Economic Bulletin of the National Mining University

 

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Article

Issue:2019 №4 (68)
Section:Management
UDK:332.142.4
DOI:https://doi.org/10.33271/ev/68.164
Article language:Ukrainian
Pages:164-176
Title:Coherence of economic interests of the territorial community and local mining business
Authors:Shapoval V. A., Dnipro University of Technology,
Litvinov Yu. I., Dnipro University of Technology
Annotation:The issues of reconciliation of economic interests in the system «community - local mining business» as a way of preventing potential and constructive settlement of existing conflicts between stakeholders are considered. The analyzed negative external effects of business entities' activity and corresponding community expenses, which are considered as a conflict basis of their relations, affects the current performance, influences the assessment of development prospects. It is taken into account that ensuring the competitiveness of local businesses is an area of intersection of business and community interests, and both sides of the relationship, depending on the circumstances, can change the nature of the impact from counteraction to promotion. In the context of the unified system of goals of the territorial community and local mining business, the characteristics of these parties are considered, in particular: general management orientation; decision-makers; the main strategic goals and strategies; change outcome indicators; factors and causes of conflict. The main mutual claims that have occurred in the practice of community-business interaction regarding the directions of use of local natural resources, management of financial resources of the community, the procedure for granting permits for activities, distribution of powers and responsibility for the consequences of production activities, solving other issues are analyzed. One of the causes of the conflicts is the ineffective communication of the subjects, due to the high level of subjectivity of the parties in matters of priority of their own interests, the need for finding compromise solutions, the interpretation of the distribution of powers and responsibility for economic development. It is established that the results of economic development projects depend on the quality of management of the process of forming relations between the community and local businesses on the basis of prudence and responsibility. A methodical approach to the substantiation of the strategy of reconciling the interests of the territorial community and the local mining enterprise is proposed. 
Keywords:Economic interests, Territorial communities, Mining companies, Competitiveness, External effects, Communications, Conflicts, Reconciliation strategy
File of the article:EV20194_164-176.pdf
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