As media pundits and business observers analyzed Google’s move last week to stop censoring searches on Google.cn following a cyber attack, the focus was on how this decision will impact the search giant’s business and market position – especially if Microsoft sees this an a chance to expand in China.

There were also geopolitical implications to consider, such as how this plays out from a trade development perspective. But the one overlooked aspect of this move by Google is how the decision sets a new tone for the company from a CSR point of view. Indeed, the decision, which was driven by the company’s U.S. executives and centers on freedom of the press, quickly positioned Google as a CSR leader.

Of first order was Google’s complete transparency. Immediately following the cyber attack, Google posted an entry on its press center blog [http://googleblog.blogspot.com/2010/01/new-approach-to-china.html] saying that the attacks and surveillance that targeted human rights activists in China, “led us to conclude that we should review the feasibility of our business operations in China. We have decided we are no longer willing to continue censoring our results on Google.cn, and so over the next few weeks we will be discussing with the Chinese government the basis on which we could operate an unfiltered search engine within the law, if at all. We recognize that this may well mean having to shut down Google.cn, and potentially our offices in China.”

The company also said in the post that it has “taken the unusual step of sharing information about these attacks with a broad audience not just because of the security and human rights implications of what we have unearthed, but also because this information goes to the heart of a much bigger global debate about freedom of speech.” However, the blog post quickly added that in the “last two decades, China’s economic reform programs and its citizens’ entrepreneurial flair have lifted hundreds of millions of Chinese people out of poverty. Indeed, this great nation is at the heart of much economic progress and development in the world today.”

Although that last caveat was a terrific hedging of bets from a business perspective, the overall tone of the post was remarkable since Google garners about a 14 percent share of the market in China (Baidu.com is number one in the county). That’s quite a bit of market share to put on the line even if you’re one of the biggest Internet companies in the world.

It’s important to note that Google’s China move represents a new turn – involving ethics – in its CSR efforts, which previously involved more basic business decisions. In 2006, the company launched google.org, for example, which includes a home energy monitoring meter for consumers, a tool to track global deforestation and products aimed at making it easier for non-profits to raise funds, educate the public and communicate with each other. And more recently, Google created a business unit charged with getting a license to generate and sell renewable energy – another business decision that is good CSR, but quite different than taking an ethical stance on an issue.

Anyway, here at SDialogue, we’d be interested in knowing if you see Google as a CSR leader due to this recent move in China. Please comment and let us know what you think.