Introduction
The case involved a simple process where my company negotiated a new contract with a supplier. The focus of the negotiation is typically on the economic contract outlining the specific terms of the agreement, such as the price, quality standards, and others. However, the social contract implications of this negotiation should be noticed. The social contract governs the parties’ expectations regarding the nature and duration of the venture. The contract is essential to any successful negotiation and must be given equal consideration alongside the economic contract.
Discussion
The social contract would govern the expectations and relationship between us and the supplier. We would establish the character and scope of their cooperation, covering the methods for communication, resolving issues, and making decisions. The contract refers to the implicit understanding between the individuals involved in a transaction that outlines their relationship (Wilson, 2021). Ignoring the social contract in this situation could confuse both sides. Consequently, there might be a breakdown of the relationship between us and other parties. A failure of the agreement at the end can be the last occurring problem.
In contrast to the economic contract, the social contract is focused on the intangible aspects of the relationship between my company and involved parties. It encompasses our values, attitudes, and expectations (Wilson, 2021). In addition, it provides a picture of how we will interact with each other (Lax & Sebenius, 2023). Negotiations focusing solely on the economic contract risk ignoring the social contract and its critical role in ensuring a positive and productive relationship between the parties.
Conclusion
In conclusion, the social contract should always be given equal consideration alongside the economic contract in any negotiation. Negotiators who neglect the social contract risk damaging the relationship between the parties and potentially causing the negotiation to fail later. In the experience scenario provided, the social contract is as important as the economic contraction in ensuring a good outcome for the organization and the supplier.
References
Lax, D. A., & Sebenius, J. K. (2023). 3-d negotiation: powerful tools to change the game in your most important deals: get all the interests right setting ip the right negotiation. Harvard Business Press.
Wilson, A. (2021). Defining a new social contract: the role of business in democracy – center for international private enterprise. Center for International Private Enterprise. Web.