MGT301A: Ethics and Sustainability in Google - Analysis Report

This report examines the ethics and sustainability practices of Google, focusing on ethical decision-making, corporate social responsibility (CSR), and value management theory. The report begins with an executive summary and introduction, followed by a scenario overview. It explores the application of value management theory within Google, analyzing its impact on long-term decision-making and operational strategies. The analysis section delves into Google's ethical issues, including the potential launch of a censored search engine in China and its implications for stakeholders. The report highlights Google's code of conduct, corporate social responsibility initiatives, and the importance of ethical behavior. Solutions and recommendations are provided to address observed ethical concerns, and the report concludes with a summary of findings and references.

Ethics and Sustainability in Google 0
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Ethics and Sustainability in Google 1
Executive Summary
The aim of the report is to discuss ethics and sustainability in business organizations. The focus
is, particularly on Google. The value management theory is illustrated along with the analysis of
the ethical issues in the company. Furthermore, the recommendations are provided with regard to
the ethical issues observed in Google. The company has a code of conduct that is expected to be
followed by each and every member associated with the same. It has an appreciation for
employees and values ethical practices. The analysis of the company’s ethical culture gave an
insight into the working and managing CSR.

Ethics and Sustainability in Google 2
Table of Contents
Introduction......................................................................................................................................2
Summary of Scenario......................................................................................................................3
Values Management Theory............................................................................................................4
Analysis...........................................................................................................................................6
Ethical Issues in Google..................................................................................................................8
Solutions and Recommendations.....................................................................................................8
Conclusion.......................................................................................................................................9
References........................................................................................................................................9

Ethics and Sustainability in Google 3
Introduction
In the present era, the focus of the organizations is more on sustainability instead of
productivity or profit maximization. The business organizations that are more directed towards
the profit maximization take decisions considering the short-term vision, however, the long-term
thinkers are most focused on sustainability. Sustainable development is a concern for
organizations that want benefits in the long run. This assignment discusses the importance of
ethics and sustainability that is crucial for ethical decision making. The main issue faced by the
organizations is that they have to behave ethically towards their stakeholders under the most
uncertain conditions. The solution to this is sustainable development and that is focused on the
success of the business as well as the welfare of the society.
Summary of Scenario
Ethics are vital in any business and organization. The success of the organization depends
on how well the organization is following its ethics. The ethics generally mean the expected
moral behavior from the employees and members of the organization. The ethics are not limited
to the behavior of an individual (Kibert, Thiele, Peterson & Monroe, 2012). The concept of
ethics in Google is comprised of processing and operations, transparency, the security of data
and information, decision making, etc. It helps in building a reputation and achieving the
organizational goals. The ethical organizations are preferred by the customers as well as the
suppliers. Being unethical might give profits for a small while but in the long-run ethical
organizations are the one that excels. It is also important to be aware of ethics. At Google, the
decisions about products, costs, production, manufacturing, stakeholders, clients, business

Ethics and Sustainability in Google 4
partners, operations and processes, and services should be made as per the ethical guidelines (De
George, 2014).
Sustainability means dealing with future challenges so that future generations could enjoy
the existing resources and lifestyle. To maintain a sustainable business environment the
organizations should focus on taking long-term focus on keeping an equilibrium in economies
and social influence of business. The organizations that are ethically committed towards
Corporate Social Responsibility (CSR) and Google is one of them. The awareness is better than
it ever was and that is why organizations do not only focus on the profits rather they are
concerned about the impact they have on people and the environment (Oppenheim & Stuchtey,
2015).
According to Google, the best way to achieve the goals is to prioritize users. This can be
done by providing quality service and satisfactory user experience. This will help in generating
higher traffic growth and promotion. In addition, the organization strives to build sustainability
in every operation (Lin & Selinger, 2014). Google holds the view that a clean, healthy and
beautiful future begins with the small everyday decisions and that is why they believe in making
effective utilization of resources and keeping the environment in view. Furthermore, the
company also aims to inspire others to do the same. The company has more in mind to do for the
welfare of society and operate in a way that is environmentally sustainable.
Values Management Theory
Lately, there have been many approaches to management in order to enhance
organizational performance. Some of the most common approaches are total quality
management, kaizen team building, empowerment, team building, and many more. The value

Ethics and Sustainability in Google 5
best management is the most appreciated of these all. Under Value-based management, the value
of a company is attributed to the discounted cash flows (Austin, 2010). The creation of value is
done when the investment is done at the returns that are more than the cost of that capital. With
the help of value management theory, Google is able to take long-term decisions as well as the
decisions for routine operations. If the application of this approach is done well it will help align
the organization’s goals, techniques, and management processes in order to keep in view the
decisions of the management regarding key attributes of the value.
The planning in the early decades was different and now the approaches are far better and
ethically sustainable. The need to identify and replace the basic hierarchy system has been felt.
Now, the value-based metrics have enabled the managers at Google to make sound decisions.
With the help of it, the balance sheet, as well as the income statement, can be managed well with
the value-based management. It is observed that the value-based management is beneficial for
the organizations in ways more than one. The economic performance is enhanced and impact is
also higher (Dale, 2016).
Every coin has a flip-side and so does value-based management. It becomes an activity
that is meant for staff and has no impact on the managers in the process of decision making. The
focus of value-based management should be on the enhancement of corporate culture. The
manager who focuses on value-based focuses on the metric of performance and uses it as a tool
for making decisions (Sugumar, Balasekaran & Chandrachud, 2018). Google uses value
management in the organizational structure and provides a1n opportunity to make better
decisions. A good sign that value management is working correctly is that it provides appropriate
information and incentives so that value-based decisions can be made. It will help compare and
contrast the value of alternative strategies. The financial targets are fixed by top management by

Ethics and Sustainability in Google 6
the system of evaluation and compensation that reinforce value creation and also the process of
strategy review process between managers and seniors. Both long term and short term targets are
kept in view (Yi, 2012).
Furthermore, value-based management can be well clarified as a relationship between the
value creation mindset and processes of management. Putting both these components together
the impact can be great and sustainable (Jennings, 2012). The main purpose of the economic
organization such as Google is to develop a value for the owner. Moreover, the management
theory of value has developed as a philosophy rather than a method. In this century, value
creation and value management are the determinants of the organization’s success.
Analysis
The past few decades have been focusing on business ethics and sustainability quite some
more. This is because the unethical behavior in the organizations has prevailed a lot. The
companies like Anderson, Arthur, Enron and more are known for their unethical behavior. The
top managers at these firms exploited their position and persuaded some significant financial
benefits for themselves and the company. Due to this unethical behavior, the company was
ruined and so was the reputation. It has not only damaged the managers, but the careers of
hundreds of employees, stakeholders, and society faced issues (Newton, Etzion, Rasche &
Schuler, 2013).
The Google users in China are in support of their country’s decision and believe that the
company will not be able to cooperate with the laws and policies of Chinese government
whereas the critics hold a totally contradicting view that Google wouldn’t launch the heavily

Ethics and Sustainability in Google 7
censorship program because in China there is a great market for Google. There are a large
number of people that use the services provided by Google and hence they cannot jeopardize it.
Google is more aware of their ethical responsibilities and fair corporate governance. The
latest practice includes expressing corporate values and making sure that all employees receive
and understand that. The organization, like Google, focuses on ethical behavior and
sustainability (Weiss, 2014). A ‘Google code of conduct’ was published which is a public facing
document. It enlists the set of behavior that is expected from the personnel, partners, managers
and every person of the organization to know and follow. It is surprising to know that the
‘Google code of conduct’ actually includes a phrase like ‘don’t be evil’.
The company believes in acting transparent and providing the best quality services and
products. They also aim at doing ‘the right thing’ by abiding by the law and behaving like a
responsible citizen. The corporate social responsibility (CSR) is followed by the four principles,
namely, economic, legal, ethical, and social responsibility (Soules, 2013).
 Google is an undisputed leader in the marketplace and that has made the company
economically viable. Also, it supports innovation of new technology, developing new
products and services with the goal to grow for in the risky business environment.
 The legal responsibility is also fulfilled by the company in a way that it follows rules and
regulations. They maintain fair prices and competition along with a smooth market that
ensures the free flow of goods and services. There were several accusations regarding
Google being unethical, but the company has made its best efforts to contradict the same
and be legally responsible.

Ethics and Sustainability in Google 8
 The ethical responsibility is concerned with customers, stakeholders, employees,
competitors, colleagues, etc. In this particular aspect, Google has been at the top. It
values its employees and customers and treats everyone with respect and dignity. The
code of conduct clearly states this point. The organization also measures its business
standards, according to the highest level of ethics. Also, reputation is valued at Google
and the company provides a safe and healthy working environment. The company also
took some ‘green initiatives’ to make the best use of the resources in an efficient manner.
 The last level is corporate social responsibility. Google believes in charitable work and
philanthropic activities. Moreover, it provides grants, supports technological products,
and product support for non-profit organizations.
The company further operates in a sustainable way to get most of the technology and
utilizing the available resources efficiently. In any organization, the manager should have traits
like behavioral integrity, emotional intelligence, and also should be a risk-taker (Webb, 2014).
Ethical Issues in Google
Google has planned to launch a heavy censorship search engine in China. However, it is
against Chinese censorship laws. In fact, the company withdrew all the services from China due
to the restrictions on freedom of speech. But they plan to launch the heavy censorship search
engine. The major stakeholders in China are Chinese Google users and it is going to impact them
severely. The analysis is that the people of China support their country and believe that Google
should not launch the new plan because of the Chinese policies. Some others believe that Google
will take no such step because it has a great number of users in China and would not affect the
clientele (Tan & Tan, 2012).

Ethics and Sustainability in Google 9
Solutions and Recommendations
Google’s plan of the heavy censorship search engine is a bold move in China because the
country has limited speech of freedom and due to this, the earlier projects were also pulled. If
this project will be launched, it will affect the interest of the stakeholders of the country who are
major stakeholders. In addition, the advertising agencies and Google search users will also be
impacted.
 On the basis of the analysis, China should ease up a little on the freedom of speech and
operating in the country, and this should also not affect the interests of the stakeholders.
 Google is one of the best service providers in the field and it should work on convincing
the Chinese government of the benefits of its services and communicate the policies and
strategies effectively.
 In addition, it should also provide a wide range of services for the people who seek
information and other organizations by giving ads online. This step will be advantageous
to both. The cheaper services from Google will be good for both parties.
Conclusion
In general, everyone, be it customers or suppliers or partners prefer the organizations that
are ethical and values ethics in their business. Over the years, it has been observed that unethical
businesses live a short life and do not flourish in the long term. This goes for the small scale
organizations as well as for small-scale business. It ruins the reputation, image, brand, and
everything that the organization must have achieved. The only difference in a big and small
unethical business is that of financial backing. The big organizations might come back up
because they have the means to do so, whereas the small organizations are ruined forever. So,

Ethics and Sustainability in Google 10
ethics are crucial for all businesses to establish themselves and achieve sustainability. Through
business ethics, an organization understands how it is expected to behave and operate in the
market. It is safe to say that they are necessary for survival.

Ethics and Sustainability in Google 11
References
Austin, J. (2010). From Organization to Organization: On Creating Value. Journal Of Business
Ethics, 94(S1), 13-15.
Dale, O. (2016). Ethical issues and stakeholders matter. Addiction, 111(4), 587-589.
De George, R. (2014). Business ethics. Harlow, Essex: Pearson.
Jennings, M. (2012). Business ethics. Mason, Ohio: Thomson/South-Western.
Lin, P., & Selinger, E. (2014). Inside Google's Mysterious Ethics Board. Retrieved from
https://www.forbes.com/sites/privacynotice/2014/02/03/inside-googles-mysterious-
ethics-board/
Kibert, C., Thiele, L., Peterson, A., & Monroe, M. (2012). The Ethics of Sustainability.
Retrieved from https://www.cce.ufl.edu/wp-content/uploads/2012/08/Ethics%20of
%20Sustainability%20Textbook.pdf
Newton, L., Etzion, D., Rasche, A., & Schuler, D. (2013). Business Ethics Quarterly Special
Issue Environmental Sustainability and Business: Crisis or Opportunity?. Business Ethics
Quarterly, 23(4), 644-646.
Oppenheim, J., & Stuchtey, M. (2015). Like it or not, sustainability is now core to your business.
Retrieved from http://fortune.com/2015/09/24/sustainability-practices-in-business-intel-
unilever-wal-mart-dupont/
Soules, A. (2013). I Google, You Google, We Google... Against The Grain, 20(2).