INTERCONNECTION OF THE ORGANIZATIONAL AND ECONOMIC MECHANISM OF ENSURING PROFITABILITY AND SUSTAINABLE DEVELOPMENT

Abstract

The article is devoted to examining of the relationship between the organizational and economic mechanism of ensuring profitability and sustainable development. The organizational and economic mechanism for ensuring profitability is critically important for the implementation of the company`s tactical and strategic goals. The modern economic system is characterized by the variability and dynamism of processes, which requires business entities to permanently search for reserves to improve their economic activities. In such conditions, it is extremely important for enterprises to organize the process of ensuring the profitability of activities with a view to sustainable development, which, in addition to benefits directly for enterprises, also brings benefits for society. The definition of the essence of the concept of profitability is systematized and the author`s view on the concept of profitability is given. The concept of sustainable development is defined as a concept of enterprise management, which consists of three important components, namely: ecological, social and economic development. Definitions of the profitability mechanism and the organizational and economic mechanism are given. The relationship between the group of specific tasks of the mechanism for ensuring profitability and the main components of sustainable development is substantiated. A complex of scientific approaches to building an effective organizational and economic mechanism for ensuring profitability is singled out. The diagram of the organizational and economic mechanism for ensuring the profitability of the enterprise is presented, represented by economic levers, which consist of: innovative and investment measures, financial and credit mechanism of regulation, insurance and taxation, pricing and motivational mechanism; organizational levers, which consist of: the organization of management activities, the planning system, marketing activities, foreign economic relations, leasing and rental mechanisms. The profit management process is singled out as one of the important factors contributing to sustainable development of the enterprise. The application of an organizational and economic mechanism based on the principles of sustainable development contributes to balanced and harmonious development and improves the competitiveness of the enterprise in the long term.