Sample Business Studies Law Paper

The success of any business is greatly determined by the legal environment in which it operates. Stakeholders of a given business must analyze the legal implications that affect their business prior to its establishment to ensure that they can comply with them. The legal regulatory measures are set to protect both the consumer and the business. Moreover, there are laws that protect the welfare of employees in organizations, including health and safety. Failure to comply with the legal measures may lead to litigation, tarnishing of a brand’s image, as well as decline in a firm’s performance. Therefore, understanding all legal policies and regulations in an environment is imperative for compliance with the law and effective operations of a corporation. Uber, a multinational American organization, is one of the companies faced by legal issues. The company has not been paying its drivers according to their agreements, an issue that has led to protests over fair payments. The ethical misconduct and illegal corporate behaviors has lowered Uber’s stocks and profits.

Uber has faced profitability concerns for a long period of time.  Recently, the company recorded a decline in its stock price as the lockup period ended. Hussain and Bhuyian, 2019, argue that Uber’s stock decline and profitability problems stems from the company’s illegal corporate behaviors. The company priced its services much lower compared than the taxi service. The pricing has decreased the total revenue generated, which interferes with the payment of workers as well as reduction of the stock prices.  Early November, NPR, 2019, indicates that Uber’s drivers protested against the company for failing to pay their wages accordingly during the payout day. The drivers claimed that the company has been underpaying them while investors received huge profits from the firm. Although the enterprise promised its workers huge pays and flexibility in working hours, it has consistently failed to deliver that promise.

Uber has been facing profitability issues and poor payment of workers due to its illegal corporate behavior of underpricing. As a result, the company has recorded a decline in stocks and has faced protests by their drivers. Uber will continually struggle with profit making as well as decline in stocks, unless stakeholders make critical decisions that rectifies pricing of their services.

 

References

Hussain, S. &Bhuiyan, J. (2019, Nov. 7).  On Uber’s big day, its stock splutters; the end of shares’ lockup period is marred by protests.  Los Angeles Times. Retrieved from https://search.proquest.com/usmajordailies/docview/2312445483/E2AE3C404D594232PQ/5?accountid=14209

NPR, (6 Nov. 2019). Uber Drivers Protest Rejection of Labor Law That Would Extend Protections to Millions. NPR. Retrieved from https://www.npr.org/2019/11/06/776968274/uber-drivers-protest-rejection-of-labor-law-that-would-extend-protections-to-mill