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Google's Ethical Dilemma in China

The document discusses Google's dilemma in China between complying with censorship rules or continuing to serve Chinese consumers from the US. It analyzes Google's decision to enter China directly in 2005 and engage in self-censorship. The objectives, considerations around communication barriers, cultural differences, competition and business ethics are examined. Alternative courses of action around strategic alliances and compliance with local regulations are presented.

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Andrea Tugot
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0% found this document useful (0 votes)
67 views18 pages

Google's Ethical Dilemma in China

The document discusses Google's dilemma in China between complying with censorship rules or continuing to serve Chinese consumers from the US. It analyzes Google's decision to enter China directly in 2005 and engage in self-censorship. The objectives, considerations around communication barriers, cultural differences, competition and business ethics are examined. Alternative courses of action around strategic alliances and compliance with local regulations are presented.

Uploaded by

Andrea Tugot
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

CASE STUDY:

A Thesis

presented to the

____________________

In partial fulfillment

of the requirements for

___________________

By

TABLE OF CONTENTS

I. Background of the Study...............................................................................................3

II. Statement of the Problem............................................................................................ 4

III. Objectives of the Study...............................................................................................4

IV. Areas of Considerations............................................................................................. 5

V. Alternative Courses of Actions.....................................................................................5

VI. Recommendations......................................................................................................7

VII. Conclusion/Action Plan..............................................................................................9

PAGE 1
PAGE 2
I. Background of the Study

A multinational technology company known for its fast growing Internet search

engine, stands by their mission, which is to organize the world's information and make it

universally accessible and useful. In its widely used search engine, the company has a

highly profitable advertising business.

Throughout …..'s history, they have established and have been continuously

practicing their mantra "don't be evil". This mantra emphasizes the integrity of its search

results regardless of commercial considerations bias. With these, it now serves as both

the company's guiding ethical concepts and a standard by which management

evaluates all of its strategic choices.

Google started its journey through a Chinese language service in 2000, which

was unfortunately blocked by Chinese authorities and instead directed Google's users

to a Chinese rival. The co-founder of Google himself, Sergey Brin took an action and

restored Google's service after two weeks.

However, they faced a tough situation or dilemma when they identified China as

a crucial market - whether to comply with China's censorship rules or continue serving

Chinese consumers from the United States. The latter part: to keep serving Chinese

consumers from the United States proves that service would be too slow and be badly

degraded because of the censorship imposed. This became a dilemma to Google

because of its mantra "don't be evil".

PAGE 3
Despite the debates and exchange of views between senior managers within the

company regarding the idea of entering China directly rather than serving the market

from its U.S site, Google ultimately decided to enter China in 2005, launching

operations with its own servers and a Chinese main page. The reason behind this move

is due to the fact that China has a growing number of over 100 million users and

intended to become the world's largest Internet market and a main source of advertising

revenue for Google. Aside from that, Google was at a competitive disadvantage in

comparison to its U.S rivals, Yahoo and Microsoft's MSN, and China's local search

engine Baidu who is the top local market engine in China.

Google engaged in self-censorship shortly after its launch, removing results on

politically sensitive issues including as democratic reform, Taiwanese independence,

Falun Gong, and the Tiananmen Square massacre. The company explained its

decision, stating that it believed providing Chinese users with restricted information was

preferable to providing no information at all. Additionally, Google highlighted that it was

the only search engine allowing users to be aware of blocked (censored) results.

II. Statement of the Problem

● In order to resolve the issue, what are the main options to develop an effective

strategy for China's unique environment?

● In the concept of censorship restrictions, how are Google's services seen and

used by Chinese authorities?

PAGE 4
III. Objectives of the Study

● To comply with Chinese laws and regulations related to internet services. This

includes adhering to censorship requirements and other regulations imposed by

the Chinese government.

● By complying with censorship requirements, Google aims to avoid content that

could be politically sensitive or challenging to the Chinese government.

IV. Areas of Considerations

Communication Barriers

Communication/language barriers occur more often than not when engaging in

an international business with its users or target market. However, in order to

accomplish this, Google must adapt and adjust according to China's users to cater each

concern.

Cultural Differences & Sensitivity

Cultural sensitivity involves the awareness, understanding and respect of one

another regarding another's values, customs and beliefs no matter what culture it is. In

dealing with international to consider than in entering a new market, one must educate

PAGE 5
themselves through understanding local values, norms, and political sensitivities of that

country.

Competitive Disadvantages

Entering and engaging in an international business as well as entering into a new

market opens a competitors such as Yahoo and Microsoft's MSN as well as the top

local competitor of Google, Baidu drive Google to adapt strategies amidst the tight

competition and gain growth and development that made it possible to secure a position

in the market.

Importance of Business Ethics

A company's ethics reflect the overall business and serves as a guiding

framework for decision-making and behavior within organizations. It plays an important

role in building and maintaining a positive reputation and brand image. In fact, the

positive perception of the company strengthens trust and attracts more customers.

Google's mantra "don't be evil" was their guiding principle that signifies the company's

long-term commitment towards its ethical behavior and mission.

PAGE 6
Legal and Regulatory Factors in Business Environment

Several laws and regulatory factors govern each country. This, in turn, affects

how the business operates either in a negative or a positive aspect. These bodies of law

ensure that there is a proper compliance of businesses when it comes to law to

maintain fairness to take and decision in this matter entails that it is essential to comply

with local regulations and practice "When in Rome, do as the Romans do", which is to

adjust according to one's legal system to avoid further issues.

V. Alternative Courses of Actions

1. Strategic Alliances with Multiple Local Partner

The plan is to collaborate with multiple local organizations in China in order to take use of

various networks, reduce risks, and improve flexibility. This strategy recognizes the complexity

PAGE 7
and diversity of the Chinese market, taking into account the fact that various geographical areas,

clientele niches, and commercial settings could call for particular knowledge and connections.

ADVANTAGES DISADVANTAGES

Diversified networks by working with several Managing relationships with various partners

local partners, the foreign company can access can provide coordination challenges that call

a wider range of networks and market niches, for a lot of work to guarantee alignment in

decreasing reliance on a single partner and strategy, communication, and day-to-day

increasing flexibility. operations.

Risk Reduction to dividing company activities Possibility of Conflicts to disagreements

among several partners helps reduce the risks between local partners could occur, which

brought on by unforeseen difficulties, changes in could result in conflicts that could affect the

regulations, and regional economic swings. strategic alliance's overall efficacy.

Cultural Sensitivity to working with multiple local Limited Integration can make it difficult to

partners makes it more likely that the business coordinate and integrate operations with

will comprehend and adjust to different local several partners, which could lead to

cultures, which will enhance its capacity to inefficiencies and make it harder to put

successfully customize its goods and services.c together coherent business plans.

2. Compliance with Local Regulations

In order for Google to conduct business in China, it must abide by local laws, which

include censorship mandates, to guarantee that its offerings complement the policies of

PAGE 8
the Chinese government. The severe internet censoring laws in China have made it

difficult for Google to operate there. The Chinese government uses an extensive system

known as the "Great Firewall of China" to monitor and restrict content found on the

internet. Similar to other international internet firms, Google has to get around these

laws in order to enter the Chinese market.

ADVANTAGES DISADVANTAGES

Google can now reach the huge Ethical Concerns regarding adhering to

Chinese market through market access Censorship Regulations to adhering to

to compliance, which offers the practices that restrict access to information

possibility of a sizable user base and and freedom of expression creates ethical

lucrative economic prospects. concerns.

Penalties for breaking censorship laws Google's reputation could suffer if it complies

could include fines or having Google's with censorship regulations, particularly when

services blocked. Compliance helps it comes to its dedication to free and

prevent these kinds of consequences. accessible information.

Google may be able to create strategic


Employee concerns regarding the company's
alliances with regional businesses
ideals and principles may give rise to internal
through Strategic Partnerships to
problems inside Google as a result of
Compliance, which would improve the
compliance choices.
business climate.

PAGE 9
3. Enhanced Localization and Cultural Adaptation

To emphasize adjusting Google's services to local preferences, cultural contexts, and

regional variances in order to obtain a competitive advantage over global rivals like

Microsoft MSN and Yahoo as well as Baidu, the local market leader in China. This

approach acknowledges that user demands and habits change between geographic

locations and that adjusting to these variations can boost customer happiness, expand

market share, and boost overall competitiveness.

ADVANTAGES DISADVANTAGES

Google's customized user experience Resource Intensive to significant

can help it outperform rivals by adjusting investments in language support, cultural

its offerings to the unique requirements analysis, and technological adaptation to

and tastes of people across various take regional variances into account are

geographies. This covers features that necessary to achieve effective localization.

are culturally appropriate, language

support, and localized content.

Recognizing the Regulatory Regulatory compliance difficulties in

Environment to Google's capacity to adapting to various regulatory contexts

function inside the law might be necessitates ongoing, resource-intensive

improved by concentrating on efforts to keep an eye on and abide by

PAGE 10
comprehending and adjusting to local changing laws and policies.

regulatory requirements in areas with

stringent laws, like China.

Google may enhance its brand Despite best efforts, there is a chance that

recognition and appeal to a wide range cultural differences will be misunderstood,

of international consumers by modifying which could have unforeseen effects or

its marketing tactics to align with create unfavorable perceptions in some

regional customs and tastes. places.

VI. Recommendations

Among the three alternative courses of action (ACA) presented, the most suitable ACA

for Google to enter the Chinese market is Enhanced Localization and Cultural

Adaptation.

Google's decision to embrace enhanced localization and cultural adaptation in China

stems from a combination of factors. Firstly, this strategy demonstrates a deep respect

for Chinese culture and user preferences, aligning with Google's commitment to integrity

and fostering positive relationships with Chinese consumers. Secondly, enhanced

localization provides Google with a competitive edge, enabling it to tailor services to

local needs and preferences, outpacing both global competitors and Baidu, the local

market leader. This approach recognizes the importance of meeting specific user

demands, leading to increased customer satisfaction and a growing market share.

PAGE 11
Thirdly, this recommendation addresses the ethical concerns associated with Google's

entry into the Chinese market. By adapting to local regulations without directly

participating in censorship, Google adheres to its "don't be evil" mantra. This approach

avoids ethical dilemmas while ensuring compliance with local laws.

To mitigate censorship challenges, Google focuses on content adaptation rather than

direct participation. By providing valuable information within the confines of local laws,

Google strikes a balance between compliance and ethical considerations. Additionally,

active user education plays a key role, as Google proactively informs Chinese users

about government-imposed limitations. This transparent approach manages

expectations and reduces potential backlash.

Building trust emerges as an important aspect for long-term sustainability. Google's

commitment to understanding and adapting to the local market becomes instrumental in

establishing trust among Chinese users. This trust is identified as essential for Google's

sustained success in a market characterized by unique cultural and regulatory

challenges. Furthermore, the emphasis on adapting to changing demands underscores

the dynamic nature of user preferences across different geographic locations. The

recommendation recognizes the need for agility and responsiveness to evolving market

trends, positioning Google to effectively cater to shifting demands.

In conclusion, the proposed strategy of enhanced localization and cultural adaptation

strikes a delicate balance between respecting local regulations and upholding Google's

ethical principles. By leveraging the diversity of the Chinese market and proactively

PAGE 12
addressing potential challenges, this recommendation positions Google for success in

navigating the complexities of the Chinese business landscape.

VII. Conclusion/Action Plan

Improving localization and cultural adaptation may assist Google in recognizing and

meeting the special needs of Chinese consumers in terms of products and services, as

well as improving user experience and satisfaction. Google must maintain cultural

sensitivity in its goods and marketing initiatives, demonstrating a grasp of, and

especially respect for, Chinese cultural values and traditions. In addition, the

organization will take a strategy that builds a pleasant relationship with people and

contributes to a better digital experience.

With localization efforts, Google may invest in development and assuring a team of

professionals, as well as contribute favorably to investment and responsiveness of

Google's services that meet customer expectations.

ACTION PLAN
Key Areas Or ● Cultural sensitivity - To reinforce Chinese values and

Indicators
traditions, and to avoid offensive or contentious subject matter.

● Language Support - To improve language processing in order

PAGE 13
to provide more accurate and contextually relevant search

results.

● Local Talent Acquisition - to establish cultural expertise within

the organization.

Goals & ● Recognize the laws and regulations imposed by the Chinese

Objectives
Government, to avoid insensitivity that may affect their values

and traditions.

● To maintain the trust of Chinese consumers related to privacy

and censorship.

● Gain insights and develop strategies that may improve

Google’s services to Chinese consumers.

● Must use market research to improve development and its

strategies.

Strategy/ ● Perform significant market research in China to better

Program
understand cultural details, consumer behavior, and

preferences.

● Use user evaluations with Chinese volunteers to constantly

enhance and improve the user's knowledge.

● Invest in staff training programs to ensure they have a

thorough understanding of Chinese culture and language, or

hire local talent to create a varied workforce with knowledge of

PAGE 14
technological advances and local tastes.

● Regular input from users via tools, such as questionnaires,

focus groups, and online forums, should be implemented.

Carefully listen to user comments and make iterative

modifications based on recommendations and preferences.

Person ● The Head of China Operations is in charge of activities in

Responsible
China and will most likely play a key role in developing

localization and adaptation to culture strategies.

● Product Managers and Program Leads are in charge of certain

products or programs that may be involved in the

implementation of localization strategies in their respective

domains.

Budget/ ● Market research must be budgeted for since complete market

Resources
research is required to understand cultural nuances, consumer

behaviors, and preferences in China.

● The resources should concentrate on feedback and tools for

gathering and analyzing user feedback. Surveys, focus

groups, and other tools for gathering user thoughts and

opinions, for example. In addition, modern localization tools,

translation services, and technologies that improve language

and cultural adaptability are available.

PAGE 15
● Investment in training programs and hiring local talent to keep

personnel up to date on changing cultural trends and user

expectations. Language and cultural sensitivity training is also

provided for personnel working in localization efforts.

Success ● Obtaining all goals efficiently, or the suggested preferred

Indicators and option for Google to adhere to.

Target Rates ● Evaluating the outcome of established programs and worker

performance in order to achieve a defined percentage

increase in workforce cultural competency.

● To determine if the trainees achieved and maintained full

compliance with relevant regulations with no serious issues,

and to determine whether there is potential for improvement.

● Google Company must know whether they were effective in

increasing customer engagement with localized content and

features, as well as whether they received positive user

feedback and satisfaction ratings.

PAGE 16
Documentation

PAGE 17
PEER EVALUATION:

MEMBER QUALITY RESPONSIBILITY TEAMWORK CONTRIBUTION ATTITUDE TO


Pamplona 20 20 20 20 20
Parabuac 20 20 20 20 20
Rodriguez 20 20 20 20 20
Tiamzon 20 20 20 20 20
Tugot

PAGE 18

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