The paper "Google in China: The Big Disconnect" is a great example of a business assignment. This term refers to individual entities that have a claim in the organization’ s operations, products, markets, outcomes and industry. Friedman & Miles (2006, p49) defines stakeholders as individuals or organizations that have the capability to influence the operations of a business whereby they may have a direct or indirect interest in the business. These entities are very important to an organization, especially where companies operate with a stakeholder orientation. From the ‘ Google in China: The Big Disconnect’ case, the major stakeholders include the Chinese Government, investors, customers, business associates, employees, the environment and community.
This section of the case study will analyze how Google should prioritize its obligations to the various stakeholders and ensuring efficient communication to the stakeholders. In the next section, the study will identify the relationship between the stakeholders and the generation of CSR activities. From the previous section, the identified stakeholders are all directly involved with the company and have the capability to influence the company’ s operations. It is important to differentiate between stakeholders and shareholders to enhance the purpose of the study.
Shareholders own the company shares that are a portion of the company’ s worth. On the other hand, stakeholders have varying interests in the company and unlike shareholders, they do not own the whole or part of the company (Martin, Petty & Wallace 2009, p4). In the majority of the cases, a conflict of interest exists between the stakeholders and the shareholders. This arises especially where the shareholders seek to maximize their wealth whereas the stakeholders want the company to spend more in meeting their interests hence reducing the company’ s profit margins. Investors Capital requirements to finance the operations of the company are provided for by the stakeholders.
Their interest in the company is to maximize their wealth by increasing their shareholder earnings. Towards this end, the company seeks to reduce the operational costs incurred and maximize the company’ s earnings. Although they can be classified as stakeholders, investors double up as shareholders since they own a stake in the company’ s share capital (Martin, Petty & Wallace 2009, p6). The Chinese Government Unlike investors, the government exists in the organization’ s external environment and formulates policies that influence business operations.
The government’ s interest in the company is to ensure that the company operates according to the nation’ s laws and serves the public interests of the citizens. Compliance with the nation’ s laws enhances business activity hence reduces operational costs such as legal fees. The Community Majority of Google’ s operations are directed towards providing the community with adequate information (Google 2010). The community’ s interest pertains to getting access to product information that emancipates the members of the community. Through CSR programs, the company is able to ensure that its operations within the country conform to the national cultures and enhance the unity among the people (Friedman & Miles 2006, p31). Customers The company seeks to increase its share of the market by providing customers with quality search and informational services (Friedman & Miles 2006, p26).
Customer interest involves the reliability of the services offered by the company and barring access to harmful information to the public. The company’ s informational access should seek to provide customers with beneficial information that will serve their interests.
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