Aconsumerwill probably be more comfortable with aSocial Contract Approach due to following reasons:

a) Social Contract approach binds the organizations within their limits, that is, every organization must follow certain rules and regulations in the society because a society in which an organization work without rules and regulations, might generate a dreadful market for the customers.

b) Without a social contract approach, each company would try to increase their profits without focusing on the quality of the products or without being socially responsible.

c) A social contract approach creates a fair market for both the companies and the consumers to trade and buy.

d) The main focus is on understanding the needs of the customers and satisfying them instead of maximizing profits in a selfish way. For example, government puts restrictions on industries producing excessive Industrial waste or spreading unnecessary pollution.

Abusiness ownerwill probably be more comfortable with afree marketapproach mainly due to the following reason:

The ultimate goal of any organization is to make profits. Following a social contract approach puts many restrictions on the organizations and the companies must comply with the rules and regulations stated in the contract and must work following those government policies, rules and restrictions. These rules and regulations might hinder the achievement of primary goals of the company where as a free market gives the businesses a license to operate as they wish to. Although this process may increase the profits for an organization, it might create a market with poor quality products and unmet demands. For example, in a free market, in order to cut the expenses, an industry might choose not to adopt environmental safety measures and might produce more amount of carbon dioxide.

Questions => => Without a social contract approach, each company would try to increase their profits without focusing on the quality of the products or without being socially responsible. " What happens in a Free Market system when a company has poor quality? As a consumer, do you buy their product? If you don't buy them, then what happens to the company? Why can't a company operate in a Free Market and also care about their stakeholders without government regulation?