კონფერენცია

∘ Elena Fomina ∘ Elena Ziza ∘
ECONOMIC BEHAVIOR OF BUSINESS ENTITIES UNDER THE CONDITIONS OF ECONOMIC SYSTEM TRANSFORMATION

Summary

The article deals with the socio-economic behavior of business entities. It is indicated that economic behavior is a goal-oriented activity of an economic entity, regulated by the criterion of maximizing profits. The study is based on elucidating the behavioral characteristics of key micro-level entities, the producer and the consumer, the employer and the employee, taking into account the government influence on them. Economic behavior involves obtaining various benefits, maximizing utility from the use and recombination of economic resources. It was found out that economic behavior is characterized by such signs as rationality of activity, pragmatic motivation, relations of social and economic exchange. Rationality is reviewed as an empirical adequacy, reasonableness, meaningfulness of decision-making about the action under the existing conditions.

Rationality of socio-economic behavior is formed under the relevant institutions influence, it structuring and guiding. The universal rationality criterion is the existence of the maximum benefit with a minimum of resource costs by the subject of activity. The pragmatic motivation implies consciously following in its activity the idea of rational maximization of benefits, not taking into account social, legal and other institutional norms. Socio-economic exchange relations are the orderly actions of the entity about the pragmatic mutual reward, mutual orientations and expectations. These relations arise between producers and consumers as a social division realizing form of business entity.

In a democratic society, which Ukraine strives to create, it is of fundamental importance to investigate social opinion about the transformation of economic relations, to take into account the socio-cultural dynamics of society majority, because on this basis an effective and adequate socio-economic policy must be formed. At the same time, rationality, pragmatism and features of the socio-economic exchange of economic entities in the conditions of transformation of the economic system should be taken into account.

Prospects for further research are the business entities economic behavior cultural features identification, the identification of methods for their correction through institutional design of the society socio-economic development in the short and long periods.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Elena Fomina ∘ Elena Ziza ∘ ECONOMIC BEHAVIOR OF BUSINESS ENTITIES UNDER THE CONDITIONS OF ECONOMIC SYSTEM TRANSFORMATION Summary The article deals with the socio-economic behavior of business entities. It is indicated that economic behavior is a goal-oriented activity of an economic entity, regulated by the criterion of maximizing profits. The study is based on elucidating the behavioral characteristics of key micro-level entities, the producer and the consumer, the employer and the employee, taking into account the government influence on them. Economic behavior involves obtaining various benefits, maximizing utility from the use and recombination of economic resources. It was found out that economic behavior is characterized by such signs as rationality of activity, pragmatic motivation, relations of social and economic exchange. Rationality is reviewed as an empirical adequacy, reasonableness, meaningfulness of decision-making about the action under the existing conditions. Rationality of socio-economic behavior is formed under the relevant institutions influence, it structuring and guiding. The universal rationality criterion is the existence of the maximum benefit with a minimum of resource costs by the subject of activity. The pragmatic motivation implies consciously following in its activity the idea of rational maximization of benefits, not taking into account social, legal and other institutional norms. Socio-economic exchange relations are the orderly actions of the entity about the pragmatic mutual reward, mutual orientations and expectations. These relations arise between producers and consumers as a social division realizing form of business entity. In a democratic society, which Ukraine strives to create, it is of fundamental importance to investigate social opinion about the transformation of economic relations, to take into account the socio-cultural dynamics of society majority, because on this basis an effective and adequate socio-economic policy must be formed. At the same time, rationality, pragmatism and features of the socio-economic exchange of economic entities in the conditions of transformation of the economic system should be taken into account. Prospects for further research are the business entities economic behavior cultural features identification, the identification of methods for their correction through institutional design of the society socio-economic development in the short and long periods.