Social contract theory is best defined as the agreement which human beings have made to protect themselves from each other. This theory explains that the principles of ethics which we are following now days are made by us for our benefits. We make rules according to our wisdom and nature so we can eliminate various negative elements from our lives such as fear. Another important element which this theory has enlightened is that the power is essential for protection and implementation. The labor union is one of the great example for social contract theory as in this a group of people fights for whole employees and this group is selected by the votes of the majority of the employee which empowers the group to take necessary steps for the welfare
