Contemporary business ethics determines the role of the social responsibilities of the companies that has become immensely important. The importance of this phenomenon became evident for the manufacture-oriented business entities in the early 1970th of the 20th century, when the leading environmental scholars, politicians, and activists of the environmental-friendly organizations launched an immense campaign aimed at the preservation of the nature and maintaining the equilibrium between the ecological systems and pecuniary interests of the business entities.
Nowadays, the global business entities are rather internet-based than manufacture-oriented. However, with the fundamental changes in the money-generating cycles of the enterprises, the essentiality of the social responsibilities is no less important, although, several important changes took place in its system and structures as well.
The elements and brief outline of the social responsibility declaration of the business entity is usually encapsulated in what is known mission statement of the company. The objectives of this paper are: to provide an analysis of the mission statement of the Google Inc. and Yahoo, to provide a comparative study thereof, to evaluate the qualities of the both companies, and to provide recommendations in order to improve the quality of the mission formulation and the implementation as well. The paper equally addresses the issues integrally connected with the way the social responsibility and mission statement of the companies define and channel strategic decisions of the companies. The “vision” of the both companies and its concordance with the existing environmental and public interest standards are deeply analyzed.
The second part of the paper is more closely focused on the social responsibility declaration and its implementation of the Google Inc. The paper explicates the nature of the activities conducted by this business unit, and infers whether these activities really meet the necessities of the community.
The latest sections of the paper are to provide a SWOT analysis of the Google Inc., and a proposition on how the weaknesses of the company can be turned into its strong points.
Pride and his associates (2008) defined the mission statement of a company as an encapsulation of the main elements, which amplifies the reasons of the company existence. The most popular is the practice of the commercial entities when the aim for existence, the main customer of a particular business entity, the nature of the proposed goods or rendered services and the way they are delivered are fixed in the mission statement of the company (Pride et al, 2008). The main objective of the company mission statement is to serve as a set of guiding principles which determine the subsequent development of a business unit and which is used by the management of this particular entity to adopt proper internal and external managerial decisions and to elaborate the respective managerial policies.
The mission statement of the Google Inc. is defined the following way: “Our mission is to organize words information and to make it universally accessible and useful.”
The major competitors of the Google Inc., Yahoo formulated their mission statement as follows: “the aim of our existence is to be the most essential global Internet Service for consumers and businesses.”
Although outwardly both mission statements do seem to be simple and unsophisticated, they clearly define the main reasons for these units existence.
Both mission statements explicitly accentuate the fact the reviewed companies are focused on the development of informational technologies, and the main service of the both is the provision of information (May et al, 2007). It has given giants the opportunity to explore and develop each sector of the industry which is somehow connected with the information. As far as the customers’ base of the units is concerned, Yahoo clearly designed that the company serves the interests of the consumers and the businesses. Google leaves the question of the customer’s base open. Following this principle Google provides services equally to the business entities, to the individuals and to government entities as well as collaborating with research institutions. The ability to contract of Yahoo in this case is limited.
Similarly for the both companies, there is no indication in their mission statements that the activity of these companies is focused on revenue generation, although there are ubiquitously reported to be among the most profitable entities.
In relation to the differences among the companies, it shall be stressed that Google refers to the aspect of information directly, whilst their competitors disguise this term under the formulation “Internet Service,” hereby providing more liberty and openness for the subsequent development of the company, while Google is confined to information. However, apart from Yahoo Google can effectively transcend the limits of the Internet, while Yahoo is limited in this sector.
Strategically, it is evident that the activity of the companies is heavily influenced by the formulated mission statements. Indeed, the development of the both organizations, and the way these organizations structure themselves is heavily influenced by the mission statement. In particular, the annual financial statements of the both business units clearly indicate that 90% of the commercially invested funds are allocated for the needs of internet-based technologies services.
Considering the way the mission statements of the companies are formulated, it shall be accentuated that both companies share the same shortcomings. For both the Google and the Yahoo, the mission statement is not connected with the needs of the community. Therefore, the social responsibility activities of the companies are developed on the basis of the articles association of the discussed business units. The statements do not oblige the companies to be focused on the social activities, and that shall be remedied.
The “Vision” for the both companies is the further elaboration, development, and perfection of the internet-based technologies. Both companies share the same development path as they are reported to make their investments in the similar sectors. The both share the development and production of the software and hardware products. Alexander Boni (2011) accentuates the fact that Yahoo is following the investment and research strategy of the Google Inc. Close analysis of the annual financial statements of the companies precisely indicates that these companies exist to accrue revenues and to develop the newest hardware and software products.
The Social Responsibility prospect of the Google Inc. is encapsulated in the Articles of Incorporation of this business tycoon, as well as in the social responsibility declaration of the company. Naturally, the company addresses several sectors of the social responsibility doctrine. In particular, the company increasingly invests to the area of environmental protection and educational opportunities of for the talented students. To be more exact, the company has launched a vast set of activities to provide finance for renewable energy products (“Google Green Project”), the firm is annually completely and totally eradicating the environmental impact done by the productive facilities of the corporation, and to diminish the negative environmental impact done by other companies.
Personally, I am firmly convinced that nothing more can be done by the discussed business giant to contribute to the needs and values of the community. In accordance with the popular scholarly opinion, environmental and education sectors remain to be the most vulnerable points of the society nowadays, and the fact that Google invests in these areas clearly manifests that the company realizes the needs of the society.
With regard to the SWOT analysis, it shall be outlined that the firm has immense prospects for future development.
As far as the strengths of this business unit is concerned, it must be stressed that the firm has unlimited financial and human resources. Besides, the company does not seem to face demand-related products, as the demand for informational technologies is anticipated to be present for the next decades. Considering the fact that the disposable resources match the objectives of the firm, the firm is likely to accomplish them.
With regard to the weaknesses of the business unit, it seems to be relevant to highlight the fact the firm is integrally connected with development of the technology. If the energetic system of the globe is upset, the firm can be broken, since all the productive facilities will be demolished. The second threat of the firm is the emergence of the new technologies invented by the talented software developers. Google is launching big strategies to attract those startup projects to cooperate with the firm. Though, if failures to adduce the new talents do occur, the existence and technological dominance of the company can be seriously endangered.
Relating to the opportunities available for the company, it must be stated that the firm is likely to find new customers in the rapidly developing oriental economies, Chinese and Korean in particular. Another opportunity involves the development of the aerospace software based on the government and private orders of the NASA and private institutes discovering aerospace. The threats involve the presence of the competitors and possible curtailment of the aerospace programs.
The most advisable strategy to turn the weaknesses into the strong points and threats to the opportunities is the investment in these sectors, so that the competitors will become the partners of the corporation and the aerospace projects will be prolonged and developed.