International Journal of Business and Finance Management Research
ISSN: 2053-1842
Vol. 5(6), pp. 61-83, December 2017

Contributions of professional associations in Romania to prevent poverty and social exclusion by developing social businesses

Ioan Constantin Rada1*, Liliana Doina Măgdoiu1 and Ioana Carmen Rada2

1Faculty of Electrical Engineering and Information Technology, University of Oradea, Romania.
2The National Bank of Romania, Bihor County Branch, Oradea, Romania.

*To whom correspondence should be addressed. E-mail:

Received 30 October, 2017; Received in revised form 22 November, 2017; Accepted 22 November, 2017.


Professional associations, Poverty, Social exclusion, Vulnerable groups, Capitalism.

Global poverty is neither created by the poor, nor is it the result of any incapacity associated to the poor; instead, it is the outcome of the system built by all the people, the institutions they set up and the concepts they have formulated. It cannot be concluded that professional associations have had to become philanthropic associations through the establishment and development of specific social economy foundations that concentrate their activity on poverty issues. However, such associations have actually come to witness the above problems, namely the difficult situation of former employees from different sectors; an example in this respect could be the massive and the most successful privatization of all time oil companies, in 2004, when, by various subtle (compensatory) means, the new capitalists have fired more than 40,000 people, relegating them and their families to a life of poverty. Private oil companies have outsourced more services, which subsequently became the property of the capitalists managing them, at the expense of society; proving their clear interest in gaining significant profit. Therefore, professional associations in this area might become, among other things, active organizations within society, assuming a social role, for both their members from the oil industry and for non-members, for society at large. Professional associations promote the idea of a new form of capitalism and a new type of company (understood as a business), based on the generosity of people and defined by experts as "social business". The fundamental purpose is to eliminate the social, economic and environmental problems; reduce the consequences of many other problems in society, such as hunger, homelessness, disease, pollution, lack of education, which finally lead to national insecurity.

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