E-LOGOS 2021, 28(1):4-16 | DOI: 10.18267/j.e-logos.480
The Social Contract Theory and Corporation Moral Obligation
- Department of Classics and Philosophy, University of Cape Coast, Ghana.
Contractual moralists, such as Bowie and Donaldson, have argued that contractual agreement explains why corporations have a moral obligation towards the society in which they operate. They argue that a corporation’s moral obligation emerges from a hypothetical social contract that establishes its legitimacy to operate in society. Their assumption appears to indicate a logically necessary relationship between a corporation’s moral obligation and contractual agreement that establishes the corporation. We argue that there is no such relationship: a corporation’s moral obligation does not necessarily emerge from a social contract. We suggest that instead of assuming that a corporation’s moral obligation emerges from a social contract, it should be said that a corporation’s moral obligation is sustained by a social contract. This helps answer the question of why corporations have a moral obligation towards the society where they operate in a better light.
Keywords: Morality; Contractual Agreement; Social Contract; Moral Obligation; Rational Choice; Incorporated Corporations
Contractual moralists, such as Bowie and Donaldson, have argued that contractual agreement explains why corporations have a moral obligation towards the society in which they operate. They argue that a corporation’s moral obligation emerges from a hypothetical social contract that establishes its legitimacy to operate in society. Their assumption appears to indicate a logically necessary relationship between a corporation’s moral obligation and contractual agreement that establishes the corporation. We argue that there is no such relationship: a corporation’s moral obligation does not necessarily emerge from a social contract. We suggest that instead of assuming that a corporation’s moral obligation emerges from a social contract, it should be said that a corporation’s moral obligation is sustained by a social contract. This helps answer the question of why corporations have a moral obligation towards the society where they operate in a better light.
Received: April 28, 2020; Accepted: March 9, 2021; Prepublished online: April 10, 2021; Published: September 26, 2021 Show citation
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