In This Issue
Editor's Note
Making Difficult Decisions on Entering and Leaving Markets
When Google announced its plan last month to "review the feasibility" of its business operations in China, the company placed human rights concerns at the center of its decision. "We have decided that we are no longer willing to continue censoring our results on Google.cn," Google's Senior Vice President of Corporate Development and Chief Legal Officer David Drummond wrote in a blog post. For Google, this may mean shutting down its search engine and offices in China.
This week, BSR President and CEO Aron Cramer and Dunstan Allison Hope, who directs our ICT practice, discuss Google's decision, exploring the dilemma companies face when deciding to enter or leave tough markets.
Read what others have to say about Google’s decision in a selection of quotes from NGOs and others.
Finally, read about a new report on why (and how) an increasing number of companies are embedding sustainability into all aspects of their business.
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In Depth
Should You Stay or Should You Go? What’s the ‘Right’ Decision on Entering or Leaving a Market?
By Aron Cramer, President and CEO, BSR; Dunstan Allison Hope, Managing Director, Advisory Services, BSR
Google's recent announcement to reconsider its presence in China has highlighted a difficult question: When it comes to human rights issues, is it more responsible for companies to leave the market in protest or stay in support of progress?
Read more →
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Toolbox
Sustainability Increasingly Seen as Strategic
A new report by the Economist Intelligence Unit explores why and how more companies are embracing sustainable practices as core elements of their strategy, how they are embedding corporate responsibility into all aspects of their business, and how they are measuring and reporting on their success. According to the report, 87 percent of executives polled agree that sustainability will become more important over the next three years. Yet only 24 percent of executives surveyed believe there is a strong link between sustainability and financial performance in the short term (one to two years), while 69 percent believe the link is strong in the long term (five to 10 years).
The report is based on a survey of more than 200 executives in finance and corporate social responsibility. Key findings include:
- Executives are increasingly recognizing business opportunities in sustainability.
- The poor business climate is an obstacle to pursuing sustainability.
- Companies are embedding sustainability into various corporate functions.
- Only about half of all companies report on their sustainability progress.
- Cash incentives are not widespread but are growing.
On the Record
Responses to Google’s Move in China
Following Google's decision last month to reconsider its presence in China due to concerns about human rights infringements related to security, privacy, and free expression, the Business and Human Rights Resource Centre collected a selection of commentaries and articles on the subject from NGOs, the media, and others. Below is a sample of those responses.
"Google's decision to reconsider its business in China is an indication of the tough choices information and communications technology (ICT) companies face around the world where respect for human rights is at risk."
—Global Network Initiative statement on Google's new approach to China (January 14, 2010)
"A transnational attack on privacy is chilling, and Google's response sets a great example. At the same time, this incident underscores the need for governments and companies to develop policies that safeguard rights."
—Arvind Ganesan, Director of Corporations and Human Rights, Human Rights Watch (January 12, 2010)
"[Google's] influence on the Chinese internet industry goes far beyond its role as a search engine; mostly thanks to its strong power of innovation. … The existence of Google in the Chinese market was always regarded as a motivation for Chinese internet ventures' efforts to innovate. Without Google, such motivation … would be gone."
—Lu Bowang, Managing Partner, China IntelliConsulting Corp. (Wall Street Journal January 13, 2010)
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