No, they just hired the wrong people. They employed political activists instead of real professionals which was initially great for PR. Not the best long term decision they've made.
I don’t think it’s just for PR, I think any organisation that invests heavily into the development and use of ML/AI needs wants to keep a close eye on whether the outcomes are in line with positive humanistic values.
I don’t know how these ethics professionals added value to Google. I _do_ know that repeatedly belittling your CEO and employer on a public forum might win you lots of virtue signalling points but not be constructive for the company paying you a salary.
Google never actually intended to follow through with any of their recommendations if it meant going against its financial interests.