1 / 21

Abby Salisu Daniel Pedreira Heather Gray

Google in China: Kirsten E. Martin, “Google, Inc., in China,” Business Roundtable Institute for Corporate Ethics, Case BRI-1004. Abby Salisu Daniel Pedreira Heather Gray PUBP 502, Section 001 with Professor Audrey Kurth Cronin April 29, 2013. Google in China. Google in China.

tam
Download Presentation

Abby Salisu Daniel Pedreira Heather Gray

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Google in China:Kirsten E. Martin, “Google, Inc., in China,” Business Roundtable Institute for Corporate Ethics, Case BRI-1004 Abby Salisu Daniel Pedreira Heather Gray PUBP 502, Section 001 with Professor Audrey Kurth Cronin April 29, 2013

  2. Google in China

  3. Google in China • Presentation Agenda • History and Case Overview • About Google and its Corporate Ethos • China – Human Rights and Censorship • Decision to Pursue Chinese Market • Google’s Conundrum and Decision • Options • Outcome • Analysis and Relevance • Corporate Ethics, Public Policy and Decision-making • Globalization, Nation-State and the Market State • State Sovereignty • Cyber and Other Issues • Wrap Up “There is not a moral vice which cannot be made into relative good by context. There is not a moral virtue which cannot in peculiar circumstances have patently evil results.”—Stephen Bailey

  4. History and Case Overview

  5. Google and Its Corporate Ethos • “Google is not a conventional company, we do not intend to become one.” • Google’s mission is to organize the world’s information and make it universally accessible and useful. • Google’s History and Shift from Private to Public • Ten Things We Know To Be True* * http://www.google.com/about/company

  6. Google and Its Corporate Ethos Revenue • In 2005 – cash flow of $3.45 billion • In 2006 – generated more than $1 billion every quarter • Revenue of $6.14 billion and a net profit margin of 25.18% • In 2012 – revenue hits $50 billion* Google’s Global and Expanding Presence • United States, Europe, Canada, Latin America, Asia Pacific, Middle East, Africa * http://dawn.com/2013/01/23/google-2012-revenue-hits-50-billion-profits-up/

  7. Google and Its Corporate Ethos • Google’s Global and Expanding Presence* * http://www.google.com/about/company/facts/locations/

  8. China – Human Rights & State Censorship of Internet • Tom MacLean • History of Human Rights Abuses in China • Chinese Monitoring and Enforcement • Restrictions • Chinese internet was controlled by governmental censorship and self-censorship • Monitored foreign internet traffic • Government law enforcement by employing internet police • State Department

  9. Chinese Market Why pursue? • Emerging Market • China Committed to Economic Reform and Interest in World Market • Strong Economy, Great for Business • Competition (Baidu, Yahoo!, Microsoft, etc.) • Google.cn and Disclaimer • Congressional Testimony • Hearing before the House Committee on International Relations Subcommittee on Asia and the Pacific (Elliott Schrage)

  10. Google’s Conundrum and Decision

  11. Google’s Options • Option #1 – Enter China • Pros: 457 million Internet users* = an open and growing market for increased revenue • Internet usage can assist in curtailing gov’t control on media  democratization? • Improve access to information (health, science, research, education, etc.) • Cons: Critics could criticize perceived complicity with Chinese gov’t + its anti-democratic + repressive activities *Source: China Internet Watch. 2011. http://www.chinainternetwatch.com/whitepaper/china-internet-statistics/

  12. Google’s Options • Option #2 – Forgo China • Pros: Many in the west would be pleased that Google chose principle over profit • Addresses cyber issues and hacking (2010) • Cons: China’s internet market would be dominated by Chinese companies with a pro-govt/censorship stance. • Economic impact on Google • Doubt may exist regarding Google’s motives for exiting China • “The danger for the Chinese internet scene is that it becomes a less competitive place.“- Jeremy Goldkorn, founder of Danwei.org *Image Source: Boozom. http://www.buzzom.com/2010/03/google-china-conflict-what-the-world-says/

  13. Google’s Options • Option #3 – Relocate to Hong Kong • Pros: Google will be able to profit from the HK market • Censorship-free • Cons: H.K. market is not as large as P.R.C.’s. Economic gain will be less • May be seen as a reaction to mounting external pressure, not a sincere move *Source: China Internet W. http://www.chinainternetwatch.com/whitepaper/china-internet-statistics/

  14. Outcome • Today, Google has three offices in China and one in Hong Kong • Google is #2 search engine in the P.R.C. • Google search sites were moved to H.K. • Solution was a combination of all three options • Maintain ethical approach while making a smart business decision?

  15. Analysis and Relevance

  16. Corporate Ethics, Public Policy and Decision-making • Distinction between public and private morality and gray area • Taking Your Ethical Code to China • “Don’t Be Evil” Mission • Methods for ethical decision making in international contexts – decision tree* * J. Brooke Hamilton, Stephen B. Knouse, and Vanessa Hill, “Google in China: A Manager-Friendly Heuristic Model for Resolving Cross-Cultural Ethical Conflicts,” Journal of Business Ethics Vol 86 (2009), pp. 143-157.

  17. Corporate Ethics, Public Policy and Decision-making

  18. Globalization, Nation-State and the Market State • The Challenge for MNCs • Lessons Learned for CSR? • Bobbit Chapter 10, The Market-State • Transnational world market • Information standard • Global communications network • Propaganda and media • Will/Can China Become a Market-State? • “The transition to the market-state is bound to last over a long period and put into conflict the ideals of the old and new orders.”* • * Bobbitt, Philip (2011-07-06). The Shield of Achilles: War, Peace, and the Course of History (p. 233). Random House, Inc.. Kindle Edition.

  19. Cyber and Other Issues • Continued Drama between Google and China • Android • China (Baidu) in U.S. (Silicon Valley) • No Google?

  20. Wrap Up – Questions?

  21. Google in China –Additional Reading • J. Brooke Hamilton, Stephen B. Knouse, and Vanessa Hill, “Google in China: A Manager-Friendly Heuristic Model for Resolving Cross-Cultural Ethical Conflicts,” Journal of Business Ethics Vol 86 (2009), pp. 143-157. • Justin Tan and Anna E. Tan, “Business Under Threat, Technology Under Attack, Ethics Under Fire: The Experience of Google in China,” Journal of Business Ethics Vol 110 (2012), pp. 469-479. • http://sitemaker.umich.edu/infosurgentschina/google_china_controversy

More Related