In the article "Is it Time to Rewrite the Social Contract?", discussed the historical criticism of government involvement in business enterprise.

 Preface

In the article "Is it Time to Rewrite the Social Contract?", discussed the historical criticism of government involvement in business enterprise. As companies seek to offload all or most of these rising costs onto employees, they play a pivotal role in shaping the lives of people and the actions of government. To discuss what level of social responsibility we believe corporations should have, we must know how to measure it first or based on what criteria to measure private companies meet the expectations or not. If corporations are like the trees that live on the land we share, then they at least have to protect or keep their environment safe since it is where they get their nutrients, the stakeholders. That makes me think of the interesting prisoner's dilemma. The Prisoner's Dilemma is a standard example of a game analyzed in game theory that shows why two completely rational individuals might not cooperate, even if it appears that it is in their best interests to do. 

The Prisoner's Dilemma

Assume that two individuals(Jerry and Tom) of a criminal organization are arrested and imprisoned. Each prisoner is in solitary confinement with no means of communicating with the other. The prosecutors lack sufficient evidence to convict the pair on the principal charge, but they have enough to convict both on a lesser charge. Therefore, if Jerry and Tom each betray the other, each of them serves two years in prison. If Jerry betrays Tom but Tom remains silent, Jerry will be set free and Tom will serve three years in prison. If Jerry remains silent but Tom betrays Jerry, Jerry will serve three years in prison, and Tom will be set free. If Jerry and Tom both remain silent, both of them will serve only one year in prison. As you can see, the best outcome for Jerry and Tom is they cooperate with each other, their stakeholders.

The Prisoner's Dilemma Is A Mirror

As we know that, usually, their selfishness will make them weaker and lead to the worst outcome for all of them. Nowadays, the broad spectrum of the public has moved from the exceptional to the expected. I believe the least level of social responsibility that corporations should have is they should not make any excessively selfish decisions to benefit themselves by hurting others, destroy our future, or anything like that. But, what decisions are selfish? It can be controversial. Moreover, as globalization has accelerated, an explosion of new organizations has evolved in response to urgent problems that globalization itself has caused, accelerated, or exposed.

Trust Must Be Earned

Trust is hard to build but easy to lose. And, no one is born to be fully trusted. So, trust must be earned. The key point here is to earn and retain. To earn the public's trust and retain it as the heart of an enterprise. I trust you can provide me great and responsible products, and you earn more from sales and reputation. It is a win-win strategy. 

Long-Term Wealth

The public interest is served by the creation of long-term wealth and it should be the value that continues to yield societal benefit, and trust is essential to do this. If the goal is long-term wealth, then it implies the productive activity that at least preserves and expands the stock of natural, human and social capital. 

Reference

Wikimedia Foundation. (2021, September 15). Prisoner's dilemma. Wikipedia. Retrieved September 16, 2021, from https://en.wikipedia.org/wiki/Prisoner%27s_dilemma.