Thursday, January 14, 2010

This should be a Big Deal

I refer to Google's refusal to cooperate (anymore) with Chinese Internet censorship. Please click on the title to read a NYT article on the subject.

Here's what I (possibly naively) would now like to see happen:

1) More international Internet companies take a similar stand. Including in countries like India - see an earlier blog post on the subject (http://loosecannonball-rohan.blogspot.com/2010/01/were-being-censored-and.html)
2) Companies take similar stands in other countries and other industries, making it clear that just as Google has done, they are willing to accept lower revenues and profits in the interest of ethical conduct.
3) Investors (particularly institutional investors) reward, and not punish, ethical conduct by actually purchasing shares in such companies and selling shares of companies that benefit from keeping dictators and autocratic governments that don't care about human rights propped up. May involve lower short term returns but should ensure greater returns over the longer term generally.

Questions is are we, the investing community, prepared to accept this though? I have my hand up here.

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