Is it Ethical for organizations to incentivize their Employees to Poach People from Competing Companies? Given: Have you used uber or Lyft instead of a taxi? These two companies are major competitors in the ride-share and car-for-hire market, and they are creating major competition for the taxi industry. Both companies rely on the use of apps to connect riders with drivers. According to the Wall street Journal, both companies are “undercutting each other's prices, poaching drivers and co-opting innovations.” Lyft claims that Uber has “abused its service in the past several months with the goal of poaching drivers and slowing down its network. Passengers who identify themselves as working for Uber frequently order a left and then ride for only few blocks, sometimes repeating this process dozens of times a day.” Is this practice ethical? According to an internal Uber e-mail that was sent to its drivers and reviewed by The wall street Journal, “the company offers $250 for referring a new driver to its service; $500 for referring a Lyft driver; and $1000 for signing up a Lyft mentor.” A mentor is an experienced Lyft employee who trains new drivers. Losing mentors would be a blow to Lyft. Uber denies that it is “intentionally ordering Lyft rides to add congestion to its competitor's service but confirm the company does offer recruitment incentives.” SOLVING THE CHALLENGE Would you change your competitive practices if you were a senior leader at Uber or Lyft? Yes. Having employees taking short rides to jam up your competitor's network is not ethical. Companies should compete on price and the quality of service, and uber seems to be using techniques that affect Lyft's quality of service. No. This is hard-core competition and neither company is breaking any laws. I applaud Uber for offering incentives to poach key employees from Lyft. Invent another option. Introduction: Uber and Lyft are major competitors in the ride-share and car-for-hire market, and they are creating major competition for the taxi industry. Both companies rely on the use of apps to connect riders with drivers.

Question

This question is regarding business negotiation BUS356 in SUSS. The case below is extracted from Harvard Business Review Case Study “Move Fast,but without Bias: Ethical AI Development in a Start-up Culture”. It is important to support your answers with specific examples based on thescenario given in the case study below to demonstrate your understanding andapplication of the relevant concepts. You may make reasonable assumptions, aspart of your analysis. Answers must be supported with theoretical models and concepts from therecommended textbook, Lewicki, R. J., Saunders, D. M. & Barry, B. (2021). Essentialsof Negotiation (7th ed). New York: McGraw-Hill International Edition and coursematerials. Please provide useful links and citations for learning purposes. One of the attached documents is the question while another one is some tips of negotiation

Answer 1

Question

Chapter 14, Problem 1LEC

Summary Introduction

To Determine:

Is it Ethical for organizations to incentivize their Employees to Poach People from Competing Companies?

Given:

Have you used uber or Lyft instead of a taxi? These two companies are major competitors in the ride-share and car-for-hire market, and they are creating major competition for the taxi industry. Both companies rely on the use of apps to connect riders with drivers.

According to the Wall street Journal, both companies are “undercutting each other's prices, poaching drivers and co-opting innovations.” Lyft claims that Uber has “abused its service in the past several months with the goal of poaching drivers and slowing down its network. Passengers who identify themselves as working for Uber frequently order a left and then ride for only few blocks, sometimes repeating this process dozens of times a day.” Is this practice ethical?

According to an internal Uber e-mail that was sent to its drivers and reviewed by The wall street Journal, “the company offers $250 for referring a new driver to its service; $500 for referring a Lyft driver; and $1000 for signing up a Lyft mentor.” A mentor is an experienced Lyft employee who trains new drivers. Losing mentors would be a blow to Lyft.

Uber denies that it is “intentionally ordering Lyft rides to add congestion to its competitor's service but confirm the company does offer recruitment incentives.”

SOLVING THE CHALLENGE

Would you change your competitive practices if you were a senior leader at Uber or Lyft?

Yes. Having employees taking short rides to jam up your competitor's network is not ethical. Companies should compete on price and the quality of service, and uber seems to be using techniques that affect Lyft's quality of service.

No. This is hard-core competition and neither company is breaking any laws. I applaud Uber for offering incentives to poach key employees from Lyft.

Invent another option.

Introduction:

Uber and Lyft are major competitors in the ride-share and car-for-hire market, and they are creating major competition for the taxi industry. Both companies rely on the use of apps to connect riders with drivers.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

This question is regarding business negotiation BUS356 in SUSS. The case below is extracted from Harvard Business Review Case Study “Move Fast,but without Bias: Ethical AI Development in a Start-up Culture”. It is important to support your answers with specific examples based on thescenario given in the case study below to demonstrate your understanding andapplication of the relevant concepts. You may make reasonable assumptions, aspart of your analysis. Answers must be supported with theoretical models and concepts from therecommended textbook, Lewicki, R. J., Saunders, D. M. & Barry, B. (2021). Essentialsof Negotiation (7th ed). New York: McGraw-Hill International Edition and coursematerials. Please provide useful links and citations for learning purposes. One of the attached documents is the question while another one is some tips of negotiation

Identify potential ethical challenges in producing and marketing your company's skincareproducts from jamaica in europe and associated countries like germany italy and france and how your team will address them.

Make a total of 19-20 slides below the topic and give some briefs, which I should say as a speech for presentation time with that slide. (a) title slide(b) the content of the presentation and the presenter (4presenter-for each 4-5 slide) for each section(c) Topic: Factor what is more important to Gen X,Y,Z in their receptivity to international assignments. Critically discuss how factors such as culture, personality, and skills/experience may impact generational differences. The presentation should discuss how managers can use human resource planning to attract a multigenerational workforce interested in international career assignments.it considers the internal and external labour supply