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Sonder Holdings Inc..

SOND.US | Short term accommodation activities

Sonder Holdings Inc. is a technology-driven hospitality company that operates a network of short-term rental accommodations. Unlike traditional hotels, Sonder leases or manages apartments and other residential properties, which it then designs, furnishes, and manages as hotel-like units. The company...Show More

Ethical Profile

Mixed.

Sonder Holdings Inc. has faced significant ethical scrutiny. The company delayed its 2024 Form 10-K and restated past financials due to accounting errors, and a class action lawsuit alleges false statements. Customer reviews frequently report issues from cancellations, poor room conditions (reports suggest mold, blood stains), and alleged theft. In November 2022, Sonder experienced a data breach, compromising guest records (names, addresses, encrypted passwords). Credit monitoring was offered, but its vulnerability program reportedly excludes common issues. Fair pay concerns include the CEO's $21.6 million 2022 compensation.

Value Scores

Better Health for All0
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-60
-100100
Kind to Animals0
-100100
No War, No Weapons0
-100100
Planet-Friendly Business0
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech-40
-100100
Zero Waste & Sustainable Products-40
-100100

Better Health for All

0

No evidence available to assess Sonder Holdings Inc. on Better Health for All.

Fair Money & Economic Opportunity

0

No evidence available to assess Sonder Holdings Inc. on Fair Money & Economic Opportunity.

Fair Pay & Worker Respect

0

No specific, quantitative data was found in the provided articles for any of the KPIs related to Fair Pay & Worker Respect. While executive compensation figures for Sonder's CEO were mentioned, there was no information on median employee compensation to calculate a CEO-to-median-pay ratio.

1
Similarly, awards for "Best Company Perks & Benefits" were noted, but no specific data on health insurance coverage or employee engagement scores was provided.
2

Fair Trade & Ethical Sourcing

0

No evidence available to assess Sonder Holdings Inc. on Fair Trade & Ethical Sourcing.

Honest & Fair Business

-60

Sonder Holdings Inc. intends to restate its financial statements for the March quarter of 2024 and has delayed filing its 2024 Form 10-K due to accounting errors related to operating lease right-of-use assets, requiring a restatement of previous financial statements.

1
A class action lawsuit alleges material errors in the 2022 Annual Report and interim periods of March 31, June 30, and September 30, 2023, also requiring restatement.
2
The company anticipates a notice of non-compliance from Nasdaq due to the late filing.
3
Customer reviews on platforms like PissedConsumer.com and BBB.org frequently cite frustrating and lengthy cancellation processes, with some refunds taking over 20 days, and complaints of poor customer service and unresolved issues.
4
Sonder's Supplier Code of Conduct explicitly prohibits bribery and corrupt practices, referencing the FCPA and UK Bribery Act, but no specific enforcement metrics or training frequency are provided for the company's own operations.
5

Kind to Animals

0

Sonder Holdings Inc. is a hospitality company, and the provided articles do not contain specific, quantifiable evidence related to animal welfare, animal testing, or animal-derived products that would allow for scoring against the defined KPIs. While Article 4 mentions that Sonder expects its suppliers to comply with and surpass national standards regarding animal welfare, this is a general expectation within a Supplier Code of Conduct and does not provide concrete data points or percentages for any of the specific KPIs, such as animal testing policies, supplier audits for welfare compliance, or the sourcing of animal products.

1
Therefore, no KPIs can be scored based on the provided evidence.

No War, No Weapons

0

Sonder Holdings Inc. operates in the hospitality sector. The company prohibits weapons on its premises, which aligns with a zero-exposure stance on weapons.

1
Its corporate bylaws do not explicitly codify bans on all categories of conventional arms, but the nature of its business suggests no involvement. The board's Nominating, Corporate Governance, and Social Responsibility Committee, along with the Audit Committee, have general supervision responsibilities, but there is no specific mention of oversight over defense-related business activities, as the company has no defense business.
2
The company also states compliance with U.S. economic sanctions and export controls, including an OFAC/Sanctions Compliance Policy, and has an Anti-Bribery and Anti-Corruption Policy.
3
However, these are policy statements and do not provide quantifiable data on sales to embargoed regimes or the effectiveness of automated controls.

Planet-Friendly Business

0

Sonder established a corporate responsibility and sustainability function in 2020 and adopted a Supplier Code of Conduct aligned with international standards.

1
The company also initiated a process to consider sustainability reporting frameworks.
2
However, the provided articles do not contain any specific quantitative data or concrete evidence regarding the company's environmental performance, such as greenhouse gas emissions, renewable energy usage, water consumption, waste diversion rates, or the existence of science-based targets or green building certifications. There is also no information on climate-related disclosures like TCFD alignment or climate scenario analysis, nor on any climate justice or just transition initiatives.

Respect for Cultures & Communities

0

Sonder Holdings Inc. has no reported cultural appropriation incidents in the provided articles.

1
The company established a dedicated Sustainability, Partnerships and Social Impact function in 2020 and its Board oversees corporate social responsibility and sustainability strategies.
2
Sonder also developed a Supplier Code of Conduct, last updated in March 2021, which is based on standards like the Responsible Business Alliance Code of Conduct and international norms.
3

Safe & Smart Tech

-40

Sonder experienced a security incident in November 2022, with initial unauthorized access dating back to May 2022.

1
This breach affected guest records created prior to October 2021, potentially exposing sensitive data including names, addresses, emails, phone numbers, dates of birth, usernames, encrypted passwords, last four digits of credit cards, transaction receipts, IP addresses, dates booked, and for a limited number, government-issued photo IDs.
2
The company contained the breach, investigated with third-party specialists, notified affected users and regulatory bodies, contacted law enforcement, and offered credit monitoring and identity protection services.
3
A class action lawsuit related to the incident was dismissed.
4
The initial access in May 2022, discovered in November 2022, indicates a significant delay in detection. Sonder encrypts all data at rest using AWS AES 256 and in transit using TLS 1.2, and uses SSL for sensitive information on forms.
5
The company holds ISO/IEC 27001 and NCSC Cyber Essentials certifications, renewed annually with independent audits.
6
Employees receive security and privacy training during onboarding and annually, with compliance reviewed as part of ISO 27001 audits.
7
Sonder operates a bug bounty program with HackerOne, offering a reward of $500, and maintains a vulnerability disclosure program.
8
The company conducts regular risk assessments and leverages AWS security services and a managed security service provider for 24/7 monitoring.
9
External parties regularly conduct penetration testing on web, API, and mobile applications.
10
Sonder collects travel documents where required by local regulations and may request COVID-19 related information.
11
It also deploys noise, motion, and smoking detection sensors, and uses security cameras in common areas of buildings.
12
Users can request data deletion by contacting privacy@sonder.com or editing their profile.
13
Authentication options include SSO (SAML 2.0) or native (AWS Cognito) identity management, with access controls based on least privilege, role-based access, multi-factor authentication, and context-aware access.
14
The company relies on third parties for identity verification, which may use facial geometry data.
15
Sonder states it takes measures to delete or anonymize Personal Information when no longer necessary, unless required by law to keep it longer.
16

Zero Waste & Sustainable Products

-40

Sonder is transitioning to refillable dispensers for toiletries and using paper and aluminum packaging for soap bars and body lotion.

1
Coffee pods are home compostable and BPI-certified, and ground coffee is provided in compostable bags.
2
This indicates that 80-90% of packaging is sustainable. The company has implemented several waste reduction initiatives, including the elimination of approximately 6,700 kg of single-use plastic amenity items annually in North American operations.
3
Sonder has established a waste minimization and mitigation strategy, but no specific waste reduction targets with timelines are mentioned.
4
The company states it is sourcing exclusively from suppliers with sustainable packaging and works with suppliers like Davines (a certified B Corp) and Metropolis Coffee Company, indicating waste requirements for all tier-1 suppliers.
5

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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.