Google in China: government censorship and corporate reputation

• Published in: The Journal of business strategy Vol. 28; no. 3; pp. 12 - 22
• Main Authors: O'Rourke, James S., Harris, Brynn, Ogilvy, Allison
• Format: Journal Article
• Language: English
• Published: Boston Emerald Group Publishing Limited 08-05-2007; Emerald Group Publishing, Ltd
• Subjects: Analysis; Bans; Business ethics; Case studies; Censorship; Censorship issue; Child pornography; Executives; Financial performance; Foreign business; Foreign operations; Government regulation; Information services; Information services industry; Initial public offerings; Internet access; Laws, regulations and rules; Multinational corporations; Reputations; Search engines; Social responsibility; Subpoenas; United States; China; Public relations; Stakeholder analysis; Information media; Corporate identity; Corporate communications; Corporate image
• ISSN: 0275-6668; 2052-1197
• DOI: 10.1108/02756660710746229

Purpose - This paper examines the communication strategies organization, and tactics of Google as corporate executives and staff planned and began executing the company's global expansion strategy with entry into the Chinese market.Design methodology approach - The paper takes the form of a case study.Findings - To do business in the Chinese market, Google had to comply with Chinese Government censorship restrictions. The company's decision to do so was announced in the wake of Google's very recent refusal to provide user information to the US Government case against child pornography. Wall Street's response confirmed the profit potential of the venture, as the company's share price rose 3.6 percent in just one day, and continued rising to record heights. However, the company's announcement brought strong reaction from the press and human rights organizations. Within days, headlines were screaming across the USA and around the world, accusing Google of abandoning its principles in pursuit of profit.Originality value - Mass media in the USA and throughout the developed world heaped scorn and criticism on Google for its decision to censor searches from its servers inside China. Various NGOs took up the drumbeat of criticism, implying that Google could not be trusted with personal data, including search topics. At the same time, however, Wall Street continued to reward the company with a seemingly endless streak of record share price postings. The question appears simple: does the pursuit of profit in the developing world trump the need for ethics and values in business operations?