A Description of Social Contract Theory

According to social contract theory (SCT), “morality consists in the set of rules governing behavior, that rational people would accept, on the condition that others accept them as well. ” The social contract theory holds that in earliest history man lived in a “state of nature. ” No government existed. Each man was only as secure as his own power and mental awareness could make him. By agreeing with one another to make a state by contract, men within a given area joined together, each surrendering personal freedom as necessary to promote the safety and well being of all.

By this contract the members created a government. The social contract gives rights and responsibilities to both the citizenry and the government. For example, in The United States, citizens yield the powers of prosecution of, and punishment for, criminal offenses to the judicial branch of government. The government, for its part, bears the responsibilities of maintaining public safety for the citizens through the police, court systems, correctional facilities, and all supporting structures. Stockholder/Shareholder Theory:

Rough version: corporations/businesses have only one obligation – to maximize profit for shareholders. Shareholder theory defended by: ? Appeal to property rights of shareholders. ? Appeal to contract of business manager. Stockholder Theory: precise version (Friedman) ? A business manager is obliged to maximally serve the interests of the shareholders of the business, so long as she does not break the law or coerce, deceive, cheat or kill while doing so. ? Other stakeholders are to have their interests served only if this works in the favour of shareholders. Stakeholder Theory: Rough version: businesses/corporations have “corporate social responsibilities” with respect to employees, customers and society at large (besides the goal of making some profit for shareholders).

Stakeholder theory defended by: ? Appeal to rights/dignity of all stakeholders. ? Appeal to overall good for society. Stakeholder theory: precise version (Freeman) ? A business manager has a moral obligation to use business resources to serve all stakeholders involved in the business (including employees, shareholders, community etc. ). ? While profit generation is one goal, this has to be balanced against other goals. ? Sometimes profit may be sacrificed in order to help out other stakeholders privacy.

First, some people believe that monitoring the employee’s e-mail secretly is a wrong activity within an organization. Because, employer has no rights to monitor employee’s personal e-mail and instant messages. Computer monitoring is strongly criticized an invasion of privacy (Giannis Stamatellos 2007). Employer monitors the electronic mails and other conversations which are not relevant to the employee’s work. This act threatens the individuality, autonomy and freedom of the employee (Giannis Stamatellos 2007). ACM (Association for computer machinery) Code of Ethics says “Respect the privacy of others”.

The issue of selection focuses on experience, knowledge, and the size of the available resource pool in terms of time, internal staff members, and potential external applicants; Motivation: The professional’s personality – task-oriented; self-oriented; interaction-oriented; the instrument types: intrinsic – may touch on such things as project interest (the subject domain, the tools, the client, the team); extrinsic – may be the financial rewards, career development, travel etc. Team effectiveness is concerned with varied and identifiable roles, communication, cohesiveness, and mutual support.