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Yelp Inc..

YELP.US | Web portals

Yelp Inc. operates an online platform that connects consumers with local businesses. The platform features user-generated reviews, ratings, and recommendations for a wide range of businesses, including restaurants, shops, and service providers. Yelp generates revenue primarily through advertising so...Show More

Ethical Profile

Mixed.

Yelp's ethical standing presents a mixed picture. The company faced a $450,000 FTC penalty in 2014 for allegedly collecting children's data without parental consent and experienced a 2023 privacy leak exposing user data. Critics also point to inherent risks of review manipulation and advertising bias. However, Yelp has taken steps to increase transparency for crisis pregnancy centers, recategorizing nearly 470 U.S. pages and planning to evaluate over 55,000 more. It also offers travel benefits for employees seeking abortion care. On worker respect, while 87% of employees are satisfied with remote work, reports suggest compensation is a concern for over 100 employees. Yelp aims for net-zero by 2031, reducing its carbon footprint by 12.5% year-over-year and investing in solar. The company also deposited $10 million into Black-owned banks in 2020.

Value Scores

Better Health for All0
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect20
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business0
-100100
Kind to Animals0
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-40
-100100
Respect for Cultures & Communities-20
-100100
Safe & Smart Tech-30
-100100
Zero Waste & Sustainable Products-40
-100100

Better Health for All

0

Yelp implemented a consumer notice on Crisis Pregnancy Center (CPC) profiles in 2022, stating that these centers "typically provide limited medical services and may not have licensed medical professionals onsite."

1
This notice applies to centers in the U.S. and Canada.
2
The Texas Attorney General, who initially challenged the notice, later conceded its accuracy.
3
Yelp evaluated 33,500 businesses and recategorized 470 as CPCs in 2022, with plans to evaluate over 55,000 businesses.
4
Yelp's core products and services, such as its online review platform, have no significant direct positive or negative health impact. The company does not generate revenue from products with direct negative health outcomes, nor does it offer health-related products requiring price accessibility or have direct safety implications for physical or mental health. Yelp does not collect or manage health-related data, is not a pharmaceutical or food company, and its products do not have addiction potential or involve clinical trials. No specific evidence was provided regarding vulnerable reach, health innovation investment, health equity programs, healthcare workforce support, preventative health measures, global health crisis response, mental health initiatives, or healthcare education.

Fair Money & Economic Opportunity

0

Yelp's core business is an online platform, not direct financial services. As such, the company does not offer lending, deposit, or insurance products to consumers. Consequently, all KPIs related to financial product pricing, exploitative fees, loan/insurance book inclusion, customer financial data accessibility, fair lending compliance, wealth-building outcomes from financial products, financial literacy programs, debt products, financial service access points, and product complexity are not applicable to its operations. The rubric's 0-tier for each of these KPIs specifically covers this scenario. While Yelp deposited $10 million into Black-owned banks in 2020 and renewed these deposits, and supports Black-owned businesses on its platform, these actions do not provide the specific quantitative data required by the KPIs (e.g., percentage of profit reinvested, share of a loan book).

1

Fair Pay & Worker Respect

20

Yelp's CEO to median employee pay ratio was 94:1 in the 2024 fiscal year.

1
Employee surveys from February 2022 indicated high levels of satisfaction and connection in a distributed work environment, with 87% of employees feeling favorably about remote work, 85% feeling connected to their teams, and 86% preferring to work remotely most or all of the time.
2
Additionally, 93% of employees and managers reported meeting goals remotely.
3

Fair Trade & Ethical Sourcing

0

The provided article discusses general issues related to transparency and worker welfare in global supply chains, particularly within the garment sector, and highlights the limitations of existing auditing systems. It mentions specific incidents like the Rana Plaza disaster

1
and the total spent on factory audits across the industry.
2
However, the article explicitly states that it does not provide specific data relevant to Yelp.US or metrics related to fair trade and ethical sourcing for Yelp.US. Therefore, no KPIs can be scored based on the evidence provided.

Honest & Fair Business

0

No specific, concrete data points were found in the provided articles for any of the KPIs related to Honest & Fair Business. While Yelp has a policy to recoup incentive compensation from officers if misconduct leads to financial restatements

1
, this information does not provide the average number of annual financial restatements over the past five years, which is the specific metric required for that KPI.

Kind to Animals

0

Yelp Inc. operates an online platform and is a service-oriented company. Its business model does not involve manufacturing products, conducting animal testing, sourcing animal-derived ingredients, or engaging in animal agriculture or direct wildlife conservation. Consequently, the KPIs related to cruelty-free certification, animal testing, humane operations, ethical sourcing, and animal agriculture ethics are not applicable to Yelp's direct operations. While Yelp offers 'Vegan' as an eco-friendly attribute for businesses to add to their Yelp Page, this reflects the offerings of businesses listed on the platform, not Yelp's own operational practices or product lines.

1

No War, No Weapons

0

No data relevant to the 'No War, No Weapons' ethical value could be extracted from the provided article. The article indicated that the URL led to a general investor relations page, not specific metrics or disclosures related to the requested topics.

1

Planet-Friendly Business

-40

The company has no reported environmental compliance violations, fines, or regulatory actions.

1
It has a stated net-zero target year of 2031.
2
However, the provided articles do not include details on a science-based reduction plan, roadmap, or interim milestones.

Respect for Cultures & Communities

-20

Yelp utilizes Consumer Alerts to address media-fueled reviews related to racist allegations.

1
The company supports underrepresented communities through various initiatives, including the Yelp Foundation, which, along with employees, donated over $1.5 million to Black-led and Black-serving organizations.
2
Yelp also allocated $10 million in cash holdings to financial institutions supporting the Black community.
3
The Yelp Foundation has provided over $7 million in grants since its formation
4
, with over $750,000 in grants in 2022
5
, and updated its guidelines in 2023 to prevent support for discriminatory practices.
6
Yelp's platform features searchable attributes for diverse-owned businesses, including over 75,600 Black-owned
7
and 68,200 Latinx-owned businesses
8
, which increased search rates for Black-owned businesses by 35x.
9
In 2022, Yelp reported a 2X increase in hiring rates for Indigenous employees
10
and a 5% increase for Black employees.
11
The company offers mandatory diversity training and supports various employee resource groups focused on diverse communities.
12

Safe & Smart Tech

-30

Yelp experienced a minor data breach in December 2023, affecting approximately 4.83KB of email addresses

1
. In October 2023, a privacy leak exposed unencrypted user-specific fields like email, birth dates, gender, and full names
2
; Yelp responded exemplarily with immediate action and added redundancies
3
. Historically, Yelp settled with the FTC for $450,000 due to Children's Online Privacy Protection Act (COPPA) violations from 2009-2013, involving improper collection of children's data
4
. A vulnerability was also identified where password reset tokens did not expire, indicating inadequate account recovery security
5
. Yelp maintains a formal Vulnerability Management Policy and a public bug bounty program with a response time under 24 hours and resolution under one month
6
. Significant investments are made in technology and human moderation, supported by a dedicated Engineering Security team and board oversight
7
,
8
. Employee security awareness is promoted through hackathons, "Hacktober," and simulated phishing emails
9
. For AI, Yelp uses machine learning and LLMs for content moderation, detecting hate speech, threats, and AI-written reviews, with significant investment since 2023
10
,
11
,
12
. Flagged content is manually reviewed, and models are retrained, preventing over 24,500 reviews from publishing and removing over 23,300 reported reviews in 2024
13
,
14
. User appeals are available
15
. Algorithmic transparency for recommendation software is limited to general descriptions of "hundreds of signals."
16
Yelp does not train generative AI models using personal information of European Residents
17
. Yelp offers comprehensive user controls, including modifying account information, limiting public content visibility, managing location data, and requesting data deletion
18
. The company demonstrates strong current regulatory compliance, preparing information for the EU Digital Services Act, not receiving Member State Orders in 2024, not selling personal information, and recognizing Global Privacy Control opt-out signals
19
,
20
. They also use Standard Contractual Clauses for EU/UK data transfers
21
. Yelp actively advocates for digital rights by investigating deceptive review practices, reporting suspicious content to other platforms, providing leads to the FTC, and submitting public comments to strengthen rules against fake reviews
22
. In 2024, Yelp avoided producing information for 90% of user accounts subject to legal demands from law enforcement and 99% from private parties
23
.

Zero Waste & Sustainable Products

-40

Yelp has implemented two waste reduction initiatives: a commitment to eliminate single-use plastic utensils, cups, plates, and bowls from all U.S. offices by the end of 2019

1
, and a "BYO-Mug" program that results in approximately 150 trees being planted monthly.
2
The company also set a quantitative waste reduction target to eliminate specific single-use plastics from its U.S. offices by the end of 2019.
3

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.