The scope of human rights has been rapidly expanding, but the underlying principle remains the same. Social contract is the awareness that the government is supposed to serve the people (Banerjee, 2007, p. With that understanding, the people own all the political power, but in most cases they delegate it to government officials. The people can give or opt to withhold power. Social contract theory urges that people can exchange power with authorities so that their rights can be protected. In this process, people surrender some of their freedoms and submit to an authority for protection (White 2007 p. The relationship between legal and natural rights becomes a vital aspect of the social contract theory. Members of the society decide to cooperate so that the entire society can benefit. A social contract is a general agreement between members of a society of with the government that explains how the rights of the society shall be protected in a sustainable manner. This agreement is not written, but it is known to exist between the state and individuals. In case of mature democracies, the rights are delegated to elected officials and the leaders are held accountable.Property rights assist people with the atmosphere to nurture wealth which is supposed to enrich and improve their productivity. According to Thomas Paine, a philosopher in the 18th century, natural property comes from God, who is the Creator of the universe (Banerjee, 2007, p. Therefore, it should not be used for just personal and private needs. The impact of social contracts is increasingly being felt. A society which allows incursions into communal resources to benefit a few cannot have true democracy (White 2007). The level to which multinationals become responsible for the social welfare is being debated in earnest. Some observers think that governments have failed to provide the necessary stability for business activities. The implication shows that multinational corporations cannot thrive in such atmosphere. Successful social contract requires enforcing transparent rules that favor the operations of multinational corporations. Unstable environment affects the ability of multinational corporations to fulfill their role in the social contract. This is common in emerging economies where the government institutions are weak.Another issue is that the level of business being done by some of these multinational has not
Banerjee, S. B. 2007. Corporate Social Responsibility: The Good, the Bad and the Ugly 1st ed. Edward Elgar Publishing.
White, A. L. 2007. Is It Time to Rewrite the Social Contract? business for social responsibility, 11, 1-19.
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