M RahmanStakeholders of Facebook (Facebook Stakeholder Analysis)
This article aims to identify and analyse some of the key stakeholders of Facebook. Facebook is a global social networking service, headquartered in California, the USA. It has offices in over 80 cities around the world. It has made unprecedented progress in a very short time.
With more than 2.98 billion monthly active users, Facebook has become a crucial platform for communication, business, and entertainment. This massive user base has led to the emergence of several stakeholders who have a vested interest in its operations and success. It is therefore essential for a company like Facebook to maintain healthy relationships with its stakeholders to ensure its continued growth and success.
Internal stakeholders of Facebook
The Management Team, Board of Directors, employees, and shareholders are the main internal stakeholders of Facebook.
Facebook’s management team
Mark Zuckerberg is its founder, chairman and chief executive officer, hence the most important and most powerful stakeholder. His active participation and bold leadership have been a key to the success of the company.
Rodriguez (2020) states that Zuckerberg was never worried to go against the wishes of the users, or the executives as reflected in a number of successful acquisition bids (e.g. Instagram, WhatsApp, and Oculus) made by the company under his leadership.
There are number of positions in the Management Team of Facebook such as Chief Operating Officer, Chief Revenue Officer, Chief Product Officer, Chief Technology Officer, Chief Financial Officer, and General Counsel (Facebook, 2023). These stakeholders are powerful and play a big role in running and shaping the future of the company.
Employees of Facebook
Facebook has over 86 thousand full-time employees. It is an equal opportunity employer. However, it has been criticised for not having done enough to address diversity challenges (Dixon, 2023). Most of the key positions are overwhelmingly occupied by men, and ethnic minorities are not represented well either. Facebook was once the best place to work; however not any more as challenges such as long hours and the pressure of meeting business targets have made many employees frustrated.
Shareholders of Facebook
Shareholders are very important for Facebook. They have the power to block some of its moves that are considered unfeasible. Some of the top shareholders are Mark Zuckerberg, Vanguard Group Inc., BlackRock Inc., Fidelity Management & Research, T. Rowe Price Associates, SSgA Funds Management Inc., and Capital Research & Management.
External stakeholders of Facebook
Users, competitors, suppliers, and governments are some of the key external stakeholders of Facebook.
Users of Facebook
According to Dixon (2023) Facebook has around 2.98 billion monthly active users. Certainly, users are very important, and therefore, making and keeping them satisfied is extremely important for the company.
Facebook users are the primary reason for its existence and serve as the primary source of content generation and engagement. They share their thoughts, photos, videos, and other content on the platform, which drives traffic and increases the platform’s appeal to advertisers. They also benefit from it by staying connected with friends and family, discovering new content, and accessing various services and applications integrated into it.
Advertisers
Advertising revenue is the primary source of income for Facebook. Advertisers are willing to spend significant amounts on it due to its massive user base and the ability to target specific demographics and interests. They benefit from increased visibility and potential customer acquisition, while Facebook benefits from the revenue generated.
Suppliers of Facebook
Facebook is very committed to its suppliers. It has recently introduced a supplier diversity program to increase opportunities for those suppliers who operate from outside of the United States (Facebook, 2023).
Facebook’s competitors
A number of competitors are vying to take as much market share as possible from Facebook. Its main competitors in social media are Twitter, Pinterest, Tumblr, Reddit, LinkedIn, YouTube, and Vkontakte. Instagram and WhatsApp are not considered here as they are owned by Facebook. The biggest competitor of Facebook in advertising industry is Google.
Government institutions
Government institutions are also powerful and can cause Facebook substantial damages if it is found in breach of their rules. For instance, Canada’s Competition Bureau fined it $6.5 million over claims of ‘false’ privacy (BBC, 2020). Likewise, the US consumer regulator FTC fined it $5 billion over Cambridge Analytica data breach.
How does Facebook engage with its stakeholders?
Facebook employs various strategies to engage with its stakeholders and maintain healthy relationships with them. For users, it regularly updates its platform and introduces new features to enhance user experience and engagement. It also invests in user support and feedback mechanisms to address user concerns and improve the platform.
For advertisers, Facebook offers various tools and resources to help them create and manage their ad campaigns effectively. It also invests in research and development to improve its ad targeting capabilities and provides advertisers with detailed analytics to measure the performance of their campaigns.
For investors and shareholders, Facebook maintains transparency in its financial reporting and communicates its strategies and vision through investor relations initiatives, such as earnings calls and annual shareholder meetings. It also focuses on delivering consistent financial performance to ensure their satisfaction.
Facebook engages with its employees and management through various initiatives, such as competitive compensation packages, employee benefits, and training and development programs. It also fosters a positive work culture that encourages innovation and collaboration.
Finally, Facebook engages with governments and regulators by participating in public policy discussions, working closely with regulatory bodies, and ensuring compliance with applicable laws and regulations.
Stakeholder influence on Facebook’s decision-making
Stakeholders play a significant role in shaping Facebook’s decision-making processes. Their interests, concerns, and expectations directly impact the company’s strategies and actions. For example, user concerns about privacy and data security have led it to invest in improved privacy controls and data protection measures. Similarly, advertiser demands for better ad targeting and performance measurement have driven its investments in research and development in these areas.
Investor and shareholder expectations for consistent financial performance and growth influence Facebook’s strategic decisions, such as mergers and acquisitions, investments in new technologies, and cost-saving initiatives. Employee and management interests, such as career development and work-life balance, shape its human resource policies and workplace culture.
Conclusion: Stakeholders of Facebook (Facebook Stakeholder Analysis)
In conclusion, stakeholders play a critical role in Facebook’s ecosystem, shaping Facebook’s strategies, actions, and success. Facebook’s future success depends on its ability to maintain and strengthen its relationships with its stakeholders. It needs to continue addressing stakeholder concerns and expectations proactively and invest in initiatives that benefit its stakeholders and society at large.
As the digital landscape continues to evolve, Facebook and its stakeholders need to adapt to new technologies, business models, and user preferences. This will require ongoing collaboration, communication, and innovation from all stakeholders.
We hope the article ‘Stakeholders of Facebook (Facebook Stakeholder Analysis)’ has been a good read. You may also like reading SWOT analysis of Facebook and Competitors of Facebook (Competitor analysis of Facebook). Other relevant articles for you are:
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Last update: 09 June 2023
References:
BBC (2020) Canada Facebook fined $6.5m over ‘false’ privacy claims, available at: https://www.bbc.co.uk/news/world-us-canada-52640785 (accessed 05 June 2023)
Dixon, S. (2023) Number of full-time Facebook employees, available at: https://www.statista.com/statistics/273563/number-of-facebook-employees/ (accessed 08 June 2023)
Facebook (2023) Who we are, available at: https://about.fb.com/company-info/ (accessed 05 June 2023)
Rodriguez, S. (2020) Mark Zuckerberg led Facebook to an all-time high this week — here’s who runs the company with him, available at: https://www.cnbc.com/2020/05/23/who-runs-facebook-here-are-the-execs-under-mark-zuckerberg.html (accessed 05 June 2023)
Author: M Rahman
M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.
