Can there be a social contract with business?

Journal of Business Ethics · 1990 · Volume 9 · Issue 2

Abstract

Professor Donaldson in his bookCorporations and Moralityhas attempted to use a social contract theory to develop moral principles for regulating corporate conduct. I argue in this paper that his attempt fails in large measure because what he refers to as a social contract theory is, in fact, a weak functionalist theory which provides no independent basis for evaluating business corporations. I further argue that given the nature of a morality based on contract and the nature of the modern corporation, it is highly unlikely that any plausible contract theory of business ethics can be developed.

Keywords

Moral Principle, Economic Growth, Business Ethic, Social Contract, Large Measure

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