Toronto Metropolitan University
Case study 4 - Google in China
Prabhjeet Singh Basra
501211664
GMS 802-011: Ethics and Regulation of International Business
Dr. Valerie Onyia Babatope
Due Date: March 31, 2025
Ethical Implications of Corporate Compliance: The ethical situation became critical when
Google accepted China's rules for information censorship. Google violated its dedication to
information transparency through self-censorship which damaged its core values according to
deontology. According to utilitarianism it is preferable to provide any information to individuals
instead of denying them all access to knowledge. According to virtue ethics the moral character
of Google's executive team required them to maintain their ethical principles more than market
performance. According to the social contract principle Google needs to follow the international
standards of free speech but its conflicting choices threatened to damage its reputation.
Cultural Relativism vs. Universal Ethics: The principles of cultural relativism show that
businesses need to fit into community standards and traditions. Providing commercial access to
people should never undermine universal ethical principles regarding free speech and human
rights protection. International moral principles should have taken precedence for Google
because they should defend free speech in China. Google should have funded educational open-
source programs or publishing literacy programs for freedom advancement rather than endorsing
self-limiting procedures. By limiting access to information Google violated its core corporate
social responsibility principles because they integrated business practices with international
human rights norms to achieve financial profit.
Stakeholder Impacts: The stakeholder groups of Google experienced major negative effects
because of the company's obedience to Chinese censorship requirements. The ethical dilemmas
employees experienced probably generated staff discontent which potentially led to internal
disputes regarding their adherence to the company's ethical standard. The censorship imposed by
China led Chinese consumers to face limited freedom in expressing themselves. The growth of
Google's market brought investors value until its ethical stance became questionable thus
creating damage to its reputation. The reputation of Google as a digital rights champion suffered
severe damage when activists claimed deception and accused the business of supporting speech
restriction. Google suffered substantial damage to both its permanent brand reputation and the
confidence that stakeholders had in the company.
Financial vs. Ethical Priorities: Google decided to enter China in order to serve the millions of
customers in that developing market regardless of financial gain. The business suffered damaged
reputation because of these immoral decisions made after the choice. Multinational corporations
need to achieve equilibrium between financial potential and ethical principles to stop their
operations from destroying their core principles. When deciding how to operate in China Google
could have considered financing legislative changes or developing innovative technology for
unrestricted information accessibility. The company's actions would eventually maintain brand
honesty while securing financial success through moral decisions.
Reputation and Crisis Management: By exiting China Google made an important move to
demonstrate its commitment to free information and protect its reputation. The company's ability
to advocate for a more open internet in China effectively decreased because they withdrew from
the Chinese market. The company could have continued operating in China as it worked behind
the scenes to promote digital freedom through support of non-governmental organizations and
encrypted services and negotiations with the Chinese government. Google could have maintained
operations in China yet maintained its ethical beliefs through this approach to eventually build
influence and brand confidence.
Broader Implications for International Business: The experience of Google serves
multinational companies as an important teaching resource. Organizations must evaluate brand
integrity combined with transparent practices together with compliance to human rights
standards in order to resolve ethical dilemmas within restricted markets. When evaluating ethical
matters businesses need to determine if local legal requirements go against their established
moral values. Negotiating market presence and moral standards becomes possible for businesses
through the acquisition of modern technologies which overcome censorship. Understandably the
Google case illustrates the need for maintaining ethical standards and commercial possibilities
through clear operations in regulatory complex markets.
