Financial transparency of Ukrainian enterprises as index of business social responsibility

Fomina, Olena and Фоміна, Олена Олександрівна and Trokhymchuk, Viktoriia and Трохимчук, Вікторія Вікторівна and Buhaienko, Oleksandra and Бугаєнко, Олександра Віталіївна (2016) Financial transparency of Ukrainian enterprises as index of business social responsibility. Вісник Донецького університету економіки і торгівлі імені Михайла Туган-Барановського (64). pp. 145-154. ISSN 2079-4819

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Abstract

The article deals with the problems of forming social responsibility and financial transparency of enterprises, issues of the financial and non-financial reporting stowage with the aim of taking to all interested persons (stakeholders) of information that maximally answers their interests. It has been educed that a necessity of accountability, openness and transparency is one of important terms of enterprises activity, as modern Ukrainian society is interested in transparent activity of enterprises under right current legislation and needs creation of the effective anticorruption system and taking into account interests of all parties concerned. It has been defined that basic stakeholders are the state, enterprise and a separate individual, that enter into the economic cooperating with the aim of their own interests satisfaction. State companies must instance social responsibility and transparency, and to work in accordance with an international and national legislation. It envisages the presence of the effective key indexes system of efficiency and instruments of informing public on issues of state and local budgets stowage, consideration, statement, implementation, and their implementation control. It has been found out, that the important constituent of companies transparency is a grant to information on strategy, politics and various initiatives of company, and also presenting information that exposes the results of financial and non-financial company activity. It has been defined that efficiency of the system of corporate management influences substantially the orientation of social responsibility and financial transparency politics of an enterprise. Principles of activity`s openness and transparency, reliability of investors` rights protection, of management and control mechanisms effectiveness are the inalienable constituents of enterprises development strategy. The proper corporate management is not limited to exceptionally the relations between investors and managers. It envisages also taking into account legal interests and active collaboration with employees, consumers, creditors, the state, public and others like that, having legitimate interest in activity of enterprise. The basic constituents of economic, social and public effects from activity of enterprises, oriented to providing social responsibility and financial transparency as one of her major indicators have been exposed. The necessity of activating socially responsible and financially transparent activity of enterprise that will assist transforming it from the object of influence of indefinite environment factors to an active social responsible business entity has been grounded. The enterprises activity should be expedient to point at introduction of such principles of activity that will assist providing stable and safe socio-economic development of society.

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