1. State and describe "three factors" that may have contributed to the ethical violations at Uber as outlined in Illustration Capsule 9.1. ILLUSTRATIONCAPSULE 9.1Ethical Violations at Uber and their ConsequencesThe peer-to-peer ridesharing company Uber has beencredited with transforming the transportation indus-try, upending the taxi market, and changing the wayconsumers travel from place to place. But its lack ofattention to ethics has resulted in numerous scandals, atarnished reputation, a loss of market share to rival com-panies, and the ouster of its co-founder Travis Kalanickfrom his position as the company's CEO. The ethicallapses for which Uber has been criticized include thefollowing:UBERArrivingHere• Sexual harassment and a toxic workplace culture. InJune 2017, Uber fired over 20 employees as a result of aninvestigation that uncovered widespread sexual harass-ment that had been going on for years at the company.Female employees who had reported incidents of sexualharassment were subjected to retaliation by their man-agers, and reports of the incidents to senior executivesresulted in inaction.©TY Lim/Shutterstockwhen a pedestrian was tragically struck and killed by oneof its self-driving vehicles in 2018.• Unfair competitive practices. When nascent competi-tor Gett launched in New York City, Uber employeesordered and cancelled hundreds of rides to waste driv-• Price gouging during crises. During emergencies situ-ations such as Hurricane Sandy and the 2017 LondonBridge attack, Uber added high surcharges to the costof their services. This drew much censure, particularlysince its competitors offered free or reduced cost ridesduring those same times.• Data breaches and violations of user privacy. Since2014, the names, email addresses, and license informa-tion of over 7oo,000 drivers and the personal informa-tion of over 65 million users have been disclosed as aresult of data breaches. Moreover, in 2016 the companypaid a hacker $100,000 in ransom to prevent the dissem-ination of personal driver and user data that had beenbreached, but it failed to publicly disclose the situationfor over six months.er's time and then offered the drivers cash to drop Gettand join Uber. Uber has been accused of employing simi-lar practices against Lyft.The ethical violations at Uber have not been withouteconomic consequence. They contributed to a significantmarket share loss to Lyft, Uber's closest competitor in theUnited States. In January 2017, when Uber was thoughtto have gouged its prices during protests against legisla-tion banning immigrants from specific countries, its mar-ket share dropped 5 percentage points in a week. WhileUber's ethical dilemmas are not the sole contributor toLyft's increase in market share and expansion rate, thenegative perceptions of Uber's brand from its unethicalactions has afforded its competitors significant opportu-nities for brand and market share growth. And without areal change in Uber's culture and corporate governancepractices, there is a strong likelihood that ethical scan-dals involving Uber will continue to surface.• Inadequate attention to consumer safety. Substandardvetting practices at Uber came to light after one of itsdrivers was arrested as the primary suspect in a massshooting in Kalamazoo, Michigan, and after a series ofreports alleging sexual assault and misconduct by itsdrivers. Uber's concern for safety was further questioned

Question

1. State and describe &#34;three factors&#34; that may have contributed to the ethical violations at Uber as outlined in Illustration Capsule 9.1. ILLUSTRATIONCAPSULE 9.1Ethical Violations at Uber and their ConsequencesThe peer-to-peer ridesharing company Uber has beencredited with transforming the transportation indus-try, upending the taxi market, and changing the wayconsumers travel from place to place. But its lack ofattention to ethics has resulted in numerous scandals, atarnished reputation, a loss of market share to rival com-panies, and the ouster of its co-founder Travis Kalanickfrom his position as the company's CEO. The ethicallapses for which Uber has been criticized include thefollowing:UBERArrivingHere• Sexual harassment and a toxic workplace culture. InJune 2017, Uber fired over 20 employees as a result of aninvestigation that uncovered widespread sexual harass-ment that had been going on for years at the company.Female employees who had reported incidents of sexualharassment were subjected to retaliation by their man-agers, and reports of the incidents to senior executivesresulted in inaction.©TY Lim/Shutterstockwhen a pedestrian was tragically struck and killed by oneof its self-driving vehicles in 2018.• Unfair competitive practices. When nascent competi-tor Gett launched in New York City, Uber employeesordered and cancelled hundreds of rides to waste driv-• Price gouging during crises. During emergencies situ-ations such as Hurricane Sandy and the 2017 LondonBridge attack, Uber added high surcharges to the costof their services. This drew much censure, particularlysince its competitors offered free or reduced cost ridesduring those same times.• Data breaches and violations of user privacy. Since2014, the names, email addresses, and license informa-tion of over 7oo,000 drivers and the personal informa-tion of over 65 million users have been disclosed as aresult of data breaches. Moreover, in 2016 the companypaid a hacker $100,000 in ransom to prevent the dissem-ination of personal driver and user data that had beenbreached, but it failed to publicly disclose the situationfor over six months.er's time and then offered the drivers cash to drop Gettand join Uber. Uber has been accused of employing simi-lar practices against Lyft.The ethical violations at Uber have not been withouteconomic consequence. They contributed to a significantmarket share loss to Lyft, Uber's closest competitor in theUnited States. In January 2017, when Uber was thoughtto have gouged its prices during protests against legisla-tion banning immigrants from specific countries, its mar-ket share dropped 5 percentage points in a week. WhileUber's ethical dilemmas are not the sole contributor toLyft's increase in market share and expansion rate, thenegative perceptions of Uber's brand from its unethicalactions has afforded its competitors significant opportu-nities for brand and market share growth. And without areal change in Uber's culture and corporate governancepractices, there is a strong likelihood that ethical scan-dals involving Uber will continue to surface.• Inadequate attention to consumer safety. Substandardvetting practices at Uber came to light after one of itsdrivers was arrested as the primary suspect in a massshooting in Kalamazoo, Michigan, and after a series ofreports alleging sexual assault and misconduct by itsdrivers. Uber's concern for safety was further questioned

Accepted Answer

Business ethics is a kind of applied ethics, which is used by professionals or researchers to solve…