The influence of the crisis on corporate governance and its legislative regulation: evidence from Ukraine
Keywords:
organizational structure, planning, factors, leader, activities, Ukraine.
Abstract
The crisis caused by COVID-19 pandemic has affected the world community, changed the usual way of operating and managing each organization. The article aims to outline possible ways to optimize corporate management in crisis conditions in Ukraine. Based on the statistical methods the influence of COVID-19 pandemic on the activity of organisations in these conditions in Ukraine was determined, thus, this period was characterized by enterprises’ income fall, growing share of dismissed employees, new challenges for administrative staff in the area of innovation and change management etc. The most significant factors influencing the organization's crisis management were classified: negative (economic loss, lack of working capital, lack of demand for the products of the company, reducing staff, closing the economic areas that affect the company's operations, interruptions in the work of contractors) and positive (ensuring the stability of wages, changes in labor legislation, management flexibility, development of new forms of business, improving communication between the administration of the organization and the state). Determined that optimize crisis management organization possible through the implementation of management, economic and legislative measures. The optimization of crisis management of the organization will lead to economic development and preservation of human capital in the country.
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References
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Johansen, W. (2017). Understanding and practicing crisis consulting: A study of public relations and communications firms. Journal of Communication Management, 21(2), 106-123. https://doi.org/10.1108/JCOM-12-2016-0104
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Lighonenko, L.O. (2001). Anti-crisis management of the enterprise: theoretical and methodological principles and practical tools. (580 p.). K.: KNTEU (In Ukrainian). Retrieved from https://scholar.google.com/citations?view_op=view_citation&hl=uk&user=nfX74ZUAAAAJ&citation_for_view=nfX74ZUAAAAJ:P5F9QuxV20EC
Metkin, M.V. (2004). Features of crisis management. (74 p.) SPb: Universidad Estatal de Telecomunicaciones de San Petersburgo (in Russian). Retrieved from http://window.edu.ru/resource/424/63424
Meyers, G.C., & J. Holusha. (1986). When It Hits the Fan. (76 p.) London: Unwin Hyman. Retrieved from https://scirp.org/reference/referencespapers.aspx?referenceid=1311056
Murat, G., & Mısırlı, K. (2012). Crisis Management in Small and Medium Sized Enterprises: The Case of Çaycuma. International Journal of Management, Economics and Business, 1(1), 1-19.
Pearson, C.M., & Clair, J.A. (1998). Reframing crisis management. Academy of Management Review, 23(1). (pp. 59–76). Retrieved from https://www.jstor.org/stable/259099.
Poghrebnjak, A.Ju. (2015). The essence of the components of the mechanism of crisis management at an industrial enterprise. Economic Bulletin of the National Technical University of Ukraine «Kyiv Polytechnic Institute», 12, 300-310. (In Ukrainian). Retrieved from http://nbuv.gov.ua/UJRN/evntukpi_2015_12_45.
Reznikova, O.O. (2020). On improving crisis management and developing other components of national resilience in the context of the COVID-19 pandemic. National Institute for Strategic Studies. (In Ukrainian). Retrieved from https://niss.gov.ua/doslidzhennya/nacionalna-bezpeka/schodo-udoskonalennya-krizovogo-menedzhmentu-ta-rozvitku-inshikh.
Rohr, J.A. (1986). To Run a Constitution: The Legitimacy of the Administrative State, Vol. 86. Lawrence, Kan. : University Press of Kansas. Retrieved from https://catalogue.nla.gov.au/Record/2888456
Sasaki, N., Kuroda, R., Tsuno, K., & Kawakami, N. (2020). Workplace responses to COVID‐19 associated with mental health and work performance of employees in Japan. Journal of Occupational Health, 62(1).
Selves, M.D. (2003). The Politics of Disaster: Principles for Local Emergency Managers and Elected Officials. Retrieved from http://training.fema.gov/EMIWeb/edu/docs/hazdem/ The%20Politics%20of%20Disaster.doc.
Şenol, Z., & Zeren, F. (2020). Coronavirus (COVID-19) and stock markets: the effects of the pandemic on the global economy. Eurasian Journal of Social and Economic Studies, 7(4), 1-16. Retrieved from https://dergipark.org.tr/tr/pub/asead/issue/54055/721871.
Shtejnyk, V.O. (2017). Features of the impact of crisis phenomena on enterprise management. IV All-Ukrainian scientific-practical Internet conference. Management of the XXI century: modern models, strategies, technologies. (pp. 374-386). Vinnycja: Vydavnycho-redakcijnyj viddil VTEI KNTEU. (In Ukrainian). Retrieved from http://www.vtei.com.ua/images/VN/25_10.pdf
Sjoma, B.B. (2020). Crisis management as a tool for solving problems in global emergencies. Management and security: theoretical and applied aspects: materials of the scientific-practical Internet conference. (pp. 82-85). Ljviv: LjvDUVS. (In Ukrainian). Retrieved from https://www.lvduvs.edu.ua/documents_pdf/biblioteka/nauk_konf/22_05_2020_m.pdf
Stavchenko, S.V. (2018). Crisis consultations as a component of political management. Scientific and theoretical almanac «Grani», 21(7), 24-30. (In Ukrainian) DOI: 10.15421/171890.
Stephens, K.K., Malone, P.C., & Bailey, C.M. (2005). Communicating with stakeholders during a crisis, evaluating message strategies. Journal of Business Communication, (42) 4, 390-419. Retrieved from https://www.semanticscholar.org/paper/Communicating-with-stakeholders-During-a-Crisis-Stephens-Malone/ca747ce1632b7c73ab4d1f8991bfcf3550950794
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Ukrainian Marketing Group. (2021). Activity of enterprises under the conditions of COVID-19 pandemic in Ukraine. Retrieved from http://www.umg.ua/blog.html
Vorfolomeev, A.V. (2020). Injection of Covid-19 at Ukrainian enterprises and additional assistance in the renewed normal robots: call for the results of the experience of the Center for resource-efficient and clean production. Kyiv: Center for Resource Efficient and Clean Production, 24 p. Retrieved from: https://ela.kpi.ua/bitstream/123456789/34835/1/Survey-Results-RECPC-%28Ukr%29.pdf. (In Ukrainian)
Vysocjka, I.B. (2020). COVID-19 - a threat to the world economy. Management and security: theoretical and applied aspects: materials of the scientific-practical Internet conference. (pp. 19-21). Ljviv: LjvDUVS. (In Ukrainian)
Zamoum, K., & Gorpe, T.S. (2018). Crisis Management: A Historical and Conceptual Approach for a Better Understanding of Today’s Crises. Crisis Management – Theory and Practice, Katarina Holla, Michal Titko and Jozef Ristvej. IntechOpen, DOI: 10.5772/intechopen.76198. Retrieved from: https://www.intechopen.com/books/crisis-management-theory-and-practice/crisis-management-a-historical-and-conceptual-approach-for-a-better-understanding-of-today-s-crises
Zhou, X. (2020). Organizational response to COVID-19 crisis: Reflections on the Chinese bureaucracy and its resilience. Management and Organization Review, 1-12.
AlKnawy, B. (2018). Leadership in times of crisis, Leader, 3, 1–5.
Andrjejeva, T.Je., & Tereshhenko, D.A. (2011). Theoretical principles of forming a system of financial management of the enterprise. Bulletin of Transport Economics and Industry, 34, 255-260. (In Ukrainian)
Barton, L. (2007). Crisis leadership now: A real-world guide to preparing for threats, disaster, sabotage, and scandal. (368 р.). New York: McGraw-Hill.
Baubion, C. (2013). OECD Risk management: Strategic crisis management. Strategic Crisis Management, OECD. [PDF file]. Doi: https://dx.doi.org/10.1787/5k41rbd1lzr7-en
Boin, A., & ‘t Hart, P. (2010). Organising for effective emergency management: lessons from research. Australian Journal of Public Administration, 69(4), pp. 357–371. https://doi.org/10.1111/j.1467-8500.2010.00694.x
Buheji, M., & Ahmed, D. (2020). Foresight of Coronavirus (COVID-19) opportunities for a better world. American Journal of Economics, 10(2), 97-108.
Coombs, W.T. (2014). Ongoing Crisis Communication: Planning, Managing, and Responding. 4th edition. (256 р.). Thousand Oaks: Sage Publications.
Dekker, S. and Hansen, D. (2004) Learning under pressure: the effects of politicization on organizational learning in public bureaucracies. Journal of Public Administration Research and Theory, 14(2). (pp.211–230). Retrieved from https://www.jstor.org/stable/3525870
Deverell, E. (2010). Flexibility and rigidity in crisis management and learning at Swedish public organizations. Public Management Review, 12(5), 679-700. Retrieved from https://www.researchgate.net/publication/233458282_Flexibility_and_Rigidity_in_Crisis_Management_and_Learning_at_Swedish_Public_Organizations
Fishhuk, N.Ju., & Gholyshevsjka, A.A. (2011). Financial management as an integral tool of management inventory. Economic Bulletin of the Eastern European University of Economics and Management space, 47, 288-292. (In Ukrainian). Retrieved from http://www.nbuv.gov.ua/portal/Soc_Gum/Ekpr/2011_47/statti/32.pdf
Gelter, M. & Puaschunder, J.M. (2021). COVID-19 and Comparative Corporate Governance Fordham Law Legal Studies Research Paper No. 3772965, Forthcoming Journal of Corporation Law (2021), European Corporate Governance Institute - Law Working Paper No. 563/2021. Retrieved from http://dx.doi.org/10.2139/ssrn.3772965
Global Recruitment & Consulting Ukraine. (2021). Ukraine: country overview. Recovered from https://www.vsk-consulting.com/.
Gostin, L.O., & Wiley, L.F. (2020). Governmental public health powers during the COVID-19 pandemic: stay-at-home orders, business closures, and travel restrictions. Jama, 323(21).
Hermann, C. (1963). Some Consequences of Crises Which Limit the Viability of Organizations. Administrative Science Quarterly, 8, 61-82. https://doi.org/10.2307/2390887
Hermann, C.F. (1972). International Crises: Insights from behavioral research. New York et al.: Free Press. Retrieved from http://www.voxprof.com/cfh/hermann-publications.html
Hıdıroğlu, D. (2020). Strategic leadership: Best practical leadership style to business strategies in the period of COVID-19 Epidemic. Turkish Studies – Social, 15(4), 1945-1955. https://dx.doi.org/10.29228/ TurkishStudies.43445
Johansen, W. (2017). Understanding and practicing crisis consulting: A study of public relations and communications firms. Journal of Communication Management, 21(2), 106-123. https://doi.org/10.1108/JCOM-12-2016-0104
Kharytonov, E., Kharytonova, O., Kolodin, D., & Tkalych, M. (2020). The Covid-19 Pandemic and the Rights of the Individual in Terms of Private and Public Law. Ius Humani. Law Journal, 9(2), 225-250. https://doi.org/10.31207/ih.v9i2.253
Kostj, Ja.O. (2010). The place of financial diagnostics in the system of financial management of the enterprise. Science and economics, 2(18), 55-64. (In Ukrainian). Retrieved from https://scholar.google.com/citations?view_op=view_citation&hl=zh-TW&user=LB1LlksAAAAJ&citation_for_view=LB1LlksAAAAJ:u5HHmVD_uO8C
Lerbinger, O. (2012). The Crisis Manager: Facing Disasters, Conflicts, and Failures. 2nd edition. (400 р.). New York: Routledge Communication Series. https://doi.org/10.4324/9780203222133
Levchuk, O.V. (2017). Ukraine's economic security in the context of globalization challenges. Economy and society, 8, 59–64. (In Ukrainian). Retrieved from http://global-national.in.ua/archive/6-2015/38.pdf
Lighonenko, L.O. (2001). Anti-crisis management of the enterprise: theoretical and methodological principles and practical tools. (580 p.). K.: KNTEU (In Ukrainian). Retrieved from https://scholar.google.com/citations?view_op=view_citation&hl=uk&user=nfX74ZUAAAAJ&citation_for_view=nfX74ZUAAAAJ:P5F9QuxV20EC
Metkin, M.V. (2004). Features of crisis management. (74 p.) SPb: Universidad Estatal de Telecomunicaciones de San Petersburgo (in Russian). Retrieved from http://window.edu.ru/resource/424/63424
Meyers, G.C., & J. Holusha. (1986). When It Hits the Fan. (76 p.) London: Unwin Hyman. Retrieved from https://scirp.org/reference/referencespapers.aspx?referenceid=1311056
Murat, G., & Mısırlı, K. (2012). Crisis Management in Small and Medium Sized Enterprises: The Case of Çaycuma. International Journal of Management, Economics and Business, 1(1), 1-19.
Pearson, C.M., & Clair, J.A. (1998). Reframing crisis management. Academy of Management Review, 23(1). (pp. 59–76). Retrieved from https://www.jstor.org/stable/259099.
Poghrebnjak, A.Ju. (2015). The essence of the components of the mechanism of crisis management at an industrial enterprise. Economic Bulletin of the National Technical University of Ukraine «Kyiv Polytechnic Institute», 12, 300-310. (In Ukrainian). Retrieved from http://nbuv.gov.ua/UJRN/evntukpi_2015_12_45.
Reznikova, O.O. (2020). On improving crisis management and developing other components of national resilience in the context of the COVID-19 pandemic. National Institute for Strategic Studies. (In Ukrainian). Retrieved from https://niss.gov.ua/doslidzhennya/nacionalna-bezpeka/schodo-udoskonalennya-krizovogo-menedzhmentu-ta-rozvitku-inshikh.
Rohr, J.A. (1986). To Run a Constitution: The Legitimacy of the Administrative State, Vol. 86. Lawrence, Kan. : University Press of Kansas. Retrieved from https://catalogue.nla.gov.au/Record/2888456
Sasaki, N., Kuroda, R., Tsuno, K., & Kawakami, N. (2020). Workplace responses to COVID‐19 associated with mental health and work performance of employees in Japan. Journal of Occupational Health, 62(1).
Selves, M.D. (2003). The Politics of Disaster: Principles for Local Emergency Managers and Elected Officials. Retrieved from http://training.fema.gov/EMIWeb/edu/docs/hazdem/ The%20Politics%20of%20Disaster.doc.
Şenol, Z., & Zeren, F. (2020). Coronavirus (COVID-19) and stock markets: the effects of the pandemic on the global economy. Eurasian Journal of Social and Economic Studies, 7(4), 1-16. Retrieved from https://dergipark.org.tr/tr/pub/asead/issue/54055/721871.
Shtejnyk, V.O. (2017). Features of the impact of crisis phenomena on enterprise management. IV All-Ukrainian scientific-practical Internet conference. Management of the XXI century: modern models, strategies, technologies. (pp. 374-386). Vinnycja: Vydavnycho-redakcijnyj viddil VTEI KNTEU. (In Ukrainian). Retrieved from http://www.vtei.com.ua/images/VN/25_10.pdf
Sjoma, B.B. (2020). Crisis management as a tool for solving problems in global emergencies. Management and security: theoretical and applied aspects: materials of the scientific-practical Internet conference. (pp. 82-85). Ljviv: LjvDUVS. (In Ukrainian). Retrieved from https://www.lvduvs.edu.ua/documents_pdf/biblioteka/nauk_konf/22_05_2020_m.pdf
Stavchenko, S.V. (2018). Crisis consultations as a component of political management. Scientific and theoretical almanac «Grani», 21(7), 24-30. (In Ukrainian) DOI: 10.15421/171890.
Stephens, K.K., Malone, P.C., & Bailey, C.M. (2005). Communicating with stakeholders during a crisis, evaluating message strategies. Journal of Business Communication, (42) 4, 390-419. Retrieved from https://www.semanticscholar.org/paper/Communicating-with-stakeholders-During-a-Crisis-Stephens-Malone/ca747ce1632b7c73ab4d1f8991bfcf3550950794
Taneja, S. et al. (2014). Strategic crisis management: A basis for renewal and crisis prevention. Journal of Management Policy and Practice, 15(1), 78-85. Retrieved from http://m.www.na-businesspress.com/JMPP/TanejaS_Web15_1_.pdf
Ukrainian Marketing Group. (2021). Activity of enterprises under the conditions of COVID-19 pandemic in Ukraine. Retrieved from http://www.umg.ua/blog.html
Vorfolomeev, A.V. (2020). Injection of Covid-19 at Ukrainian enterprises and additional assistance in the renewed normal robots: call for the results of the experience of the Center for resource-efficient and clean production. Kyiv: Center for Resource Efficient and Clean Production, 24 p. Retrieved from: https://ela.kpi.ua/bitstream/123456789/34835/1/Survey-Results-RECPC-%28Ukr%29.pdf. (In Ukrainian)
Vysocjka, I.B. (2020). COVID-19 - a threat to the world economy. Management and security: theoretical and applied aspects: materials of the scientific-practical Internet conference. (pp. 19-21). Ljviv: LjvDUVS. (In Ukrainian)
Zamoum, K., & Gorpe, T.S. (2018). Crisis Management: A Historical and Conceptual Approach for a Better Understanding of Today’s Crises. Crisis Management – Theory and Practice, Katarina Holla, Michal Titko and Jozef Ristvej. IntechOpen, DOI: 10.5772/intechopen.76198. Retrieved from: https://www.intechopen.com/books/crisis-management-theory-and-practice/crisis-management-a-historical-and-conceptual-approach-for-a-better-understanding-of-today-s-crises
Zhou, X. (2020). Organizational response to COVID-19 crisis: Reflections on the Chinese bureaucracy and its resilience. Management and Organization Review, 1-12.
Published
2021-10-29
How to Cite
Harkusha, A. H., Koretsky, O. P., Pokataiev, P. S., Bukanov, H. M., & Biliuk, A. V. (2021). The influence of the crisis on corporate governance and its legislative regulation: evidence from Ukraine. Amazonia Investiga, 10(45), 158-174. https://doi.org/10.34069/AI/2021.45.09.17
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