COMPLIANCE IN BUSINESS ADMINISTRATION AND ITS ROLE IN EFFECTIVE RULES OF ECONOMIC BEHAVIOR CREATING

Abstract

The purpose of the article is to determine the nature of the compliance and analysis of
its functions in business administration. The internal contradictions of methodological
approaches to the compliance interpretation (exogeneity vs. endogeneity, compulsory
vs. voluntary, process approach vs. functional approach, isomorphism) are revealed.
Compliance features in business administration are highlighted: risk management;
raising the level of capitalization business, growth of profitability and market value of
shares; discipline of management and employees; securing loyalty of stakeholders; updating the company's strategy, obtaining additional competitive advantages; creation
of economic behavior effective norms. It is proved, that compliance plays an important
role in effective business rules creating: it initiates a certain standard of economic
behavior, which is based on full transparency of the activity, prevention of any attempts
to misuse the business resources. The economic benefit of this behavior type transforms
business agents into providers of legal economics – an environment for equal
opportunities in the implementation of socio-economic rights.