CSR | Corporate Social Responsibility – Social contract approach

Social contract approach

Social contract approach is the perspective that a corporation has an obligation to society over and above the expectations of its shareholders.

Prior years, the primary focus of the social contract was an economic one, assuming that continued economic growth would bring an equal advancement in the quality of life.

The modern social contract approach argues that since the corporation depends on society for its existence and continued growth, there is an obligation for the corporation to meet the demands of that society rather than just the demands of a targeted group of customers.


Source: Ghillyer_Business Ethics A Real World Approach 2e