Google and Corporate Governance

MGT 410

Final Essay

Google

There are a few companies who embody certain aspects of business such as Corporate Governance, Social Responsibility, Environmental Scanning, Human Resources, and Evaluation & Control. Although you can pick a company that embraces one or two of those categories, just a few embraces all. I picked Google to speak about because this company has strong social responsibility policies and that makes a huge impact on society. Google is a technology leader and is focused on improving ways people can connect with information. Being the top internet destination, it is available to anyone with an internet connection and maintains the worlds largest online index of websites.

Google and Corporate Governance. The term corporate governance refers to the board of directors, shareholders and top management’s relationship in determining the direction and performance of the corporation. Google has a list of corporate governance guidelines to provide structure where directors and management can peruse Google’s objectives for the benefit of the stockholders.

“We are committed to maintaining the highest standards of business conduct and corporate governance, which we believe are essential to running our business efficiently, serving our stockholders well and maintaining our integrity in the marketplace. We have adopted a code of business conduct and ethics for directors, officers (including our principal executive officer and principal financial and accounting officer) and employees, known as the Google Code of Conduct. We have also adopted Corporate Governance Guidelines, which, in conjunction with our certificate of incorporation, bylaws and board committee charters, form the framework for Google’s corporate governance. The Google Code of Conduct and our Corporate Governance Guidelines are available at investor.google.com “(1)

        There have been many arguments for years debating whether or not a corporation should have any social responsibility. Lets explain what it is before I go on.  CSR refers to a business practice that involves participating in initiatives that benefit society. Some examples are waste and pollution reduction processes, and contributing to educational and social programs. I think corporations have a duty to act as a moral agent and should embody Social Responsibility.

        Critics of CSR viewpoint is that it dilutes the primary aim of the business and restricts free market goal of profit maximization, as we learned in class that Milton Friedman is one of those advocates.  Though I see where they are coming from, CSR gives companies a chance to address certain issues that are caused by businesses. Google has gained a reputation for being outspoken on a number of social issues. They have been committed to addressing certain issues such as climate change and supporting earthquake relief efforts. They have a huge number of charitable events including blood donations, community service, donating used desktops and computer accessories to Green Computer Action for Poverty Alleviation” and much more. Also, Google Green is a corporate effort to use resources efficiently and support renewable power. But recycling and turning off the lights does more for Google than lower costs. Investments in these efforts have real-world effects on the bottom line. Google has seen an overall drop in power requirements for their data centers by an average of 50 percent. These savings can then be redirected to other areas of the business or to investors. You don’t have to be a Google to benefit from being green. Installing energy-efficient lights, allowing telecommuting, and recycling will not only improve our world, but companies would see more cost savings, which will contribute to the bottom line.