The document discusses censorship in China and the complex issues technology companies face when operating in the Chinese market. It presents perspectives from global business and business ethics on whether companies should comply with censorship rules to gain access to the large Chinese consumer base or refuse on moral grounds. There are benefits and drawbacks to both approaches that must be weighed considering stakeholders, human rights, and corporate values. The situation raises difficult questions about balancing business and ethics in different cultural contexts.

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12. F complex problem CHINESE GOVERNMENT CENSORSHIP

13. F how do government censors patrol the internet? “ Every time a person types in a web address on a computer in China, the request goes through a series of filters. Thousands of censors working for the government use these filters to seek out sensitive topics and block access to sites deemed anti-government. ”

14. F interdisciplinary question

15. F interdisciplinary question What are the consequences of technology companies’ participation in Chinese internet censorship?

16. F personal thoughts Censorship causes blindness. Can you see who is blinding you?

17. F personal thoughts I view the Chinese government’s censorship of information as unethical. Free expression and the free flow of information is a human right. I acknowledge that the Chinese market is very lucrative and that a company’s goals are to pursue growth opportunities and earn profit. The Chinese people should also have access to internet services. However, complying with censorship rules would eventually tarnish a technology corporation’s image and lead them to compromise their values.

18. F disciplinary perspective #1

19. F disciplinary perspective #1 Global Business I chose the Global Business perspective to better understand: • benefits of participating in the Chinese market • policies and goals of companies • expectations of growth • responsibilities to shareholders • economic and social impact Global Business deals with the challenges Western companies face when conducting activities in a culturally different and complicated environment.

20. F disciplinary perspective #2

21. F disciplinary perspective #2 Business Ethics The morality of doing business, specifically in China, requires an overview of: • human rights • freedom of speech • access to information • reflections on company philosophy • impact on the Chinese people • morality of censorship Business ethics addresses with the potential human costs of complying with censorship laws.

22. F key theories: global business Rational Choice Theory • humans act rationally • choices are analyzed by likely costs and benefits • goals: • maximize gain • minimize loss Supply and Demand • price is determined by demand for a product and the supply for a particular price

23. F key theories: global business Opportunity Cost • making a choice means giving up the benefits associated with an alternative choice International Relations • deals with state interactions and policy making • three core principles: • dominance • reciprocity • identity

24. F key theories: business ethics Utilitarianism • the greatest happiness for the greatest number of people • end result determines morality • pleasure -> right • pain -> wrong Social Responsibility • organizations have an obligation to act in ways that benefit of society

25. F key theories: business ethics Stakeholder Theory • corporations are affected by numerous individuals and groups including: • customers • suppliers • employees • media • communities • government • financiers • investors • the goal is to maximize the value for ‘stakeholders’ • contrasts with view that maximizing profit for stockholders is a corporation’s only responsibility

26. F common ground Utilitarianism and Rational Choice An important part of doing business is evaluating the potential costs and benefits of every action and decision. A company’s main goal is to maximize ‘pleasure’, or in the words of business, ‘profit’ and ‘gain’. It seeks to avoid ‘pain’, i.e. ‘loss’ and ‘disadvantage’.

27. F common ground

28. F common ground Pleasure, Profit, and Gain Participating in the world’s second largest economy assures future growth and ability to generate revenue. Companies seek to comply with Chinese censorship laws to gain access to the 485 million Chinese web users. Relations with powerful Chinese government are strengthened by obedience and sensitivity to laws — leading to greater cooperation.

29. F common ground

30. F common ground Pain, Loss, and Disadvantage Disadvantages of compliance: • loss of international reputation • violation of human rights • risk of angering stakeholders • threat of legislation from other countries (namely, USA)

31. F common ground Pleasure, Profit, and Gain An important consideration is technology companies’ stated visions and goals. … a computer on every desk and in every home … — Bill Gates (Microsoft) Google’s mission is to organize the world‘s information and make it universally accessibleand useful. — Google Facebook's mission is to give people the power to share and make the world more open and connected. — Facebook “ ” “ ” “ ”

32. F common ground Pain, Loss, and Disadvantage Failure to comply with censorship laws will result in: • breaking Chinese laws • licenses being revoked • blockage of services and support Not participating in the Chinese market preventstechnology companies from fulfilling their mission of providing services to people from all over the world.

33. F contradictions

34. F contradictions Shareholder vs. Stakeholder Decision-making involves determining whether an action is good for the future and growth of the company. Corporations have a responsibility to generate returns and profits for shareholders. On the other hand, they also have a responsibility towards the larger community and have been charged to value human rights.

35. F contradictions Shareholder vs. Stakeholder Businesses seek to innovate and expand their operations overseas. From a Global Business perspective, this requires complying with local laws, customs, and expectations. From a Business Ethics perspective, however, compliance is dependent on the impact on society and its effect on the interests of those they serve.

36. F integration

37. F integration Weighing Options From the common assumption that all companies desire what is best for their interests: • When doing business in China, companies should weigh the benefits and costs from a rational perspective. • Any analysis of the situation should expand to take into consideration a company’s relationships with all stakeholders, not only shareholders.

38. F integration Definitions Definitions for ‘good’ or ‘evil’ can be expanded to include not only profits or losses, but also social and ethical gains or disadvantages.

39. F conclusion Moral Compromise? Complying with local laws and regulations are an essential part of conducting business worldwide. Companies have a responsibility to acquiesce to the wishes of the government if they want to continue their operations in China.

40. F conclusion

41. F conclusion Moral Compromise? Chinese society certainly benefits from the ‘good’ of increased access to internet services. The ‘evil’ of helping in the obstruction of the free flow of information to citizens must be weighed against the alternative of providing no information at all.

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