Integrative Social Contract Theory and Urban Prosperity Initiatives

Abstract

Urban communities in 21st century America are facing severe economic challenges, ones that suggest a mandate to contemplate serious changes in the way America does business. The middle class is diminishing in many parts of the country, with consequences for the economy as a whole. When faced with the loss of its economic base, any business community must make some difficult decisions about its proper role and responsibilities. Decisions to support the community must be balanced alongside and against responsibilities to owners, shareholders and relevant “stakeholdersâ€\x9D in a relatively new context. Corporations in urban communities “hollowed outâ€\x9D by white flight or urban sprawl must decide what level of support they can and should provide. This paper examines corporate decisions within the emerging urban prosperity initiatives, using the framework of integrative social contract theory proposed by Donaldson and Dunfee. We suggest that urban prosperity initiatives present a mandate on corporations sufficiently strong as to qualify as an authentic norm. Further, we argue that strict adherence to a corporate bottom line approach or “corporate isolationismâ€\x9D is not congruent with contemporary community standards. Copyright Springer Science+Business Media, Inc. 2007integrative social contract theory, authentic norm, community prosperity, community engagement, corporate social responsibility,

U.S. CEOs of SBUs in Luxury Goods Organizations: A Mixed Methods Comparison of Ethical Decision-Making Profiles

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