Abstract
The owners and heads of companies often make serious financial decisions, both operational and strategic, guided not by traditional criteria for optimality of profitability and risk, but by the desire to satisfy, to one degree or another, the expectations and interests of various interested groups of people both in the company and for its limits. The financial goal of a large corporate structure, in particular an insurance organization, should be formulated on the basis of a balance of interests of all interested parties (stakeholders) of its business in accordance with stakeholder theory. The authors determine the purpose and objectives of this study as the discussion of the nature of the stakeholder approach to the balanced development of economic entities, as well as the insufficient development of methodological approaches to meeting the requirements of stakeholders. The stakeholder’s approach allows us to disclose all key aspects of the functioning of an economic entity, and it could be proved that the corporate governance system of insurance organizations should include a mechanism for identifying and predicting the interests of key stakeholders and building on their basis strategic guidelines for coordinating and satisfying the interests of stakeholders.
Highlights
Owners and managers of companies often make serious financial decisions of both operational and strategic nature, guided not by the traditional criteria of optimality in terms of profitability and risks, but by the desire to meet to some extent the expectations and interests of various interested groups of persons both within the company and outside it
The financial goal of a large corporate structure, in particular an insurance company, should be formulated on the basis of a balance of interests of all interested parties of its business. This idea is based on the popular stakeholder theory
The stakeholder approach allows us to disclose all key aspects of the functioning of an economic entity
Summary
The financial goal of a large corporate structure, in particular an insurance company, should be formulated on the basis of a balance of interests of all interested parties (stakeholders) of its business. This idea is based on the popular stakeholder theory. Stakeholders are individuals or companies that have any interests that meet their needs and expectations, for example, shareholders, employees, managers, contractors, the state and other persons interested in the activities of the company and her actions. When developing a corporate strategy, the search for a balance of interests of stakeholders conflicts with the target criterion for maximizing the value of the business for shareholders (wealth maximization theory), in particular the market value of shares ("market capitalization")
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