The Social Contract Of The Firm: Economics, Ethics And Organisation (ethical Economy)

In order to survive as a social institution a firm needs a constitutional social contract, even though implicit, among its stakeholders. This social contract must exist if an institution is to be justified. The book focuses on two main issues: To find out the terms of the hypothetical agreement among the firm's stakeholders in an ex ante perspective and to understand the endogenous mechanism generating appropriate incentives that induce to comply with the social contract itself, as seen in the ex post perspective. Front Matter....Pages I-XV An Overview of the Theory: Hierarchies, Social Contract and Reputation....Pages 1-31 Economic Theory and the Social Contract of the Firm....Pages 33-53 Games of Reputation and Compliance with the Social Contract....Pages 55-86 How Far Does Reputation Extend? Abuse of Authority and Corporate Culture....Pages 87-113 Information, Incomplete Contracts and the Ethical Code....Pages 115-134 Dealing with Vagueness of Norms: the Theory of Fuzzy Sets....Pages 135-159 A Game Theoretic Model of Incomplete Contract and Ethical Code....Pages 161-184 Ethical Decision-making Procedure: Vagueness, Default Reasoning and Reputation....Pages 185-214 Back Matter....Pages 215-230