Will Uber manage to change its toxic culture? (2/2) Culture leap

Uber clearly needs a cultural shift – particularly in the area of ethical violations. Now let’s see how it's going to do that.

All the scandals we described in the previous article may result in the company losing their advantage of being the first of its kind. The valuation of the company may decrease.

Even when Uber hired a Harvard professor for the role as head of the company’s leadership and strategy and a former Apple executive as its new chief brand officer, lifting the culture will be very tough. Besides changing the culture, more people need to leave the company.

Incentive structures must be changed. Consistency in PR will be crucial as well. Staff will watch closely how senior leaders behave.

Illustration

Sometimes the company is better off without its founder

The general public may dislike Uber for its poor treatment of the drivers. An illustration may be the tape of CEO Kalanick’s arguing with an Uber driver who complained about being paid less. Kalanick was rude and blamed the driver. Later, he apologized. After that, he finally showed remorse and claimed that he realized that he needs to grow as a leader.

Now the company is going to be without him for some time. Recently he was struck by a tragedy in his family. Even if he had insisted on staying on as CEO, he probably would have been asked to step aside anyway.

Many venture capital firms invest in the business when the founders are still around, since they have both technical vision and the necessary relationships. However as a startup grows, it may be advisable to change the leadership when a crisis emerges.

Considerable changes needed

According to the article on the website of the Wharton business school, the HR executives really need to be better informed about what legal consequences ethical issues can have. Some problems may not turn into legal issues, but can still negatively affect the company culture.

-jk-

Article source Knowledge@Wharton - the online business analysis journal of the Wharton School of the University of Pennsylvania
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Will Uber manage to change its toxic culture? (1/2) Scandals

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Will Uber manage to change its toxic culture? (2/2) Culture leap