Travis Kalanick’s Fall from Grace is a Warning to Business Owners Everywhere

In February 2017, a woman named Susan Fowler published a blog post about her time at Uber, the ride sharing company. Her story was about sexual harassment, and to say it made waves is an understatement: it started a veritable online tsunami. Within days, the internet was filled with articles and opinion pieces by reporters, bloggers, other employees of Uber (and so on), debating what should happen next. #DeleteUber was trending for weeks.

It is not as though Uber had a squeaky-clean image before Ms. Fowler published her blog. As Forbes rightly pointed out, “Uber, it seemed, was made of Teflon. Customer accusations of being raped by drivers, a nationwide driver protest over wages and even CEO Travis Kalanick’s involvement on a Trump advisory team didn’t seem to hurt Uber much.”

TechCrunch responded to the story by pointing out:

“Fowler’s experience with sexual harassment at Uber does not seem to be uncommon in the tech industry, with 60 percent of women in tech reporting receiving unwanted sexual advances, according to the 2016 Elephant in the Valley survey. Fowler’s failed attempt to receive help from Uber’s HR department also seems to be common at tech companies.”

And of course, nearly everyone revived the story of Ellen Pao’s unsuccessful sexual harassment case against Kleiner Perkins Caufield & Byers – a case that earned its own Wikipedia page.

So why, we wonder, is Uber getting so much attention (though rightfully deserved) when the tech world so often ignores these stories?

First, we must consider that Kalanick’s resignation represents a victory – so says the Wall Street Journal – for men and women who have experienced sexual harassment and hostile work environments. Just as the resignation of Roger Ailes was hailed as a “win” for women in media, so, too, is Kalanick’s in the tech world.

Second, we must also consider the climate in Ohio and the country in regard to women’s issues. The Women’s March in the capital drew close to half a million women, and “sister marches” have sprung up in different states at different times. Ohio’s own sister march saw 2,000, according to its Facebook page.

It is possible that the time was simply ripe for the issue to boil over. It’s also possible that, as Forbes put it, “[p]eople are offended to such a great degree because they’ve discovered that Uber has no brand integrity.” We could be having a national Network moment, or perhaps Kalanick, who recently lost his mother, simply could not fight anymore.

Learning from Kalanick’s mistakes

So, what does this mean for Ohio business owners and operators? And what can we learn from Travis Kalanick’s resignation?

We must all make a rigorous effort to protect our employees and our companies. There are a few things you can do to ensure that you keep your seat at the table, and to protect your employees and your brand.

1. Take a hard look at your company. All of us must look to our own companies, to see if we’re fostering a culture like Uber’s. We have to make a concerted effort to ensure that all employees, no matter who they are, feel they are safe and heard. This can be just as difficult for smaller companies, where a more intimate environment is key to the overall success, as it is for national and global corporations with thousands of employees.
2. Training is important. We all know the perception about training modules for sexual harassment, but it’s time to move past that. If you don’t offer a yearly, mandatory training course for employees, you might find yourself being held entirely responsible for ignoring the signs and any ensuing problems.
3. All people must be heard. One man’s joke is another man’s harassment. Any and all incidents reported to HR must be fully investigated. This might be uncomfortable, but having open, honest discussions with employees who file complaints – as well as those about whom those complaints are filed – is key to getting everything out, and making sure everyone is behaving in a manner appropriate to your business and your brand.
4. Update your handbooks. Make sure the polices you have in place for sexual harassment and hostile work environments are up-to-code and inclusive. Speaking of which….
5. Create a culture of inclusivity. It can be hard, especially in a corporate culture, to ensure that every employee is happy and satisfied. You want your employees to feel important, and that they can come to you (or the appropriate adviser) in times of need – yet you need to establish and maintain professional boundaries. An internal audit may help you discover discrepancies, and allow you not only to avoid problems, but to clear up any ambiguities in your proposed practice and your actual practices.

There is no “win” in this story: not for Travis Kalanick, not for Uber, and certainly not for the employees who suffered. What we must do now is take a step back, examine our own houses, and ensure that we are creating a community and a brand that works for everyone.

Gertsburg Licata is a full-service, strategic growth advisory firm focusing on business transactions and litigation, M&A and executive talent solutions for start-up and middle-market enterprises. It is also the home of CoverMySix®, a unique, anti-litigation audit developed specifically for growing and middle-market companies.

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