The Integrative Social Contracts Theory In Business

1114 Words 5 Pages
Register to read the introduction… When faced with dilemmas like that, which engage business ethical conflict, the Integrative Social Contracts Theory (ISCT) should be applied. The ISCT examines the proposed action in four dimensions. The first dimension is if the proposed action is compatible with hypernorms, which are based on universal consensus that evolves well-known global industry standards for example. These norms could include religious, political and philosophical thoughts. For this situation Alexandra could justify taking the action with the thought of justice, since it would not be fair for the Royal Division’s employees to not receive their bonus, given that they have been right at the top in performance, and have been able to attract some good corporate backing for its projects. The second dimension is if the norm is authentic. For this company, based in what Jean said, it is something normal to game the performance measurement and compensations system to some extent. This type of decision and behavior looks like is acceptable by the community in question and the stakeholders are most likely to agree that omitting some facts and reporting the higher ROI is the right thing to

Related Documents