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LUCKNOW UNIVERSITY

PRINCIPLES OF MANAGEMENT ASSIGNMENT


TOPIC- Ethical Policies And Corporate Social Responsibility
Of GOOGLE

SUBMITTED TO: SUBMITTED BY:


Dr. Anu Kohli Anshika Agarwal
MBA-Sem I
Roll no: 09
ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher Dr. Anu


Kohli who gave me the golden opportunity to do this wonderful project on the
topic ethical policies and corporate social responsibility of google which also
helped me in doing a lot of research and I came to know about so many new
things. I would also like to thank my parents and friends who helped me a lot in
finalizing this project.

Anshika Agarwal
MBA
Sem I (A)
COMPANYS PROFILE

Google Inc. began in 1996 as the brainchild of two bright computer science grad students,
Sergey Brin and Larry Page. They met back in 1995 at Stanford University where they were
doing their PhDs and they came out with creative ways of finding and organizing large
datasets (Hoover's Inc, 2010). After that, they developed a technology called PageRank
which enables them to analyze a particular website's relevancy. It occurred to them that a
search engine that is based on the PageRank algorithm would be much more effective at
obtaining better and accurate results than existing search engines. Thus, that idea became a
basis for their soon-to-be famous search engine that was launched on September 15, 1997.
Google Inc. was formally incorporated on September 4, 1998 at a friend's garage in Menlo
Park, California. Google got its name from "googol", the mathematical equivalent of the
number one followed by a hundred zeros, which was a misspelling of that mathematical term
("Google," 2005). This reflects on the founders' original mission to 'organize the world's
information and make it universally accessible and useful' (Google.com, 2010). The core
competency of their business, the Google search engine has become so successful that it
attracted a loyal following among a growing number of Internet users, who liked its simple
design and useful results. In 2000, Google began selling text-based advertisements associated
with search keywords in order to maintain an uncluttered page design so that speed is
maximized when loading a page. Their innovative advertising system, comprised of its
AdWords and AdSense products, is so successful that 99% of their revenue is derived from it
("Google," 2005). However, the technological industry demands constant innovation and
Google's strong focus on continuous improvement is reflected in the company's ever
expanding line of innovative services and products which includes webmail (Gmail),
blogging (Blogger), and interactive maps (Google Maps). Google's strong organizational
culture that includes values such as creativity, simplicity and innovation plays a huge role in
their tremendous success and gives them a huge competitive advantage over their rivals in the
search engine market.

Google is well known for their organizational culture's distinctiveness and uniqueness
compared to their immediate competitors. On the Google corporate website, they have listed
down 10 core principles that guides the actions of the entire organization. These are the
values and assumptions shared within the organization. These values are also termed as
'espoused values', where it is not necessarily what the organization actually values even
though the top executives of the company embraces them. Here are some of a few of their
core principles which will provide a look into Google's management philosophy and the type
of culture they want to possess.

'Focus on the user and all else will follow' - Google strives to put the end user's interest ahead
of shareholders when making corporate decisions. Google promises to deliver the best user
experience possible by providing a clear and simple homepage interface, relevant
advertisements and fair placement in search results.
'It's best to do one thing really, really well' - Google focuses on it's core competency, which is
search. Google continues to solve complex issues and provide continuous improvements to
search. New Google products such as Gmail and Google Maps are the results of Google's
dedication in improving search.
'Fast is better than slow' - Google understands that time is valuable to its users and strives to
please them by increasing the efficiency of retrieving the user's search results. Now the
average response time to get a search result just takes a fraction of a second. Google is the
only company that aims to have the users leave its website as soon as possible.
'The need for information crosses all borders' - Google is founded in California but the
existing mission is to enable access to information for the entire world and in all languages.
And because more than half of Google search results originate from outside the United
States, the organization has offices in dozens of countries and offers the Google search
interface in more than 110 languages. As a result, the variety and quality of services Google
offer are much more improved.
In Google, the daily organizational life is distinctive and is one that thrives on informal
culture. The rituals that portray the organization's culture as unique and possesses a small-
company feel are portrayed daily at lunchtime, where almost all employees eat together at the
many various office cafs while at the same time having an open, relaxed conversations with
fellow Googlers that come from different teams (Google.com, 2010). Also, because one of
the Google culture's main pillars are the pillar of innovation, every Googler are very
comfortable at sharing ideas, thoughts, and opinions with one another in a very informal
working environment. Every employee is a hands-on contributor and everyone wears several
hats (Google.com, 2010). Sergey and Brin also plays a big part of laying the foundation on
what the Google culture is and the founders have continued to maintain the Google Way by
organizing a weekly all-hands "TGIF" meetings for employees to pose questions directly at
them.

'Great just isn't good enough' - Google always strives to make its employees deliver more
than what is expected. Google does not accept being the best as an endpoint but rather a
starting point. Through innovation and iteration, Google aims to take things that work well
and improve upon them in unexpected ways. Google also anticipates user's needs and set new
standards with new products and services that can make a difference and change the world.

Google engages their employees by applying adaptive culture in the organization. From their
core competency in search engine technology, Google has responded to customers change in
needs by expanding onto the mobile market. The employees analyze, anticipate and seek out
the opportunities to improve the organization's performance by being proactive and quick in
coming out with new technologies and solutions for mobile services. It aims to help people
all over the world to do more tasks on their phone, not to mention the several different ways
to access their Google search engine on a mobile phone (Google, 2008). In addition, Google
recently entered the smartphone market by launching the Google Nexus One smartphone in
response to customer's increasing need for smartphones, which is gaining ground on
popularity because everyone is going mobile in the Information Age.
CORPORATE SOCIAL RESPONSIBILITY

Google China Social Innovation


1. Cup for College Students

Supporting Earthquake Relief


2. Efforts

Google Grants
3.

1. Google China Social Innovation Cup for College Students:


Google China Social Innovation Cup for College Students" is a nationwide competition that
aims to empower Chinas youth to become agents of social change. By soliciting project ideas
from college students and funding viable proposals, we hope to instill in Chinas future leaders
the values of social responsibility, the importance of community welfare, and the spirit of self-
empowerment. Among all colleges and universities that participate in the competition, 100 of
them that top in the number of proposal submission will share 500 Google "Campus Volunteer
Stars" Scholarships every year. Social issues addressed have included education, poverty
alleviation, disability aid, healthcare, women and children, arts and culture, and community
development. Through project evaluation, mentorship and funding, we hope play a role in
driving true social innovation in China. The first Social Innovation Cup in 2008 achieved
resounding success, with over 6000 applications from 755 colleges and universities, among
which 1245 proposals from 375 schools entered into the semi-finals. At the same time, over a
thousand volunteers from more than 500 schools were mobilized to support the effort. Of the
124 projects that entered the final, 32 were ultimately selected for awards ranging from
10,000-80,000 RMB (USD 1,460-11,700). The second Social Innovation Cup in 2009
continued to gain awareness among college students with 6,252 applications from 766 colleges
and universities, among which 1,181 proposals from 377 schools entered into the semi-finals.
29 proposals were selected as the winning projects who received Google's funds to run their
projects during the summer of 2009. In 2010, the competition has entered its third year with
much bigger coverage and impact. Among the 18,200 proposals from 1,060 schools, 1,511
proposals from 506 schools has made to the semi-final round. 28 student teams were selected
to be funded to run their projects in 2010 summer. Now in 2011 the fourth episode of the
competition kicked off with an even broader coverage and a higher nationwide recognition.
Among the 20,600 proposals from 1,278 colleges and universities, 3,326 proposals from 677
schools made their way into the semi-finals and 310 proposals from 172 schools into the finals.
Winner teams, approximately 40 expected, that stand out in the end will run their projects in
2011 summer with Google awards ranging from 20,000 to 80,000 RMB (USD 3,050-12,200).

2. Supporting Earthquake Relief Efforts:


At 2:28 pm on May 12th, 2008, a 8.0 magnitude earthquake struck Sichuan province in
Western China, claiming the lives of tens of thousands. Amidst the chaos and despair,
Googles various departments mobilized immediately to support rescue and relief efforts.
To support the vast and urgent need for material resources, Google and its employees raised
over 18 million RMB (USD 2.6mm) and donated over 7 million RMB (USD 1.02mm) s
worth of free online advertising to earthquake relief organizations. At the same time, Google
also developed a communication platform that included an information platform for resource
support, a search platform for families looking for lost relatives, and a global platform for
charitable donations. Google Maps also provided Chinas State Bureau of Surveying and
Mapping with satellite images of quake-affected regions to better aid and direct rescue
efforts.
In early September 2008, Google funded construction of 15 Google Quake Relief Hope
Schools in the city of Mianyang in Sichuan province, helping 18,184 elementary and high
school students to return to the classroom. Below is a list of our Quake Relief Hope Schools:

Santai county Mianyang city Xinlu town Google Quake Relief Hope High School
Santai county Mianyang city Google Quake Relief Hope High School
Santai county Mianyang city LuXi town Google Quake Relief Hope Elementary School
Santai county Mianyang city Choulin town Google Quake Relief Hope High School
Santai county Mianyang city An town Google Quake Relief Hope School
Santai county Mianyang city Google Quake Relief Hope High School
Santai county Mianyang city Lingxing town Google Quake Relief Hope Elementary
School
Santai county Mianyang city Luban town Google Quake Relief Hope School
Santai county Mianyang city Xingfu village Google Quake Relief Hope Elementary
School
Santai county Mianyang city Badong town Google Quake Relief Hope Elementary
School
Santai county Mianyang city Tongcun town Yulin village Google Quake Relief Hope
School
Santai county Mianyang city Liuying town Google Quake Relief Hope School
Santai county Mianyang city Xinping town Jianlin village Google Quake Relief Hope
School
Santai county Mianyang city Dongta town Google Quake Relief Hope High School
Santai county Mianyang city Tongcun town Shi village Google Quake Relief Hope High
School
Santai county Mianyang city Qijiang town Google Quake Relief Hope School.
3. Google Grants:
Google Grants is an in-kind donation program awarding free AdWords advertising to select
charitable organizations. Since its inception, we have supported hundreds of organizations in
advocating and promoting their causes, from animal rights and literacy to abandoned children
and HIV education. Room to Read, which educates children in Vietnam, Nepal, India and
Cambodia, attracted a sponsor who clicked on its AdWords ad. He has donated funds to support
the education of 25 girls for the next 10 years. The US Fund for UNICEFs e-commerce site,
Shop UNICEF, has experienced a 43 percent increase in sales over the previous year. CoachArt,
supporting children with life-threatening illnesses through art and athletics programs, has seen a
60 to 70 percent increase in volunteers. In the aftermath of the Sichuan earthquake in China,
Google Grants also supported the China Red Cross, China Charity Federation, China Youth
Development Foundation, China Children and Teenagers Fund and other organizations with
free in-kind advertising of over 6 million RMB. Now, Jet Lis One Foundation and his umbrella
organizations have also started using Google Grants to promote the cause of corporate
philanthropy.

Other Charitable Endeavors:


PHE Summer Camps college students tour Google headquarters (07/2007)
2007 New Great Wall Self-Empowerment Summer Camps leaders and trainees tour Google
headquarters (08/2007)
Partnership with JA China (02/2008)
State-level Poverty Counties Shaanxi Province, Chunhua County Survey Investigation
(06/2008)
Support for Tsinghua University Charity Foundations activities (07/2008)
Support for Guizhou Province education effort (07/2008)
Google Cultural Club hosts arts and culture charitable activities (2008)
Innovate, develop and implement the "One Egg" project (2009)
Googlers voluntary blood donations (03/2009)
Tianjin Polytechnic University Deaf Students tour Google China headquarters (03/2009)
Fund & support 2009 Mianyang Citys Junior High School track meet (03/2009)
Google China employees participate in 2009 GoogleServe community services(06/2009)
Sponsor bags for Kangba Philanthropy Primary School at Ganzi, Sichuan (08/2009)
2009 Google "Campus Volunteer Stars" Scholarship (09/2009)
Blood drive in Google Beijing office (03/2009)
Tianjin Polytechnic University Deaf Students tour Google China headquarters (03/2009)
Fund & support 2009 Mianyang Citys Junior High School track meet (03/2009)
Google China employees participate in GoogleServe community services(06/2009, 06/2010)
Sponsored Qinghai/Tsinghua University summer exchange program (07/2009, 07/2010)
Gong1pin Beta, encouraging public to take an active part in philanthropy by
circulating Gong1pin tickets (2011/01)
17gong1 Beta, online information sharing center for philanthropy activities(2011/03)
Donated 164 used desktops and some computer accessories for Green Computer Action for
Poverty Alleviation (2011/03)
COMPANYS CODE OF CONDUCT

In keeping with the company's contemporary reputation, Google's "Code of Conduct" is built
around the motto "Don't be evil.", highlighting challenging ethical scenarios and asserting the
company's rigorous service policy. Google expects its employees to be held to the highest
possible standards of ethical business conduct, concentrating on the areas of respectful
workplace environment, financial integrity and responsibility, and taking action. While many
companies have ethical codes to govern their conduct, Google claims to have made "Don't be
evil" a central pillar of their corporate identity; however, recent privacy and copyright lawsuits
have aroused some skepticism of this claim.

The seven principles of google are:

1. Serve our users: Our users value Google not only because we deliver great products and
services, but because we hold ourselves to a higher standard in how we treat users and operate
more generally. Keeping the following principles in mind will help us to maintain that high
standard.

2. Integrity: Our reputation as a company that our users can trust is our most valuable asset, and
it is up to all of us to make sure that we continually earn that trust. All of our communications
and other interactions with our users should increase their trust in us.

3. Usefulness: Our products, features and services should make Google more useful for all our
users. We have many different types of users, from individuals to large businesses, but one
guiding principle: Is what we are offering useful?

4. Privacy, security and freedom of expression: Always remember that we are


asking users to trust us with their personal information. Preserving that trust requires that each of
us respect and protect the privacy and security of that information. Our security procedures
strictly limit access to and use of users personal information, and require that each of us take
measures to protect user data from unauthorized access. Know your responsibilities under these
procedures, and collect, use, and access user personal information only as authorized by our
security policies, our Privacy Policies and applicable data protection laws.

5. Responsiveness: Part of being useful and honest is being responsive: We recognize


relevant user feedback when we see it, and we do something about it. We take pride in
responding to communications from our users, whether questions, problems or compliments. If
something is broken, fix it.
6. Take Action: Any time you feel our users arent being well-served, dont be bashfullet
someone in the company know about it. Continually improving our products and services takes
all of us, and were proud that Googlers champion our users and take the initiative to step
forward when the interests of our users are at stake.

7. Safe Workplace: We are committed to a violence-free work environment, and we will not
tolerate any level of violence or the threat of violence in the workplace. Under no circumstances
should anyone bring a weapon to work. If you become aware of a violation of this policy, you
should report it to Human Resources immediately. In case of potential violence, contact Google
Security.

Google aspires to be a different kind of company. Its impossible to spell out every possible
ethical scenario we might face. Instead, we rely on one anothers good judgment to uphold a
high standard of integrity for ourselves and our company. We expect all Googlers to be guided
by both the letter and the spirit of this Code. Sometimes, identifying the right thing to do isnt an
easy call. If you arent sure, dont be afraid to ask questions of your manager, Legal or Ethics &
Compliance. And remember dont be evil, and if you see something that you think isnt right
speak up!
CASE STUDY: Google agrees to pay British authorities 130m
in back taxes

Google has agreed a deal with British tax authorities to pay 130m in back taxes and bear a
greater tax burden in future. The deal will cover a decade of underpayment of UK taxes by
the company, which has been criticised in the past for its tax avoidance policies. A Google
spokesman confirmed reports that the firm was to pay 46.2m in taxes on UK profits of
106m for the 18 months to June 2015, as well as back taxes owed for the previous decade.
The Guardian understands that Googles 2014-15 taxes increased by 13.8m under the new
formula.

An HMRC spokesperson said: The successful conclusion of HMRC inquiries has secured a
substantial result, which means that Google will pay the full tax due in law on profits that
belong in the UK. Multinational companies must pay the tax that is due and we do not accept
less. John McDonnell, Labours shadow chancellor, will be asking HMRC to publish full
details of what it believed Google owed. He said he would raise the issue in Parliament next
week as the issue needed wider scrutiny. Richard Murphy, director of the campaign group
Tax Research, said the extraordinary deal did not represent value for the British taxpayer.
We are claiming back a tiny extra proportion [of what Google has underpaid], way short of
any reasonable amount of tax, he said. It looks as though Google has got a great deal, it
must be laughing all the way to its Bermudan bank.

Googles previous tax regime involved deals between its own subsidiaries that often saw its
revenues being declared in territories with lower tax rates. In 2012, the tactic saw it pay
11.6m to the Treasury, despite generating 3.4bn of business in the UK. Margaret Hodge, an
ardent critic of tax avoiding firms during her time as chair of the public accounts committee,
called Googles tax regime devious, calculated and, in my view, unethical.