Commercial Secrets Research Articles

NEW MEDIA AND “AFFECTIVITY”: CASES FROM BELARUS

Early scholars of new media saw internet as new free self-productive media which can transfers its own form on society at large. But with emerging of some kind of internet-monopolists (Google, Facebook etc.) such techno-optimistic point of view clashes with works of new generation of new media theorists. This article is suggesting that such properties of new media as interactivity and common creation of content in contemporary political condition of populist turn and economical condition of monopolism lead to producing of «affectiveness» which endangers democracy. The last one understood as possibility of group of people to solve political questions as independent and rational persons. Article sees bad condition of monopolism mostly not as lack of competition in new media sphere, but as contemporary view on new media sees last as usual capitalist enterprises which can save their own «commercial secrets». Usual mechanism of Page Rank algorithm on Google or news feed on Facebook are such secrets which are not free to discuss in society. «Affectiveness» in such case understood as possibility of users of new media take and distribute lots of unverified information through «closed» mechanism of new media. This article provides some specific cases of «affectivity» in Belarusian internet space – analysis of internet-communities of «national-anarchists», internet-struggle between supporters of BPR and BSSR for claiming these states as first national Belarusian state and case of virtual state «Viejsnoryja». All these cases connected with painful issues of Belarusian society (such as lack of democratic institutions or lack of public discussion about national history) and illustrates how these problematic questions are «affect» users by the internet-mechanism to collective dreaming (in best case) or mutual hostility (in worst case) instead of rational discussion about these issues.

MANAGEMENT ANALYSIS: THE ESSENCE AND SIGNIFICANCE IN DECISION-MAKING

The financial crisis experienced by the Ukrainian economy has a negative impact on the financial and economic activity of enterprises, the results of which are of interest both for external and internal users. Under these conditions, the role of management analysis, which is intended to transform economic and non-economic information into suitable for decision-making, is growing. The analysis is closely related to all management functions and ensures their implementation, and therefore it is a general management function. In the economic literature there are different interpretations of the definition of “management analysis” depending on the basic characteristics. Thus, one of the most common features is managerial, according to which three components of management analysis can be distinguished, i.e. perspective (predictive) analysis, operational analysis and current (retrospective) analysis, each of which is inherent in the solution of their own tasks. A market economy requires differentiation of analysis into internal managerial and external financial. Consumers of analytical information for the management and financial analysis have different user groups, but their content can only have characteristics that correspond their interest and protect commercial secrets. The subjects of internal management analysis are the administration, as well as the auditors and consultants involved by it. The subjects of financial analysis are the administration of the economic entity and external users. In addition, it should be noted that management analysis includes in its system not only production, but also financial analysis, without which enterprise’s management cannot implement the financial strategy of the enterprise. We believe that it is advisable to introduce such a concept as a comprehensive management analysis. This type of managerial analysis is designed to justify managerial decisions that are made at the enterprise, which operates under conditions of globalization of the market processes. The main features of managerial analysis are orientation towards internal users; comprehensive study of all aspects of the enterprise's activities; integration of accounting, analysis, planning and decision-making at the enterprise; lack of regulation from the outside; use of all available sources of information; orientation of analytical procedures for the assessment of business activities; justification of managerial decisions based on the identification of unused opportunities; confidential nature; perspective orientation of results of the analysis; industry orientation. Management analysis is the analysis of business activity aimed at making optimal managerial decisions. Correctness and effectiveness of managerial analysis affects the main results such as the profit, which subsequently becomes the object of financial analysis, so that each of these types of analysis solves its own problem of a single strategy of analysis at the enterprise. The place of analysis in the management process can be characterized by its objectives. There arises a need to combine quantitative and qualitative analysis of managerial processes, as well as to improve analytical support of the decision-making process. The correctness of the decisions made depends on the full access of managers to analytical data that reveal the state of financial and economic activity of the enterprise and the lack of which negatively affects different levels of management. Accounting information for the management purposes at any level should be properly prepared and interpreted on the basis of certain methods of analysis. In general, the technological process of making managerial decisions can be represented in the form of a sequence of stages and procedures that have direct and reciprocal links that form an information flow. At the same time, in the process of adoption and implementation of managerial decisions, it is a general practice to distinguish the following steps: setting of goals; support of the solution complexity; provision of information sources for the decision-making; verification of consequences of implementation of possible variants; evaluation of results. The timeliness of managerial decisions is achieved through constant and systematic analytical processing of information, which enables to identify quickly negative or positive trends in the activities of enterprises, their possible consequences and factors that affect them. The effectiveness of the decision made depends both on its optimality and the form of transfer to the executors (construction of decisions and personal qualities of executives and performers). Fuller and most accurate definition of the management analysis is to be specified. Management analysis is the analysis that is confidential, oriented to internal users, prospect-oriented and conducted taking into account the industry specificity of the analyzed object. The term “managerial analysis” refers to the interrelations of the management analysis with management accounting and economic analysis. On the one hand, it is based on the data of management accounting, and on the other hand, it uses methods and procedures of economic analysis (qualitative, quantitative, fundamental, marginal, economic and mathematical, express analysis).

Problems of legal regulation of the grounds for termination of an employment contract at the initiative of the employer

The presented scientific article arises from the research of theoretical and practical problems of the legal regulation associated with the grounds and the procedure for termination of an employment contract at the initiative of the employer under a free market economy. The article substantiates a number of concepts, along with ideas and conclusions which are conceptual in theoretical terms and important for the legal practice. In particular, for the first time the classification of stages of development of the labor legislation regulating the procedure for termination of an employment contract at the initiative of the employer is given, characteristics of each of these stages are analyzed and defined. In addition, the article summarizes the expediency of bringing the norms of the national legislation on the dismissal of employees at the initiative of the employer in accordance with the conventions and recommendations of the International Labor organization, and substantiates the need to fix the amount of severance allowance depending on the grounds for dismissal of the employee and the length of current employment. There have been formulated proposals to specify the grounds for termination of an employment contract with an employee performing educational functions. Moreover, it is suggested to introduce in the labor legislation standalone grounds for termination of an employment contract at the initiative of the employer, namely: dismissal of the employee on completion of qualification testing; violation of labor protection rules by the employee, which resulted in serious consequences, including injuries and accidents; dismissal of the employee due to changes to essential labor conditions; deliberate violation by the employee of the obligation not to disclose the state, commercial and other secrets or information protected by law; provision of false information by the employee to the employer when concluding the employment contract; termination of business by the employer as an individual.

Main areas of auditing insurance companies’ financial statements

This article formulates and analyzes the main areas of audits of financial reporting of insurance organizations and audit procedures, as well as auditor's programs in this area. At the same time, proposals and recommendations on auditing the financial statements of insurance companies have been prepared. In order to confirm the financial stability and solvency of the insurance organization, the task of determining compliance of the financial and operating operations with the current legislation, the reliability and the validity of the financial results of the insurance companies in accounting and reporting, audit was organized. It is evident that as there appear legal relationship and the mutual interest on the basis of a contractual arrangement, it is required that the control system be improved. According to the AXS 200, Conducting general objectives of the independent auditor and auditing in accordance with international auditing standards and AHS 250, Consideration of laws and regulations in the audit of financial statements, the purpose of the audit is to ensure the reliability and accounting of financial (accounting) the implementation of the procedure according to the legal and regulatory requirements. Thus, the origin of the audit of the financial statements of insurance organizations is primarily incompatible with the interests of reporters (managers of the entities) and interests of users (owners of subjects of the subject), necessity of reliable information for economic decision making, the material required for evaluation appears as they are commercial secrets.

Digital Markets, Rules of Conduct and Liability of Online Intermediaries—Analysis of Two Case Studies: Unfair Commercial Practices and Trade Secrets Infringement

Digital Markets, Rules of Conduct and Liability of Online Intermediaries—Analysis of Two Case Studies: Unfair Commercial Practices and Trade Secrets Infringement

ЗАБЕЗПЕЧЕННЯ ЕКОНОМІЧНОЇ БЕЗПЕКИ ПІДПРИЄМСТВА ПІД ВПЛИВОМ КОНКУРЕНТНОГО СЕРЕДОВИЩА

In the article the approaches are considered to interpretation of essence of economic safety of enterprise, competition environment, competitiveness, the factors of influence on economic safety of enterprise, formed under act of competition environment, are systematized, the possible list of practical situations which can carry threats to economic safety of enterprise is resulted, basic directions of account of influencing of competition environment are formulated on providing of economic safety of enterprise. Opinion is expressed, that notion of competitiveness de facto includes notion of efficiency and is complemented by that requires providing of economic safety, as even the high effective economic subject not provided with the necessary level of defence from competitors yet can be considered competitive. If the system of such safety is not built, the competitive edges of him will not rescue and more that - can be used by competitors. It is set, that necessity in adaptation to the spectrum of external terms unsteady, dynamic, to the terms of competition and limited rationality induces enterprises to evolutional alterations. In order to store and fix economic safety under outpouring of competition environment, an enterprise must not only support high competition, but also constantly to promote her. In the article it is indicated on that guaranteing of his functioning stable and maximally effective is the primary objective of realization of measures from providing of economic safety of enterprise, and the tasks of such work are: achievement of purpose of functioning of enterprise; providing of the effective use of resources; prevention to the destructive influencing of external environment; strengthening of financial firmness and solvency; guard of commercial secret and information; achievement of safety of personnel of enterprise, property and capital.

Accounting, analysis and audit in management of economic security expenditures

Due to increasing globalization and competition, businesses have been forced to spend more time and money on taking measures aimed at economic security. Accounting, economic analysis, and audit play a significant role in the management of economic security expenditures since they make the management system more effective, reliable and sound. Therefore, this issue is currently of particular interest and needs to be interpreted. The purpose of the article is to examine the current state, challenges and future directions of improving accounting, economic analysis and audit in management of economic security expenditures. The methodology used for studying the issues relevant to economic security includes general and specific research methods enabling the description of economic processes, economic phenomena and facts, namely, those involving prime records, the registers of synthetic and analytical accounting, reports on economic security expenditures, carrying out analytical procedures, and auditing. The authors use monographic and graphic methods, methods of grouping and comparison of indicators, analysis of the dynamics and structure of expenditures, factor analysis, modelling and budgeting expenses on economic safety of enterprises, planning measures for the significant improvement of accounting, economic analysis and audit in enterprises. The authors claim that the term ‘accounting’ will exist until significant changes affect the objectives and contents of accounting. Although the Ukrainian word ‘бухгалтерський (book-keeping)’ is derived from the German word ‘Buch’ that means ‘book’, it is still in use today. In the era of technological development, outdated paper books (accounting information carriers) are being replaced by electronic books which have become widespread. The article offers to improve accounting policies and procedures relevant to measures aimed at economic security by separating information on synthetic account 92 “Administrative expenses” into nine sub-accounts: 921 “General corporate expenses”; 922 “Expenses on business trips and maintenance of management”; 923 “Expenses on non-current tangible assets for general economic purposes”; 924 “Remuneration for advisory, information, audit and other services”; 925 “Communication and Internet costs”; 926 “Litigation settlement costs”; 927 “Taxes, fees (obligatory payments, licenses)”; 928 “Payment for services provided by commercial banks”; 929 “General-purpose expenses”. The following analytical accounts of the second, lower order should be opened to analytical account 9291 “Expenses on the economic safety of the enterprise”: 92911 “Costs of internal security service”; 92912 “Costs of data and commercial secrets protection”; 92913 “Costs of receiving, storing and transmitting technical and economic information”; 92914 “Costs of recruiting staff specialized in economic security”. The authors believe that in order to cover expenses on maintaining economic security it is advisable to reserve sources of funds on synthetic account 47 “Provision of future costs and payments” by using sub-account 471 “Provision of other costs and payments” and analytical accounts to it: 4711 “Technical facilities for economic security”; 4712 “Use, maintenance and repair of facilities for maintaining economic security”; 4713 “Personnel support for economic security”. An audit of economic security expenditures is proposed to be carried out in relation to budgets for such expenditures, articles and elements, effectiveness and duration of economic security expenditures, etc. It is also necessary to analyze whether the dynamics and structure of costs are proportional to the budget for economic security of the enterprise. Furthermore, it is important to identify the main positive and negative factors that significantly affect such expenditures. Identifying factors like these allows experts to take certain measures that will partially or completely eliminate negative effects on economic security expenditures of the enterprise. Further research projects in accounting, economic analysis, audit, and analytical support for managing economic security expenditures of the enterprise should be based on the current national and foreign methodology and organization of accounting, economic analysis, and audit, analytical support of the operating activity of large and medium enterprises. Further studies should widely apply methods of operational and strategic planning, modelling cost-management systems, etc.

Administrative responsibility for the receipt, use and disclosure of commercial secrets under Part 3 of Art. 164-4 KUPAP

Administrative responsibility for the receipt, use and disclosure of commercial secrets under Part 3 of Art. 164-4 KUPAP

Digital Library and Intellectual Issues—Issues in Copyright and Intellectual Property

The study aims at identifying the concept of digital library, it also tries to shed the light on the most significant intellectual issues by presenting its definition, development, functions (selection and acquisition of information resources from the web, sources indexing, communication and management of intellectual property rights, production of electronic resources and its availability, and digital resources maintaining), characteristics, and the purpose of turning into digital library, passed by the proposed stages of digital library transition, Types of Intellectual Property (Copyright, Patents, Trademarks, Commercial Secrets), it also discusses copyrights and intellectual property, the problems and challenges of digital library, and finally the future of digital library. Many researchers agree that the main objective of the digital library is to accomplish all the functions of the traditional library, but in the form of electronic digital libraries which are only an extension for jobs that are performed and the resources that are accessible in digital library. The study concluded that digital libraries emerged as an obligatory result of revolution of the third millennium which is called the communications revolution, as libraries are able to prove that they are able to stand and cope with all the modern technology, where there is no conflict between the new and modern trends in libraries issue, but it also benefits from both of them concerning their evolution instruments in service for beneficiaries in every time and place.

RIGHT OF THE SHAREHOLDER TO INFORMATION: CHANGING THE APPROACH OF THE LEGISLATOR

The article on the system level analyzes the development of the approach of the domestic legislator to the standardization of the issue about the scope, conditions and procedure of providing information about the joint-stock company to shareholders. Stressing the non-property nature of the right to information and the importance of its proper implementation (including the standpoint of protecting the interests of participants and effectively exercising other corporate rights), the author identifies and reveals the key stages in the evolution of normative and judicial positions on this issue, revealing a clear tendency to narrow information opportunities of shareholders. In the current state of affairs, special attention is paid to differences in the regulation of the shareholders right to information depending on the type of society (public or non-public) and difficulties in interpreting the term business purpose. The author considers in detail the topical issues about the correlation of confidential information and information constituting a commercial secret, the extent to which the right to information is exercised (presence of the shareholder status, specificity of the requirement to provide information, etc.).

PROBLEMS OF LEGAL PROTECTION OF COMMERCIAL SECRET IN UKRAINE

Odessa I. I. Mechnikov National UniversityV. A. Zavertneva-Yaroshenko M. M. YachmenskaThe aim of the article consists of research of questions of defence of commercial secret on the basis of analysis of judicial practice in this sphere. Analyse the legal norms of the national and foreign legal system with the purpose of development of variants of warning of violations of rights on a commercial secret. To work out preventive measures on purpose to warn violation of rights for the legal proprietor of commercial secret.

Legal and Economic Components of Modern Accounting Transformation

Complex transformational process characteristics of modern accounting have significantly influenced its three components; the economic, mathematical and legal aspect of modern accounting. Currently the predominant role belongs to the first one, but in the conditions of the digital economy development it is the mathematical one. It should be noted that the importance of commercial secrets prevent the transition to the information flows transparency while significant decrease of the legal accounting aspect can lead to certain quality deterioration of the accounting information. The main idea of this article is not only to discover the negative aspects connected with the weakening of legal accounting aspects, but also to show possible options of modern legal issues and implementations into the accounting practice.One of the main theoretical and methodological problems in this area is the intensive expansion of the multivariate accounting, based on professional judgment, which decreases the accounting procedures’ regulatory role. The authors consider necessary to propose a harmonious and balanced system of informational enrichment of public institutions’ activity of all the ties between the taxation process and its accounting support.As a result of this research, the authors came to the conclusion to structure formal and informal institutions that could influence the organization of accounting at a particular economic level moving from the advisory options of the accounting policy to the elements of discrete financial and business law based on the development of internal standards of economic entities.

Оrganizational and legal procedures for protection of a commercial secret of business subsidiary

The scientific article is devoted to the study of legal and organizational aspects of the protection of commercial secrets;the main stages of the process of assigning information to commercial secrets are highlighted; modern, effective system of information protection that is commercially valuable for a business entity is analysed.

Differentiation of performance materiality in audit based on business needs

Companies are exposed to various risks. Failure to identify and eliminate them may aggravate the development of companies, some of which may be forced to cease operation. Audit can help in revealing the majority of risks. The auditor has an unlimited access to the information, operational strategy, and in some cases even to commercial secrets, of the auditee. Auditor collects a large amount of different information about the company, but it is used only as much as necessary for formulating a conclusion about financial statements. Upon a closer cooperation of the auditor with the persons in charge of the governance of the audited entity, the client needs can be identified and, once the audit plan is slightly revised, the areas that are within the interest of the client can be analysed in more detail. This article aims to investigate the determination of performance materiality in audit to separate classes of transactions based on the principal areas of importance identified by the business undergoing audit. Based on the data collected during the study, a modified model for determining performance materiality in audit was created which can help to identify better the current and potential risks of the distinguished areas. The application of this model enables carrying out an audit in the areas which are of the highest importance to the users of the audit results more effectively and providing them with more detailed information in the management letter. This would help to identify the substantial risks of the auditee in more detail and on time.

PROCEDURAL ISSUES FOR DRAWING AND SUBMITTING MANAGEMENT REPORTS

In accordance with the international practice, procedures for preparing and submitting reporting on governance reporting and payments made to the state are introduced. The mandatory structure of governance reporting is not established. However, the law defines the component reporting component and defines the list of information that is obligatory in each component. It is recommended that the management report only contains the information that will be essential for the reporting users. Based on the experience of developed states, we can think that the preparation and the publicity of the management report will positively affect the company's sustainability and improvement of financial and non­financial indicators. It should also be taken into consideration that the disclosure of the governance information does not hinder the commercial secrets of business.

The effect of automation of accounting and financial statements on enterprises safety

The subject of the research is theoretical, methodological and practical aspects of accounting automation and financial reporting on enterprise security. The purpose of the work is to identify problems and establish trends in the implementation of accounting and financial reporting on the basis of automation and substantiation of the problem of computerization of accounting processes, information security of enterprises and management of the future. Methodological basis of the article became general scientific methods of cognition, generalization, method of comparative analysis and other methods of research. Results of work. The role of implementation of automation, software and computerization of accounting processes and financial reporting on the security of domestic enterprises and organizations has been determined. An informative characteristic of competitive advantages and properties of the most used programs is provided. At the same time, risks and threats to information security of enterprises, their sources and manifestations are revealed. The complex of measures for preservation and strengthening of information security is substantiated. A plan and measures for their implementation have been developed. Submitted suggestions for further research in order to strengthen the security of enterprises and improve its management. The field of application of the results is that the stated proposals on automation of accounting and financial reporting can be used by managers and specialists of enterprises for the purpose of safety improvement. Conclusions. The introduction of automated systems and programs for accounting and accounting and financial reporting is a significant factor in improving the efficiency of domestic enterprises. At the same time, the security of the operation of enterprises increases due to greater accuracy and impartiality of the information used, and a significant reduction of their costs on accounting and analytical processes. However, because of the specifics of automation and computerization (connecting to more global networks, using typical programs and metrics, etc.), the openness of information systems increases, the threats to commercial secrets and the risks of competitive business increase in general. It updates the importance of providing and further improving the information security of enterprises and organizations in the long run.

Genesis of legal regulation of relations in the sphere of commercial secrets protection

The process of formation and development of legal regulation of relations in the sphere of commercial secret protection is analyzed, proposals on the improvement of current domestic legislation in the field of commercial secret protection are substantiated, foreign experience of legal regulation of commercial secrets has been researched.

ACQUIRING OF RIGHTS TO OBJECTS OF INTELLECTUAL PROPERTY AS AN ADMINISTRATIVE PROCEDURE

The article focuses on a comprehensive study of the procedure for acquiring rights to the industrial property. The author has attempted to determine the individual stages of such an administrative procedure. The procedural issues, in general, are considered and complex stages are identified. The problematic issues concerning the rights of the subjects of power authority, the terms of the examination for the objects are analyzed. There is a discussion on the amount of payment for such services. The principles of providing and signs of administrative services are described in detail. Comparison of the legal protection of industrial property rights and legislation on administrative services was carried out. The legal protection of each object of the industrial property right has its own characteristics. The legal protection of intellectual property is ensured by the norms: copyright and related rights (works of science, literature and art, performance, phonogram, videogram, speech transfer), the right to the results of scientific-technical creativity (discoveries, inventions, utility models, industrial designs, topographies of integrated microcircuits, plant varieties and breeds of animals, rationalization proposals, commercial secrets); rights to commercial designations (trademarks (marks for goods and services), geographical indications, commercial (company) name). The study focuses on the legal ways of acquiring the rights of the second and third group of industrial property rights. The subjects of intellectual property rights are the creator (creators) of the intellectual property right object (author, performer, inventor, etc.) and other persons who own personal non-property and (or) property intellectual ownership rights. The primary subject of intellectual property right is an individual. The primary subjects of property rights of intellectual property are also the employers of the person who created the object of intellectual property right in connection with the performance of official duties. Individuals and legal entities can also acquire the primary right of intellectual property by virtue of law. Derived subjects of intellectual property rights are legal successors to whom this right passes by virtue of law, contract or inheritance. Authors can be individuals regardless of their age, legal, social, political or another status.Differences between protection of copyright objects and industrial property rights associated with various types of objects of intellectual property rights and features of protection of rights in accordance with the Law on Copyright and Industrial Property Laws. The difference of legal protection to objects of copyright and industrial property rights is associated with various grounds for the emergence (acquisition) of intellectual property rights. The acquisition of intellectual property rights for an invention, utility model, industrial design, plant variety, the animal breed is certified by a patent. The acquisition of intellectual property rights for the layout of integrated circuits, a trademark is certified by a certificate. The receipt of a patent, a certificate for the relevant objects of industrial property rights, is connected with the conduct of an expert examination, established by law. This stage of the legal protection of industrial property is considered as an administrative procedure that has certain stages, requirements, formalized documents and definite rights, duties of participants in such procedures. Particular attention is paid to the regulation of administrative services in the sphere of acquiring the right to industrial property. Administrative service is the result of the implementation of power by the subject of administrative services provision at the request of an individual or legal entity, aimed at establishing, changing or terminating the rights and/or duties of such person in accordance with the law.

Privacy and Trade Secret Law Applied to Drones: An Economic Analysis

The growing number of commercial and consumer drones, combined with their ability to fly quietly at low altitudes with cameras and other monitoring equipment, raises concerns about privacy and property rights. This Article focuses on two primary questions. First, how will the balancing of privacy concerns and the interests of drone operators influence the emergence of new rules governing minimum drone operating altitudes above private property? And, second, once those new rules are set, how will the large volume of drone operations affect existing laws? An economic analysis of intrusion upon seclusion and trade secret law helps answer these questions. Permitting drones to fly above private property without the property owner’s consent provides efficiency gains by enabling drones to fly more directly to their destinations. And, as with planes flying at high altitude, most landowners are unlikely to notice overhead drones operating at an altitude of at least 200 feet. Thus, the benefits of reducing vertical property rights to create a 200- to 400-foot high public highway for drones, as the Federal Aviation Administration is considering, are likely to far exceed the costs. However, at sufficiently low altitudes, drones impose significant privacy costs because of their surveillance capabilities and unsettling proximity. Permitting drones to fly at less than 200 feet would provide only minimal additional economic benefits to the drone industry while significantly increasing potential privacy costs for individuals. Accordingly, because the privacy costs imposed by drone operations below 200 feet would exceed efficiency benefits gained, drone operations below this height should be considered a trespass and property owners should be permitted to exclude them. Operations above 200 feet present a different set of challenges because drones operating at that height are, or soon will be, capable of capturing detailed images of property below. For those operations, individuals will still need to rely on intrusion law to protect their privacy, and firms will still need to rely on trade secret law to protect their commercial secrets. The original economic rationales for both laws continue to apply in the drone era. Intrusion law recognizes that protecting the seclusion of individuals is economically beneficial. Trade secret law recognizes that there are economic benefits to affording trade secret protection to firms that take reasonable precautions to protect their commercial secrets. Although the rise of drones need not change intrusion and trade secret legal principles, the large number of drones means that new simple rules should be issued to establish a presumption of intrusion upon seclusion. The large number of drones also means that firms may need to take additional precautions to benefit from trade secret protection both as a legal matter and for practical reasons. Another recommendation is for higher penalties and more frequent use of punitive damages.

ЕКОНОМІЧНИЙ КОНТРОЛЬ СИЛАМИ ГРОМАДЯНСЬКОГО СУСПІЛЬСТВА: ІНСТИТУЦІОНАЛЬНИЙ ПІДХІД

The article studies the significance of public institutions for successful functioning of a market economy. The emphasis is placed on the fact that market institutions are formed through social organization and evolution. The structure of modern society is clarified; combination of professional performance of the functions of its social group and adherence to moral values are selected to be the main criterion of the structure. The hypothesis of isomorphism of the social structure is advanced, according to which the decrease in the share of people in civil society with rent-seeking behavior can lead to similar shifts in business and public sector. The system of economic control is proposed that corresponds to division of society into three main social groups. The new content of control, which proceeds from the concept of sustainable development and the theory of systems, is revealed. The essence of the new type of control is formation of socially significant analytical information capable of launching mechanisms of self-organization of enterprises, including self-control. The main corrective tool is the publication of these findings. Attention is paid to original sources of information for civil control (for example, financial and tax reporting of enterprises), which is not a commercial secret in accordance with Ukrainian legislation. Institutional mechanisms, such as compulsory mechanism of the law, normative mechanism of professional opinion, imitative mechanism of positive practice, promotion of information, involvement of supporters and cooperation with foundations are listed. It is concluded that the introduction of economic control by civil society can strengthen public institutions such as law, morality, property, enterprise, trust in society, fair competition, etc. This, most likely, will have a positive impact on development of the economy.