The idea of the 'social contract' is that corporations only exist because they benefit:
A) Shareholders
B) Governments
C) Managers
D) Society

Question

Quizplus · Accepted Answer

The social contract theory posits that corporations and businesses exist primarily for the benefit of society as a whole. As such, they have a broader responsibility beyond maximizing profits for shareholders or benefiting managers. Businesses are expected to contribute to the well-being of society and the economy, by generating employment opportunities, paying taxes, respecting the environment, and abiding by ethical norms. The government provides a regulatory framework and protection of property rights, but ultimately, it is society that grants legitimacy to the existence and operations of businesses.

The Idea of the 'Social Contract' Is That Corporations Only