Vaniah's MBA Diaries

On Saturday 1st October 2005, I started an MBA course at the Said Business School, University of Oxford. I'm still wondering how it all happened that I ended up here but I guess that we must all play the hand that we are dealt. So that I don't forget, this blog is intended to document my business school adventure.

My Photo
Name:
Location: London, United Kingdom

I was born on the sunny tropical isle of Jamaica, and as soon as I could organise it, I moved to colder climes. Crazy huh? After finishing a stint in the city know for its dreaming Spires and knocking around Sweden for a while, I've finaly decided what my next adventure should be. My lovely (Swedish) fiance and I shall be travelling around the world after our wedding in August. Going full circle that is...

Wednesday, March 08, 2006

Cobwebs

Would you set up a factory and employ children to work in it?

I imagine that most of you would answer this question with a resounding no, but consider this:

Would you set up a factory and employ children if the factory was located in a poor developing nation with very few schools and the children would be starving or turning to crime if they didn't work in your factory?

What if the government of that country passed a law stating that 20% of the workforce of all new factories must be children? What would you do?

Now, suppose that your parent company had a Corporate Social Policy that stated that the company aimed to promote the "education, happiness and well being of children". Would that change your answer?

Let say that the business that you are in is producing educational toys for children and that is the main product of your new factory.

How do you think that a mother who has just bought one of your toys for her child feels when she discovers that the very people who are making those same toys are children, just like her son? What will she think about your company?

Google is in a precarious space at the moment with their decision to go into China. In an industry with incredibly low switching costs, a psychological contract based on trust is the only thing that binds their customers to the brand. It is all Google has. Eroding that trust for the sake of market share could be the thing that looses them the entire market.

It reminds me of a fable that I heard when I was younger about a guy who used to be called the "Human Fly" because he would climb up the outside of buildings with no support. One day he climbed up to the nineth floor of a very tall building... then fell. Urban legend has it that when they found his body, he was clutching a cobweb in his hand - what he had thought had been a solid support, turned out to be his downfall.

I hope that this latest move doesn't have Google clutching at cobwebs.

1 Comments:

Anonymous Anonymous said...

The question of social responsibilty for corporations is not an easy one, the cases you have outlined are all very good examples of how complicated the mess can become.
To survive in that kind of quagmore companies must hold to the principles of being a good corporate citizen and work within the community to bring +ve changes.
Hire the kids pay them well and establish schools and stager their hours to allow them access to education.

8:02 pm  

Post a Comment

<< Home