THE ESSENTIAL CHARACTERISTICS OF TRANSPARENT BUSINESS ACTIVITIES: ADVANTAGES AND DISADVANTAGES

Abstract

The paper is devoted to the theoretical aspects of enterprises' transparent activities. The study identified the essence of transparency at the micro level, its main elements and functions. The essence of transparent activity is also defined. Benefits and additional opportunities for transparency are revealed. External and internal effects from the implementation of transparent financial reporting are substantiated.
The advantages for the state, consumers, potential investors, financial analysts, audit companies are described. Priority measures to increase business transparency have been identified. In addition, there are shortcomings of transparent activities. Theoretical aspects of the security-oriented approach to the implementation of the principles of transparent activity of the enterprise are considered, the implementation of which will allow to realize new opportunities, avoid risks and ensure a positive impact on the company's economic security level. Disadvantages include the fact that information that is freely available may be of interest to competitors and it's use for their own purposes, such as following strategy, releasing similar products and gaining market advantage, creating a competitive weakness for the organization.
According to research, the main advantages of transparency for the company are attracting talented staff, building trust, increasing productivity, increasing business responsibility, strengthening the competitive position and ensuring economic security. Thus, a security-oriented approach to transparent activities is based on a clear definition of confidential information to be covered (trade secrets, details of competitive advantages, personal information, etc.). With clear boundaries, transparent activities will have a positive impact on economic security through key growth factors in sales revenue, net income, capital gains and turnover.