Question 1: How can SCT and ISCT address the controversial nature of advertising and promoting cigarettes across international borders?
Base on the case study, The Social Contract Theory (SCT) generates a workable framework for solving ethical issues: * Sets main principles relevant to the organization in question * Recommends different principles for different communities * Determines the suitable marketing practices * Allows for theory of norms and values
SCT captures two different types of social contracts- hypothetical and actual contracts used in living communities. It is the foundation of rules within communities with two assumptions: * Individuals join the contract that means individuals realize and care about morals and values of these components. * It can be assumed that global members would have responsibilities with ethics, through the recognition of the community’s needs based moral foundation that will result in good and productive life.
Donaldson hypotheses that a “global contractor would agree to the creation of a binding macro-social contract as it is the only rational solution for the need for a moral fabric in the face of bounded moral rationality. “
The macro-social contract follows the following ‘rules’: * Local economic communities may generate ethical norms for its members through macro-social contracts. * Norm- generating micro-social contracts must be bounded through informed consent- the protected informed consent. * A macro-social contract must be relevant with the norms of the community. * In the situation of conflicting among norms, priority must be established through the application of rules consistent with the spirit of the overall macro-social contract.
In other worlds, SCT and ISCT bind domestic and foreign contractors who have to identify norms of primary communities to adjust the suitable