Company Social Responsibility: Google Pulled Out of Chinese Market

Topics: Web search engine, People's Republic of China, Google search Pages: 7 (1910 words) Published: December 11, 2012
Johnson & Wales University


The Alan Shawn Feinstein Graduate School

The Alan Shawn Feinstein Graduate School

MBA Student Scholarship

MBA Student Scholarship


Company Social Responsibility: Google Pulled Out of Chinese Market HuaLin Zheng
Johnson & Wales University - Providence,

Repository Citation
Zheng, HuaLin.. " Company Social Responsibility: Google Pulled Out of Chinese Market" (2012). MBA Student Scholarship. Paper 6.
This Research Paper is brought to you for free and open access by the The Alan Shawn Feinstein Graduate School at ScholarsArchive@JWU. It has been accepted for inclusion in MBA Student Scholarship by an authorized administrator of ScholarsArchive@JWU. For more information, please contact

Feinstein Graduate School

Company Social Responsibility: Google Pulled Out of Chinese Market

A Research Project Submitted in Partial
Fulfillment of the Requirements for the MBA Degree
Course: Ethics and Corporate Social Responsibility and Law MGMT 5900

HuaLin Zheng

October 28, 2012

On March 23, 2010, Google pulled search services out of the Chinese market. Google’s statement said that they quit China for two reasons: First, "targeted attacks from China-hacking"; Second, not wanting re-examining their search results (Nicholas Carlson, 2010). Well, from Google’s statement, social responsibility seems the most important reason to withdraw from the Chinese market. Do not want to re-examine their search results, Google just wants to offer the customers the best and real information.

Despite the political reasons, most of the people admire Google’s decision because Google insists on keeping its moral and social responsibilities. Actually, Google lost countless of money for its decision. In 2009, Google already got almost 30% of Chinese internet search market (Alice Chen, 2010). Following this decision, all the market share has been given up. After the news that"Google considers quitting China market" was released, Google in evening trading shares fell, directly affecting Google’s overseas market. 27 Google advertising agencies sent a letter to huge economic losses for compensation (, 2010).

From this decision, Google gets nothing except dignity and respect. People start to question: “ Does it worth?”. Base on the economic side, this was obviously a bad decision. But, from the ethical perspective, this was a good and respectable decision because Google adhered to its social responsibility.

Definition and History of Company Social Responsibility
Company social responsibility, also called corporate social responsibility or CSR. Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large (Mallen Baker, 2004). A key relationship in the history of corporate social responsibility is the relative power between corporations and governments during particular economic periods (Carroll, 1999). The evolution of CSR is as old as trade and business for any of the corporation. Industrialization and impact of business on the society led to a completely new vision. By 80’s and 90’s academic CSR was taken into discussion. The first company to implement CSR was Shell in 1998 (Corporate watch report, 2006). With well informed and educated general people it has become a threat to the corporate and CSR is the solution to it. 1990 was CSR as a standard industry with companies like Price Warterhouse Copper and KPMG. CSR evolved beyond the code of conduct and reporting it started taking initiative in NGO’s, multi-stake-holder, ethical trading. (Corporate watch report, 2006).

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