How Ethical is Google? A Business Ethics and Conduct Analysis Report

This report provides a comprehensive analysis of Google's ethical standing, examining various aspects of its business practices. It begins with an introduction to business ethics and Google's core objective of organizing information for accessibility. The report explores public perceptions of Google's ethics through a survey and delves into the company's code of conduct, emphasizing its motto of "Don't be evil." Key components of the code are discussed, including serving users, supporting employees, and avoiding conflicts of interest. The report then addresses instances of unethical behavior, such as accusations in Kenya, discrimination against female employees, and privacy concerns related to Wi-Fi data collection. Furthermore, the report examines Google's tax practices, particularly in Australia, and evaluates the company's compliance with tax laws. The conclusion summarizes Google's ethical standing, acknowledging both its adherence to ethical standards and the need for continuous improvement.

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How ethical is Major Internet Company-Google?

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Contents
How ethical is Major Internet Company-Google?.....................................................................1
Introduction................................................................................................................................2
What do people think?...............................................................................................................2
Code of conduct policies............................................................................................................3
Serving the users.....................................................................................................................3
Support Each other.................................................................................................................4
Avoid conflict of interest........................................................................................................4
Ethical behaviour.......................................................................................................................4
Australian tax.............................................................................................................................5
Summary....................................................................................................................................7
References..................................................................................................................................7

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Introduction
Business ethics and behaviour are the elements of business which brings significant benefits
to the business and its employees. Ethical practices attract the employees and the investors as
a result the company’s share price remains high. (Brenkert, 2012).
Google is a multinational company which deals with technology related services and
products. The products comprises of cloud computing, online advertising technologies,
software and hardware (Google, 2017). The main objective of the company is to sort the
information in a way that it get accessible to everyone. The company focuses on developing
its proprietary algorithms in order to maximize effectiveness. According to the Ethisphere
institute, Google has been rewarded as the most ethical company. The winner’s list points out
that, Google is the only company which is in the Computer Service category. The culture of
the company, its working environment, substantial practices, and its code of conduct all gets
adds to the ethical standards of the company (Hernandez, 2015).
The report contains details of the ethical standards and actions which are followed by Google.
It also includes the code of conduct policies, ethical behaviour and tax payment policy. Along
with this, a short survey is conducted to analyse what people think about the ethical standards
of the company.
What do people think?
A survey on “How ethical do you think Google is?” was conducted. As seen from the given
diagram only 1 out of 18 thinks that Google is completely unethical while 3 out of 18 thinks
that Google is completely ethical.

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On a scale of 1 to 10, I will rate Google at 8 because according to me it is not completely
ethical but yes it is ethical.
Code of conduct policies
“Don’t be evil” is the key motto of Google’s corporate code of conduct. It means providing
unbiased access of information to users, emphasising on their needs and offering them the
best products and services. It is also about doing the things in a correct and right way for
example, following the law, treating the staff and co-workers with due respect and courtesy
and acting morally. The motto can be put in practice by following the code of conduct
policies of the company. Code of conduct is designed to measure the activities performed
against the highest possible standards of ethical business conduct. The code written is to be
followed by the all the people who are working with the company, either on temporary basis
or permanent. Following is the Google’s code of conduct (Investor, 2017):
Serving the users
 It makes sure that it holds high standards in serving its users and treating them
properly. Continuous communications and other interactions with the users help in
increasing their trust.

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 It provides different products and services to the users as per their references to make
it more useful for them.
 The employees of the company are required to respect and protect the privacy of the
user’s personal information. And measures should be taken to protect the data from
unauthorized access.
 The company is very responsive. It responds to the users’ problems, feedback or
questions promptly. It also instantaneously takes action as soon as they come to know
that the users are not being well-served and their reputation is on stake.
Support Each other
 Google is dedicated towards providing supportive working environment to its
employees in order to increase their potential.
 It provides equal employment opportunities based upon ones qualifications and
professional skill. Acts like unlawful discrimination on the basis of colour, religion,
veteran status and many more are strictly banned by the company.
 A policy against discrimination, harassment and retaliation has been framed so that
proper action can be taken. Company also prohibits the excessive consumption of
alcohol and use of drugs as they can affect employees’ health and safety.
Avoid conflict of interest
 Some of the circumstances which create conflicts of interest are: Making personal
investment in competitor companies, accepting employment or advisory positions
from them and developing the business opportunities through the work done in the
company. As per the policy, these should be avoided at highest priority.
 Developing outside inventions with the use of company’s resources and using
company’s products, services or any other information in a way that improperly give
personal benefits should also be dodged to avoid the conflicts
Apart from this, the code of conduct policy includes many other things related to
safeguarding confidentiality and protecting Google’s assets.
Ethical behaviour
Despite of complying with high ethical standards and having a good code of conduct, there
are certain events that reported unethical behaviour of the organization. Following reports
shows the unethical practices performed by the company:

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In Kenya, Google was accused for being evil. The country’s largest business directory,
Mocality has suspected that the company has been systematically accessing the database of
Mocality in order to sell their competitive products to their business owners. It made
thousands of dishonest phone calls to the businesses by acquiring the phone numbers through
Mocality’s database. Later, the company requested money from these businesses by claiming
about its partnership with Mocality. When Mocality’s founder find out about this, he
conducted a sting operation and collected evidence against the company. This report does not
matches with the company’s policy as the incident violates Google’s motto of “Don’t be evil”
which says everything should be done according to law and in ethical manner (Investor,
2017).
Another incident which reports about unethical conduct is that the company discriminates
against its female employees. The US Department of Labour (DoL) has accused the company
for violating federal employment laws with respect to the salaries paid to women employees.
Systematic compensation disparities were found against women across the entire workforce.
The department had the significant evidence of such discrimination and when asked about the
data and records, Google strongly refused to hand over the data. As a result, the company
violates its contractual agreements with federal government. This whole incident disrupted
the policies which were framed against discrimination and harassment (Spristritto, 2015).
Google was also targeted for invading the privacy of Wi-Fi users through its “street view”
mapping cars. These cars roamed around the world for photographing street scenes and
collected the samples of payload data sent over Wi-Fi network. This conduct violates the
privacy of Wi-Fi users. The allegation was why the company scanned Wi-Fi networks and
collects the data whilst its street view cars roamed city streets. Google said that it happened
mistakenly and unintentionally but this statement was dismissed by the critics as they had the
relevant evidence against it. This report also does not match with the policies made by
Google. The code of safeguarding the privacy of users has been desecrated here.
Australian tax
Google is now paying taxes in Australia with respect to the revenues made in Australia. In
2015, it was examined that there were almost 30 global corporations which paid no tax on the
profits from their Australian operations. A law “Google Tax” also named as Diverted Profits
Tax came into existence in January 2016 which aims global companies who have annual

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incomes more than AU$1bn and stopped them from shifting Australian revenue overseas to
reduce local tax accountability (Yoo, 2017).
According to the financial reports of the company, in 2016 the company made revenue of
$1.141 billion while it was $498 million in 2015.Hence, the tax bill of Google Australia was
$32.9 million in 2016. Out of this $882 million was advertising revenue, $220 million was
research and development services and $39.6 million came from the hardware. But after the
accounting arrangements the profit and loss statement came out to be of $16.6 million
(Thomsen, 2017).
No, Google does not pay a fair share of tax in Australia as seen by the above mentioned
financial reports. When Australian Taxation Office asked for the tax, Google said that it is
now a reseller and service entity rather than only service entity. The companies are not
paying tax but the Australian government is implementing new laws to get the tax from
Google. For example, the recently passed Diverted Profits Tax (DPT) also known as Google
Law and the anti-avoidance rule i.e. Multinational Anti-Avoidance Law (MAAL).According
to the recent news, the Australian government alleges that that they will get the fair share
from Google as there are new ATO Tax Avoidance Taskforce which has issued a bill of $2.9
billion to most of the multinational companies which also includes Google (Khadem, 2017).

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Summary
It has been concluded that Google is an ethical company. Google follows a motto which says
“Don’t be evil” and it can easily be said that it is implemented. The organisation serves the
users, ignores any type of conflict and supports everyone. It has been already rewarded as the
most ethical company by Ethisphere institute but still it is trying to better its ethical
behaviour. The final ethical rating of Google is 9 as the company is on the edge to attain a
position of completely ethical.
References
Altstadt, A 2011, Google Ethics and Social Responsibility, viewed on 7 January 2018, <
https://prezi.com/ksqjhh8x0x4s/google-ethics-and-social-responsibility/>.
Brenkert, G 2012, The Oxford Handbook of Business Ethics, Oxford University Press Inc,
USA.
Creighton, A 2017, Technology giants pay 1 per cent tax, viewed on 8 January 2018, <
http://www.theaustralian.com.au/national-affairs/treasury/technology-giants-paying-
just-1-per-cent-tax/news-story/7c0b49efea4c44e90978aab6d216a30e>.
Google 2017, About Us, viewed on 7 January 2018, < https://www.google.co.in/about/>.
Hernandez, P 2015, Microsoft and Google Rank Among the World’s Most Ethical
Companies, viewed on 7 January 2018, <
http://www.eweek.com/it-management/microsoft-and-google-rank-among-the-world-
s-most-ethical-companies>.
Investor 2017, Google Code of Conduct, viewed on 7 January 2018, <
https://abc.xyz/investor/other/google-code-of-conduct.html>.
Khadem, N 2017, Multinational still don’t pay ‘fair share’ in tax, despite $8.1m taxpayer-
funded ads, viewed on 8 January 2018, <
http://www.smh.com.au/money/multinationals-still-dont-pay-fair-share-in-tax-
despite-81m-taxpayerfunded-ads-20170919-gyk9ic.html>.
Spristritto 2015, An Analysis of the Ethical, Social and Environmental Standards and
Practices of Google, viewed on 7 Januray 2018, <

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https://sebastianpistritto.wordpress.com/2015/05/09/an-analysis-of-the-ethical-social-
and-environmental-standards-and-practices-of-google/>.
Thomsen, Simon 2017, Australia’s Google Tax Has Been Approved, viewed on 8 January
2018, < https://www.lifehacker.com.au/2017/03/australias-google-tax-has-been-
approved/>.
Yoo, T 2017, Google Australia’s tax bill doubled last year—and the ATO is still chasing
them, viewed on 8 January 2018, < https://www.businessinsider.com.au/google-
australias-tax-bill-doubled-last-year-but-the-ato-is-still-chasing-2017-4>.