Regulation of stakeholders’ interests in corporate governance through negotiations

Economic Annals-ХХI: Volume 161, Issue 9-10, Pages: 56-60

Citation information:
Kuzmin, O., & Khilukha, O. (2016). Regulation of stakeholders’ interests in corporate governance through negotiations. Economic Annals-XXI, 161(9-10), 56-60. doi:

Oleh Kuzmin
D.Sc. (Economics),
Lviv Polytechnic National University
12 Bandera Str., Lviv, 79013, Ukraine

Oksana Khilukha
PhD (Economics),
Lesya Ukrainka Eastern European National University
13 Volia Ave., Lutsk, 43025, Ukraine

Regulation of stakeholders’ interests in corporate governance through negotiations

Abstract. Purpose. Regulation of stakeholders’ interests is still a major goal for corporate governance worldwide. The regulative process gives an opportunity to develop competitiveness and investment attractiveness of corporations. By analysing the place of stakeholders in the Mendelow matrix, we offer to use a dialogue between stakeholders to assert their interests in the corporation. Methods. The authors used the following methods to conduct the present research: logical and semantic analysis, methods of systematisation and generalisation to identify external factors and interests of stakeholders. Methods of statistical analysis and expert assessment were used to determine the impact of stakeholders’ interests on corporate governance. Graphical methods were used to visualize the stakeholder’s benefit in the Mendelow matrix. The article is based on the study of the corporate governance and statistical data of the State Statistics Service of Ukraine. The database of the UN, OECD, IMF, World Bank Group, WTO, Eurostat, reports of automobile building companies and own research materials of the 2014-2016 period were used in the article. Results. The authors have analysed the impact of external factors, such as investment climate, development of stock market, development of commodity market, legal regulation of corporate relations and studied interests of corporate members. The place of stakeholders in the company was assessed by experts. This method was tested at the automobile building Corporation JSC «Bogdan Motors».

The authors have used negotiations between stakeholders as a tool «to make the company better», which unlike the debate allows stakeholders to come to a mutual decision on the strategic development of the corporation. Discussion. The effectiveness of the corporate governance will be higher when different groups of stakeholders understand each other. Corporate dialogues will improve corporate reputation and productivity. The corporation where corporate dialogues are conducted will be more socially responsible, innovative than those corporations where only corporate debates take place.

Keywords: Corporation; Corporate Governance; Factors Influencing the Corporation; Stakeholders’ Interests; Corporate Negotiations; Corporate Debate; Corporate Dialogue

JEL Classification: G34; D74



  1. Berle, A., & Means, G. (1932). The modern corporation and private property. New York: Macmillian.
  2. Blair, M. (1995). Ownership and Control: Rethinking Corporate Governance for the Twenty First Century. Washington: Brookings Institution.
  3. Velentzas, I., & Broni, G. (2010). Business Ethics, Corporate Governance, Corporate Social Responsibility. Ilidza: IuS.
  4. Shleifer, A., & Vishny, R. (1997). A survey of corporate governance. Journal of Finance, 52(2), 737-783.
    Retrieved from
  5. Hart, O. (1995). Corporate governance: some theory and implications. The Economic Journal, 105(430), 678-698.
  6. Astapova, G. V. (2006). Economic management mechanism of corporate management of the aviation company on the basis of labor ownership. Kyiv: National Aviation University (in Ukr.).
  7. Momot, T. V. (2006). Cost-oriented corporate governance: from theory to practical application. Kharkiv: KNAMM (in Ukr.).
  8. Nazarova, G. V. (2010). Management of the joint stock company: organizational, regulatory and motivational aspects. Kharkiv: KhNEU (in Ukr.).
  9. Popov, O. (2009). Theoretical, methodological and conceptual base of the formation of economic management mechanism of corporate governance. Kharkiv: INZhEK (in Ukr.).
  10. BDO International (2016). Official web-site.
    Retrieved from
  11. The World Bank (2016). Official web-site.
    Retrieved from
  12. National Securities and Stock Market Commission (2016). Official web-site.
    Retrieved from
  13. Investopedia (2016). Official web-site.
    Retrieved from
  14. Ministry of Economic Development and Trade of Ukrainе (2016). Official web-site.
    Retrieved from
  15. Mendelow, A. L. (1981). Environmental Scanning – The Impact of the Stakeholder Concept, ICIS Proceedings. Paper 20.
    Retrieved from
  16. Explanatory Dictionary of the Live Ukrainian Language. (2009). Kyiv: VTF Perun (in Ukr.).
  17. Soskin, O. I. (2013). The role of public administration in forming the modern economic model: a change of imperative under the conditions of chaos. Ekonomichnyi chasopys XXI (Economic Annals XXI), 1-2(1), 3-7
    Retrieved from (in Ukr.)
  18. Lipych, L. G., Tovstenyuk, O. V., & Khilukha, O. A. (2014). The investment attractiveness of enterprises’ intellectual capital: identification and diagnostics. Visnyk Khmelnytskoho natsionalnoho universytetu. Ekonomichni nauky (Herald of Khmelnytskyi National University), 6(1), 139-141 (in Ukr.).
  19. Larcker, D., F., Richardson, S. A., & Tuna, I. (2007). Corporate Governance, Accounting Outcomes, and Organizational Performance. The Accounting Review, 82(4), 963-1008.

Received 25.09.2016