Question

Consult additional sources and comment on Uber’s operations as a socially responsible business within South Africa and abroad. Assess the five components of Uber’s corporate social responsibility strategy. (10 marks)

Answer 1

Uber’s operations as a socially responsible business:

Uber has had certain problems with ensuring that they run ethically all the time. There had been quite a number of cases when its drivers refused to transport people with disabilities, took violent measures against customers arguing with them, and have misbehaved with women riders many times. Some have even refused trips midway due to arguments or differences with the customers. Interestingly, the concept of corporate social responsibility was introduced to its programs in 2015, six years after it was established. Uber India had plans to create around 1 lac livelihoods by training people on driving. However, the program did not prove to be very effective as drivers were independent contractors and the most drivers who joined were already skilled. It also introduced the Clean Air Plan in the UK with actions to improve the quality of air.

Components of Uber’s corporate social responsibility:

The five components of Uber’s corporate social responsibility strategy are discussed below:

1. Supporting social activities: Uber has worked for a few charitable causes including funding for refugees in the European countries and providing jobs for veterans through their “Ride for a Cause.”
2. Ensuring that Uber works ethically and has an ethical strategy: Though Uber claims of it being an ethical company, it is in real not working ethically all the time. An example of this is the case of Uber drivers who denied rides to people with disabilities. This included both visually and physically impaired. Though the Americans with Disabilities Act made efforts to stop this, the drivers at Uber being independent contractors were free to choose whom they want to serve and whom not. The company had eventually started training programs to instruct drivers on how to serve people with disabilities.
3. Protecting the environment: Uber has taken a few initiatives to protect and sustain the environment. It has made driver easily available in every corner where they serve and have promoted the idea of driving without drinking, resulting in very few accidents, as per the MADD.
4. Work for employee benefits: Uber has taken initiatives to improve the well being of its employees, including its drivers by improving working conditions and making it a better place to work. It allows drivers the flexibility to work as per their convenience. It has also developed certain incentive programs for those who are performing well.
5. Workplace diversity: Uber has been able to build a diversified team primarily because of its nature of work. However, the drivers being independent contractors to the company, Uber does not conform to the rules of putting workplace diversity into effect. Hence, it may discriminate at times. That being said, the company has to depend on many drivers for their business to run, so they do not discriminate as such. There have been cases when issues have been raised on the company’s policy of not doing a proper background check before hiring drivers. There have been instances when 20-25 of the drivers working for Uber were criminals.