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Groupon, Inc..

GRPN.US | Retail sale via mail order houses or via Internet

Groupon, Inc. operates an online marketplace connecting consumers with local merchants. The company facilitates the sale of discounted goods, services, and experiences through its website and mobile app. Groupon's primary business model involves offering deals and promotions on a wide range of produ...Show More

Ethical Profile

Mixed.

Groupon's ethical profile presents a mixed picture. Reports suggest Groupon scored 4% in animal welfare, significantly below peers, and has been linked to promoting venues with alleged animal cruelty. Critics point to a 477:1 CEO pay ratio, with median employee pay at $39,926 (2024). Glassdoor reviews average 3.2/5 stars, citing low pay and management. Nearly 3,800 complaints over three years, including alleged fraudulent voucher redemptions, and a financial restatement due to miscalculated refund liabilities, also mark its record. A cultural appropriation incident led to an apology and seller ban. Positively, Groupon has set Science Based Targets for emissions reduction, aiming for net-zero by 2050, and maintains a whistleblower protection policy.

Value Scores

Better Health for All0
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect-20
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-40
-100100
Kind to Animals-30
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-50
-100100
Respect for Cultures & Communities-30
-100100
Safe & Smart Tech-40
-100100
Zero Waste & Sustainable Products0
-100100

Better Health for All

0

No specific, concrete data points were found in the provided articles to assess Groupon against any of the 'Better Health for All' KPIs. The articles primarily focus on Groupon's merchant tools and the impact of its deals on merchant reviews and survival rates for health and wellness businesses, rather than on the direct health outcomes, accessibility metrics, or specific initiatives related to public health.

Fair Money & Economic Opportunity

0

The provided article is an advertisement for a boat tour and explicitly states it contains no data relevant to GRPN.US or the 'Fair Money & Economic Opportunity' ethical value.

1
Therefore, no specific evidence is available from the articles to assess any of the KPIs in the rubric.

Fair Pay & Worker Respect

-20

Groupon's CEO pay ratio in 2024 was 477:1, with the CEO's total compensation at $19,057,618 and median employee pay at $39,926.

1
Employee engagement, based on 4,230 reviews, is rated at 3.2 out of 5 stars.
2
The company's 2019 Global Code of Conduct outlines principles for ethical and legal conduct for all employees, including equal employment opportunity, a positive work environment, and compliance with human rights standards, and provides an anonymous reporting service.
3
Employee reviews highlight concerns such as low pay for non-senior employees, complex commission structures, frequent manager changes, poor management, and high turnover, particularly in entry-level roles.
4
Employee ratings also vary by demographic groups, with some reporting lower satisfaction levels.
5

Fair Trade & Ethical Sourcing

0

No evidence available to assess Groupon, Inc. on Fair Trade & Ethical Sourcing.

Honest & Fair Business

-40

Groupon has a formal whistleblower protection policy, including an anonymous reporting service (EthicsPoint), and prohibits retaliation against whistleblowers.

1
However, there is no evidence of independent investigation processes. The company had one financial restatement due to a miscalculation of refund liabilities, which led to overstated revenue and a cash shortfall, and its auditor, Ernst & Young, identified a material weakness in internal controls.
2
Ernst & Young also found a "material weakness" in internal controls, indicating that the audit coverage is not comprehensive.
3
Groupon's code of conduct includes an anti-corruption policy referencing the FCPA and UK Bribery Act, prohibiting bribery and emphasizing third-party due diligence, but training frequency and effectiveness metrics are not mentioned.
4
The company is not BBB accredited and has received 3,790 complaints over three years, with 1,297 closed in the last 12 months, primarily related to product and service issues.
5

Kind to Animals

-30

Groupon operates as an online marketplace for deals and services, meaning several animal welfare KPIs related to product manufacturing, testing, or direct animal husbandry are not applicable. However, the company sells deals for businesses that exploit wild animals for entertainment and profit, including attractions like dolphin shows, roadside zoos, and circuses.

1
These venues have documented histories of animal cruelty, neglect, and Animal Welfare Act violations, leading to animal suffering, injuries, and deaths.
2
For example, nine lions and tigers died at Tiger Creek Animal Sanctuary since 2018, and Miami Seaquarium has numerous animal care violations and animal deaths.
3
Groupon's business model enables and profits from these operations, which directly cause wildlife mortality and habitat degradation. Groupon has been urged by World Animal Protection to adopt a public animal welfare policy prohibiting sales to venues offering interactions with wild animals or captive wild animal performances, but company leadership has not responded.
4
Groupon received an overall animal welfare commitment score of 4% in a report, significantly lower than peers like Airbnb (67%) and Expedia (64%).
5
Groupon's policy requires animal-focused events to have clear USDA inspection reports for at least two years prior to being featured, but it promoted several exhibitors despite them having USDA citations within that timeframe.
6

No War, No Weapons

0

No evidence available to assess Groupon, Inc. on No War, No Weapons.

Planet-Friendly Business

-50

Groupon has set a net-zero target for 2050.

1
The company's Scope 1 and 2 emissions reduction target is 63% from 2018 levels by 2033, and its Scope 3 emissions reduction target is 37.5% from 2018 levels by 2033.
2
These targets are aligned with the Science Based Targets initiative and include defined interim checkpoints.
3

Respect for Cultures & Communities

-30

Groupon experienced one cultural appropriation incident where a third-party seller listed a product color as 'N-word Brown' on its website.

1
In response, Groupon apologized, removed the ad, and banned the seller.
2
The company stated it would strengthen its self-service controls.
3
However, public criticism and calls for a boycott followed the incident, and some users reported receiving a generic customer service response that was perceived as dismissive.
4

Safe & Smart Tech

-40

As of its March 2025 10-K filing, Groupon reported no material cybersecurity threats or incidents that resulted in a material adverse impact to its business.

1
However, the company has faced challenges with user account security. In December (year unspecified, but prior to the 2026 article date), compromised Groupon accounts in the UK led to unauthorized transactions and significant financial losses for some users, which Groupon attributed to weak and reused passwords.
2
A notification sent to users approximately three months prior to February 2026 warned of potential credential stuffing attacks stemming from third-party breaches.
3
In 2012, Groupon's Indian subsidiary, Sosasta.com, accidentally published its entire user database, including 300,000 clear-text passwords, to the internet.
4
Groupon launched an internal investigation and advised users to change their passwords.
5
Groupon advises users to enable two-factor authentication (2FA/MFA) and use strong, unique passwords, but the availability of MFA is not specified beyond being an option.
6
The company engages third-party security firms to test its websites and systems, conducts penetration testing, and utilizes third-party partners to monitor issues.
7
Groupon has a process to manage cybersecurity risks with third-party service providers, including requiring notification of cyber incidents.
8
There is no evidence of a formal bug bounty program, only a process for externally reported issues. Groupon's Merchant Privacy Statement (effective July 2025) indicates merchants may have opt-out rights for certain data disclosures and notes CCPA compliance for consumers.
9

Zero Waste & Sustainable Products

0

No specific, quantitative data points for GRPN.US related to waste management, product sustainability, or circular economy initiatives are provided in the articles. The available information discusses general sustainability concepts, third-party companies' efforts, or Groupon's business model and environmental campaigns without offering measurable outcomes for Groupon itself.

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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.