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Slide 1: Introduction

Since its founding in 2009, Uber has revolutionized the transportation industry.
Leveraging smartphone technology, Uber introduced a convenient and often cheaper
alternative to traditional taxis, impacting millions of riders globally. However, Uber's rapid
growth has been accompanied by significant controversy. Uber has faced criticism regarding
its leadership style and corporate culture. Potential issues include allegations of employee
mistreatment, aggressive tactics to bypass regulations, and questionable business practices
during its rapid expansion (Isaac, 2017).

Slide 2: Table of Contents


This presentation will be divided into three main sections. First, I will discuss the
concept of ethical leadership and how it applies to Uber. Then, I will examine Uber’s
corporate culture and how it has been shaped by the company’s leadership. Finally, I will
propose some recommendations for how Uber can improve its ethical leadership and
corporate culture.
Slide 3: Issue 1: Ethical Leadership
Definition
Ethical leadership refers to the practice of leaders who make decisions based on
strong moral principles, considering the well-being of all stakeholders. This includes honesty,
transparency, and accountability (Flores & Hoidn, 2023). Ethical leadership fosters trust,
empowers employees, and promotes a positive work environment.

Slide 4: Ethical Leadership in Uber:


In Uber’s early days, the leadership team was laser-focused on one thing: growth.
For example, a former female employee's widely publicized account detailed a hostile work
environment with instances of sexism, sexual harassment, and a lack of accountability from
superiors (Fowler, 2017). Then, from a low base of 27% female drivers, they suffer a female
turnover rate of 76%. This is not good for women drivers, and it hasn't proven particularly
good for women riders (Wittenberg-Cox, 2018). Additionally, Uber's “Greyball” program
reportedly used deceptive tactics to evade local regulations by identifying and blocking
government officials from requesting rides (Isaac, 2017a). This program raised serious
questions about Uber's ethical business practices and its respect for legal frameworks. The
multitude of negative headlines did have a detrimental impact on Uber's brand. According to
Richter (2017), the proportion of customers who hold an unfavorable view of Uber increased
from 9 to 27 percent in reaction to the news.
Slide 5: Consequences of Unethical Leadership:
Uber's disregard for ethical leadership had significant consequences. The
“DeleteUber” movement, fueled by public outrage surrounding the company's treatment of
employees and its questionable business practices, led to a decline in ridership and a damaged
public image (Lee, 2017). Legal battles with local governments over regulations further
hampered Uber's operations. These factors ultimately hindered Uber's long-term
sustainability. Although the company remains a major player in the ridesharing industry, its
ethical lapses forced Uber to undergo significant restructuring and leadership changes.
Slide 6: Issue 2: Corporate Culture
Now let's turn our attention to corporate culture. Everyone know company's culture
serves as its DNA, shaping employee behavior, decision-making, and overall success. In
Uber's case, the leadership's focus on rapid growth fostered a specific corporate culture that
significantly impacted the company and its stakeholders.
Definition
Corporate culture refers to the shared beliefs, values, and behaviors that define how a
company operates (Tarver, 2023). It encompasses everything from communication styles and
decision-making processes to employee morale and treatment. A strong corporate culture
fosters a sense of belonging and purpose, motivates employees, and attracts top talent. It also
shapes how a company interacts with its external stakeholders. It also shapes how a company
interacts with its external stakeholders, including customers and regulators.
Slide 7: Corporate Culture in Uber:
Disruption at All Costs: The early Uber culture embraced a "disruption at all costs"
mentality. This prioritized rapid growth and innovation over ethical considerations and
employee well-being. Gross (2019) revealed that Uber had a significantly higher rate of
employee complaints filed with the Equal Employment Opportunity Commission (EEOC)
compared to other Silicon Valley tech companies.

Slide 8: Corporate Culture in Uber (continue)


Additionally, highly focused on unlimited growth created a competitive and probably
a confronted atmosphere between workers. Berger et al. (2019) highlighted the issues with
Uber drivers like uncertain income and job guarantees. Such factors probably influenced the
high turnover among drivers which was, in turn, another headache for the company. Besides,
the other biggest problem was gender bias that prevailed Uber culture. Women were severely
underrepresented in leadership positions and, in fact, they reported living in a culture of
sexism and harassment, according to Susan Fowler’s narrative (Fowler, 2017). This, in turn,
was a cause for a female employee unfriendly environment and a decline in the number of
females working at Uber, which also contributed to a negative public perception of the
company's work environment.
Slide 9: Consequences
The negative aspects of Uber's corporate culture had a domino effect, leading to a
series of significant consequences.
● The hostile work environment led to employee dissatisfaction, high turnover, and
legal issues surroundng harassment claims.
● The revelations of unethical behavior and a negative work environment tarnished
Uber's brand image and eroded public trust. This likely impacted ridership and overall
market perception.
● A toxic work environment makes it difficult to attract and retain top talent, hindering
innovation and long-term success.
Slide 10: Comparison with other similar organizations.
While Uber faced significant criticism for its leadership and culture, how did its
competitors fare? Both Grab and Lyft emphasized collaboration and a more balanced
approach to growth. Grab, for example, cultivated a culture that prioritized driver well-being
and partnered with local governments, fostering trust and regulatory acceptance (Sarmah,
2019). Lyft, meanwhile, championed a mission-driven approach, focusing on sustainability
and social responsibility alongside growth (Mainwaring, 2018). While not without
challenges, these companies seemed to prioritize ethical considerations alongside business
goals, offering a contrasting approach to Uber's initial leadership style.

Slide 11: Theory-Based Recommendations


Rebuilding trust with relationship-based leadership and addressing diversity:
Uber's past leadership lacked focus on interpersonal connections, disproportionately
impacting underrepresented groups. Individual Leadership theories emphasizing
relationships, like Hersey and Blanchard's Situational Theory, are crucial. This theory
suggests leaders adapt their style based on follower maturity (competence and commitment).
By utilizing a coaching style with diverse employees, leaders can provide individualized
guidance and support, fostering trust and addressing potential knowledge gaps due to prior
experiences. This approach can help create a more inclusive environment where diverse
employees feel valued and empowered to contribute their unique skills (Kenton, 2023).
Motivating with Path-Goal theory and closing the gender gap: Low employee
morale and gender disparity were issues at Uber. Path-Goal Theory focuses on leaders
aligning employee needs with organizational goals. By identifying and addressing the
specific needs of female employees, Uber can create a more inclusive work environment.
Leaders can offer opportunities for mentorship and career development programs specifically
tailored for women, addressing potential confidence gaps and fostering a sense of belonging
(Priyowidodo & Priyowidodo, 2021).
Effective delegation with Vroom-Jago model and countering biases: The Vroom-
Jago Model helps leaders determine the most effective decision-making style for a given
situation. However, unconscious biases can skew decision-making. Leaders must actively
work to identify and counter their own biases to ensure opportunities for delegation are fairly
distributed across all employees, regardless of gender or ethnicity (Brown & Finstuen, 1993).
Slide 12: Conclusion
Uber's early strategy of market expansion operated at all cost contributed to the
leadership challenges, with much ethical concerns. The most natural result of that was a
competitive corporate culture, which was dulled by the team discontent and gender
differences, and lack of transparency. Those problems in the end ruined Uber's reputation,
lost trust of society, and diminished competitive advantage.
The case of Uber clearly shows that ethical leadership is a critical cornerstone in
creating and keeping a firm that is long-lasting and prosperous. Through the application of
the advised techniques of servant management, stakeholder theory, and the use of ethical
decision-making frameworks, Uber will be better equipped to create a more ethical and
sustainable future
Slide 13: References
Berger, T., Frey, C.B., Levin, G. & Danda, S.R. (2019). Uber Happy? Work and
Well-being in the ‘Gig Economy’. Economic Policy. 34 (99). pp. 429–477.

Brown, F.W. & Finstuen, K. (1993). The use of participation in decision making: A
consideration of the vroom-yetton and vroom-jago normative models. Journal of
Behavioral Decision Making. 6 (3). pp. 207–219.

Flores, R. & Hoidn, S. (2023). Ethical Leadership.

Fowler, S. (2017). Reflecting on one very, very strange year at Uber. [Online]. 19
February 2017. Susan Fowler. Available from:
https://www.susanjfowler.com/blog/2017/2/19/reflecting-on-one-very-strange-year-
at-uber.

Gross, E.L. (2019). Uber Settles With The EEOC To The Tune Of $4.4 Million.
[Online]. 2019. Forbes. Available from:
https://www.forbes.com/sites/elanagross/2019/12/19/uber-settles-with-the-eeoc-to-
the-tune-of-44-million/?sh=784f483279ef. [Accessed: 8 March 2024].

Isaac, M. (2017a). How Uber Deceives the Authorities Worldwide. The New York
Times. [Online]. 3 March. Available from:
https://www.nytimes.com/2017/03/03/technology/uber-greyball-program-evade-
authorities.html.

Isaac, M. (2017b). Inside Uber’s Aggressive, Unrestrained Workplace Culture. The


New York Times. [Online]. 22 February. Available from:
https://www.nytimes.com/2017/02/22/technology/uber-workplace-culture.html.

Kenton, W. (2023). Hersey-Blanchard situational leadership model: How it works.


[Online]. 10 June 2023. Investopedia. Available from:
https://www.investopedia.com/terms/h/hersey-and-blanchard-model.asp.

Lee, T.B. (2017). Uber has only itself to blame for the #DeleteUber campaign.
[Online]. 2 February 2017. Vox. Available from:
https://www.vox.com/new-money/2017/2/2/14478044/trump-delete-uber-campaign.
Mainwaring, S. (2018). How Lyft Drives Growth Through Purpose. [Online]. 16
November 2018. Sustainable Brands. Available from:
https://sustainablebrands.com/read/leadership/how-lyft-drives-growth-through-
purpose. [Accessed: 8 March 2024].

Priyowidodo, G. & Priyowidodo, G. (2021). Leadership Based on Path-Goal Theory


in Organization Communication: A Perspective of Listening to the Labors’ Voices.
Journal of Hunan University Natural Sciences. [Online]. 48 (11). Available from:
http://www.jonuns.com/index.php/journal/article/view/845.

Richter, F. (2017). Infographic: Uber’s Reputation Has Taken a Major Hit. [Online].
2017. Statista Infographics. Available from:
https://www.statista.com/chart/9469/public-perception-of-uber/.

Sarmah, H. (2019). Grab’s Journey From Being A Unicorn To Becoming The


Leading Mobility Platform In Southeast Asia. [Online]. 7 March 2019. Analytics India
Magazine. Available from: https://analyticsindiamag.com/looking-east-grabs-journey-
from-being-a-unicorn-to-becoming-the-leading-mobility-platform-in-southeast-asia/.

Tarver, E. (2023). Corporate Culture Definition, Characteristics, and Importance.


[Online]. 2023. Investopedia. Available from:
https://www.investopedia.com/terms/c/corporate-culture.asp.

Wittenberg-Cox, A. (2018). Uber’s Gender Pay Gap Study May Show The Opposite
Of What Researchers Were Trying To Prove. [Online]. 2018. Forbes. Available from:
https://www.forbes.com/sites/avivahwittenbergcox/2018/09/23/gender-paygap-uber-
case-study/?sh=78c33e89b555. [Accessed: 8 March 2024].

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