News Analysis 3

Ceased Citations

Arizona legislators have decided to stop issuing citations to drivers of the online ride share companies, Uber and Lyft as the Super Bowl weekend approaches. The ethical dilemma that emerges is based on previous legal issues that have been raised on the hiring practices, poor enforcement of driver licencing and insurance standards of Uber and Lyft and the lack of safety and concern for patrons using the ride share services. The decision for Arizona legislators to simply eliminate efforts to regulate the drivers during a busy sports event weekend based on the revenue that the services are likely to generate is of great concern.

The state has clearly decided that economics is far more important than the safety of its citizens. According to the Ethical Theory and Business text, the “deontological” ethical approach would be the guiding factor for passing a decision such as this. Kant described a "categorical imperative" where one would make a decision based on the final outcome being of the highest good (27). In other words, the state has decided that the highest good is to make money and the safety of citizen’s takes a back seat.

The state is essentially a business entity in that it must raise revenues in the form of taxes in order to operate effectively and therefore it is in the business of making money during busy weekend sports events and so the state certainly expects to earn a lot of additional revenue from the taxes it will collect from these ride share companies during the busy Super Bowl weekend.

The state should have resolved this incident differently by demanding that the event producers and the NFL contract to private shuttle van and bus line services to allow for alternative transportation services to be available, before, during and after the event. The integrity of the state is in question due to the decision to stop citations that do not take into account the history of the unsafe operating practices and danger they pose to potential patrons.

The “Might makes Right”, adage from the class discussion seems to fit this news story very well in that “Might” in this case is the power of the state and the money making aspect is what has been found to be “Right” over the safety of Arizona citizens. Another ethical approach discussed in class could also be applied to the analysis of this case being that of “Outcome Based ethics”. In this sense the ends of making revenue for the state justifies the means in making the decision to stop citations of these ride share drivers.

At the end of the day patrons will have a choice to make about whether or not they take a ride with an Uber or Lyft car and the state will ultimately make money. The ethical dilemma also must look at the patron as well in that they are part of the puzzle so mitigation of risk must also fall on them. If patrons do not mind and have a relaxed attitude about the issue than maybe it is not really an issue at all. The ethical approach of "emotive reasoning" comes into play as discussed in our class lecture. Moral relativism is what would drive patrons that know and accept the risk of taking a ride with a driver that was not commercially licensed or insured and according to the text Ethical Theory and Business, relativism is really an identifier for the times we live in. The postmodern age has garnered a propensity for humankind to question the world and even rebel against culture (27). 

Arizona’s decision should actually not be a surprise to anyone with a sense of reason and we shouldn’t be surprised if the state has a change of heart after the game this weekend. The ethical case that could one day emerge whether the state will change its ruling after the Super Bowl weekend was over and would seem to be even more unethical but that would be a different analysis from a future news cycle.

References

Fox News Business (29 January 2015). Retrieved from http://www.foxbusiness.com/markets/2015/01/29/arizona-stops-ticketing-uber-lyft-drivers-as-new-governor-legislature-work-on/

Beauchamp, T.L., Bowie N.E., Arnold D.G., (2012). Ethical Theory and Business, 9th Edition. Upper Saddle River, NJ: Pearson Prentice Hall

  

News Analysis 2

Booming Business

Restaurants also known as “breastaurants” are hiring attractive women and require them to wear revealing clothing as their uniform and are becoming increasingly popular as compared to regular restaurants, in fact they are growing by double digits over the last year as they compete to attract new customers.

The notion that sex sells continues to be a method for marketers to promote restaurants. Success has been found by restaurant chains trying to grow their businesses while the traditional more conservative approach of selling affordably priced, good tasting food in a family friendly atmosphere appears to be failing or at the very least slowing. The ethical issue that emerges is one that looks at whether this type of business operation is an example of exploitation of women and if it is degrading to women in the work place and society as a whole. From the readings of Ethical Theory and Business, discrimination during the hiring process was not explored in this case and would seem to emerge as a serious concern for business owners as well as employees since the subjectivity of choosing only beautiful women over those that are less attractive or not at all would raise issues in what was fair and legal. This ethical issue could be followed by the high potential for sexual harassment by other employees and patrons due to sexual insinuation and innuendo while working a shift.

The restaurant industry that uses scantily clad women’s uniforms as a way to market to men is under fire however the market continues to grow and show profits making the market more appealing than ever before. The decision for restaurateurs to create businesses based on this type of employee profile seems to make more sense from a dollars and cents point of view when competing against well-established chains following a more ethical model. New upstart restauranteurs continue to take advantage of the power of beautiful women to sell its products while in parallel the public proves that the business model works. Women clearly are not offended as much as critics seem to state otherwise they would not be applying to these jobs.

The fact of the matter in business is that the business man is beholden to its stake holders as the bottom line driver for making a profit. The business model that requires sex as a tool for creating profits is not a new model rather it could be described as the oldest known profession. Values associated with modesty among humans, plays the key role on how this could be handled differently while also considering the fact that Christian business people should not be afraid to confront dangers, threats and difficult business environments. According to Beyond Integrity: A Judeo-Christian Approach to Ethics, Christian values could be woven onto the business model by considering holiness, justice and love. Holiness in that the human form is a celebration of Gods image. Justice would define how the business would hold all liability for keeping employees safe from harm during the operation of the business so safety and security practices as well as equitable hiring practices could be developed as a result of this business models success. And finally, Love could be implemented in making it clear that beauty being part and parcel to human nature and to exploit women would not be a loving behavior to condone.

To complete this analysis, a look at how a resolution to potential ethical violations has taken shape finds that these matters having not been resolved by these company's since they are prospering. Time will ultimately tell whether the business model will change or if personnel have been harmed or if the general public decides that the ethical behavior in the form of respecting women will take precedence over the objectification of women through the marketing of sex to sell food. Until profits are no longer being made than it is likely sex will continue to sell and “breastaurants” will continue to gain popularity and market share. From a business stand point, a business that generates profit is a signal for success. This model can always be adapted in the future and safe environments can be established to ensure patrons and employees respect each other and have fun at the same time.

References

Fox News Business (16 January 2015). Breastaurant business is booming as other chains struggle. http://www.foxnews.com/leisure/2015/01/16/breast-taurant-business-booming-other-chain-eateries-struggle/

Beauchamp, T.L., Bowie N.E., Arnold D.G., (2012). Ethical Theory and Business, 9th Edition. Upper Saddle River, NJ: Pearson Prentice Hall

Rae, Scott B. and Wong, Kenman L., (2004). Beyond Integrity: A Judeo-Christian Approach to Ethics, 2nd Edition. Grand Rapids, MI: Zondervan Press

News Analysis 1

Online Guided Tours Business Model Problems

Indian company SeekSherpa is now providing guided tours of Indian market places with by utilizing an online service strategy for sourcing customers and connecting them with tour guides by way of the internet. This market likely emerged in response to a parallel web based online business model of the popular Uber Company rape scandals. Essentially the online guide services are using un-vetted brokers that source the guides used in the service. These brokers are acting as the middle man between the customer and the tour guides. The business model claims to be safe in that they are operating in a public space but skeptics insist that regulation must be implemented to ensure safety of customers and guides alike in the wake of recent scandals. 

The online guide service follows the same online model as Uber and now faces shut down by the Indian government based on the alleged rape charges brought against several Uber drivers where the Indian Government indeed banned all online taxi service firms. No action has been made toward the Online Guide services of SeekSherpa to date however speculation as to whether they will or should is now being raised. Without government oversight of how customers can be guaranteed their safety in the use of this kind of service then additional bans could be put in place for this and future businesses working under the same online models. Uber has also been accused of using what are called burner phones so that drivers cannot be traced or investigated and thereby protecting the guilty. Accountability is simply diminished with activities such as these. If guide services are not regulated than the potential for future criminal activity is wide open.

For now the action to do nothing is being looked at closely by the company’s founders. The regulatory body of the Indian government is who would actually make the final action to stop these businesses from operating. The Company believes the ministry of tourism will not find any issues with the service rather it will be a boon to more business in the region. Regulatory issues like this can be difficult to overcome for start-up businesses but they must overcome these issues or the company and or model will fail thereby potentially affecting multiple segments of the economy. Providing a safe service is the ultimate issue for customers as well as the prosperity of the economy.

SeekSherpa could certainly do a better job of explaining how they operate and how it is safe in its service practices as compared to the Uber Company, this would differentiate the SeekSherpa from any ill perception prior to regulatory issues potentially being raised. By conducting a risk-based human rights due diligence study of all of the company’s activities as well as review of relationships would likely mitigate issues arising from perpetrators of criminal activities within the organization as well as possible customers seeking to harm guides as the inverse. This would be an act of best practices or due diligence and would allow the organization to be traceable in its operational functions and procedures showing a history of data and information that would also cover them from potential future accusations or investigations.

The issue to date has not been resolved but could potentially be facing a ban in the future as it is similar to the Uber case however from the outside looking in and knowing the history of continuous controversy around the operational strategy of Uber, these guided tour services could learn a quick lesson in how not to operate.

References

BBC News Business (8 January 2015). Are India's 'Uber for tour guides' on the right track? http://www.bbc.com/news/business-30716530