Uber CEO’s role must be reviewed and reallocated: Eric Holder report

Travis Kalanick – Uber | In 2017, numerous sexual harassment accusations began pouring out of Uber Technologies Inc. which raised pressure on the Board of Directors and shareholders. Kalanick found himself in the eye of the storm as allegations began to surface that he knew about the sexual harassment and misconduct but failed to do anything about it. Kalanick was forced to step down as CEO in the company he founded in 2009 but retained his seat on the company’s board. (Image: Reuters)

US-based ride-hailing firm Uber on Tuesday released an internal investigation report by law firm Covington & Burling LLP that recommends some dramatic changes in its work ethics, company values, policies around harassment and employee diversity.

The report authored by lawyers Eric Holder and Tammy Albarrán, goes on to recommend that the responsibilities of CEO Travis Kalanick should be ‘reviewed and reallocated.’

The report said that the Uber board should evaluate the extent to which some of the responsibilities that Kalanick has historically possessed ‘should be shared or given outright to other members of senior management.’

“The search for a Chief Operating Officer should address this concern to some extent,” the report adds.

Kalanick, in a separate communication this week announced an indefinite leave of absence from the company.

The key recommendations by the law firm call for a wider role for Uber’s head of diversity Bernard Coleman, a position that should directly report to the CEO and COO.

The report also called for creation of a separate ethics and culture committee.

Uber’s board adopted all the recommendations unanimously on Tuesday.

The report says that all the sexual harassment complaints, anywhere in the company, should be duly recorded so that repeat offenders can be tackled accordingly.

This is a direct reference to Susan Fowler, a former engineer at Uber, who in a blog post in February had alleged that she was harassed sexually and multiple complaints did not yield any result at the company.

The internal probe was initiated by Kalanick after Fowler’s explosive blog post that also alleged that she was discriminated against by her immediate supervisor based on her gender.

‘Change the company’s core values’

The 13-page recommendation touches upon various issues including its 14 core values.

The law firm suggested the need to eliminate company values such as ‘Let Builders Build,’ ‘Always Be Hustlin,’ and ‘Principled Confrontation.’

In India too, Uber has been at loggerheads with various government authorities regarding violation of transport rules.

Uber has earlier communicated a stance on ‘surge pricing’ which have collided with Indian court rulings and current state transport laws, emerging from its core value of ‘principled confrontation’.

That is now set to change, as the committee’s suggestions could mean a dilution of a combative stance Uber is known to take in all the markets it is present in.

Other recommendations include giving out free Uber credits to all the employees, and not just to the selective ones.

The report has made over 40 other recommendations, which includes creation of a “board oversight committee” that will rewrite Uber's cultural values around consumption of alcohol at work events, prohibiting intimate relationships between employees and their bosses.

The report also recommends more accountability measures for senior leadership, including compensation programs and travel reimbursement.

Multiple incidents triggered investigation

While Fowlers’ claims against Uber were the trigger for the internal investigation, the company has been embroiled in several other sticky situations.

The company has suffered several accusations of misconduct in the recent past, and a video where Kalanick is seen yelling at a driver in India didn’t help matters much.

Then there was the controversy about the usage of software that allowed Uber drivers to evade authorities on various regulations.

Recently, a report claimed that a top Uber executive had obtained the medical records of a customer who was allegedly raped by one of the driver partners. Eric Alexander, the Uber senior executive, behind this allegation, has now quit the company.

The incidences have resulted in many more exits.

Amit Singhal, former senior vice president of engineering, was also forced to quit after he failed to disclose allegations of sexual harassment at his last workplace.

President Jeff Jones left the company, saying his beliefs were "inconsistent" with what he saw at Uber.

Anthony Levandowski, accused of stealing Alphabet's trade secrets, was fired. Emil Michael, Uber’s former SVP of business also stepped down from his position this week.

Read also: Law firm recommends Uber to restrict alcohol budget, office romances