A social contract details how team members will behave with one another, enabling everyone to work together more effectively.
Social contracts offer clarity and improve communication within teams. They set out the ways that team members will behave and interact.
An explicit vs. implicit social contract
To achieve high performance, it is crucial that team members put an explicit social contract in place, by agreeing on accepted behaviours. Without an explicit social contract in place, it is difficult for teams to cultivate psychological safety and reach their full potential.
This is often because an implicit social contract forms in its stead. In other words, there are unspoken rules that govern the way people work and communicate, but these may not be known to (or agreed by) everyone, may be broken unwittingly or without repercussions, and may not serve the team.
For example, team members have an unspoken agreement to avoid conflict, stick to their own areas of responsibility and not to speak their minds in front of managers. They may also refrain from giving and accepting feedback from peers.