Does a company have to behave ethically to succeed? How about having an ethical culture in order to succeed? In the case of Uber, it may not be the case. Stunned by a series of corporate miss-steps, allegations of tolerated if not sanctioned workplace harassment, and one epic temper-tantrum by the chief executive, Uber may have now stepped over the legal line with the reports of its Greyball program, which the company has used for years. The program “was designed to prevent people from using the Uber app in violation of the terms of service, including law-enforcement sting operations and competitors attempting to disrupt Uber’s operations.”

Uber used the program in cities where it was not permitted to operate to forestall officials attempting to determine if Uber was violating any taxi terms of services regulations. The program is quite sophisticated, using various metrics to determine if regulators where engaging in sting operations. If they were determined to be indicia of such a sting operation, Uber simply failed to send drivers to pick up those pesky regulators. Best of all, it was reported the program had been approved by the company’s in-house legal team.

Thomas Fox has practiced law for over 40 years. Tom writes the daily award-winning blog, the FCPA Compliance and Ethics blog and founded the Compliance Podcast Network. Tom leads the discussion on AI in...