The Social Contract of the Firm: Economics, Ethics and Organisation [Paperback]

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.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.Preface.- Acknowledgements.- 1. An Overview of the Theory: Hierarchies, Social Contract and Reputation: Introduction; The Firm as Hierarchy; Abuse of Authority; Codes of Ethics; The Constitutional Contract of the Firm; A Parameter for Reputation Effects; Code of Ethics, Rationality and 'Fuzzy Reputation'.- 2.Economic Theory and the Social Contract of the Firm: Theory of Property Rights and Control on the Firm; Constitutional Contract of the Firm and the Theory of Justice; Economic Constitution, Ownership, Compensation.- 3. Games of Reputation and Compliance with the Social Contract: The Compliance Problem; Approaches to the Compliance Problem; Strategic Rationality and Endogenous Sanction of Contractual Commitments; Eyplicitly Modelled Reputation Effects; The Repeated Game between One Long-run Player... and an Infinite Series of Short-run Players; Foundational Problems.- 4. How Far Does Reputation Extend? Abuse of Authority and Corporate Culture:lSˇ