FORMULATION OF A SCIENTIFIC DEFINITION FOR «CORPORATE GOVERNANCE» BASED ON THE COGNITIVE METHOD OF TWO-LEVEL TRIADIC DECRYPTION

Abstract

The concept of corporate governance has been analyzed, and its general and specific characteristics have been identified. The study explores various approaches to defining corporate governance. The first perspective, advocated by international foundations and some defined scholars, views corporate governance as a system of rights and responsibilities. The second perspective considers corporate governance as a set of firm practices. This entails the use of specific strategies and methods to achieve company goals, including decision-making, strategy development, and risk management. The third perspective emphasizes balancing finances, labour, technology, and management to harmonize the interests of various stakeholders and the company. This involves considering the needs of shareholders, employees, clients, and other participants, as well as ensuring mutually beneficial relationships among them. The research results indicate that corporate governance can be approached from different angles, but all are aimed at achieving effective and sustainable company operation. Taking these aspects into account is crucial for successful enterprise activity. The study proposes the use of the triadic decryption method to formulate the definition of corporate governance. Applying this theory allowed for the systematization and generalization of key aspects of this concept, which is an important step in understanding and analyzing the principles and mechanisms of effective corporate governance. By using the triad mutations method, a rearrangement of secondary concepts in the original categorical scheme was made, reflecting the essence of corporate governance constructed as a result of applying the two-tier triadic decryption method. The generalization of three hierarchically structured concepts enabled the formulation of a definition in which corporate governance is considered to be a systematic and planned activity aimed at ensuring balance in the relationships between all participants in this process (owners (shareholders), founders, directors, managers, and other stakeholders). This approach allows enterprises to take a systematic approach to corporate governance and consider its dynamic nature, contributing to further research on the essence and peculiarities of using this concept in modern business practice.