CORPORATE CONFLICTS AS A CHALLENGE TO EFFECTIVE GOVERNANCE: TYPOLOGY, CAUSES, AND CONSEQUENCES

Abstract

The article examines corporate conflicts as a key challenge to effective governance in modern organizations. In the context of global business expansion and the increasing complexity of stakeholder interactions, corporate conflicts are becoming more frequent and impactful. The aim of the study is to analyze the typology of corporate conflicts, identify their main causes, and assess their consequences for the effectiveness of corporate governance systems. A multidisciplinary approach is applied, combining legal, managerial, socio-psychological, and systemic analysis. The research utilizes content analysis of academic publications and case studies, a comparative legal method, typological analysis, and generalization. As a result, a typology of corporate conflicts is proposed based on subjects involved, the nature of emergence, and the degree of escalation, providing a foundation for diagnosis and further resolution. The key causes are identified as conflicts of interest, weak corporate culture, information asymmetry, and legal uncertainty. The study reveals that the main drivers of conflict include interest divergence between shareholders and managers, imbalance of control, lack of transparency, strategic disagreements, and poor corporate ethics. The consequences include reputational damage, legal expenses, reduced coherence in management decisions, and internal instability. The article offers an original definition of corporate conflict as formal or informal contradictions between governance actors that negatively affect organizational resilience. At the same time, it is emphasized that, when properly managed, conflict can serve as a diagnostic tool and a catalyst for systemic improvement. Practical recommendations are provided for the implementation of conflict prevention mechanisms, transparent decision-making procedures, and internal compliance systems. To minimize negative impacts, it is advisable to introduce a set of preventive and diagnostic measures: the development of independent oversight, internal compliance, transparent dispute resolution procedures, and a corporate dialogue culture.