Discussion Case: A Brawl in Mickey's Backyard
Case Assignment: The Corporation and Its Stakeholders
Issue
The discussion case “A Brawl in Mickey’s Backyard” centers on a conflict between real estate developer SunCal and The Walt Disney Company. In 2005, SunCal arranged to purchase 26-acres of land within the Anaheim Resort District. Upon acquiring the site, SunCal intended to develop 1,500 condominiums, 225 of which would be priced below the market rate. Since the Anaheim Resort District is specified for commercial recreation use only, SunCal required permission from Anaheim City Council to proceed with residential development.
Market and Nonmarket Stakeholders
Business corporations have complex relationships with many individuals and organizations in society. The term stakeholder refers to persons or groups that affect, or are affected by, an organization’s decisions, policies, and operations. Because a business interacts with society in diverse ways, relationships between companies and stakeholders differ. Market stakeholders engage in economic transactions with the company, while nonmarket stakeholders are affected by the company’s decision without economic exchange. When identifying stakeholders it is crucial to correctly recognize the primary organization. In this case, SunCal is the primary organization because of the decision of whether or not it can proceed with residential development. Since market stakeholders engage in economic transactions with the company, there are no market shareholders in this particular case. Since Disney employees, The Walt Disney Company, Anaheim City Council, and the Anaheim community are not engaged in economic exchanges with SunCal, all organizations are considered nonmarket stakeholders.
Interests of Market and Nonmarket Stakeholders
Each nonmarket stakeholder has its own interest in the decision of allowing SunCal to develop residential housing within the Anaheim Resort District. Disneyland employees supported the residential development plans, hoping for
Issue
The discussion case “A Brawl in Mickey’s Backyard” centers on a conflict between real estate developer SunCal and The Walt Disney Company. In 2005, SunCal arranged to purchase 26-acres of land within the Anaheim Resort District. Upon acquiring the site, SunCal intended to develop 1,500 condominiums, 225 of which would be priced below the market rate. Since the Anaheim Resort District is specified for commercial recreation use only, SunCal required permission from Anaheim City Council to proceed with residential development.
Market and Nonmarket Stakeholders
Business corporations have complex relationships with many individuals and organizations in society. The term stakeholder refers to persons or groups that affect, or are affected by, an organization’s decisions, policies, and operations. Because a business interacts with society in diverse ways, relationships between companies and stakeholders differ. Market stakeholders engage in economic transactions with the company, while nonmarket stakeholders are affected by the company’s decision without economic exchange. When identifying stakeholders it is crucial to correctly recognize the primary organization. In this case, SunCal is the primary organization because of the decision of whether or not it can proceed with residential development. Since market stakeholders engage in economic transactions with the company, there are no market shareholders in this particular case. Since Disney employees, The Walt Disney Company, Anaheim City Council, and the Anaheim community are not engaged in economic exchanges with SunCal, all organizations are considered nonmarket stakeholders.
Interests of Market and Nonmarket Stakeholders
Each nonmarket stakeholder has its own interest in the decision of allowing SunCal to develop residential housing within the Anaheim Resort District. Disneyland employees supported the residential development plans, hoping for
Cited: Lawrence, Anne T., and James Weber. "The Corporation and Its Stakeholders." Business and Society: Stakeholders, Ethics, Public Policy. Boston: McGraw-Hill Irwin, 2008. 2-23. Print. City of Anaheim. N.p., n.d. Web. 28 Oct. 2013. . Tully, Sarah. "Nov. 27: Disney-area housing plan dies." The Orange County Register. N.p., n.d. Web. 29 Oct. 2013. .