7 & 8 - Social Contract & Stakeholders

Question 1

What is Social Contract theory?

Answer 1

study of why humans allows ourselves to be governed

Question 2

Why do we consent to a social contract?

Answer 2

1. SOCIAL CREATURES - can live in harmony
2. MUTUALLY BENEFICIAL - higher quality of life
3. understand we must SURRENDER FREEDOMS for
   > protection of right (civil liberty, respect)
   > safe, orderly, functioning society

Question 3

Jean Jacques Rosseau

Answer 3

Humans were once primitive, harmless, isolated, but evolving

Humans behaved socially & consented to authority/government because it provided them with freedom & benefits

Believed: individuals have equal moral value, that is not based on talents, wealth or other attributes

Question 4

John Rawls

Answer 4

Theory of Justice - we should all have equal rights & opportunities, but are not all equal
- should distribute advantages/disadvantages and benefits/burdens accordingly

Question 5

Rawls Thought Exercise

Answer 5

1. IMAGINE Yourself pre-birth “behind a veil of ignorance”
2. ASK yourself -> what kind of society would you want to live in? that ensures fair treatment, minimal provisions, and opportunities for even the most disadvantaged?

Question 6

Rawls 2 fundamental principles of Justice

Answer 6

1. everyone deserves all BASIC LIBERTIES
2. INEQUALITIES are permitted, but must be JUSTIFIED
   > benefit everyone
   > provide equal opportunities

Question 7

Enbridge Case

Answer 7

• Line 3 replacement program

- education & reading-incentive program

Question 8

Equality vs. Equity

Answer 8

equality = treat everyone equally
equity = provide different supports so everyone has equal access

Question 9

Stakeholder - Dam case

Answer 9

Vale Mining in Brazil (Jan 2019)

• iron ore waste
• no sirens

Question 10

Define Stakeholder

Answer 10

A person or groups that is either harmed by or benefits from the corporation, or whose rights the corporation should respect

Question 11

21st century stakeholder (network)

Answer 11

web of interrelationships

- more adv than traditional and modern models

Question 12

5 categories of stakes (FILM.R)

Answer 12

Financial
Interest-based
Legal
Moral
Right-sbased

Question 13

tips for managing conflicting stakes (how much PUL do you have)

Answer 13

Power
Urgency
Legitimacy

Question 14

Stakeholder questions

Answer 14

• is my business violating rights of others?
• is my business taking responsibility for the effect of its actions?
  can tie into universalism & consequences