Arianne June L. Abarquez AIS 1 - ACC A Case Analysis on GOOGLE, INC. in CHINA POINT VIEW: Google, Inc.

PROBLEM: How can Google, Inc. best serve the Chinese market? (Whether or not to maintain both Google.com in China and Google.cn?) or (How to arrive at a best compromised mission failure to serve USERS or service subject to Chinese government intervention? OBJECTIVES: To sustain the Chinese market operations with a satisfactory market share To operate in accordance with the Google, Inc.s Corporate Ethos (mission, motto, core values) AREAS OF CONSIDERATION Google, Inc.s Corporate Ethos Informal Corporate Motto: Dont be evil. is an admonition to consider the moral and ethical implications of every single decision. Mission: To organize the worlds information and make it universally accessible and useful.

Manifestation: Google, Inc. focuses whats best for its users in every decision it takes. Google refuses to accept sponsored search results. It relegated all sponsored links to the right-hand portion of the screen and clearly designated them as Sponsored Links. Despite the emergence of Search Engine Optimizers (SEOs), Google continually fought manipulations of their search results. Google directs clear proclamations and was not afraid to change its mind.

Chinese Government Intervention The Chinese government has earned its international reputation for its abuses to human rights and violations of internationally recognized norms. Such resulting from: (1) authorities intolerance of dissent and; (2) inadequacy of legal safeguards for basic freedom. One recognized norm relevant to the case analysis is the censorship (both governmental censorship and self-censorship) of information from the media more particularly on information from the internet. Such is an evident manifestation of the governments intolerance to dissent that could stir oppositions to government practices (abuses). China has the worlds

sophisticated network for monitoring and limiting information which is a means of enforcement of control over such medium of information. Google.com vs Google.cn

Google.com SECONDARY STAGE FILTERING: Displays full, unfiltered list of information related to users search but some information are subsequently blocked by Chinese filters Located outside China Does not need a license to operate Losing market share due to restricted and slow accessibility Consistent to corporate ethos but insufficient standard of service due to subsequent blocks by Chinese government

Google.cn PRIMARY STAGE FILTERING: Subject to Chinese filtering at the point of search

Located in China Needs license <not stated> Counters most basic values and commitment of Google

Implication/s or Effects of the Creation of Google.cn To the Public: o Google supporting Chinas totalitarian regime and human rights violations o Google endorsing censorship o Google going against its mission To Google, Inc. - Rationale behind creation of Google.cn and maintaining Google.com o Google.cn will make a meaningful but imperfect contribution to overall expansion of access to information in China o Google.cn inconsistent to philosophy of the firm but providing NO information which means removing Google.cn is more inconsistent to its mission.

o Google.com is a way of mitigating the risk of stained reputation to the public. Thus, this will somehow harmonize the inconsistency of Google.cn. ALTERNATIVE COURSES OF ACTION 1. Maintain both Google.com in China and Google.cn Advantages Mitigated risk of stained reputation due to inconsistency Closer to harmonizing corporate ethos More meaningful contribution to expansion of access to information in China Disadvantages Insufficient quality of service

2. Let go of Google.cn (maintain only Google.com)

Advantages Disadvantages Close to corporate ethos More compromised quality of service Decreased risk of bad reputation due to inconsistency
3. Let go of Google.com (maintain only Google.cn)

Advantages More meaningful contribution to expansion of access to information in China

Disadvantages Clearly against corporate ethos of Google Increased risk of bad reputation due to inconsistency

4. Let go of the Chinese market (no Google.com and Google.cn for China) Advantages Closest to Corporate Ethos Disadvantages Increased risk of bad reputation due to inconsistency and poor quality of service (due to loss of Chinese market)

Lost opportunity to expand Closest to defiance to mission of Google (NO information at all) RECOMMENDATION Given the above advantages and disadvantages, though limited, maintaining BOTH Google.com and Google.cn appears to be the best course of action. Given the risk of bad impression to the public due to Google.cn, the continued existence of Google.com can somehow mitigate such risk. There is also the risk of defiance to Googles mission (reason for its existence). With regard to the level of inconsistency, which may be turn to be destructive to the very essence of its existence, maintaining both search engines is the least inconsistent. Also, international relations and respect to local policies of China are met by such action.