Business<i>IN</i>Society: The Social Contract Revisited

Abstract

Perhaps no theoretical perspective better supports evolving expectations of corporate social responsibility than social contract theory. Centuries old, this dominant theory has proven to be highly influential in Western contexts, as it encompasses both institutional and moral consideration. The relationship between business and society has become increasingly significant in recent years as businesses must respond to rapid global change, pressing externalities, and serious societal concerns, many of which cannot be adequately attended to by any party alone. This paper offers an evolutionary perspective of the social contract in light of modern day realities and shifting societal expectations. Implications are derived from both moral and pragmatic arguments to suggest that the implied social contract is meaningfully evolving in new directions both in terms of theory and practice, most particularly regarding business purpose, leadership, and social responsibility.