Children is a Stakeholder in Business in Hong Kong

Introduction

In Hong Kong, the authorities are paying good attention on the corporate governance of the country. The essence of corporate governance refers to the rules and incentives by which the management of a company is directed and controlled to maximize the profitability and long-term value of the firm for shareholders while taking into account the interests of other legitimate stakeholders. The purpose of this research is to identify the situation in Hong Kong and Hong Kong parents become more open and democratic and pay more attention to their children.

Background and Problem Statement

Corporate governance mechanisms may be broadly classified as external and internal mechanisms. External mechanisms are determined by outsiders. These include institutional shareholdings, outside block holdings, and takeover activity. Internal mechanisms are decided by the firm’s decision makers. These consist of insider shareholding, board membership and characteristics (such as size of the board, number of outside independent directors, and remuneration committees), debt financing, and the use of outside markets for managerial talent. In household settings, parents are willing to comply with their children wants. In this case, kids become as an important stakeholders and consumer group in Hong Kong since the children acts as purchasers or end-users of the products or services, it also helps to create a potential opportunity in the market. Therefore, the corporate governance of organizations in Hong Kong will be emphasized as the organizations discusses the regulatory framework and measuring the recommendations to enhance the system of the organization and targeting the consumer group of children.

Research Aim and Objectives

The main aim of the study is to investigate the role of children as the stakeholders in business in Hong Kong. In order to gain the essential information needed for the study, it is important to consider the three objectives. First is to describe the contribution of children in businesses in Hong Kong. Second is to recognize the characteristics of being a stakeholder in the country. And third is to describe the functions as well as the actions of the government and organization regarding this mechanism.

Literature Review

Good corporate governance, complemented by a sound business environment, can strengthen private investment, corporate performance, and economic growth. A comparison of corporate governance among Asian economies1 indicated that Hong Kong, China (along with Malaysia and Singapore) maintains significantly higher standards of corporate governance and at the same time has developed more sophisticated and adequate legal systems to protect property rights than the rest of the countries in the region. To ensure that listed companies are properly run and the rights of minority shareholders are protected, Hong Kong, China has various rules and codes for specific areas of abuse. The following are the statutory requirements relating to corporate governance. By strengthening the principles and practice of corporate governance in listed companies, there is a responsive management and operations of the listed companies, and are expected to fulfill their duties in serving the public. The families and the children are important part of the consumers because most of the companies existed bearing the mission to bring their products and services and be successful in their own industry. However, to provide a fair, orderly, transparent, and efficient market for listed securities. Substantial shareholders are required to notify SEHK of any additional acquisition or disposal of relevant shares. One of the strategies implemented by the organizations in Hong Kong is to actively promote the public understanding and awareness regarding the different stakeholders to broaden their reach. For such, engaging the organization with the schools, will definitely a link in effectively targeting the children. To effectively touch the children, the organizations should develop a product or service that can be useful for the children and yet made them profitable.

Methodology

The suggested method in this study is the use of secondary information regarding the actions of the organizations in the corporate governance and in targeting the needs and wants of the children. In addition, most of the family in Hong Kong spent a lot on their children which makes a good opportunity for both manufacturing and servicing organizations to generate the products and services that will suits for children and in the convenience of the parents. Children became the inspiration in this study because of the influence they give on their parents.

References:

Cheung, S.Y., (2001) Corporate Governance in Hong Kong, China: Rising to the Challenge of Globalization [Online] Available at: http://www.adb.org/Documents/Books/Rising_to_the_Challenge/Sound_Practices/hkcg.pdf [Accessed 13 August 2010].

Leung, W.H., Lee, T.C., & Leung, W.M., (2008) Public Education and Outreaching Activities on Climate Change: the Hong Kong Observatory Experience [Online] Available at: http://www.weather.gov.hk/publica/reprint/r790.pdf [Accessed 13 August 2010]