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Google – Takes a Moral Stand
3/25/2010
By PJLouis
Tags: Google, telecom, search engine, China

Comments on article found at: online.wsj.com/article/SB10001424052748704266504575141064259998090.html

 

My hat off to Google Inc. co-founder Sergey Brin, for taking a moral stand.


I am not sure most investment bankers would agree with me. However, folks need to keep in mind that every company is built on a set of values but usually those values are about creating shareholder value and not about personal freedom.


If a country had a personality, I would say that China’s is patient, thoughtful and focused. China is not one to leap out of the gate; it starts of slow and before you know it, the country hits full stride. Once this 8,000 pound gorilla is moving you cannot stop it. Companies that have done business in China understand two things – do business in China the way the Chinese want it or leave. Most large companies I have heard of actually find a way of getting back into China. They have all found a middle ground. Finding a middle ground usually means compromising your principles to some extent. Will Google compromise its principles? Whose principles are we talking about, Sergey Brin’s or Google’s shareholders?


I applaud Brin.


Brin is going to be bombarded with lots of questions.


However, here are a few things shareholders need to think about: cyberattacks on Google, stolen code from Google, reading emails, national security, etc.. Brin has a point.


The Internet business needs to monitor this situation.

Do you think that moving to Hong Kong will stop the cyber attacks?  Most likely, no ...

Is this a PR win for Google?    Again, most likely, no ...

I think Google would have done more to stay in China and keep pushing or crossing the "line".    This is more likely to change things than leaving the country.

Bad move Google ...
gdt gdt
3/25/2010
Who says what Brin did was good for Google?  I applaud Brin for his bravery not his business sense.  The toughest thing about running a company is making the choice between doing what is right versus doing things right.  In corporate terms, moral stands are good for PR but they can be bad for business.

No one really believes that Google will stay out of China permanently.  As I said in a past posting, "a compromise will be reached".

What people ought to think about is that China is being so brazen about their actions.  China probably could care less what the world thinks.

As for pushing the line; I have never seen a company push the Chinese government around. 
PJLouis PJLouis
3/25/2010
I don't know why Google moved out ... it was a bad Moral and Business choice.   A better Moral choice would have been to stay and fight from with-in,  the result of the Google action is that the government of china won this round.

gdt gdt
3/25/2010