing for Emil’s comments and tried to mend the damage, but has done nothing to discipline him [12]. Another Uber executive successfully examined the private travel records of a Buzzfeed reporter. This was achieved during an email exchange to access the data. Alongside the availability to access riders private records, a company official also analyzed anonymous ridership data in Washington, DC in attempt to study the frequency of overnight sexual liaisons by riders. Uber dubbed this information “Rides of Glory.” The data was documented on maps highlighting neighborhoods where riders participated in one-night stands. Uber provides drivers with mobile devices that are used to track potential riders and their locations; iPhone’s, iPads etc. In 2012, an Uber driver took advantage of the provided device they were given and used it to photograph an innocent female rider. The female was unaware of the drivers actions until later that day when she got into an Uber car coincidently with the driver who had taken her photograph. The driver asked his passenger if she was around Lincoln Center, New York City in the morning in which she replied with no recollection of being there until the Uber driver posed an argument, showing her a close up photograph he had taken of her.
The event was reported to Uber by the concerned rider only to be given a $20 Uber credit for the next time she decided to use the service. The driver was fired immediately because of similar complaints filed against him in the past. Months after the incident occurred, the exUber driver contacted a journalist seeking his job back and wanted to explain his side of the story. The former Uber employee had enough information at hand after being fired to find the victim on Facebook and message one of her friends asking about her. This incident suggests that even after terminating an employee, there are still heaps of data available for their disclosure [13]. Uber has a tool called “God View”, only available to its employees working in operations or other areas like fraud prevention. The tool allows them to see a real-time aerial view of the movement of Ubers cars. Uber customers are not made aware of the existence the tool which infringes on their privacy. The tool is usually only presented during exclusive launch parties where guests are able to see the position and movement of Uber users. This was until a launch New York party in 2011 where the guests were shown the God View and the users were not anonymous. Some of the guest recognized the users and notified them about what was happening, at which point the users became immediately disturbed. Since this mishap, the Uber’s God View has been at the center of discussions regarding Uber’s social responsibility towards privacy [14].
SAFETY.
A company with this amount of participation from the public would suggest that safety is one of their primary focuses. However we’re not convinced that Uber takes these matters with great significance. Today, many countries such as India, Spain, and the Netherlands oppose Uber. As a company focused on global expansion, being ruled out by various courts is an effective downfall that will suppress the organizations global growth. One of Uber’s largest markets, India, recently sued the organization for failing at maintaining basic safety procedures [15]. An Indian women was raped by an Uber driver in New Delhi. She was warned by the driver to not report the assault, however the woman was able to obtain information of the vehicle to take it to the authorities. Along with other events, a serious concern grew for safety. The problem is that Uber is a type of matchmaking service for strangers. North America has certain background check policies for each signed up driver, however in many other countries, especially in the developing world, there are no effective check up for the prospective driver. After the rape incident in New Delhi, Uber has implemented deeper background checks to heighten the safety precautions [16]. Alina Tiphagne, a New Delhi citizen says, ”If your company had run a background check and got police verification done, this crime could’ve been avoided.” Uber should continue to apply an improved set of safety procedures to all participating countries to resume significant international growth and prevent any more assault on customers. While we do believe that driver background checks will help attaining satisfactory social responsibility, we think that drivers shouldn’t be the only ones to be looked into. The driver is just as vulnerable as the passenger when it comes to safety.
EVOLVING THE WAY THE WORLD MOVES.
OUR FINAL THOUGHTS UBER [CURRENT STATE]
Uber is a young company with technological innovation that has disrupted the taxi industry. The service has expanded rapidly to over 200 cities since founded in 2009. Riders find the app easy to use, which has resulted in increased demand for Uber services in these cities. Most companies would be more than pleased with such growth. The company has also seen a serious number of complaints worldwide from riders, competitors and regulators. Even the media has turned on Uber. Clearly Uber has exposed many flaws. Most of these can be addressed with developing and following policies addressing rider safety, respect for local laws and regulation, privacy issues, fair competition and maintaining good standing in society. Ultimately corporate social responsibility is critically important to the success of a company. A company can be aggressive by introducing new technology to help consumers. Apple, Gogle and Netflix are prime examples of technology companies who make a significant impact on our lives. These companies are not perfect in our society but for the most part are accepted by consumers. These companies have well defined policies dealing with social responsibility and accountability (although some privacy issues are challenged today). Uber has demonstrated a complete lack of social responsibilities as evidenced by the numerous complaints all over the world, bans in parts of the world and serious negative publicity. Uber can begin to address some of their faults by building policies to standards of the industry. Then at that time, they will be able to limit and reduce the number of complaints, be allowed to operate without threats from local regulators and enhance their public relations.
SERVICE BREAKDOWN [UPDATED WITH OPPORTUNITIES]
UBER APPLICATION
HUMAN DELIVERY
3
DRIVER
CUSTOMER
4, 5
COLLABORATIVE CONSUMPTION
1
INFRASTRUCTURE
CARS
ALTERNATE CAREERS
2
SMART DEVICES
INCREASED PHONE BILLS
ROADS
PRIVACY
TRAFFIC
CONSTRUCTION
CREDIT CARD COMPANIES
Uber should be placed in between the customers and the drivers to create a balance of incentive for both parties. A reference to the following page. Organized by sequential numbering.
MAINTENANCE
GASOLINE
OPERATORS
CHARGING STATIONS LOSE JOBS
CONSTRUCTION
GOVERNMENT
RAISED TAXES
POLICY
OPPORTUNITIES CSR IMPROVEMENT
1. Autonomous Vehicles. Make money while you’re making money. Autonomous vehicles will forever change public transportation. It will cut back on the number of drivers, saving Uber money while also improving the customer experience. Customers would not be turned down or be afraid for their safety. Unfortunately, this would have a negative impact on the fleet of drivers as they may only be used in high demand periods. 2. Predictive Traffic. Time is money. The information that is being collected by Uber about their customer’s locations and habits could be used for predictive traffic. This would allow users to more accurately plan their travel time and make crucial time saving decisions. 3. Background Checks. Peace of Mind. By running background checks on both the user and the driver, Uber would be creating peace of mind and safe transportation. This would encourage more individuals to become drivers as they wouldn't feel as worried about having strangers in their car. 4. Uber Rental. Sharing is caring. Uber rental would allow for individuals with cars to rent them out to Uber drivers when they are not in use. A driver could go to work in the morning, leave his car in the parking lot and have an Uber driver pick it up. While they are working the driver would be using his car to pick up and drop off customers. The driver would get a portion of the fare as well as the car owner and Uber for facilitating the transaction. 5. UberCamel. Environmental Adaptability. Uber will have different variations of itself to cater best to the different parts of the world they operate in. Whether it be UberTukTuk in Sri Lanka and India, UberGondola traveling through the water ways of Venice, Italia or UberScooter zipping through Hanoi, Vietnam, Uber will be the future of all forms of transportation worldwide.
REFERENCES
1. “Uber.” - Safety. N.p., n.d. Web. 1 Feb. 2015. 2. Frizzel, Sam. "5 Places Where Uber Is Fighting for Its Life Right Now." Time. Time, n.d. Web. 01 Feb. 2015. <http://time.com/3623241/uber-battles/>. 3. Manu, Alexander. “Socially Responsible Design”. Print. p 6 4. “Uber.” Legal. Uber, n.d. Web. 01 Feb. 2015. https://www.uber.com/legal/usa/terms>. 5. "Uber Sued for Allegedly Refusing Rides to the Blind and Putting a Dog in the Trunk." Washington Post. The Washington Post, n.d. Web. 30 Jan. 2015. <http://www.washingtonpost.com/news/morning-mix/wp/2014/09/10/uber-sued-for-allegedly-refusing-rides-to-t he-blind-and-putting-a-dog-in-the-trunk/>. 6. "Uber Is Hiring! - Director of Corporate Social Responsibility." Careers at Uber. Uber, n.d. Web. 01 Feb. 2015. <https://www.uber.com/jobs/38912>. 7. Blue, Victor J. "Uber Accused of Canceling 1000's of Rivals' Rides." CNBC. © 2015 CNBC LLC., 12 Aug. 2014. Web. 01 Feb. 2015. <http://www.cnbc.com/id/101914049>. 8. Media, Inc., 26 Aug. 2014. Web. 31 Jan. 2015. <http://www.theverge.com/2014/8/26/6067663/this-is-ubers-playbook-for-sabotaging-lyft>. 9. Smith, Ben (November 17, 2014) “Uber Executive Suggests Digging Up Dirt on Journalists.” Buzzfeed. (Retrieved 11-18-2014) 10. Hirshleifer, Jack. "The Journal of Legal Studies." The Law and Economics of Privacy 9.4 (1980): 649-64. JSTOR. The University of Chicago Press for The University of Chicago Law School. Web. 01 Feb. 2015. <http://www.jstor.org/stable/724176>. 11. Timberg, Craig, Nancy Scola, and Andrea Peterson. "Uber backlash brings privacy concerns to light." Washington Post 18 Nov. 2014. Academic OneFile. Web. 1 Feb. 2015. 12. Smith, Ben. "Uber Executive Suggests Digging Up Dirt On Journalists." BuzzFeed. © 2015 BuzzFeed, Inc, n.d. Web. 01 Feb. 2015. <http://www.buzzfeed.com/bensmith/uber-executive-suggests-digging-up-dirt-on-journalists#.eijDOVOpa>. 13. Nuzzi, Olivia. "Uber’s Biggest Problem Isn’t Surge Pricing. What If It’s Sexual Harassment by Drivers?" The Daily Beast. Newsweek/Daily Beast, n.d. Web. 01 Feb. 2015. <http://www.thedailybeast.com/articles/2014/03/28/uber-s-biggest-problem-isn-t-surge-pricing-what-if-it-s-sexual-harassment-bydrivers.html>. 14. Hill, Kashmir. "'God View': Uber Allegedly Stalked Users For Party-Goers' Viewing Pleasure (Updated)." Forbes. Forbes Magazine, 03 Oct. 2014. Web. 01 Feb. 2015. http://www.forbes.com/sites/kashmirhill/2014/10/03/god-view-uber-allegedly-stalked-users-for-party-goers-viewing -pleasure/ 15. Levine, Dan. "A Delhi Woman Allegedly Raped By Her Uber Driver Is Suing Uber." Business Insider. Business Insider, Inc, 29 Jan. 2015. Web. 01 Feb. 2015. <http://www.businessinsider.com/r-delhi-uber-passenger-who-alleges-driver-rape-sues-in-us-court-2015-1 >. 16. Kosoff, Maya. "Uber Will Conduct Background Checks In India After A Delhi Woman Was Allegedly Raped By Her Driver." Business Insider. Business Insider, Inc, 20 Jan. 2015. Web. 01 Feb. 2015. <http://www.businessinsider.com/uber-background-checks-india-2015-1>.