SAN FRANCISCO  Uber grew into a huge company    by operating as if there were no stop signs.  
    The ride-hailing service relied on corporate mantras that were    used to justify "poor behavior," such as "Let Builders Build"    and "Always Be Hustlin'," according to     a report on the company's internal practices by attorney    general Eric Holder.  
    Its board is cracking down, its founder and CEO is stepping    away indefinitely, and the company itself is coming to grips    with measures intended to reform its toxic culture and    aggressive business practices.  
    And it all started when Susan Fowler, a former Uber engineer,    posted a personal essay in February that detailed the company's    toleration of sexual harassment and discrimination. Had she not    come forward in such a public manner, it's possible none of    this would have happened.  
    "What she did took real courage," said Elizabeth Ames, a senior    vice president at the Anita Borg Institute, a nonprofit founded    to advance women in the technology business. "There are many    women in companies and technical worlds (who) step up and talk    about this problem. And often they are the ones that get tagged    as being the problem."  
    Following Fowler's post, Uber hired former Attorney General    Eric Holder to investigate her charges. His law firm's    subsequent recommendations, released Tuesday, aim to fix Uber's    dysfunctional management, which allowed the male-dominated    ride-hailing company to grow huge without even the most basic    procedures to prevent sexual harassment, bullying and other bad    behavior.  
    Also on Tuesday, Uber founder and CEO Travis Kalanick accepted    responsibility for the company's state and told employees that    he'd be taking an indefinite leave of absence. The company    declined to say if Kalanick's decision was related to the    report.  
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      Uber CEO Travis Kalanick has announced he's taking some time      off, following the death of his mother two weeks ago. This      comes as the company is b...    
    But Kalanick wasn't the only Uber official sucked into the    vortex unleashed by Fowler's essay. On Monday, the company    announced that Emil Michael, vice president for business and a    close Kalanick ally, was also leaving. Then Uber board member    and hedge fund partner David Bonderman resigned Tuesday night    after making what he called an inappropriate remark about women    at a company meeting.  
    The 13-page document from Holder's firm Covington & Burling    LLP did not outline the investigation's findings about Uber.    But its recommendations implicitly expose a    startup-turned-goliath that permitted misconduct, had few    policies to protect employees and ran with little board    supervision.  
    The recommendations, adopted unanimously by Uber's board, show    clearly that the company's next incarnation  dubbed Uber 2.0    by Kalanick  will have to be radically different from version    1.0, which flouted regulations, actively misled public    investigators , and disrupted the taxi business to become the    world's largest ride-hailing company.  
    In her essay, Fowler wrote that she was propositioned by her    manager on her first day with an engineering team. She reported    him to human resources, but was told he would get a lecture and    no further punishment because he was a "high performer," she    wrote.  
    Fowler did not respond to emailed requests for comment. But on    Twitter , she called Tuesday's moves "all optics" and wrote    that she has gotten nothing but "aggressive hostility" from the    company.  
    After interviewing 200 witnesses, Holder had to make such basic    recommendations as setting clear policies to protect workers    from harassment, and that the human resources department get a    better handle on keeping records and tracking employee    complaints.  
    The recommendations "definitely paint a picture of a company    that was out of control and pretty chaotic," said Ames, the    Borg Institute executive.  
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      Uber's Chief Business Officer Emil Michael resigned after a      series of bullying and sexual harassment allegations against      the ride-hailing company...    
    Holder also suggested that Uber change its written cultural    values to promote positive behavior, inclusion and    collaboration. That means doing away with values that justified    poor behavior, such as "Let Builders Build," ''Always Be    Hustlin'," ''Meritocracy and Toe-Stepping" and "Principled    Confrontation."  
    Holder also called for trimming Kalanick's job duties, shifting    day-to-day functions to a yet-to-be-hired chief operating    officer. During Kalanick's leave, his leadership team will run    the troubled company.  
    Kalanick wrote that he needs time off to grieve for his mother,    who died in a May boating accident. He also said he's    responsible for the company's situation and needs to become a    better leader.  
    Uber's board said it would review Kalanick's responsibilities    and reassign some to others.  
    Ames said the recommendations were strong but indicated Uber    had few policies, and the ones it had were not followed.  
    The board unanimously approved the recommendations on Sunday,    including a suggestion that a senior executive be tasked with    making sure they are implemented. Apparently because of    distrust of some leaders, Holder recommended that care be taken    to make sure the executive "is viewed positively by the    employees."  
    The company released only Holder's recommendations, not his    full report, citing the need to protect employees who    complained.  
    Liane Hornsey, Uber's chief human resources officer who started    in January, said implementing the recommendations "will improve    our culture, promote fairness and accountability, and establish    processes and systems to ensure the mistakes of the past will    not be repeated."  
    Holder also recommended adding independent directors and    replacing the board chairman, co-founder Garrett Camp, with an    independent person. The board currently has eight voting    members, three from within the company.  
    Uber was also advised to make sure its workforce is more    diverse. The company's diversity figures are similar to the    rest of Silicon Valley, with low numbers for women and    underrepresented minorities. In the U.S., less than a third of    the company's workers are female.  
    In addition, the report says that diversity and inclusiveness    should be a key value for Uber that's included in management    training.  
    After Fowler posted her essay, Uber Technologies Inc. made    changes in human resources and opened a 24-hour hotline for    employees. Last week, the company fired 20 people, including    some managers, at the recommendation of Perkins Coie, which    separately investigated 215 employee complaints.  
    Under Kalanick, Uber has disrupted the taxi industry in    hundreds of cities and turned the San Francisco-based company    into the world's most valuable startup. As of late last year,    Uber's private-market valuation had climbed to nearly $70    billion.  
    Besides the sexual harassment complaints, in recent months Uber    has been threatened by boycotts, sued and subject to a federal    investigation over its use of a fake version of its app to    thwart authorities looking into whether it is breaking local    laws.  
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    A company can be aggressive yet have strong values, said Joseph    Holt, a business ethics professor at the University of Notre    Dame. He cited Starbucks as an example.  
    "Having a good reputation for ethics is a competitive    advantage," Holt said.  
    A culture change at Uber may be more difficult than Holder    envisions.  
    At an employee meeting Tuesday morning, Bonderman remarked that    if a woman was added to the board that there likely would be    more talking, according to a recording obtained by Yahoo.  
    By evening, Bonderman resigned and put out a statement saying    the comment was careless and inappropriate. "I do not want my    comments to create distraction as Uber works to build a culture    of which we can be proud," the statement said.  
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Freewheeling Uber faces major changes over "poor behavior" - CBS News