BUSINESS AND SOCIETY ETHICS
SUSTAINABILITY AND STAKEHOLDER
MANAGEMENT CONCEPT REVIEW GUIDE
2026 ETHICAL DECISION MAKING AND
CORPORATE IMPACT
◉ Stakeholder View.
Answer: Business is responsible to ALL groups affected by its actions
— employees, community, environment, not just shareholders.
◉ Principal-Agent Problem.
Answer: Managers (agents) act in their own interest rather than
shareholders' (principals) interest — a key argument AGAINST CSR.
◉ B Corporation.
Answer: A "benefit corporation" that legally blends social objectives
with financial goals — certified by B Lab nonprofit.
◉ CSR Origins.
Answer: Emerged early 20th century amid massive depression,
exploitative labor, and violent strikes — executives began arguing
business should serve society, not just profit.
, ◉ Compassionate Downsizing.
Answer: Questioning whether to lay off at all, redeploying workers,
and providing financial/emotional support if you must cut.
◉ Sustainable Development.
Answer: Meeting present needs without compromising future
generations' ability to meet theirs.
◉ Ecological Footprint.
Answer: The land and water a population needs to produce what it
consumes and absorb its waste.
◉ Earth's Carrying Capacity.
Answer: The maximum load Earth can sustain indefinitely — the
ceiling we cannot exceed without long-term collapse.
◉ Triple Bottom Line (TBL).
Answer: Measuring business success across three dimensions:
People, Planet, and Profit — like a three-legged stool, all three must
hold.
◉ Take-Make-Waste (Linear Model).
SUSTAINABILITY AND STAKEHOLDER
MANAGEMENT CONCEPT REVIEW GUIDE
2026 ETHICAL DECISION MAKING AND
CORPORATE IMPACT
◉ Stakeholder View.
Answer: Business is responsible to ALL groups affected by its actions
— employees, community, environment, not just shareholders.
◉ Principal-Agent Problem.
Answer: Managers (agents) act in their own interest rather than
shareholders' (principals) interest — a key argument AGAINST CSR.
◉ B Corporation.
Answer: A "benefit corporation" that legally blends social objectives
with financial goals — certified by B Lab nonprofit.
◉ CSR Origins.
Answer: Emerged early 20th century amid massive depression,
exploitative labor, and violent strikes — executives began arguing
business should serve society, not just profit.
, ◉ Compassionate Downsizing.
Answer: Questioning whether to lay off at all, redeploying workers,
and providing financial/emotional support if you must cut.
◉ Sustainable Development.
Answer: Meeting present needs without compromising future
generations' ability to meet theirs.
◉ Ecological Footprint.
Answer: The land and water a population needs to produce what it
consumes and absorb its waste.
◉ Earth's Carrying Capacity.
Answer: The maximum load Earth can sustain indefinitely — the
ceiling we cannot exceed without long-term collapse.
◉ Triple Bottom Line (TBL).
Answer: Measuring business success across three dimensions:
People, Planet, and Profit — like a three-legged stool, all three must
hold.
◉ Take-Make-Waste (Linear Model).
