Business Ethics. Should Yahoo! Have provided information on Shi Tao to the Chinese government? Why or why not?

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Ethics :- Case Yahoo! In China assignment                                                                                31st July’2010                   

Submitted to :- Mr. David Selvanathan                                                                                      Submitted by :- Puneet Rathi_C_243            

Question 1 :- Should Yahoo! Have provided information on Shi Tao to the Chinese government? Why or why not?

Answer:- The Chinese subsidiary of Yahoo! ,i.e. Yahoo China had no choice but to comply with local laws. Hence, I would say that even if they dint’ want to share the information, they had no other choice. Yahoo was attacked by both sides of politics for complying with a request under Chinese law, in China, to provide information on a political dissident. Yahoo knew that when it comes to China there are very few who will come to the defense of those who deal with the Chinese Government. Yahoo’s actions might have been in part wrong morally, but legally they have done nothing wrong, and in a global economy this is even more true.

The manager also believed that failure to comply with the request could put Yahoo China’s employees at risk of prosecution, and it might have imperiled Yahoo China’s license to do the business. It was possible to raise the issue with lawyers and executives at Yahoo headquarters in the U.S , but the manager worried that even if the response was in their favor, employees might still be at risk.

Moreover, in 2002 Yahoo signed a “public pledge on self-discipline for the Chinese Internet Industry”. The pledge required Internet-related businesses to agree to various forms of censorship in the name of state security and social stability.

Yahoo had done nothing more than obey the lawful authority of the Chinese government. Just like any other global company, Yahoo must ensure that its local country sites must operate within the laws, regulations and customs of the country in which they are based. The executive team at Yahoo may be on shaky moral ground, but legally they have done nothing more than be a good corporate citizen, no matter which country they operate in.

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Question 2 :- What were Yahoo’s responsibilities in the situation ?

Answer :- Yahoo was sued by the World Organization for Human Rights for sharing information about its users with the Chinese government. The information led to the arrests of journalists, including Shi Tao. But Yahoo argued that there was little connection between the information the firm gave and the ensuing arrests and imprisonment of its users. Yahoo said that while it did not condone the suppression of people's liberties, the firm had been compelled by local laws to hand over the information that was requested.

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