What's wrong with putting companies out of business?
I understand that it ends up having impacts on people that aren't necessarily involved in the misbehavior, but it provides officers and investors a significant incentive to avoid wrongdoing.
I understand that it ends up having impacts on people that aren't necessarily involved in the misbehavior, but it provides officers and investors a significant incentive to avoid wrongdoing.
But the folks who had a few too many beers and missed the last Caltrain and would otherwise drive home drunk if Uber didn't exist? The innocent folks that would otherwise have been killed by a drunk driver if Uber didn't exist? The folks who drive for Uber to pick up some spare cash in their spare time, or the ones who do it because they can't find any other income and would otherwise be destitute? The folks who drive for Uber to meet interesting new people? The Uberpreneurs who pitch their wares to a captive market for the duration of a ride? They all benefit significantly from Uber's existence.
That's why this "get big fast and then hope you can avoid the consequences for your wrongdoing" strategy exists. The consequences will oftentimes not be known at the time an idea is conceived. Sometimes they will be much, much worse than is apparent at the time (look at the environmental pollution and global warming caused by heavy industry), while sometimes they will be a lot better (look at the liberalization and toppling of many totalitarian regimes since Facebook and Twitter came out). Oftentimes they will be both worse and better at the same time; someone killed in a revolution has clearly suffered, while someone who can open up a business that would previously have been shuttered by the government has benefitted.
This is quite a stretch. Uber is eliminating drunk driving fatalities now? Those same people couldn't have called a cab before Uber existed?
Speaking for myself, I take Uber/Lyft regularly but would have never even considered attempting to call a cab and dealing with the cost/uncertainty inherent to that. I'd much rather not spend an hour waiting outside for a cab that ultimately decides not to show up. Rather than deal with cabs, I would simply just not have had a drink if I didn't have a designated driver.
I can remember a specific example several years ago in Nashville (which is quickly becoming a big city) where after waiting for 15+ minutes downtown I had to start calling companies telling them to send a car to my corner.
Before Uber came to Chattanooga (a decent-sized city) calling a taxi wasn't even a viable option unless it was for a scheduled 4AM airport pickup.
Well you have to decide what is or isn't worth destroying a business entity. Let's say Startup X breaks a law that, while illegal, has little to no impact on the general public. Let's say Startup X isn't found out until 5 years in and they're doing $300 million in revenue but without breaking that law they would be at some unknown number less than $300 million. Is that worth putting them out of business? If so, why? If not then what is the appropriate punishment?
Seems like a really hard problem to be fair all the way around.
As far as if it's worth putting them out of business, I don't see why that should even be under consideration. You can't do the time, don't do the crime.
Investors keep pouring gasoline on the fire; the message is "GROW GROW GROW" ... but if the fire burns out of control, it's somebody else's problem.
Illegal is somewhat subjective.
Wrong is entirely subjective.
The fact that you understand this could bankrupt and destroy people's lives simply because they worked at the wrong company at the wrong time, but still seek to rationalize it, is more than a little disturbing.
Having draconian penalties for line employees is not going to do anything to dissuade a C-level executive who wants to commit fraud from committing fraud.
Holding them personally responsible for fraud would help. As in you were the person in charge when this happened, here is a fine of millions + 2 years in jail.
That's why they get the big money right? To be the ones responsible?
Well, shit, best stop Uber from putting taxi companies out of business and Amazon from bankrupting booksellers.