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Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by maxerickson on Monday May 09, 2016 @11:58AM (#11660797)
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.

Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by nostrademons on Monday May 09, 2016 @12:27PM (#11661023)
The complication is that "wrongdoing" is in the eye of the beholder. Is Uber committing wrongdoing? The taxi companies certainly think so. Many municipalities think so. A lot of folks on Hacker News think so.

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.

Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by dpark on Monday May 09, 2016 @12:46PM (#11661191)
> 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?

This is quite a stretch. Uber is eliminating drunk driving fatalities now? Those same people couldn't have called a cab before Uber existed?

Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by neuronexmachina on Monday May 09, 2016 @01:12PM (#11661394)
> 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.

Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by ttruett on Monday May 09, 2016 @01:23PM (#11661473)
Not knowing where you live / have lived... I think people in big cities forget how hard it is to find a taxi elsewhere.

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.

Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by fapjacks on Monday May 09, 2016 @03:27PM (#11662445)
Just as a point on a graph and being totally honest, I take a Lyft nowadays when I otherwise have (stupidly) driven drunk before there was such a thing as Lyft. I agree that they're not saving the planet, but they almost certainly are preventing deadly harm. At least potentially if not kinetically.
Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by eli on Monday May 09, 2016 @01:04PM (#11661338)
I share your skepticism but that's actually an official Uber position: https://newsroom.uber.com/us-illinois/dui-rates-decline-in-u...
Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by st3v3r on Monday May 09, 2016 @01:24PM (#11661486)
Your entire 2nd paragraph is bullshit. There is absolutely nothing in that paragraph that indicates they had to break the law.
Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by swyman on Tuesday May 10, 2016 @12:41AM (#11665186)
No one absolutely, positively, no-possible-other-options "has to" do anything ever. People make decisions on a spectrum and at the margins. There are people who never drink ever. There are people who drink every night but would never drive. There are people who drive drunk every single night. If you make it easier to get home without driving drunk, some people that otherwise would've gotten behind the wheel will make the responsible choice.
Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by BinaryIdiot on Monday May 09, 2016 @12:57PM (#11661282)
> What's wrong with putting companies out of business?

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.

Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by st3v3r on Monday May 09, 2016 @01:27PM (#11661510)
Here's the problem: Doing anything other than punishing the company harshly, even if that means putting them out of business, signals to everyone else that the law is not serious, and can be broken at will.

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.

Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by snappy173 on Monday May 09, 2016 @01:28PM (#11661520)
Even then, you probably haven't solved the problem. A big reason that these products are structured as "startups" rather than within bigger companies is to limit the liability if they fail catastrophically or get caught breaking laws.

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.

Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by mindcrime on Monday May 09, 2016 @12:59PM (#11661304)
There's a big difference between "illegal" and "wrong" though.
Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by mcguire on Monday May 09, 2016 @06:32PM (#11663749)
Yes.

Illegal is somewhat subjective.

Wrong is entirely subjective.

Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by pc86 on Monday May 09, 2016 @01:38PM (#11661599)
> I understand that it ends up having impacts on people that aren't necessarily involved in the misbehavior, but ...

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.

Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by rodgerd on Monday May 09, 2016 @03:17PM (#11662365)
> 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

Well, shit, best stop Uber from putting taxi companies out of business and Amazon from bankrupting booksellers.

Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by serge2k on Monday May 09, 2016 @02:58PM (#11662202)
> 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?

Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by Retric on Monday May 09, 2016 @02:37PM (#11662047)
How does getting laid off from a startup destroy someones life? I can understand someone getting annoyed at not getting rich or not getting ROI from lower pay. But, that's from being both an employee an an investor.
Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by maxerickson on Monday May 09, 2016 @02:28PM (#11661992)
We destroy people's lives for lots of reasons in the US. Protecting the public from poorly behaved businesses would be better than most of them.
Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by jacalata on Monday May 09, 2016 @03:45PM (#11662566)
If you will go bankrupt and have your life destroyed because the place you work at goes out of business, then that's a different problem.
Re:Zenefits Was the Perfect Startup, Then It Self-Disrupted by schlomok on Monday May 09, 2016 @02:01PM (#11661789)
But this doesn't make maxerickson or anybody else who shares their opinion the bad guy - it makes the executive.