Organizations are downsizing, restructuring, merging, and reinventing themselves. Mid-level management layers are diminishing. Functions are being eliminated and replaced by online automation and networked infrastructures. Knowledge workers with technological and people skills must manage processes and themselves in cyberspace with speed, efficiency, and accuracy. These and other changes continue to impact the relationships, rights, and obligations between employee stakeholders and organizations.
Chapter 4 discussed the major stakeholders' interests and responsibilities inside and outside of organizations. As for other stakeholders, it is in the organization's long-term interest to create and sustain employee-employer relationships or social contracts based on trust and respect. However, not all leaders and organizations demonstrate ethical competencies and due diligence with regard to their employee stakeholders.
Organizations have an implied social contract with employees. The contract is based on mutual trust, with the understanding that organizations have the interests of employees in mind. However, even social contracts can vary depending on economic and social changes in society.