Name : Sheila Frizqia J

NIM : 2206112016

Task:
Article: Resistance is Possible: Lives of Grab Workers in Indonesia – Asian Labour Review

Write a 1000-word essay discussing:

1. Identify who are the shareholders in the article. What duties do platform companies have
towards their shareholders?
2. Identify who are the stakeholders in the article. What duties do platform companies have
towards their shareholders?
3. Do you see any contradictions between point 1 and 2? Elaborate
4. How do you resolve these contradictions (if any)
5. What is the role of OECD principles of corporate governance in this case?
6. Explain how companies like Grab, Gojek, and Maxim can be consistent with the goal of decent
work in the framework of Sustainable Development Goals

Essay:

In the article, the shareholders of Grab Indonesia are not mentioned specifically. However, to my
understanding and knowledge, the shareholders are the Chief Executive Officer & Cofounder of Grab,
Softbank, Emtek, Toyota, and several other companies/parties. Grab has also undergone several rounds
of funding from various investors, which may include both institutional and individual investors. To all of
the shareholders, Grab as a platform company, like any other type of company, are obligated to give its
shareholders their rights and protect those rights. However, the extent of obligations and responsibilities
of a platform company towards its shareholders will depend on various factors, such as the legal and
regulatory framework in the jurisdiction where the company operates, the company's articles of
incorporation, and any shareholders' agreements that may be in place. Grab generally must provide its
shareholders with transparency and regular communication about the company's financial performance
and growth prospects. This includes regular financial reporting, shareholder meetings, and updates on
significant developments or changes in the company's operations or strategy. Additionally, platform
companies may also offer certain benefits or privileges to their shareholders, such as voting rights,
dividend payments, and the opportunity to participate in future funding rounds or other investment
opportunities.
As for the stakeholders of Grab Indonesia, the Government are often mentioned along with
customers and the main topic of the article: the drivers or as Grab refer to them as “partner”. As delivered
in stakeholder theory, business ethics, morals and values are important when managing stakeholders
involved with a project or organization. It seeks to optimize relations with stakeholders, thereby improving
efficiencies throughout the project or organization. In this case, Grab’s duty is also to optimize the
relationships with all of the stakeholders without exception and sometimes the interest of stakeholders
are also correlated in a way that it may benefit or harm each other. It is the company’s duty to balance
stakeholders’ interest without causing loss too to the company. In this article, it focuses on how the rights
of Grab’s driver are neglected. As this article mentioned, Grab’s success is at the expense of millions of
drivers living in precarious condition. The drivers here are made to be a partner only (not a labour-
employer) by Grab, therefore Grab does not have to provide drivers with employment rights, such as a
minimum wage, holiday entitlement, the provision of vehicles and protective equipment. In addition, they
are not given the rights as a partner despite of the term used for the relationship. Partnering parties are
supposed to have equal positions in making decisions, however, in practice it can clearly be seen how
Grab drivers are dominated by Grab. Grab conducts all work arrangements and decision-making processes
independently, without taking into account the opinions or input of the drivers (bogus partnership). This
practice goes against their responsibility to serve the interests of their stakeholders.
There is a conflict between prioritizing the interests of shareholders and those of stakeholders.
The nature between shareholders and stakeholders may differ. Shareholders will want the company to
undertake activities which have positive effect on monetary performance such as increase of dividend,
however these activities are not always the best interest for stakeholders and may even harm them.
Stakeholders focus more on long-term longevity which does not necessarily add to short term of
profitability. Resolving conflicts of interest between shareholders and stakeholders requires balancing the
interests of both groups. One approach is to adopt a stakeholder-oriented corporate governance model,
which considers the interests of all stakeholders in decision-making processes. This may involve creating
a stakeholder committee or appointing a stakeholder representative on the board of directors to ensure
that the concerns of all stakeholders are taken into account. Additionally, transparency and open
communication with stakeholders can help to build trust and prevent conflicts of interest from arising in
the first place.
In this case, OECD Principles can be a common basis or guidance to develop corporate governance
model which are the best fit for the company and to improve the effectiveness and accountability of
corporate governance practices. The corporate governance framework should protect and facilitate the
exercise of shareholder and stakeholders rights & promote transparency, fairness, responsibility, and the
protection of shareholder and stakeholder rights. These principles aim to enhance the performance and
sustainability of corporations, reduce risks for investors, and contribute to the overall economic growth
and stability of countries.
Platform companies like Grab, Gojek, and Maxim can be consistent with the goal of decent work
in the framework of Sustainable Development Goals (SDGs) by adopting practices that prioritize fair and
safe working conditions for their workers as the backbone of the business, as well as supporting the
economic growth and development of the communities in which they operate. Platform companies can
ensure that their workers receive fair compensation for the work they do, which can include a minimum
wage or a percentage of the fare charged for each ride. This can help to reduce income inequality and
promote economic growth in the communities where these companies operate.
They can also offer their workers benefits such as health insurance, paid time off, and retirement
savings plans. This can help to ensure that workers have access to essential protections and benefits that
are typically associated with traditional employment, which can contribute to their overall well-being.
Ensuring safe working conditions is also important, such as providing safety equipment and training, as
well as ensuring that their vehicles are properly maintained and inspected. This can help to reduce the
risk of accidents and injuries, and promote a safer working environment for workers. Platform companies
can also foster a sense of community among their workers by providing opportunities for socializing and
networking, as well as promoting a culture of respect and inclusivity. This can help to create a more
positive and supportive working environment, which can contribute to worker satisfaction and retention.
Overall, by adopting these practices, platform companies like Grab, Gojek, and Maxim can help to
promote decent work and economic growth, while also contributing to the achievement of the SDGs.