Destructive Functions of Corporate Conflict

Abstract

The article, based on the results of a study of current Russian economic, corporate management and judicial law enforcement practice, analyzes the negative impact of corporate conflict on business development, its social and reputational resource. Based on the analysis of specific cases, the author shows that a domestic corporate conflict destroys a business or destabilizes a company’s activities. A corporate conflict has the ability to generate new corporate conflicts, and contains “explosive material”, the detonation of which, under certain conditions, destroys family and other personal ties. Also, a corporate conflict encourages its weak side to vigorously use the potential of administrative law against the target (base) company and its main beneficiaries, thereby expanding the springboard for “military operations”. The article substantiates the conclusions that a large- scale corporate conflict between the leading participants of the company competing for shareholding control is fraught with the emergence and development of risks for minority partners who are not directly involved in the conflict. The author believes that certain corporate conflicts in the bowels of a Russian company operating abroad may become the basis for the application of certain sanctions to it under the laws of countries that are subject to extraterritorial application. Long-term corporate antagonisms destabilize the socio-psychological atmosphere in the workforce of companies that have become their main platform, and can become the basis and cause of panic among top managers and leading specialists, thereby contributing to a decrease in the efficiency of personnel, macrosocial, including macroeconomic and “ the negative effect of corporate conflict is inevitable.