- In anticipation of Uber’s possible 2017 IPO, investors should carefully consider whether the company has the optimal governance structure and leadership team to successfully manage its future growth.
- As we have noted in past research (Dissecting the “Sharing Economy:” Business model opportunities and risks and Uber: Red Light, Green Light), the company’s success relies on managing relations with all stakeholders, including customers, drivers and regulators.
- However, recent widely publicized allegations of sexual harassment suggest a dysfunctional corporate culture poorly suited to the complexity of the company’s future strategic ambitions.
- Investors should pay careful attention to management’s response to this crisis, in particular to whether the company embraces or resists systematic cultural change.
- In this report, we use our BRAVE Matrix™ analytical framework to illustrate how the company’s stakeholder relations may affect the business over the long term.
Download the full report here.
John K.S. Wilson is the Head of Corporate Governance, Engagement & Research at Cornerstone Capital Group. John has close to 20 years of experience in socially responsible investing and corporate governance. Previously, he was Director of Corporate Governance for TIAA-CREF, where he oversaw the voting of proxies at CREF’s 8,000 portfolio companies and engaged in dialogue with corporate boards and management to promote sustainability and good corporate governance. An Adjunct Assistant Professor at Columbia Business School, John is also a member of the Advisory Council to the Sustainability Accounting Standards Board. He writes and presents widely about the relevance of social responsibility to investment performance.