Refer to Case 7: Google: The Quest to Balance Privacy with Profits How will increasing global regulation of privacy affect Google’s operations? The CEO of Google has tasked you with developing a privacy plan to share with government officials. The difficult part of this plan is trying to balance user privacy with Google’s need to collect information to improve its services. Suggest some recommendations you think would be acceptable to the CEO. Be sure to address: Google’s strategy that serves all stakeholders How Google can respect privacy and still maintain profitability
Refer to Case 7: Google: The Quest to Balance Privacy with Profits How will increasing global regulation of privacy affect Google’s operations? The CEO of Google has tasked you with developing a privacy plan to share with government officials. The difficult part of this plan is trying to balance user privacy with Google’s need to collect information to improve its services. Suggest some recommendations you think would be acceptable to the CEO. Be sure to address: Google’s strategy that serves all stakeholders How Google can respect privacy and still maintain profitability
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Refer to Case 7: Google: The Quest to Balance Privacy with Profits
How will increasing global regulation of privacy affect Google’s operations?
The CEO of Google has tasked you with developing a privacy plan to share with government officials. The difficult part of this plan is trying to balance user privacy with Google’s need to collect information to improve its services. Suggest some recommendations you think would be acceptable to the CEO.
Be sure to address:
Google’s strategy that serves all stakeholders
How Google can respect privacy and still maintain profitability

Transcribed Image Text:4:42 PM Fri Jun 9
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CASE 7 Google: The Quest to Balance Privacy with Profit*
INTRODUCTION
Google's ease of use and superior search results have propelled the search engine to its number one status, ousting the early dominance of
competitors such as WebCrawler and Infoseek. Even later offerings by other large tech companies using comparable algorithms, such as Bing by
Microsoft, have failed to make significant inroads, with Google retaining an impressive 65 percent global market share. As Google gained
popularity, it began expanding into a number of different ventures, including multiple advertising platforms, a digital book publishing space,
and social networking. It has spent billions to acquire hundreds of companies in a variety of industries, from robotics to smart home devices to
intangibles such as voice recognition technologies. Approximately 3.5 billion searches a day are performed through Google's search engine.
As is common with most large companies, Google has experienced its share of ethical issues. Its mantra "Don't Be Evil" was called into question
after it allowed the Chinese government to censor aspects of some of its sites in order to enter the market. Google has also been investigated and
sued by multiple governments based on concerns that its widespread reach and market power violate antitrust laws.
The hot ethical topic on many Internet users' minds, however, is the company's approach to Internet privacy and collection of user
information. To improve the effectiveness of its services, including customized search results, targeted ads, and more precise integration of its
various offerings, Google tracks and leverages user information without explicit permission (although Google's privacy statement informs users
about the recordkeeping, and Google does allow users to opt out of some forms of tracking). Such tracking is common practice for Internet
companies, but Google's deep access to so many different types of user information, as well as the seemingly dismissive attitude it has sometimes
exhibited toward the public's concern, has led people to question whether Google violates its users' privacy. In light of the increasing amount of
cyberattacks and the government's determination to crack down on these illegal attacks, consumers also worry their private information,
tracked and stored by Google's algorithms, might be compromised.
This case analyzes Google's efforts to be a good corporate citizen and the privacy issues the company has faced. The analysis starts by providing
background on Google, its technology, and its initiatives. Google's core principles will be discussed as well as its efforts to be a socially
responsible company. We then discuss the criticisms levied against Google, including its initial attempts to break into the censored Chinese
market, its tracking of users, and more recent changes to its privacy policies. We examine how Google has sometimes clashed with government
authorities. Finally, we review some of the legal methods that have been proposed to regulate Internet data collection practices and Google's
response to the proposals.
COMPANY CULTURE
QAA
Google adopted a decentralized approach to empower its employees. Its corporate headquarters in Mountain View, California, is known as the
Googleplex and consists of a campus containing such amenities as on-site gymnasiums and swimming pools, an outdoor volleyball court,
laundry services, and even high-tech "nap pods" for optimized downtime. When Sergey Brin and Larry Page founded the company, they
recognized employees had to put in long hours to make the company not only successful but flexible enough to adapt to the changing
environment. Thus, Google employees are provided with benefits to make the complex their second home. The company strives to make its
corporate culture fun and innovative. In fact, two of its core principles, "You can be creative without a suit" and "You don't need to be at your
desk to need an answer," demonstrate the company's divergence from a more formal office environment. The company's 10 core principles are
outlined in Table 1.
At the same time, Google works to ensure it has top talent at the company. While it reinvents the office experience, it also takes different tactics
in recruiting to ensure it hires the most creative, talented individuals. For instance, Google recruiters take a bottom-up approach when reading
résumés. Recognizing that top items such as education and work experience do not always guarantee the applicant is innovative, some Google
recruiters start at the bottom of the résumé where applicants put more creative information. This type of mentality-being more concerned with
hiring creative people than those who excelled in school-meshed well with Google's famous informal policy of allowing employees to spend up
to 20 percent of the workweek pursuing their own unique projects. Not only did this policy make employees feel empowered, it led to some of
Google's standout products including Gmail and key improvements to AdSense. However, in 2013 this "20% time" policy was largely
discontinued after Google determined it was splitting its focus among too many projects. It decided to commit itself to
f to putting "more wood
behind fewer arrows." Nevertheless, Google's innovative company culture is one of the major reasons why it has become successful in so many
different market niches.
TABLE 1 Google's Ten Core Principles
Focus on the user and all else will follow.
It's best to do one thing really, really well.
Fast is better than slow.
Democracy on the web works.
You don't need to be at your desk to need an answer.
461/642
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