METHODOLOGY FOR EVALUATING STAKEHOLDERS’ ECONOMIC SECURITY AS PART OF ENTERPRISE ECONOMIC SECURITY

Abstract

The study emphasizes that modern methods for assessing enterprise economic security do not take into account the degree of economic security of its stakeholders as well as the effects from the contractors’ security which reduce the effectiveness of actions aimed at ensuring the overall enterprise security. The purpose of the research is to improve the methodology for assessing the economic security of enterprise stakeholders as part of its overall economic security. To attain the research goals, the following scientific methods have been employed: generalization – to explore the views of economists in the subject matter of the study and summarizing the results of the content analysis of primary sources; analysis and synthesis – to interpret the major scientific categories of the research and specify the indicators related to stakeholders’ economic security. The article suggests a general framework of enterprise stakeholders’ economic security with a particular focus on the need to assess separately its degree and development stage. It is argued that stakeholders’ economic security is characterized by the degree of relevant indicators approaching their threshold (minimum necessary) values whereas the state of economic security of stakeholders (subject to their own resources, reserves and processes) is determined by the combination of specific conditions and settings of their environment and reflect the possibility to restore the adequate degree of economic security with regard to time and trends requirements. The study presents an improved classification of enterprise stakeholders’ economic security in terms of the dependence of their interests on the economic security of the enterprise. It has been proved that the assessment process should account for the internal (endogenous) security of stakeholders which depends on a particular enterprise and which can combine the security of personnel, owners and the territorial community. It is proposed to define indicators for assessing the degree and the state of internal economic security of this group of stakeholders taking into account the value of unexploited expenses, and the economic security index – with due regard to stakeholders’ security. For the first time, for this indicator it is proposed to take into account the effects of economic security of external stakeholders as shown using the case of financial and credit institutions and suppliers. An improved methodology for assessing the economic security of enterprise stakeholders will enable an isolated evaluation of this security type as well as take it into account when calculating enterprise economic security indicators. The above proposals offer a range of practical implications since they could be used by enterprise planning and economic departments for planning and designing a more effective approach to the selection of stabilization actions to enhance its business performance, in particular through developing a balanced policy of cooperation with contractors.