Girish's response :
The Chinese government gains a lot by having the likes of Google in China. Why is Google so popular? They believe to have some of the best search/indexing technology, and not to mention their innovativeness in services provided. This summer I did an internship at Microsoft Research, where there is a big group working on MSN search (Google's competitors). You wouldn't believe -- it's no secret that much of their goals is just to keep up with Google. The web-search problem is really complicated --- how do you keep up with millions of possible requests that have to be serviced every second; well, you have a multiple server clusters, duplication of databases, fault-tolerance etc etc etc --- maintaining all this is non-trivial (sidebar: definitely no objective reality here, Kanags ;)). Bottom-line, Google's strategies and techniques are top-notch, and the rest of the industry just fights to keep up with them. For example, Google is one of the best when it comes to fault tolerance -- when a server goes down, the system can automatically shift to another cluster. Others do this too, but there's a limit -- when the fault is really high, human intervention is needed; currently, the fault tolerance in Google servers and databases are the best in the industry. So, to make a long story short, "what does it take for Chinese government to build a search engine?" -- A LOT, esp if you want Google quality. In fact, the reason Google is objecting to Bush's requests is not just because of protecting privacy; it is generally agreed in the industry and in the media, that the reason they resist is because they don't want to expose trade secrets. Others, MSN search and Yahoo, obliged to Bush; Google is the leader, and they don't want to give anything away.
"On a broader level, should companies that operate from the free world stop doing business with repressive countries?"Yes, that's my opinion. For example, Burmese military regime is terrible. They are amongst the most repressive in the world -- you have to learn about their repression and empathasize with the population to understand. If you apply economic sanctions on them, then the regime becomes weaker, and will re-think their strategy; if you acquiesce to them, you are making the more comfortable and possibly more repressive.
"people cite IBM's watson's supposed link with Hitler but isnt that again just one side of the story."Supposed?? Wake up, kanags, it's a well-known fact -- nobody including IBM denies this."The other side is that ibm's german subsidiary was taken over by the nazis in 1941."That is not the other side --- that is a consequence of dealing with a repressive regime.
"i just dont have all the facts to say that ibm's business in nazi germany was against a corporate ethics, to say it was money over integrity."What is your definition of corporate ethics? Does it even exist beyond lip-service? IBM knew exactly what the Nazis were upto, and knew exactly what their machines were used for -- damn they were in Germany setting it up as the Jew who was going to be massacared, had to say his personal information which was recorded using IBM machines. This is the most extreme form of repression -- I doubt we will ever see anything like this. If this doesn't spell it out for you, then I don't understand what you mean by corporate ethics. Get real, man!
"if there was a higher ulterior motive to get in there and make a slow change"My answer to that --- keep dreaming. I am yet to hear of a corporate entity in the history of commerce, that gives up huge chunks of revenue on moral grounds. Actually, Kanags, probably you should give me some examples -- I'm getting more and more cynical -- need some hope. And, I'm not talking about silly PR promos and lip-service. I'm talking about genuine moral concern.
"i do know that in the US, if i am not making profits, my company will be taken to task by the share holders, by the same free market system that we are so wanting to build and sustain and whatever value i am creating in the society for the betterment of people will be at risk.. So i would go into to china if i was in their position."EXACTLY!! That confirms my argument that corporate ethics is dead. Genuine corporate ethics should be willing to take losses to stand by their moral beliefs. When you give in to share-holders and profits, then you have given up. And, on the flip side, I think it is the lazy and greedy corporate that gives in so easily. I think the smarter corporate would sustain themselves despite standing by their moral beliefs -- again a reference to the "greedy algorithm" from my last post."get into china and be open about what i censor, but not agree to share private information"Nope. Google won't protect privacy info in China -- not gonna happen. If this was true, I wouldn't be complaining. This non-protection of privacy data leads to arrests of dissenters, and people who speak against the government. This has already happened thanks to Yahoo and MSN search.
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My take:
The world as we both agree is not a utopia. It is always a balance between good and evil. Girish, you have in the past argued that grey areas exist everywhere. I am in my arguments talking about these same grey areas. Why do u not see that what google did falls under this grey area rather than portraying it as black or white.
Note that i am not saying yes going in with arms wide open to buy and sell stuff in repressive regimes is the way to go. All i am saying is there is a balance. Sanctions in my mind is not the right way because i dont think we are achieving anything. Let us take googles technology itself, yes google is the best and chinese will not be able to use the best technology if it were not present there, but my argument is if that that country is not so backward in technology that they cant do a search engine themselves. it might not be a google but it will work and it will only return results the government wants. So u are not really solving anything by not going in. may be the so called free world massages its ego in that decision.
u might want to look at mazlows hierarchy of needs. Sanctions on the basic needs might bring a government to its needs but china is sufficient there. My opinion is sanctions in any way is not a way to go. Who suffers when there is a sanction? the repressive elite? no.. its the poor who suffer.. u sanctioned iraq for 10 years.. who sufferred? saddam or the man on the street in baghdad? the world changes at its own pace and each situation needs a different solution. and let us face it, the US law makers who are shouting their arse off about google are the same ones who gave china the MFN status in the early 90s even at the height of the T square incident. where did their social responsibility go at that time?
About IBM and Nazism, man there is no proof!. as i said i am not exonerating them nor am i crucifying them. Per laws defined in the same free world, u need to be guilty beyond reasonable doubt.. i dont find one guys arguments as substantive. Maybe Watson was greedy and that is defn wrong considering what happenned, but my other side of the argument is something u never answered. What if the US turns to extreme extreme right, something worse than the Bush government, some government that declares emergency and infringes on individual rights more than what is currently done.. dont tell me it cant happen.. no one knew what nazi germany and hitler were capable of when they took power in 1933. and only in 1939 did the us declared war on germany.. do u think the corporates in the usa shud move away frm that market and not operate from the US because there is a possibility of such regime in the future thanks to Karl roves and the skewed definitions of the doctrine of morality and free world?
corporate ethics is defined by the organisations value system. Agreed there are some basic tenets of goodness defined but we both know that there is no two persons with the same value system or marality. So one man's ethics is another's greed.. isnt that always true? Yes, not cheating the stake holders is a ethics to be upheld, not going agains what you said u will do is to be upheld, not polluting the environment more than agreed upon carbon credits is to be upheld.. There are parameters within which an organisation works. Let us face it man, the world is not perfect. The anti capitalists and anti globalists, environmentalists keep shouting from there saying u are killing the planet, let us go back to stone age. on the other side u have the corporates some of which are greedy and some of which are moderate. You have these two on two sides of the scale. the question is balance. You cannot expect a world to do away with the need to run an economy and drop everything and do a mahatma gandhi (wear khadi and spin cotton and do agricultural sustainence).. that is an extreme, also one cannot expect the world to be based only on materialism and making more money... i say Choose a lesser evil for greater good and let the world have lesser moral policing.. I agree most corporate are greedy and have short term considerations in the mind and this is a serious issue which the management crowd has been debating on how to resolve and there is a whole set of initiatives under corporate social responsibility. Yes in the longer run, the stock market does pay u if u are ethical. enron is an example , world com is an example.. the stock market lost faith in these companies when the leaks happenned.. and if u take a look at the stock market, there have been cases of companies falling because of wrong practices..
i dont believe corporate ethics is dead. i believe that the corporate bashers demand an extreme while not understanding and appreciating the problems and demands a corporate faces.. Run a company where u have to ensure survival of the company and pay for 60 employees and go to sleep with the thought that if u screw up these 60 guys will be out of a job.. then u know how tough it is to balance ethics and morality versus existence. it all comes down to mazlow's hierarchy of needs. no one talks of environmental issues in a developing country cos people want the basics. its only in developed countries does environmental issues come to toe fore because they have the basic needs fulfilled. it works like that.. i am not saying i will sell my value system but i have no qualms in saying that if i have to pay 6000$ bribe in india to ensure that my office is up and running fast so that i can pay these employees and create value, i will do it, even if god (if there is one) puts me in hell for that. cos thats the price i pay to ensure that i can create value. i can stay away by not paying that bribe but i am not doing justice.. one the other side, if i am asked to pay a bribe or a cut to get the business from a client i will never do that. my value system allows the former but not the latter. thats my mazlows table. u might question that both are wrong, I agree a wrong is a wrong, i am not denying that, all i am saying is i weight my wrongs against my value system.. yes u will argue that anything can be justified, sure i agree, but as i said its the question of ones value system, what is wrong for u might be right for me and thats the story..its all relativity and as morrie says conflict between the extremes it is always..
by not going in to china, google might loose market, loose to competition and in the longer run it might lead to this organisations competitiveness being threatened which means a loss of a lot of value in terms of jobs, or even the technology that was created. by not going in there you are not helping anything, china will stay the same in the short term whether google goes in or not so there is no difference. by going into china, i am not killing someone, i am not cheating someone, i am not destroying value. yes i am giving away some of my freedom of operations in following some regulations, but that is the world.. didnt the USA sign the patriot act after sep 11.. wasnt I called in for "random" checks whenever i boarded a flight(the other question is random checks happened on all flights i travelled for me), but thats a price i pay for making sure i am safe.. similarly i think googles move is a price they pay for betterment of society. In my view there is no society in this world which is not repressive one way or the other, its question of relativity again.
And by the way, do u know of these "repressions of facts" in the so called free world : France and Germany require censorship for Nazi sites, and the U.S. requires censorship based on the Digital Millennium Copyright Act. These are local Laws. How is google following local laws in China any different?
As for the 9 dollar fall that is because of earnings were below expectations. And as for the examples of corporate ethics and corporate social responsibility goes here they are.
Merck and Mectizan:On October 21, 1987, Merck & Co., Inc., announced plans to donate Mectizan (ivermectin), a new medicine designed to combat onchocerciasis ('river blindness'), for as long as it might be needed. Merck took this action, working in collaboration with international experts in parasitology, the World Health Organization, and other agencies to reach those affected by the illness. You can find more information when do a google on Merck and Mectizan. Some insider information based on a case i studied at school. When Merck developed this drug, everyone from WHO to all NGOs refused to distribute it citing costs. Finally Merck distributed the drug itself..
‘Access to Electricity’ programs initiated by ABB as part of its Corporate Social Responsibility Activities in a few less developed parts of the world. The program was begun at Ngarambe, a village situated near the Selous Game Reserve in Tanzania. Here, the program was able to bring electricity to Ngarambe and besides, the electrification project helped in the economic and social development of the village while taking care of environmental concerns. ABB used the ‘Access to Electricity’ project as a learning experience and committed itself to undertaking more such corporate social responsibility activities with the long term aim of generating stable revenues.
Read about J&J's costly but
efficient recall program when Tylenol got laced with cyanide. company could have held the line that the contamination happenned outside its manufacturing process as it was established but thats not CSR.
These are just some i know of. Of course, I can also cite a list of Corporate Social Irresponsibilities by corporations examples include the case of Ford's Pinto, to Nike's labor policies etc to name a few. I do agree that the number of cases of CSIR are more than CSR as management is constantly caught between the need to make short term profits versus greater good and my stance is one cannot expect a black and white path or demand a black and white path. the road is going to be grey. What i see however in the world today is cynicism, which i believe is a besetting sin of those who claim to be upholding "morality" and "virtuosness".