The Social Contract of the Firm

Viac o knihe

The book explores the necessity of a constitutional social contract among a firm's stakeholders for its survival as a social institution. It addresses two key issues: identifying the terms of a hypothetical agreement from an ex ante perspective and examining the endogenous mechanisms that create incentives for compliance with this social contract from an ex post perspective. Through this analysis, it highlights the importance of stakeholder relationships in justifying the institution's existence.