INNOVATIVE APPROACHES TO CORPORATE GOVERNANCE IN AGRIBUSINESS IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT AND EUROPEAN INTEGRATION

Abstract

This article justifies the need to adopt innovative approaches to corporate governance in agribusiness in the context of Ukraine’s European integration aspirations. The relevance of this topic stems from the fact that traditional management models, based on the accumulation of land holdings and a rigid vertical power structure, have become obsolete. In contrast, the European development vector requires agribusiness holdings to demonstrate transparency, accountability, and adherence to ESG principles. Three key innovative approaches are analyzed: the digitization of management processes based on ERP systems and blockchain, the formation of independent supervisory boards with the participation of European experts, and the implementation of compliance mechanisms and anti-corruption tools. Particular attention is paid to the link between the quality of corporate governance in the agricultural sector and the country’s food security. It is demonstrated that effective management of large agricultural companies is a prerequisite for the stability of the domestic market, access to European capital, and Ukraine’s competitiveness as a global player in the world food market. The purpose of this article is to provide a theoretical justification for the need to implement innovative approaches to corporate governance in agribusiness and to identify the directions for such implementation in the context of European integration. To conduct a comprehensive and thorough study of the topic, a combination of general scientific and specialized methods was employed, which made it possible to address both the theoretical and applied aspects of the issue: abstraction to identify the key characteristics of innovative corporate governance; induction and deduction to analyze the activities of individual agricultural holdings and draw general conclusions about the effectiveness of innovative management; comparative analysis to compare the effectiveness of agricultural holdings using different management models; a statistical method to process quantitative data on the size of land banks, revenues, and export indicators of the top 12 agricultural holdings; and generalization to draw comprehensive conclusions regarding the impact of innovative approaches on the competitiveness of agribusiness and the country’s food security. The study found no correlation between land holdings and income, indicating the ineffectiveness of extensive land accumulation without intensive technologies. The advantages of vertically integrated models have been demonstrated, particularly the fact that the livestock and processing sectors stabilize financial flows. The study reveals the impact of foreign capital on transparency through the elevation of management standards by strategic investors. It identifies the risks of ownership concentration and the need to establish independent supervisory boards as a requirement of European standards. The study emphasizes ESG compliance as a condition for access to capital within the context of Ukraine’s current European integration aspirations. Future research should focus on examining the mechanisms for adapting European corporate governance directives to Ukraine’s legal framework and institutional context.