This extended essay focuses on the multinational company, Uber, and its operations in Central London. The aim of the essay is to evaluate what extent Uber can be seen as a socially responsible corporation. In order to evaluate this, the environmental impact of Ubers operations must be considered
Uber is an independent transport network company that hires drivers who use their own vehicles to drive passengers that request and pay for rides using the Uber app. The company was founded in America in 2009.
Uber is available in 65 countries and over 600 cities worldwide with an estimated 110 million users. Uber have stated that their aspiration is to play a meaningful role in creating a sustainable, low-carbon future and addressing environmental challenges.”
An interdisciplinary approach must be taken because, although business and management give me an understanding of the corporate structure of Uber, my knowledge of ESS will allow me to understand the company’s environmental impacts on a global scale. Uber is a multinational company that continues to increase in popularity each year, therefore is global and current.
There are currently increasing pressures on businesses like Uber to become more ethical and eco-friendly
Uber has been heavily criticized for its lack of wheelchair accessibility. The company has the option of UberAccess in which disabled customers are given the choice of car that accommodates them and their requirements. However, since the introduction of this feature to London in 2016, Uber has had discrimination lawsuits over the availability and quality of the service. Uber responded to the poor reviews across London, saying that: While there is certainly more work to be done, we are working hard to make it easier.
For many consumers, this shows a lack of morality within the corporation and highlights Uber’s lack of CSR.
In 2017 Uber faced sanctions by Transport for London (TFL) as a direct result of their unethical behavior. TFL concluded that Uber London Limited is not fit and proper to hold a private hire operator license”. TFL attributed this decision to the fact that: Uber’s approach and conduct demonstrate a lack of corporate responsibility in relation to a number of issues which have potential public safety and security implications.” As London is Uber’s biggest European market with over 3.6m users, this ban would have been very problematic for the company. Although the license was reinstated in 2018, Ubers CSR continued to come into question throughout the year
In 2018 Uber hired its first-ever chief diversity officer in order to combat allegations of discrimination in the recruitment of drivers. This decision was effective in showing the criticizers that the company is actively taking steps towards becoming a more corporate socially responsible company. Uber filed to become a public limited company in 2019, which meant that it is able to advertise and sell its shares to the general public via a stock exchange. This also means that Uber must disclose financial information to all public. The company had previously been criticized for being resistant to share financial data, this transparency was beneficial for its reputation.
The company also introduced a passenger rating system in which drivers and passengers are able to rate each other based on the trip experience. Low ratings would illicit bans for passengers and deactivation of drivers. This was in an attempt to limit the mistreatment of both drivers and passengers so that to mutual respect is created.
In addition to these measures, Uber continually uses its advertising campaigns to improve its brand image through campaigns such as.
Uber has an UberPool option for users to share rides with other passengers who are traveling in a similar direction. The scheme was put in place so that Uber could materially reduce the cost for riders, help cut mileage and emissions. Theoretically, it is plausible that by reducing the need for car ownership, Uber reduces the number of cars on the road at any given time, therefore reducing congestion and carbon emissions. Uber also claims that its service helps enable smarter transportation policy choices. Fewer personal cars require fewer parking spaces and parking lots, freeing up space for more productive and sustainable uses.
Uber is making very large investments into fully autonomous cars. The company has already spent $457 million in 2018 on the research and development of self-driving cars. Due to the fact that most petrol is burned when people unnecessarily accelerate and brake, autonomous cars would waste less battery and consume less energy, resulting in less air pollution. Furthermore, driverless cars would reduce the overall number of cars on the road. This is because the car’s ability to drive back home autonomously would mean reducing the amount cars needed per household and therefore reducing congestion and lowering emissions. Ubers investment in this technology clearly shows the company’s interest in improving the quality of life and fulfilling their CSR
The company is actively seeking to improve the environment through changes such as the clean air fee, in which London users must pay an extra 15p per mile, to go towards improving the air quality in London. This change is a part of Ubers clean air plan in London whereby the ultimate goal for Uber is for half of its London vehicles to become electric by 2021 and for the entire fleet to be electric by 2025. Uber drivers will be given financial assistance in the form of grants up to? 5000 to switch cars. The company has committed ? 2 million to fund the 40,000 drivers in London. To support this transition, Uber is working on building more charging ports in and around the city. Transitioning to this cleaner form of transportation will have many health benefits for the city of London.
Uber has chosen to prioritize London because dirty air causes nearly 9,500 deaths a year in the city. The company is clearly committed, stating that: Air pollution is a growing problem and were determined to play our part in tackling it with this bold plan.
Uber has come under a lot of criticism for undercutting a company at the very heart of British culture. The low penetration pricing strategy used by Uber has been effective in encouraging customers to switch from black taxis to users, however, this may lead to the extinction of Londons iconic black cabs.
Black cab drivers must go through an exhaustive training regimen where they learn every single one of London’s streets by heart. There are eight times more reported incidents in London involving Uber drivers than black taxi drivers, according to a trawl of databases and media reports over a 12-month period
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