Corporations either run based on the stakeholder primacy model or shareholder primacy model. However, most corporations and companies have to make sure these two balance since one is for the benefit of the business’s inner core while the other is for the outside. This manes stakeholder primacy model is for the good of the society while shareholder primacy model is for the good of the shareholders. Facebook has tried to balance these two in several instances, and this paper discusses how Facebook has shown both of the models of co-operate administration.
Facebook’s management shows the shareholder primacy model in so many different ways. For example, in Sri Lanka, an advocacy group reported violence in the communities piling up from Facebook to reality. This was reported, and Facebook stated that those posts and the discussions online did not violate the Facebook community rules. After a long period of the officials urging Facebook to look into the issue of individuals and especially extremists trying to tear the communities apart by encouraging violence. After this was observed, the advocacy group decided to contact Facebook. They insisted that the advocacy group should use the usual reporting method, after which they were notified that the kind of posts did not violate the community standards.
The above example is a sign of shareholder primacy model whereby Facebook management decides not to get engaged in the community’s and society’s issues but only to look at themselves and how much money they can make and benefit the shareholders by extending the usage of Facebook by more people. Another way to show how Facebook’s shareholder primacy model works is by addressing the employment of local language experts to work for Facebook and try to reduce the chaos created by chaos. This has not been addressed appropriately because Facebook claims that it will employ more local officials to run its work, but it has not yet done so. Therefore it is difficult to work for the locals as they feel rejected by Facebook as all it cares about is the shareholders.
On the other hand, Facebook has shown few signs of a stakeholder primacy model. According to Mr. Gunawardana, there is a need for big corporations to link with the locals and not just look at them as a market but as part of the team. The government in Sri Lanka stated that Facebook was a significant and reasonable force for the democratic transition, which happened in 2015. Therefore this acts as a stakeholder primacy model since the decision of Facebook management to introduce Facebook into this area makes democracy and elections go on well. Another way the management of Facebook looks into this issue is by trying to encourage the people to understand that it is in their hands and encouraging them to spread messages of hope and goodwill to counteract the negative energy. Therefore this makes Facebook management for a short time be on the side of the stakeholders, who are generally the community that benefits from using Facebook.
In conclusion, Facebook is a tremendous force in society today, and its use is tearing down developing nations. Therefore Facebook should look into the needs of the stakeholders and not just its shareholders. This includes institutions, governments, non-governmental organizations, and all other stakeholders who use Facebook and benefit or are harmed by its use.
Where Countries Are Tinderboxes and Facebook Is a Match.” The New York Times, 21 Apr. 2018, www.nytimes.com/2018/04/21/world/asia/facebook-sri-lanka-riots.html.
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How Everyday Social Media Users Become Real-World Extremists.” The New York Times, 25 Apr. 2018, www.nytimes.com/2018/04/25/world/asia/facebook-extremism.html.