Blog 1


I would like to introduce an online media and value-added information provider named SINA. It was founded in 1998 as a portal site. From the portal site, it expands the services to news, mobile, game, e-commerce and other paid services, and it always tries to be the first to enter that area of market in China.

SINA is a good example of both shareholder managing and stakeholder managing. From the aspect of shareholder managing, SINA restricts its shares to be bought from the other businesses. The recent record of a share purchasing was from Alibaba, the largest e-commerce business in China. Otherwise, SINA seldom sells its shares out. However, its purchasing activity is frequent. From the shares of other businesses to the whole companies, SINA never stops its step. One of the big steps was in 2010, SINA and MSN China became the strategic partners, and started to share the username with each other. Just after this action, MSN China moved its whole blog service to SINA. As Milton mentioned in the passage, the social responsibility of the business is making profit, SINA takes much market share in China, and it is still expending.

From the aspect of stakeholder managing, SINA cooperates with lots of businesses from different areas, such as different news websites, electronic companies like IBM and HP, wireless internet business like Nokia and Samsung. It also signed the contract with NBA China in order to get the authority to relay the games at the first time. As ED said in the passage, “The support of each group is vital to the success of the endeavor.” the strong cooperation between SINA and its effective partners and all the consumers of these businesses have created a solid and profitable group to provide SINA a continuous supply of power.


  1. What do you mean at the end by “power”?

    Although Milton (Friedman) isn’t explicit about this, he is very much thinking about what is often called the principal-agent problem. In short, managers act as agents for other owners, the principles. In his mind, these are the shareholders. And, they can exercise the power of the capital markets, stock markets, to control “bad’ behavior of managers.

    What would he think of SINA where it is only beholden to other firms and their managers? Is that a recipe for a lack of accountability? Is that, in turn, the basis for possible corruption? Is that worse in a country like China which still has very authoritarian power structures?

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