In a modern corporation, strategy at any level is an important issue in the history and tradition of any society irrespective of its level of development. People started contemplating and viewing the process of strategy and strategic thinking in ancient times. Google is one of the most successful companies based on innovative solutions and approaches to business. Google was founded in 1996 by Larry Page and Sergey Brin. In 13 years, Product expansion and market development were the main strategies followed by Google since 2001. For instance, in 2001, Non-English searches involved ten languages, and increased to 120 languages in 2006. Google created a directory, organized by volunteer editors and created wireless Search. Strategy is defined as “the plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organistion attain its goal” (Samson & Daft, 2009). Corporate Social Responsibility (“CSR”) is defined as “The social responsibility of business encompasses the economic, legal, ethical and discretionary (philanthropic) expectations that society has of organizations at a given point in time” (Sims, 2003). This essay will be going to discuss the five strategies of Google and argue how these strategies approach to its Corporate Social Responsibility. First of all it is going to discus Google’s donation program provides support for local communities and poor countries, secondly Google’s marketing strategy, thirdly Google is conducting supporting laboratory research, fourthly Google is involved in climate change projects and finally it is going to discus Google’s strategy of employees. Overall this essay shall argue that Google is undertaking CSR when it operates organistion’s strategy.
Google worked hard at supporting local communities and poor countries. “In China, social issues may have included education, poverty alleviation, disability aid, healthcare, women and children, arts and culture, and community development. Through project evaluation, mentorship and funding, we hope to play a role in driving true social innovation in China” (Google Home Page, 2009). This appears that for Google the CSR is indeed practical, because Google supports its behavior by decisions that rely on its understanding of what is good and bad. In this case Google is involved in individual interests which are promoted by people but to the degree their realization does not harm other members of the society (Whittington, 2000). Thus, it states that any individual is supposed to take an active part in the life of the society, but not to concentrate on oneself only, for if all people unite and behave in an ethical way and act for the benefit of all society members irrespective of their background, but not act selfishly and on their own account, the society will change for the better (Ireland et al 2005). This can understand that why Google applies itself to support local communications and poor countries. Specifically, a decision-making approach followed by Google involves (1) concentration on profitable sales volume; (2) recognition that selling activity begins before products are manufactured; (3) an executive at the highest echelon to assure that customer consideration and customer orientation are in force, (4) designing and producing what the marketplace will want rather than selling what the corporation prefers to create; (5) decentralization of decision-making to bring organizational units into line with marketplace forces. As can be seen with Google, its activities of supporting local communities and poor countries attempted to act CSR.
Google’s marketing strategy embodies that its strategy is based on effective segmentation and product mix. Since the beginning of its market formation, Google established effective systems of market intelligence, relying heavily on marketing research. Google made an emphasis on market price rather than on cost in determining to price and making related decisions. It creates programming innovations so that new services are developed that meet market needs more adequately and gives emphasis to both the psychological and physical dimensions of a product, including packaging, design, styling, and product image. Google recognized the carry-over of marketing influence on other areas, such as finance, traffic, production, personnel, and accounting; and recognized the fact that markets can be discovered, extended, developed, and created through the use of marketing tools and effective marketing programs (Google Home Page, 2009). Google’s marketing strategy indicates that most business managers and people should believe in the Golden Rule and use it as their most important guide to ethical behavior. In simple terms SCR basically mandates people to treat others as they themselves would like to be treated (Grant, 1998). If you want to be told the truth then you tell the truth; if you want to be treated fairly, then treat others fairly. Since most countries and religions of the world have some form of belief that comes close to the part of the Golden Rule that relates to treating others as you want them to treat you, then in theory if properly adhered to it can personalize business relations as well as bring fairness into business. The only problem with this is that unless all parties involved also believe in and adhere to the Golden Rule there may be marked difference in what constitutes fairness, love, charity, and justice between the parties whenever any exchange situation exists. Without a common foundation upon which to build, there are bound to be many differences and many problems (Clegg et al 2005).
Google supports laboratory research in different areas of science and medicine. “Since its inception, we have supported hundreds of organizations in advocating and promoting their causes, from animal rights and literacy to abandoned children and HIV education” (Google Home page 2009). In the context of ethics as a crucial element of Google’s behavior and attitudes towards society, this strategy plays a significant part. This type of strategy is defined by “attentive concern for the relationship between persons” (Amit & Schoemaker,1993). It occurs between two or more individuals who see each other and it can be both verbal and non-verbal, as well as both one-way and two-way. Google’s support of laboratory search is not subject-object interaction, but a more serious interaction that implies mutual approval of companions. Meanwhile, it is considered that Google places a serious importance on responsibility towards the relationship of companions. And in the context of the strategy, interpersonal responsibility means each companion is committed to “active care for the interpersonal relationship owned by neither and nurtured with or without the support of the other” (Amit & Schoemaker, 1993). Thus, it is definitely seen that Google is committed to the interpersonal responsibility when it supported the laboratory research.
Google is involved in climate change projects. For Google, these projects in particular play the key part in the formation of CSR. Climate change projects are the main priority for Google (Google Home Page, 2009) When Google CSR is examined, it is usually an essential part of internal relations. For this reason, the impact of a company’s operation is viewed in conjunction with its influence on society and environment. Google’s strategy of business dealing may have its impact on the company’s environmental and societal footprint. It is believed that it can be good, if CSR of the company is integrated in the processes of work such as investment or decision-taking. Furthermore, successful partnerships may depend greatly upon the politics of CSR the company conducts, such as connected with its influence on the environment and society (Whittington, 2000). This happens because of the fact that any corporation consists of individuals, who help it work and progress, and thus, their CSR impacts the corporate operations at all levels and in all forms. Any employee makes one’s contribution in CSR, and as a result, the social, environmental as well as economic goals of the company will be reached (Grant, 1998). Therefore, the contribution of the climate change program by Google proves that Google is socially committed to CSR.
Google developed a unique strategy aimed to support and develop employees. As well, supporting the company in difficult economic situations and being committed and loyal, the employee can improve the company’s economic situation (Google Home Page, 2009). This is proof that CSR depends on the individual social responsibility of the company’s employees (Thompson & Martin, 2005). Strategy within Google implies a strategy of employees of an organization, who work in certain organizations and realize their kind of group social responsibility. In this case, the CSR of people is to improve the society, and people operate in groups and share the same ideas and ideals (Gardiner, 2005). For Google, CSR is a crucial thing for the society to be consistent of adequate people who understand what is the best for the society and who are committed to what they do. Google’s employee strategy implies an individual’s or a group’s responsibility to society in general, and to each of its members in particular and to the environment. And in this context, it is necessary for every person to understand and live to one’s social responsibility (Pittengrew et al 2006). Furthermore, a “good corporation” will presume corporate sincerity toward its employees, customers and shareholders concerning the protection of their rights and interests in addition to the environmental protection. The Good Corporation Standard becomes more and more important to Google and causes Google behaves in a transparent and responsible way in regard to employee strategy. In this case, Google integrates employee strategy into its corporate strategy models and implement this strategy to undertake its CSR.
In conclusion, Google acts as socially responsible organisation involved in such strategies as donation programs, support for local communities and poor countries, protection of animal rights, exercising unique marketing strategy, supporting laboratory research, participating climate change projects and the approach of supporting and developing employees. As above, it has been argued that Google’s success and stable market position depends upon its strategies and influence of CSR and strategic approach to business. CSR helps Google to gain a large market share and attract millions of customers around the globe. The example of Google Corporation suggests that ddespite the widespread assumption that Corporate Social Responsibility (CSR) is a concept where corporate organizations take responsibility for the impact of their business activities on the environment, employees, customers, suppliers, shareholders, and the society as a whole, there are opposite opinions that CSR is only profit maximization of the owners. Thus, it is largely believed today that CSR might be misused when some corporate organizations are involved in CSR activities in order to “convert” their social responsibilities into business opportunities. Corporate social responsibility will continue playing an important role in the future of corporations. He emphasizes that as a business management tool the Corporate Responsibility Index will allow corporate organizations to measure their progress in corporate responsibility and compare their business activities with other companies in the field in order to become more socially responsible in their business practice. Today, more and more companies become eligible to participate in the generation of ground-breaking new initiatives, which gives hope that in the future corporate organizations will use the CSR concept more wisely not to maximize the profit, but to increase benefits of the society (Whittington, 2000) The future attributes of a “good corporation” will presume corporate sincerity toward its employees, customers and shareholders concerning the protection of their rights and interests in addition to the environmental protection. The Good Corporation Standard developed in 2000 becomes more and more popular among the large multinational corporations and causes them to behave in a transparent and responsible way. The true meaning of CSR should still remain as the improvement of the environment and well-being of consumers, employees and shareholders. In this case, corporate organizations can integrate CSR strategies into their business models and implement those strategies to solve community problems only if organizations do so voluntarily without following certain business purposes or being forced to apply CSR by other entities.
References
Amit, R., & Schoemaker, P. (1993). ‘Strategic Assets and Organizational Rent’, Strategic Management Journal, 14: pp. 33-46.
Clegg, S., Kornberger,M., & Pitsis.T.(2005). Managing and Organizations: an introduction to theory and practice, Sage, London.
Cole, G. A. (1998), Strategic Management. Thomson Learning.
Dobson, P., & Starkey, K. (2004). The Strategic Management: Issues and Cases. Blackwell Publishing.
Drejer, A. (2002). Strategic Management and Core Competencies: Theory and Application. Quorum Books.
Gardiner, P. (2005). Project Management: A Strategic Planning Approach. Palgrave Macmillan.
Grant, R. M. (1998). Contemporary Strategy Analysis, (3rd ed). Oxford: Blackwell.
Google Home Page. 2008. Available at: www.google.com
Ireland, R. D., Hoskisson, R. E., Hitt, M. A. (2005). Understanding Business Strategy. South-Western College Pub.
McDonald, M., Christopher, M. (2003). Marketing: A complete Guide. Palgrave Macmillan.
Mintzberg, H., Lampel, J. B., Quinn, J. B., Ghoshal, S. (2004). The Strategy Process. Pearson Education.
Pittengrew, A. M., Thomas, H. Whittington, R. (2006). Handbook of Strategy and Management. Sage Publications.
Sims, R. R. (2003). Ethics and Corporate Social Responsibility: Why Giants Fall. Praeger.
Thompson, J. L., Martin, F. (2005). Strategic Management: Awareness, Analysis and Change. Thomson Learning.
Whittington, R. (2000). What is Strategy and Does it matter?, Thomson, London.