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Digest Finance
 

The role of management in steering the sustainability of corporate operations

Vol. 21, Iss. 2, JUNE 2016

Received: 25 March 2016

Received in revised form: 14 April 2016

Accepted: 29 April 2016

Available online: 17 June 2016

Subject Heading: MATHEMATICAL METHODS AND MODELS IN ECONOMICS

JEL Classification: D81, L23, L25, M11

Pages: 43-51

Vasin N.S. Prioksky State University, Orel, Russian Federation
vasinn@rambler.ru

Chistyakov V.V. Prioksky State University, Orel, Russian Federation
petrovka141@bk.ru

Importance To remain stable and sustainable, any production system needs not only some sustainability potential, but also effective management at each corporate governance level. In this respect, it is very reasonable to evaluate how management influences the corporate sustainability.
Objectives The research analyzes how management influences sustainable operations and development of the entity.
Methods The research relies upon the methodology based on information, entropy approaches and the theory of probability in relation to evaluation of corporate governance level.
Results The article reviews how possible and erroneous managerial decisions may influence the corporate sustainability. Those errors mainly stems from human factor, thus reducing the sustainability of operations and development. The research involves the term anthropoentopy. We devised a method to gauge how managerial errors stemming from human factor may affect the sustainability of corporate operations and development. We proposed equations to evaluate the information anthropoentropy of managerial decisions and described anthropoentropy issues at the managerial and production levels.
Conclusions and Relevance We conclude it is reasonable to evaluate the level of anthropoentropy in management structures and production so to find what reduces the sustainability of corporate operations and development in the contemporary competitive environment.

Keywords: economic stability, examination, management

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