BUSINESS AND SOCIETY STAKEHOLDERS
ETHICS AND PUBLIC POLICY 17TH EDITION ALL
CHAPTERS 2026 REVISION WORKBOOK
COMPREHENSIVE NOTES A+
◉ Business. Answer: An organization that is engaged in making a
product or providing a service for profit
◉ External Stakeholder. Answer: Individuals or groups that may
have important transactions with a firm but are not directly
employed by the firm, such as customers or suppliers
◉ Focal Organization. Answer: The organization from whose
perspective a stakeholder analysis is conducted
◉ General System theory. Answer: A theory that holds that all
organisms are open to, and interact with, their external environment
Organisms do not exist in isolation but can only be understood in
relationship to their surroundings.
Businesses are embedded in a broader social environment with
which they constantly interact.
,◉ Interactive social system. Answer: The closely intertwined
relationships between business and society
◉ Internal Stakeholder. Answer: Individuals who are employed by
the firm, such as employees and managers
◉ Ownership theory of the firm. Answer: A theory that holds that
the purpose of the firm is to maximize that long- term return for its
shareholders (also known as the property or finance theory of the
firm)
◉ Society. Answer: Refers to human being and to the social
structures they collectively create; specifically refers to segments of
humankind, such as members of a particular community, nation, or
interest group.
◉ Stakeholder. Answer: A person or group that affects, or is affected
by, a corporation's decisions, policies, and operations.
◉ Stakeholder Salience. Answer: A stakeholder's ability to stand out
from the background, to be as important, or to draw attention to
itself or its issue. Stakeholders are more salient when they possess
power, legitimacy, and urgency
, ◉ Issue Management. Answer: The active management of public
issues once they come to the attention of a business organization
◉ Performance- Expectations gap. Answer: The perceived distance
between what a firm wants to do or is doing and what the
stakeholder expects
◉ B Corporation. Answer: A business that explicitly seeks to blend
its social objectives with its financial goals
Must meet rigorous, independent social and environmental
performance standards.
B Corporation must prove its socially responsible by meeting the B
Lab standards
◉ Corporate Citizenship. Answer: This term refers to the actions
corporations take to put their commitments to corporate social
responsibility into practice worldwide
◉ Corporate Social Responsibility. Answer: The idea that businesses
should act in a way that enhances society and their stakeholders and
should be held accountable for any of its actions that affect people,
their communities, and their environment.
ETHICS AND PUBLIC POLICY 17TH EDITION ALL
CHAPTERS 2026 REVISION WORKBOOK
COMPREHENSIVE NOTES A+
◉ Business. Answer: An organization that is engaged in making a
product or providing a service for profit
◉ External Stakeholder. Answer: Individuals or groups that may
have important transactions with a firm but are not directly
employed by the firm, such as customers or suppliers
◉ Focal Organization. Answer: The organization from whose
perspective a stakeholder analysis is conducted
◉ General System theory. Answer: A theory that holds that all
organisms are open to, and interact with, their external environment
Organisms do not exist in isolation but can only be understood in
relationship to their surroundings.
Businesses are embedded in a broader social environment with
which they constantly interact.
,◉ Interactive social system. Answer: The closely intertwined
relationships between business and society
◉ Internal Stakeholder. Answer: Individuals who are employed by
the firm, such as employees and managers
◉ Ownership theory of the firm. Answer: A theory that holds that
the purpose of the firm is to maximize that long- term return for its
shareholders (also known as the property or finance theory of the
firm)
◉ Society. Answer: Refers to human being and to the social
structures they collectively create; specifically refers to segments of
humankind, such as members of a particular community, nation, or
interest group.
◉ Stakeholder. Answer: A person or group that affects, or is affected
by, a corporation's decisions, policies, and operations.
◉ Stakeholder Salience. Answer: A stakeholder's ability to stand out
from the background, to be as important, or to draw attention to
itself or its issue. Stakeholders are more salient when they possess
power, legitimacy, and urgency
, ◉ Issue Management. Answer: The active management of public
issues once they come to the attention of a business organization
◉ Performance- Expectations gap. Answer: The perceived distance
between what a firm wants to do or is doing and what the
stakeholder expects
◉ B Corporation. Answer: A business that explicitly seeks to blend
its social objectives with its financial goals
Must meet rigorous, independent social and environmental
performance standards.
B Corporation must prove its socially responsible by meeting the B
Lab standards
◉ Corporate Citizenship. Answer: This term refers to the actions
corporations take to put their commitments to corporate social
responsibility into practice worldwide
◉ Corporate Social Responsibility. Answer: The idea that businesses
should act in a way that enhances society and their stakeholders and
should be held accountable for any of its actions that affect people,
their communities, and their environment.
