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When Companies Become Too Socially Innovative to Fail

Author

Listed:
  • Ilie Constantin Florea

    (The Bucharest University of Economic Studies)

  • Marc Sommer

    (The Bucharest University of Economic Studies)

Abstract

If there was still a doubt, the recent global crisis proved to everyone how well interconnected the components of the financial system are. What started as a financial crisis soon became a problem for the entire economy. The snowball effect caught many sectors of the real economy and authorities had to intervene to save companies from bankruptcy. Not only the financial sector benefited from the government’s support, but also the auto industry. This led analysts to ask themselves why multinational corporations (MNCs) are bailed out when individuals receive no support in case of financial difficulties. Should companies be allowed to grow so big that they cannot fail? If market competition is left untouched, companies should be more concerned to become not too big but too socially innovative to fail. The recent global crisis is an opportunity for companies to change their way of doing business and refocus on people.

Suggested Citation

  • Ilie Constantin Florea & Marc Sommer, 2015. "When Companies Become Too Socially Innovative to Fail," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 92-97, May.
    • Handle: RePEc:ovi:oviste:v:xv:y:2015:i:2:p:92-97
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    More about this item

    Keywords

    Global Crisis; Banking; Social Innovation;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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