CASE 7
Google: The Quest to Balance Privacy with
Profits
CASE NOTES FOR INSTRUCTORS
Google started off as an Internet search engine that found its success in the use of an algorithm that
ranked searches according to relevance. Since then Google has made a path for itself in other areas such
as social networking, advertising, and mobile phones. Because of Google’s unique position as the top
Internet search engine and because it has grown to be such a large company, it has had to deal with
several ethical issues such as copyright infringements, Internet privacy, and government censoring.
In each of these instances, Google has claimed that privacy is a serious matter. However, privacy
incidents have continued. For instance, users found that when they joined Google Buzz, their contact list
on their Gmail accounts were transferred to Google Buzz and made public. This has sparked
investigations by regulators and resulted in mandatory privacy audits for Google. This case therefore
gives students a unique look into how a company struggles to be an ethical organization and yet still
faces a number of ethical issues, particularly in an industry where there is not yet many government
regulations determining how marketers can use or collect information online.
QUESTIONS AND DISCUSSION
1. How can Google use its power to improve the lives of its stakeholders?
The corporate culture that Google has established is improving the lives of its employees with all the
benefits it offers (massages, lunches, daycare, laundry, etc). This allows the employees to be able to
96 Case 7: Google: The Quest to Balance Privacy with Profits
2. Do you feel that there is any way Google can respect privacy and yet still maintain its profitability?
The answers to this question will be subjective. Most students will likely say yes, although some
students might believe that Google is already respecting privacy the best way it can while still
remaining profitable. They might argue that giving up some privacy is the price that users must pay in
3. What are some of the effects government regulation of the Internet might have on Google’s
operations?
Government regulations of the Internet would change the way Google does its advertising and would
ADDITIONAL RESOURCES