SlideShare a Scribd company logo
1 of 13
SOCIAL CONTRACT
THEORY
IN A GLOBAL
MARKETING CONTEXT
Emily Rich – MKT 350 – Southern New Hampshire
University
International vs. Global Marketplace
“Markets do not exist in a state of nature. They are social constructs, with defined customs and
regulations that are established through political struggle and compromise…Until recently, the
politics of the global economy has been largely viewed as “international,” i.e., focussed on the
questions of “which nation gets what,” with the central conflict between countries that are rich and
poor…There is no political constitution to match the growing global market.” – Jeff Faux, October
25th 2000
Variations on Social Contract
Theory
Thomas Hobbes




The “natural state” for
man is one outside of
government rule.
The social contract
begins when two (or
more) parties
compromise and
concede individual
rights to one another.

Jean-Jacques Rousseau






“Obedience to a selfprescribed law is liberty” (de
la Parra, 2010).
Citizens must take action in
building the ruling
organization.
The “general will” occurs
when citizens work together
toward the good of the
collective.
Variations on Social Contract
Theory
Immanuel Kant




Combined with the “general will,”
an “original contract” suggests
that consent to be governed and
the will of the sovereign is implicit
for all those in the society as they
created the governing body.
Suggests that no law may be
declared which, “a whole people
could not possibly give its
consent to” (Rousseau, qtd. in
Rauscher, 2012).

John Rawls




Creates an “original position” and “veil of
ignorance” to create an objective vacuum
to which one may make an “impartial moral
judgment” (Murphy, et al., 2004).
Establishes the Liberty Principle and
Difference Principle




Liberty Principle – each person must have a
same equal right to the “most extensive basic
liberty compatible with a similar liberty for others”
(Murphy, et al., 2004).
Difference Principle - suggests that “social and
economic equalities are to be arranged so that
they are to the greatest benefit of the most
disadvantaged” and that no actions should be
taken which would in any way harm those who
are disadvantaged (Murphy, et al., 2004).
Variations on Social Contract
Theory
David Gauthier




Assumes men have no natural reason for
compromise other than for self-service.



Prisoner’s Dilemma


Two distinctive contracts are
integrated:


Assumes that when there are two parties, each
controlled by a third, they will each sell the other out in
attempt to reduce their own sentence.





Thomas Donaldson & Thomas
Dunfee

Instead, they should work together against the third to
reduce both sentences beneath the singular threshold.



Compliance Problem


An issue of rational compliance with accepted norms.



Solved by “minimax relative concession” – a theory
that should the concessions suffered by each party be
perceived as equal, they will both be able to most
effectively minimize concessions and maximize utility
(Cudd, 2013).



1st – The global community should
work together to find a “rational
arrangement for ethics in economic
life.”
2nd - business groups or other entities
should have “moral free space” so
they may “keep their moral options
open until they confront the full context
and environment of a decision”
(Murphy, 2004).

Hypernorms


Universal norms used as a standard
for all other norms.
Delineation of Stakeholders




Primary stakeholders may include
employees, customers,
stockholders, and managers of the
company.
Secondary stakeholders include the
government, the company’s
competition, the community, media,
nongovernmental organizations,
and society as a whole.
Issues in Research


The Three Norms of Western
Society
1.

2.

3.

The right of selfdetermination within the law
(informed consent)
The obligation of a fiduciary
to protect the welfare of a
beneficiary
The fiduciary’s obligation to
be trustworthy for social
stability reasons (Smith, et
al., 2009)
Issues in Production


Companies must
have Corporate
Social
Responsibilities and
must fulfill them in
their actions.
Issues in Sales and Marketing


Important Considerations
 The

company must be profitable.
 There is a responsibility held to the consumer of
the product.
 Salespeople must be culturally aware.
 The company must remember the responsibility
to society as a whole.
Solutions and Building an Ethical
Code






A company should begin by establishing its own Code
of Ethics.
After an ethical code is established, consideration
should be taken to determine a method to best create
mutual codes with business partners.
The business should never deal below their own
standard, though some consideration should be taken
toward cultural norms.


If the company has a policy against bribery, for example, they
should consider their stance regarding gifting in foreign areas.
Suggested Metrics for Ethical
Judgments
Texas Instruments Method
1.

2.

3.

Are we complying with all legal
requirements on a local level?
Are there business practices or
requirements at the local level which
impact how we interact with co-workers
in other parts of the world?
Do some of our practices need to be
adapted based on the local laws and
customs of a specific locale? On what
basis do we define our universal
standards that apply to TI employees
everywhere? (2008 Corporate
Citizenship Report)

Laczniak Test
1.

Does the contemplated action violate the law? (The legal test)

2.

Is this action contrary to widely accepted moral obligations?
(The duties test)

3.

Does the proposed action violate any other special obligations
that stem from this type of marketing organization? (The
special obligations test)

4.

Is the intent of the contemplated action harmful? (The motives
test)

5.

Is it likely that any major damages to people or organizations
will result from the contemplated action? (The consequences
test)

6.

Does this action enhance the ideal of a moral community, and
is it consonant with what the marketing organization wants to
be? (The virtues test)

7.

Does the contemplated action infringe upon property rights,
privacy rights, or the rights of the consumer? (The rights test)

8.

Does the proposed action leave another person or group less
well off? Is this person or group already a member of a
relatively underprivileged class? (The justice test) (Murphy, et
al., 2004)
Conclusion
By striking an ethical code with the other members, a
company may use a combination of all the previously
mentioned theories. The two (or more) members of
the agreement could work together to create a
mutually beneficial arrangement. It requires
Rousseau’s consent, Donaldson’s establishment of
norms, Kant’s general will, and Rawls’ liberty
principle, all under Gauthier’s presupposition that two
parties who work together will achieve the greatest
net good.
References


2008 corporate citizenship report. (n.d.). Retrieved from http://www.ti.com/corp/docs/csr/corpgov/ethics/market.shtml



Auchter, L., & Dziewa, M. (2013). Managing business values in a globalized economy by isct (integrated social contract theory) - a comparative study.
(Master's thesis)Retrieved from http://www.abrmr.com/myfile/best_track/best_track_73434.pdf



Bradley, J. (2013). Social contract theories in business. Retrieved from http://smallbusiness.chron.com/social-contract-theories-business-59955.html



Cudd, A. (2013). Contractarianism. In E. Zalta (Ed.),Stanford Encyclopedia of Philosophy. Stanford, California: Retrieved from
http://plato.stanford.edu/archives/win2013/entries/contractarianism/



de la Perra, O. (2010). Rousseau's social contract and a theory for global citizenship. (Master's thesis)Retrieved from
http://www.academia.edu/1437363/Rousseaus_Social_Contract_and_a_Theory_for_Global_Citizenship



Donaldson, T., & Dunfee, T. (1994). Toward a unified conception of business ethics: Integrative social contract theory. The Academy of Management
Review, 19(2),
252-284. Retrieved from http://www.jstor.org.ezproxy.snhu.edu/stable/258705



Dunfee, T., Smith, N., & Ross, W. (1999). Social contracts and marketing ethics. Journal of Marketing, 63,14-32. Retrieved from
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.202.2880&rep=rep1&type=pdf



Faux, J. (2002, March 04). Toward a global social contract. Retrieved from
http://www.epi.org/publication/webfeatures_viewpoints_mexico_grand_bargain/



Keegan, W., & Green, M. (2013). Global marketing. (7th ed.). Upper Saddle River, New Jersey: Pearson Education, Inc.



Lloyd, S., & Sreedhar, S. (2013). Hobbes's moral and political philosophy. In E. Zalta (Ed.), Stanford Encyclopedia of Philosophy. Stanford, California:
Retrieved from
http://plato.stanford.edu/entries/hobbes-moral/



Murphy, P., Laczniak, G., Bowie, N., & Klein, T. (2004).Ethical marketing. (1st ed.). Upper Saddle River, New Jersey: Pearson Education, Inc.



Neidlemen, J. (2012, October 09). The social contract theory in a global context. Retrieved from http://www.e-ir.info/2012/10/09/the-social-contracttheory-in-aglobal-context/



Rauscher, F. (2012). Kant's social and political philosophy. In E. Zalta (Ed.), Stanford Encyclopedia of Philosophy. Stanford, California: Retrieved from
http://plato.stanford.edu/archives/sum2012/entries/kant-social-political/



Smith, N., Kimmel, A., & Klein, J. (2009). Social contract theory and the ethics of deception in
http://www.insead.edu/facultyresearch/research/doc.cfm?did=39227

consumer research . Retrieved from

More Related Content

What's hot

Uses and gratifications model
Uses and gratifications modelUses and gratifications model
Uses and gratifications model
HannahCostello
 
Agenda setting :presented by H.GHULAM ALI SAQI from institute of communicatio...
Agenda setting :presented by H.GHULAM ALI SAQI from institute of communicatio...Agenda setting :presented by H.GHULAM ALI SAQI from institute of communicatio...
Agenda setting :presented by H.GHULAM ALI SAQI from institute of communicatio...
Ghulam Ali
 
Codes of Ethics in Media
Codes of Ethics in MediaCodes of Ethics in Media
Codes of Ethics in Media
Sabina Izzatli
 
Журналист и право
Журналист и правоЖурналист и право
Журналист и право
EcoMangystau
 
How do audiences read media texts
How do audiences read media textsHow do audiences read media texts
How do audiences read media texts
Jenny McNulty
 
Symbolic convergence theory
Symbolic convergence theorySymbolic convergence theory
Symbolic convergence theory
abbymcneely
 

What's hot (20)

Uses and gratifications model
Uses and gratifications modelUses and gratifications model
Uses and gratifications model
 
Freedom of information (1)
Freedom of information (1)Freedom of information (1)
Freedom of information (1)
 
Hermeneutical Phenomenology.pptx
Hermeneutical Phenomenology.pptxHermeneutical Phenomenology.pptx
Hermeneutical Phenomenology.pptx
 
Media and society are symbiotically related
Media and society are symbiotically relatedMedia and society are symbiotically related
Media and society are symbiotically related
 
Agenda setting :presented by H.GHULAM ALI SAQI from institute of communicatio...
Agenda setting :presented by H.GHULAM ALI SAQI from institute of communicatio...Agenda setting :presented by H.GHULAM ALI SAQI from institute of communicatio...
Agenda setting :presented by H.GHULAM ALI SAQI from institute of communicatio...
 
(CESC)DEFINITION AND FORMD OF COMMUNITY ACTION.pptx
(CESC)DEFINITION AND FORMD OF COMMUNITY ACTION.pptx(CESC)DEFINITION AND FORMD OF COMMUNITY ACTION.pptx
(CESC)DEFINITION AND FORMD OF COMMUNITY ACTION.pptx
 
Institutional theory
Institutional theoryInstitutional theory
Institutional theory
 
Press Ordinances in Pakistan
Press Ordinances in PakistanPress Ordinances in Pakistan
Press Ordinances in Pakistan
 
Rational Choice Theory
Rational Choice TheoryRational Choice Theory
Rational Choice Theory
 
Codes of Ethics in Media
Codes of Ethics in MediaCodes of Ethics in Media
Codes of Ethics in Media
 
Theory of mass society
Theory of mass society Theory of mass society
Theory of mass society
 
Журналист и право
Журналист и правоЖурналист и право
Журналист и право
 
FOI - RTI Presentation
FOI - RTI PresentationFOI - RTI Presentation
FOI - RTI Presentation
 
Liberalism
LiberalismLiberalism
Liberalism
 
How do audiences read media texts
How do audiences read media textsHow do audiences read media texts
How do audiences read media texts
 
On ‘Political Institutions’
On ‘Political Institutions’On ‘Political Institutions’
On ‘Political Institutions’
 
Symbolic convergence theory
Symbolic convergence theorySymbolic convergence theory
Symbolic convergence theory
 
Media hegemony power point
Media hegemony power pointMedia hegemony power point
Media hegemony power point
 
Social Contract Theories
Social Contract TheoriesSocial Contract Theories
Social Contract Theories
 
The Birth and Growth of the Social Sciences
The Birth and Growth of the Social SciencesThe Birth and Growth of the Social Sciences
The Birth and Growth of the Social Sciences
 

Viewers also liked

1111298173 282414 6
1111298173 282414 61111298173 282414 6
1111298173 282414 6
dborcoman
 
The evolutionary theory of origin of state
The evolutionary theory of origin of stateThe evolutionary theory of origin of state
The evolutionary theory of origin of state
KumarGautamAshish
 
4 P’s of Marketing Plan for Medical Practices
4 P’s of Marketing Plan for Medical Practices4 P’s of Marketing Plan for Medical Practices
4 P’s of Marketing Plan for Medical Practices
ClinicSpectrum Inc.
 
Application of research in the areas of management
Application of research in the areas of managementApplication of research in the areas of management
Application of research in the areas of management
Rahul Kushwaha
 
Kant - Explain Categorical Imperative
Kant - Explain Categorical ImperativeKant - Explain Categorical Imperative
Kant - Explain Categorical Imperative
guestff6a39
 

Viewers also liked (20)

The Australian Social Marketing Situation
The Australian Social Marketing SituationThe Australian Social Marketing Situation
The Australian Social Marketing Situation
 
Hogan's History- Establishing the U.S. Government
Hogan's History- Establishing the U.S. GovernmentHogan's History- Establishing the U.S. Government
Hogan's History- Establishing the U.S. Government
 
Motivation & Social Marketing
Motivation & Social MarketingMotivation & Social Marketing
Motivation & Social Marketing
 
Méthodes multiples et triangulation
Méthodes multiples et triangulationMéthodes multiples et triangulation
Méthodes multiples et triangulation
 
1111298173 282414 6
1111298173 282414 61111298173 282414 6
1111298173 282414 6
 
Sociology-2
Sociology-2Sociology-2
Sociology-2
 
Egoism
EgoismEgoism
Egoism
 
Philosophy 100: Chapter 8 PowerPoint: Roots
Philosophy 100: Chapter 8 PowerPoint: RootsPhilosophy 100: Chapter 8 PowerPoint: Roots
Philosophy 100: Chapter 8 PowerPoint: Roots
 
political science
political sciencepolitical science
political science
 
Desjardins5e ppt ch2
Desjardins5e ppt ch2Desjardins5e ppt ch2
Desjardins5e ppt ch2
 
Kant Moral Law
Kant Moral LawKant Moral Law
Kant Moral Law
 
Chapter 5
Chapter 5Chapter 5
Chapter 5
 
Scope and Colonial Influences of Public Administration
Scope and Colonial Influences of Public AdministrationScope and Colonial Influences of Public Administration
Scope and Colonial Influences of Public Administration
 
The evolutionary theory of origin of state
The evolutionary theory of origin of stateThe evolutionary theory of origin of state
The evolutionary theory of origin of state
 
Moral Relativism
Moral RelativismMoral Relativism
Moral Relativism
 
4 P’s of Marketing Plan for Medical Practices
4 P’s of Marketing Plan for Medical Practices4 P’s of Marketing Plan for Medical Practices
4 P’s of Marketing Plan for Medical Practices
 
Motivation Theory - Elton Mayo
Motivation Theory - Elton MayoMotivation Theory - Elton Mayo
Motivation Theory - Elton Mayo
 
Application of research in the areas of management
Application of research in the areas of managementApplication of research in the areas of management
Application of research in the areas of management
 
Evolution of Public Administration
Evolution of Public AdministrationEvolution of Public Administration
Evolution of Public Administration
 
Kant - Explain Categorical Imperative
Kant - Explain Categorical ImperativeKant - Explain Categorical Imperative
Kant - Explain Categorical Imperative
 

Similar to Social Contract Theory in a Global Marketing Context

Theoretical Bases for Analyzing the Ethics of a DecisionAdapte.docx
Theoretical Bases for Analyzing the Ethics of a DecisionAdapte.docxTheoretical Bases for Analyzing the Ethics of a DecisionAdapte.docx
Theoretical Bases for Analyzing the Ethics of a DecisionAdapte.docx
susannr
 
5 utilitarianism cognitivism and consequentialism
5 utilitarianism cognitivism and consequentialism5 utilitarianism cognitivism and consequentialism
5 utilitarianism cognitivism and consequentialism
Alwyn Dalmeida
 
Honest WorkChapter 6 Is The Social Responsibility of Busines.docx
Honest WorkChapter 6 Is The Social Responsibility of Busines.docxHonest WorkChapter 6 Is The Social Responsibility of Busines.docx
Honest WorkChapter 6 Is The Social Responsibility of Busines.docx
wellesleyterresa
 
11.pp.0199www.iiste.org call for paper-216
11.pp.0199www.iiste.org call for paper-21611.pp.0199www.iiste.org call for paper-216
11.pp.0199www.iiste.org call for paper-216
Alexander Decker
 
7 Equity, Ethics, and the Role of Government in CSR Bet_No.docx
7 Equity, Ethics, and the Role of Government in CSR Bet_No.docx7 Equity, Ethics, and the Role of Government in CSR Bet_No.docx
7 Equity, Ethics, and the Role of Government in CSR Bet_No.docx
alinainglis
 
Chapter 4 Administration Responsibility The Key to Administrativ.docx
Chapter 4 Administration Responsibility The Key to Administrativ.docxChapter 4 Administration Responsibility The Key to Administrativ.docx
Chapter 4 Administration Responsibility The Key to Administrativ.docx
keturahhazelhurst
 
Beyond Wages and Working ConditionsA Conceptualization of.docx
Beyond Wages and Working ConditionsA Conceptualization of.docxBeyond Wages and Working ConditionsA Conceptualization of.docx
Beyond Wages and Working ConditionsA Conceptualization of.docx
AASTHA76
 
Beyond Wages and Working ConditionsA Conceptualization of.docx
Beyond Wages and Working ConditionsA Conceptualization of.docxBeyond Wages and Working ConditionsA Conceptualization of.docx
Beyond Wages and Working ConditionsA Conceptualization of.docx
hartrobert670
 
Module 2: Ethical Decision Making & Laws Affecting Public Communitcation
Module 2: Ethical Decision Making & Laws Affecting Public CommunitcationModule 2: Ethical Decision Making & Laws Affecting Public Communitcation
Module 2: Ethical Decision Making & Laws Affecting Public Communitcation
toddkedwardsPearson
 
Developing A Strategy Of Action
Developing A Strategy Of ActionDeveloping A Strategy Of Action
Developing A Strategy Of Action
Thomas Müller
 
1 P a g e A System Approach to Implementing Business.docx
1  P a g e   A System Approach to Implementing Business.docx1  P a g e   A System Approach to Implementing Business.docx
1 P a g e A System Approach to Implementing Business.docx
honey725342
 

Similar to Social Contract Theory in a Global Marketing Context (20)

Student notes ethic
Student notes ethic Student notes ethic
Student notes ethic
 
Theoretical Bases for Analyzing the Ethics of a DecisionAdapte.docx
Theoretical Bases for Analyzing the Ethics of a DecisionAdapte.docxTheoretical Bases for Analyzing the Ethics of a DecisionAdapte.docx
Theoretical Bases for Analyzing the Ethics of a DecisionAdapte.docx
 
5 utilitarianism cognitivism and consequentialism
5 utilitarianism cognitivism and consequentialism5 utilitarianism cognitivism and consequentialism
5 utilitarianism cognitivism and consequentialism
 
Honest WorkChapter 6 Is The Social Responsibility of Busines.docx
Honest WorkChapter 6 Is The Social Responsibility of Busines.docxHonest WorkChapter 6 Is The Social Responsibility of Busines.docx
Honest WorkChapter 6 Is The Social Responsibility of Busines.docx
 
Madison - TAU IP and Institutions - May 2018
Madison - TAU IP and Institutions - May 2018Madison - TAU IP and Institutions - May 2018
Madison - TAU IP and Institutions - May 2018
 
American MNEs In Search Of Legitimacy When You Re WEIRD
American MNEs  In Search Of Legitimacy When You Re WEIRDAmerican MNEs  In Search Of Legitimacy When You Re WEIRD
American MNEs In Search Of Legitimacy When You Re WEIRD
 
Apa style essay corporate social responsibility
Apa style essay   corporate social responsibilityApa style essay   corporate social responsibility
Apa style essay corporate social responsibility
 
11.pp.0199www.iiste.org call for paper-216
11.pp.0199www.iiste.org call for paper-21611.pp.0199www.iiste.org call for paper-216
11.pp.0199www.iiste.org call for paper-216
 
Apa style essay corporate social responsibility
Apa style essay   corporate social responsibilityApa style essay   corporate social responsibility
Apa style essay corporate social responsibility
 
7 Equity, Ethics, and the Role of Government in CSR Bet_No.docx
7 Equity, Ethics, and the Role of Government in CSR Bet_No.docx7 Equity, Ethics, and the Role of Government in CSR Bet_No.docx
7 Equity, Ethics, and the Role of Government in CSR Bet_No.docx
 
Chapter 4 Administration Responsibility The Key to Administrativ.docx
Chapter 4 Administration Responsibility The Key to Administrativ.docxChapter 4 Administration Responsibility The Key to Administrativ.docx
Chapter 4 Administration Responsibility The Key to Administrativ.docx
 
Chapt 3 evaluating business ethics
Chapt 3   evaluating business ethicsChapt 3   evaluating business ethics
Chapt 3 evaluating business ethics
 
Beyond Wages and Working ConditionsA Conceptualization of.docx
Beyond Wages and Working ConditionsA Conceptualization of.docxBeyond Wages and Working ConditionsA Conceptualization of.docx
Beyond Wages and Working ConditionsA Conceptualization of.docx
 
Beyond Wages and Working ConditionsA Conceptualization of.docx
Beyond Wages and Working ConditionsA Conceptualization of.docxBeyond Wages and Working ConditionsA Conceptualization of.docx
Beyond Wages and Working ConditionsA Conceptualization of.docx
 
Pa685 m2 ppt_alternate
Pa685 m2 ppt_alternatePa685 m2 ppt_alternate
Pa685 m2 ppt_alternate
 
Module 2: Ethical Decision Making & Laws Affecting Public Communitcation
Module 2: Ethical Decision Making & Laws Affecting Public CommunitcationModule 2: Ethical Decision Making & Laws Affecting Public Communitcation
Module 2: Ethical Decision Making & Laws Affecting Public Communitcation
 
Developing A Strategy Of Action
Developing A Strategy Of ActionDeveloping A Strategy Of Action
Developing A Strategy Of Action
 
1 P a g e A System Approach to Implementing Business.docx
1  P a g e   A System Approach to Implementing Business.docx1  P a g e   A System Approach to Implementing Business.docx
1 P a g e A System Approach to Implementing Business.docx
 
BA 362 ch003.ppt
BA 362 ch003.pptBA 362 ch003.ppt
BA 362 ch003.ppt
 
Corporate Social Responsibility.pptx
Corporate Social Responsibility.pptxCorporate Social Responsibility.pptx
Corporate Social Responsibility.pptx
 

Recently uploaded

!~+971581248768>> SAFE AND ORIGINAL ABORTION PILLS FOR SALE IN DUBAI AND ABUD...
!~+971581248768>> SAFE AND ORIGINAL ABORTION PILLS FOR SALE IN DUBAI AND ABUD...!~+971581248768>> SAFE AND ORIGINAL ABORTION PILLS FOR SALE IN DUBAI AND ABUD...
!~+971581248768>> SAFE AND ORIGINAL ABORTION PILLS FOR SALE IN DUBAI AND ABUD...
DUBAI (+971)581248768 BUY ABORTION PILLS IN ABU dhabi...Qatar
 
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al MizharAl Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
allensay1
 
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai KuwaitThe Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
daisycvs
 

Recently uploaded (20)

Lucknow Housewife Escorts by Sexy Bhabhi Service 8250092165
Lucknow Housewife Escorts  by Sexy Bhabhi Service 8250092165Lucknow Housewife Escorts  by Sexy Bhabhi Service 8250092165
Lucknow Housewife Escorts by Sexy Bhabhi Service 8250092165
 
Cracking the 'Career Pathing' Slideshare
Cracking the 'Career Pathing' SlideshareCracking the 'Career Pathing' Slideshare
Cracking the 'Career Pathing' Slideshare
 
Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1
 
HomeRoots Pitch Deck | Investor Insights | April 2024
HomeRoots Pitch Deck | Investor Insights | April 2024HomeRoots Pitch Deck | Investor Insights | April 2024
HomeRoots Pitch Deck | Investor Insights | April 2024
 
Paradip CALL GIRL❤7091819311❤CALL GIRLS IN ESCORT SERVICE WE ARE PROVIDING
Paradip CALL GIRL❤7091819311❤CALL GIRLS IN ESCORT SERVICE WE ARE PROVIDINGParadip CALL GIRL❤7091819311❤CALL GIRLS IN ESCORT SERVICE WE ARE PROVIDING
Paradip CALL GIRL❤7091819311❤CALL GIRLS IN ESCORT SERVICE WE ARE PROVIDING
 
Phases of Negotiation .pptx
 Phases of Negotiation .pptx Phases of Negotiation .pptx
Phases of Negotiation .pptx
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with Culture
 
Falcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to ProsperityFalcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to Prosperity
 
Arti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdfArti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdf
 
How to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityHow to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League City
 
!~+971581248768>> SAFE AND ORIGINAL ABORTION PILLS FOR SALE IN DUBAI AND ABUD...
!~+971581248768>> SAFE AND ORIGINAL ABORTION PILLS FOR SALE IN DUBAI AND ABUD...!~+971581248768>> SAFE AND ORIGINAL ABORTION PILLS FOR SALE IN DUBAI AND ABUD...
!~+971581248768>> SAFE AND ORIGINAL ABORTION PILLS FOR SALE IN DUBAI AND ABUD...
 
Pre Engineered Building Manufacturers Hyderabad.pptx
Pre Engineered  Building Manufacturers Hyderabad.pptxPre Engineered  Building Manufacturers Hyderabad.pptx
Pre Engineered Building Manufacturers Hyderabad.pptx
 
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al MizharAl Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
 
New 2024 Cannabis Edibles Investor Pitch Deck Template
New 2024 Cannabis Edibles Investor Pitch Deck TemplateNew 2024 Cannabis Edibles Investor Pitch Deck Template
New 2024 Cannabis Edibles Investor Pitch Deck Template
 
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai KuwaitThe Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
 
Cannabis Legalization World Map: 2024 Updated
Cannabis Legalization World Map: 2024 UpdatedCannabis Legalization World Map: 2024 Updated
Cannabis Legalization World Map: 2024 Updated
 
joint cost.pptx COST ACCOUNTING Sixteenth Edition ...
joint cost.pptx  COST ACCOUNTING  Sixteenth Edition                          ...joint cost.pptx  COST ACCOUNTING  Sixteenth Edition                          ...
joint cost.pptx COST ACCOUNTING Sixteenth Edition ...
 
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All TimeCall 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
 
Buy Verified TransferWise Accounts From Seosmmearth
Buy Verified TransferWise Accounts From SeosmmearthBuy Verified TransferWise Accounts From Seosmmearth
Buy Verified TransferWise Accounts From Seosmmearth
 
Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st CenturyFamous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Century
 

Social Contract Theory in a Global Marketing Context

  • 1. SOCIAL CONTRACT THEORY IN A GLOBAL MARKETING CONTEXT Emily Rich – MKT 350 – Southern New Hampshire University
  • 2. International vs. Global Marketplace “Markets do not exist in a state of nature. They are social constructs, with defined customs and regulations that are established through political struggle and compromise…Until recently, the politics of the global economy has been largely viewed as “international,” i.e., focussed on the questions of “which nation gets what,” with the central conflict between countries that are rich and poor…There is no political constitution to match the growing global market.” – Jeff Faux, October 25th 2000
  • 3. Variations on Social Contract Theory Thomas Hobbes   The “natural state” for man is one outside of government rule. The social contract begins when two (or more) parties compromise and concede individual rights to one another. Jean-Jacques Rousseau    “Obedience to a selfprescribed law is liberty” (de la Parra, 2010). Citizens must take action in building the ruling organization. The “general will” occurs when citizens work together toward the good of the collective.
  • 4. Variations on Social Contract Theory Immanuel Kant   Combined with the “general will,” an “original contract” suggests that consent to be governed and the will of the sovereign is implicit for all those in the society as they created the governing body. Suggests that no law may be declared which, “a whole people could not possibly give its consent to” (Rousseau, qtd. in Rauscher, 2012). John Rawls   Creates an “original position” and “veil of ignorance” to create an objective vacuum to which one may make an “impartial moral judgment” (Murphy, et al., 2004). Establishes the Liberty Principle and Difference Principle   Liberty Principle – each person must have a same equal right to the “most extensive basic liberty compatible with a similar liberty for others” (Murphy, et al., 2004). Difference Principle - suggests that “social and economic equalities are to be arranged so that they are to the greatest benefit of the most disadvantaged” and that no actions should be taken which would in any way harm those who are disadvantaged (Murphy, et al., 2004).
  • 5. Variations on Social Contract Theory David Gauthier   Assumes men have no natural reason for compromise other than for self-service.  Prisoner’s Dilemma  Two distinctive contracts are integrated:  Assumes that when there are two parties, each controlled by a third, they will each sell the other out in attempt to reduce their own sentence.   Thomas Donaldson & Thomas Dunfee Instead, they should work together against the third to reduce both sentences beneath the singular threshold.  Compliance Problem  An issue of rational compliance with accepted norms.  Solved by “minimax relative concession” – a theory that should the concessions suffered by each party be perceived as equal, they will both be able to most effectively minimize concessions and maximize utility (Cudd, 2013).  1st – The global community should work together to find a “rational arrangement for ethics in economic life.” 2nd - business groups or other entities should have “moral free space” so they may “keep their moral options open until they confront the full context and environment of a decision” (Murphy, 2004). Hypernorms  Universal norms used as a standard for all other norms.
  • 6. Delineation of Stakeholders   Primary stakeholders may include employees, customers, stockholders, and managers of the company. Secondary stakeholders include the government, the company’s competition, the community, media, nongovernmental organizations, and society as a whole.
  • 7. Issues in Research  The Three Norms of Western Society 1. 2. 3. The right of selfdetermination within the law (informed consent) The obligation of a fiduciary to protect the welfare of a beneficiary The fiduciary’s obligation to be trustworthy for social stability reasons (Smith, et al., 2009)
  • 8. Issues in Production  Companies must have Corporate Social Responsibilities and must fulfill them in their actions.
  • 9. Issues in Sales and Marketing  Important Considerations  The company must be profitable.  There is a responsibility held to the consumer of the product.  Salespeople must be culturally aware.  The company must remember the responsibility to society as a whole.
  • 10. Solutions and Building an Ethical Code    A company should begin by establishing its own Code of Ethics. After an ethical code is established, consideration should be taken to determine a method to best create mutual codes with business partners. The business should never deal below their own standard, though some consideration should be taken toward cultural norms.  If the company has a policy against bribery, for example, they should consider their stance regarding gifting in foreign areas.
  • 11. Suggested Metrics for Ethical Judgments Texas Instruments Method 1. 2. 3. Are we complying with all legal requirements on a local level? Are there business practices or requirements at the local level which impact how we interact with co-workers in other parts of the world? Do some of our practices need to be adapted based on the local laws and customs of a specific locale? On what basis do we define our universal standards that apply to TI employees everywhere? (2008 Corporate Citizenship Report) Laczniak Test 1. Does the contemplated action violate the law? (The legal test) 2. Is this action contrary to widely accepted moral obligations? (The duties test) 3. Does the proposed action violate any other special obligations that stem from this type of marketing organization? (The special obligations test) 4. Is the intent of the contemplated action harmful? (The motives test) 5. Is it likely that any major damages to people or organizations will result from the contemplated action? (The consequences test) 6. Does this action enhance the ideal of a moral community, and is it consonant with what the marketing organization wants to be? (The virtues test) 7. Does the contemplated action infringe upon property rights, privacy rights, or the rights of the consumer? (The rights test) 8. Does the proposed action leave another person or group less well off? Is this person or group already a member of a relatively underprivileged class? (The justice test) (Murphy, et al., 2004)
  • 12. Conclusion By striking an ethical code with the other members, a company may use a combination of all the previously mentioned theories. The two (or more) members of the agreement could work together to create a mutually beneficial arrangement. It requires Rousseau’s consent, Donaldson’s establishment of norms, Kant’s general will, and Rawls’ liberty principle, all under Gauthier’s presupposition that two parties who work together will achieve the greatest net good.
  • 13. References  2008 corporate citizenship report. (n.d.). Retrieved from http://www.ti.com/corp/docs/csr/corpgov/ethics/market.shtml  Auchter, L., & Dziewa, M. (2013). Managing business values in a globalized economy by isct (integrated social contract theory) - a comparative study. (Master's thesis)Retrieved from http://www.abrmr.com/myfile/best_track/best_track_73434.pdf  Bradley, J. (2013). Social contract theories in business. Retrieved from http://smallbusiness.chron.com/social-contract-theories-business-59955.html  Cudd, A. (2013). Contractarianism. In E. Zalta (Ed.),Stanford Encyclopedia of Philosophy. Stanford, California: Retrieved from http://plato.stanford.edu/archives/win2013/entries/contractarianism/  de la Perra, O. (2010). Rousseau's social contract and a theory for global citizenship. (Master's thesis)Retrieved from http://www.academia.edu/1437363/Rousseaus_Social_Contract_and_a_Theory_for_Global_Citizenship  Donaldson, T., & Dunfee, T. (1994). Toward a unified conception of business ethics: Integrative social contract theory. The Academy of Management Review, 19(2), 252-284. Retrieved from http://www.jstor.org.ezproxy.snhu.edu/stable/258705  Dunfee, T., Smith, N., & Ross, W. (1999). Social contracts and marketing ethics. Journal of Marketing, 63,14-32. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.202.2880&rep=rep1&type=pdf  Faux, J. (2002, March 04). Toward a global social contract. Retrieved from http://www.epi.org/publication/webfeatures_viewpoints_mexico_grand_bargain/  Keegan, W., & Green, M. (2013). Global marketing. (7th ed.). Upper Saddle River, New Jersey: Pearson Education, Inc.  Lloyd, S., & Sreedhar, S. (2013). Hobbes's moral and political philosophy. In E. Zalta (Ed.), Stanford Encyclopedia of Philosophy. Stanford, California: Retrieved from http://plato.stanford.edu/entries/hobbes-moral/  Murphy, P., Laczniak, G., Bowie, N., & Klein, T. (2004).Ethical marketing. (1st ed.). Upper Saddle River, New Jersey: Pearson Education, Inc.  Neidlemen, J. (2012, October 09). The social contract theory in a global context. Retrieved from http://www.e-ir.info/2012/10/09/the-social-contracttheory-in-aglobal-context/  Rauscher, F. (2012). Kant's social and political philosophy. In E. Zalta (Ed.), Stanford Encyclopedia of Philosophy. Stanford, California: Retrieved from http://plato.stanford.edu/archives/sum2012/entries/kant-social-political/  Smith, N., Kimmel, A., & Klein, J. (2009). Social contract theory and the ethics of deception in http://www.insead.edu/facultyresearch/research/doc.cfm?did=39227 consumer research . Retrieved from

Editor's Notes

  1. Examples of hypernorms include: An obligation to respect the dignity of each human personCore human rights, such as personal freedom, physical security and well-being, the ownership of property, and so onEquity, the fair treatment of similarly situated personsAvoiding unnecessary injury to others (Murphy, et al., 2004)These hypernorms serve as a benchmark for the minimal ethical standards surpassing legal necessities alone. Where it is illegal to murder a person, a hypernorm would state that it is unethical to harm them at all.
  2. Ethics come into play when an organization is deciding how to best serve their own needs while still fulfilling the obligations they owe to the stakeholders. Warren Keegan suggests that to serve the global community effectively, organizations “must practice corporate social responsibility,” defined as self-regulation to protect society (Keegan, 2013). The next step is to decide how to best address ethical issues which may arise in any facet of the business, from research to production to marketing and sales. After these determinations have been made, a company can begin to build a set code of ethics.
  3. If these are established as the hypernorms for a research project, one must consider the implications of researching in other societies. Cultural shifts must be accommodated when creating a metric for ethical behavior and consideration for that culture’s hypernorms must be made. If, for example, an American company is doing business with a Laotian company and the manager learns that it is considered highly unethical in Laos to do research without explicit consent (while in America, they accept implicit consent), the American manager should find new research methods to abide this standard. By combining the theories of Rousseau and Donaldson, the manager should be able to find an ethical solution to his dilemma.
  4. If a company has two factories, one in America, and one in Vietnam, they should be held to the same standard. While the two locations likely have different appeals to the company, either geographically or financially, the existence of a Vietnamese location should not serve only as a cost-cutting mechanism, but should also exist to better the lives of the workers. This form of corporate social responsibility would not only serve to further the economic goals of the corporation, but to also enhance the society around it by providing safe jobs to citizens in the area and by otherwise improving the area, thus serving all relevant stakeholders.
  5. The company must make enough money to continue production. If this imperative is not met, not only will shareholders be at a loss, but so will employees and other businesses within the supply chain. Secondly, the company holds an ethical responsibility to the consumer. Not only is this in the interest of common human courtesy, but good treatment of consumers can save an otherwise mediocre company and poor treatment of customers can destroy an otherwise brilliant company. Treating the consumers fairly is the right thing to do by virtue, but the consequences otherwise are damning. Salespeople must consider the customs of the area to which they are selling to be successful. If it is a highly religious Christian area, not only will making calls on Sunday be unsuccessful, it will also be offensive. In some areas it would also be considered offensive to turn away a small gift, while in others it may be considered a bribe. Understanding the culture of the area is vital. Finally, the company should consider their responsibility to society. If a company is otherwise ethically perfect, but still dumps toxins in the river, they are harming the society as a whole. The consequences of a company’s actions must be considered as part of their ethical footing.
  6. Both tests begin with the simple question, “is our action legal?” The important part is that neither stops at this minimum standard, however. The Texas Instruments method is not as thorough as the Laczniak Test, but serves as a good starting block as an ethical test. It can be easily modified to add other questions like “Does this action affect the environment adversely?” or “Is this practice beneficial for the local community?” The Laczniak Test is very thorough, covering multiple concerns, including legality, obligations, motives, and rights, among others. As it is very thorough it is better suited to large-impact decisions, but impractical for everyday decisions.