Google and the devil went for a beer...
The latest edition of the New York Times Magazine features an interesting piece on Google's entry into China. Although Google is not the first major search engine to operate China (Yahoo conceded to China's censorship demands back in 1999), it's certainly the largest, with the potential to completely overhaul how people in the Communist state use the internet.
The NYT reporter gets access to Google's new man in china, Kai-Fu Lee, a Columbia IT graduate fluent in English and Mandarin who's already worked for two of the world's most powerful technology companies, Mircrosoft and Apple. Lee has obscure little formula that he uses to sum up Google, or Google in China (I'm not exactly which he is referring to and whether there is a difference):
"youth + freedom + equality + bottom-up innovation + user focus + don't be evil = The Miracle of Google"
Now apart form being long and clunky, the "don't be evil" part struck me as odd, especially coming from Google's head in China - that is until I was told that "don't be evil" is the motto that Google's been chained to ever since two guys started up the little search engine back in 1998. Silly me. Making fun of Google for its "don't be evil" motto brings to mind something about shooting fish in a barrel, but it's also been done to death. So I'm not gonna bore anyone with a tirade. But if you want an example, go to www.google.cn (Google China) and search for Falun Gong.
What I'm interested in is whether Google investors, who's stocks are currently hovering at about $US440, consider the little catch phrase a liability or a asset; and whether investors - which includes small mum and dad investors, as well as fund managers and large investment firms - considered the "don't be evil" phrase when they signed up for the google float. And more importantly, whether those people and firms snatching up Google shares today, who have a lot more to lose than the ones who signed on at the start, take the "don't be evil" ideal into account.
I'm sure there's a formula analysts use to determine branding and reputation values for any given company; but what would be the effect on Google shares should, say, eventually Google happen to forget to include their famous phrase in their annual report, and it's never seen again? Shares up or shares down? If you assume the majority of investors (major financial firms and large corporations) have a no problem investing in stocks and companies who may be making their cash on the backs of what some would describe as amoral pursuits just as long as it helps the share price, the then answer would be that the share price would jump. Just imagine not being lumbered with this "don't be evil" weight: as a company, you've essentially got a mandate - just like all those other public companies who don't have statements telling them not to harm cute kittens or dress in black - to evil it up.
What I'm getting at is, that although Google has allowed China to dictate what the world's most ubiquitous and powerful search engine puts in front of China's billion plus internet users, it's still a company regulated by a market that doesn't like - especially after Enron and HIH - to be seen acting amorally. As a public company, you don't need to have "don't be evil" written into your constitution to be a public company acting in good faith. It's just that those who are buying the stocks would like to know that, if, on the off chance a decision needed to be made that wasn't completely ethical, their stocks aren't weighed down by a tiny phrase that could cause them a lot of embarrassment. But then again, Google made it to China and they're going gangbusters.