Case 3-1 You Can't Get There From Here: Uber Slow onDiversity
Established in 2009, Uber provides an alternative to taxicabservice in 460 cities and nearly 60 countries worldwide. The trick?Their mobile application for smartphocles allows riders to arrangefor transportation with drivers who operate their personalvehicles. A dual rating system (drivers and customers rate eachother) serves as a quality control device keeping Uber standardshigh.(1) As an international technology firm, Uber has beenchallenged, along with other tech giants like Google and Twitter,to demonstrate that they are attuned to the specific needs of theiremployees, more specifically people of color and women. In Uber'sown words: At Uber, we want to create a workplace that is inclusiveand reflects the diversity of the cities we serve: where everyonecan be their authentic self, and where that authenticity iscelebrated as a strength. By creating an environment where peoplefrom every background can thrive, we'll make Uber a better companynot just for our employees but for our customers, too (2) Yetactions speak louder than words, Uber employees describe the firm'swork environment amid some managers as Machiavellant and merciless.Many blame Travis Kalanick, Uber's founder and former chiefexecutive, for establishing such a negative culture. Uber's fastgrowth approach to the market has rewarded employees and managerswho have aggressively pushed for greater revenues and fatterprofits at the seeming cost of human dignity. For example, Uber hashad its share of troubles addressing issues of sexual misconductand workforce diversity. These issues came to light when a formeremployee, Susan Fowler, reported in her personal blog that she wasbeing sexually harassed by her manager and that human resources hadbeen informed of these infractions.(3) Susan Fowler said in herblog On my first official day rotating on the team. my new managersent me a string of messages over company chat. He was in an openrelationship, he said, and his girlfriend was having an easy timefinding new partners but he wasn't. He was trying to stay out oftrouble at work, he said, but he couldn't help getting in trouble,because he was looking for women to have sex with. It was clearthat he was trying to get me to have sex with him, and it was soclearly out of line that immediately took screenshots of these chatmessages and reported him to HRG) Uber's first reaction was to callMs. Fowler's accusations abhorrent and inst everything Uber standsfor and believes in.) Ms. Fowler purported that he manager was notpunished because he was a high performeret other female employeesreported similar incidents with the same manager leading Ms. Fowlerto believe that HR was covering up for her manager Uber was introuble as more and more scandals emerged and they quickly took thefollowing actions: (a) apologized for some of their managers'actions, (b) had a board member and several female executivesprovide testimonials on the firm's positive work environment, and(c) began to probe workplace policies and procedures. AriannaHuffington, a board member, repeatedly labeled new employees abrilliant jerks."(6) Huffington said that this investigation wouldbe different when Eric H. Holder Jr, the former United StatesAttorney General as well as some others), were hired to conducttheir investigation, Uber released its first diversity report onMarch 28, 2017, one month after these allegations. This reportindicated that women and nonwhite employees are underrepresented atthe firm, not overly dissimilar from other technology based firms.Some of the most egregious statisties include(a) racialconfiguration- Hispanic. 9 black, 50% white, and (b) 85% of alltechnology jobs are held by men, with amere 16 of the totalworkforce comprised of women)
Only time will tell if this fast growth firm can manage itsaggressive culture and diversity as it continues to expand into newmarketplaces and those with differing cultures
- Add your opinion about the choices and decisions beingmade—if this was your company would you make thischoice?
- What would you do differently?
