CORPORATION - artificial being created by
To increase profit
operation of law, having the right of
succession and the powers, attributes and
properties expressly authorized by law or
incident to its existence.
CORPORATE GOVERNANCE - process and
structure used to direct and manage the
business and affairs of a company.
MANAGEMENT - refers to the party given
the authority to implement the policies by
the Board.
CREDITORS - refers to the party who lend to
the corporation goods, services or money.
SHAREHOLDERS - refers to the people who
invest their capital in the corporation.
SHAREHOLDER'S RIGHTS
1. Right to vote
2. Right to propose resolutions
3. Right to receive dividends
4. Right to purchase new shares
5. Right to liquidating dividends
EMPLOYEES - people who contribute their
skills, abilities, and ingenuity to the
corporation.
CLIENTS - considered to be the very reason
for the existence of the corporation.
GOVERNMENT - has several interests in
private corporations the most apparent of
which are the taxes that the corporations
are paying.
PUBLIC - has a stake in corporations
considering that the latter provides the
citizens with essentials such as goods,
services, employment and tax money.
PURPOSES OF A CORPORATION
1. Early stage survival
2.
3. To offer vital services to the general
public
4. To offer goods and services to the
mass market
BONDHOLDERS - generally defined as a
person or entity that is a holder of a
currently outstanding bond.
BOARD OF DIRECTORS - refers to the
collegial body that exercises the powers of
all corporations.
DUTIES OF THE BOARD OF DIRECTORS
1. Governing the organization by
establishing broad policies and
objectives
2. Selecting, appointing, supporting,
and reviewing the performance of
the chief executive
3. Ensuring the availability of adequate
financial resources
4. Approving annual budgets
5. Accounting to the stakeholders the
organization's performance
MULTINATIONAL CORPORATION (MNC) - a
big company that operates in many different
countries. It has a main office in one
country and branches or operations in
others.
TRANSNATIONAL CORPORATION (TNC) - a
big company that operates internationally,
with a focus on connecting its operations
across countries to work more seamlessly
as a global entity.
GOOD GOVERNANCE PROMOTES
1. Transparency - vital with respect to
corporate governance due to the
critical nature of reporting financial
 and non-financial information.
2. Accountability - recognition and
assumption of responsibility for the
decisions, actions, policies, etc.
3. Prudence - defined within the Code
of Governance as "care, caution and
good judgement as well as wisdom
in looking ahead."
ETHICS IN BUSINESS - holds significant
importance due to its positive impacts on
reputation, trust, customer loyalty, employee
morale, legal compliance, risk management,
investor confidence, sustainability, social
responsibility, competitive advantage, and
navigating the global business landscape.
BENEFITS OF GOOD GOVERNANCE
1. Reduced Vulnerability - adopting
good corporate governance
practices leads to an improved
system of internal control.
2. Marketability - embracing good
principles of good corporate
governance can also play a role in
enhancing the corporate value of
companies.
3. Credibility - there are a good number
of benefits when an entity embraces
good corporate governance.
4. Valuation - observed evidence and
studies conducted in recent years
back the idea that it pays to have a
good corporate governance.
GOALS OF FINANCIAL MANAGEMENT
1. To survive
2. To avoid financial distress and
bankruptcy
3. To beat the competition
4. To maximize sales or market share
5. To minimize costs
6. To maximize profits
7. To maintain a steady earnings
growth
MANAGERIAL COMPENSATION - usually
tied to financial performance in general and
oftentimes to share value in particular.
CONTROL OF THE FIRM - ultimately rests
with stockholders.
STAKEHOLDERS - are not only the parties
with an interest in the firm's decision.
AGENCY THEORY - suggests that the firm
can be viewed as a loosely defined contract
between resource providers and resource
controllers.
EFFECTS OF AGENCY IN GOVERNANCE
1. Conflict of interest - principal and
agent have diverse interest.
2. Managerial opportunism - refers to
the act of the agent of taking
advantage on things that are within
his control.
3. Incurrence of agency cost - refers to
the sum of incentive costs,
supervision and monitoring costs,
enforcement costs and other agency
losses incurred by principals.
4. Shareholder activism - they can vote
as a block to elect their candidates
to the board.
5. Managerial defensiveness - issues
of takeovers whereby management
will employ some tactics to
discourage takeovers and buyouts.
GOAL CONGRUENCE - the harmony and
alignment of goals of both the principal and
the agent.
PERFORMANCE INCENTIVES AND
DISINCENTIVES
1. Pay dependent on profit level - when
management is rewarded based of
the level of profits made.
2. Shares incentives - when a company
is a publicy-listed company and
managers are given a chance to
subscribe shares of the company at
a discounted price.
3. Shareholders' intervention - a visible
shift of character of shareholders by
a large scale.
4. Threat of being fired - shareholders
who have ultimate control over of
the corporation can take a straight
and hostile approach by threatening
the board.
5. Takeover threat - shareholders can
easily make a threat to accept
takeover proposal if their set
objectives are not met by the agents
in general.
ROLES OF NON-EXECUTIVE DIRECTORS
1. Strategy - non-executive director
may have an impartial, clearer, and
wider view of external factors
affecting the company and its
business environment.
2. Establishing Networks - represent
the company in some external
corporate undertakings.
3. Monitoring of performance - should
take responsibility for monitoring the
performance of executive
management.
4. Audit - ensure that the company
report properly its shareholders.
CHIEF FINANCIAL OFFICER - accountable
for managing tge financial risks of the
corporation.
ROLES OF CHIEF FINANCIAL OFFICER
(CFO)
1. Implements internal controls -
responsible for conveying the
important financial controls to a
company.
2. Supervises major impact projects -
handles and supervises those
projects that require significant
quantitative snd qualitative
interpretation and analysis.
3. Develops relations with financing
sources - to institute good working
relationships with banks and other
financial institutions.
4. Advisor to management - an
effective CFO is also an important
member of the management team
of some emerging companies.
5. Drives major strategic issues -
expected to take part in important
role of getting involved on some
major strategic issues that will have
impact on the company's long-term
future.
6. Risk manager - foresee risks
considering that they have this rare
perspective on how the company
operates.
7. Relationship role - the nucleus in an
organization with many connections.
8. Objective referee - need to
demonstrate impartiality such as
when advising the CEO of the BOD
on accounting matters.
AUDITORS - their job is to help to ensure
that firms are run efficiently by keeping
public records accurate, adhering standards
of reporting for public purposes, and taxes
paid properly and on time.
ROLES OF THE AUDIT COMMITTEE
1. Understanding the audit committee's
responsibilities
2. Risk identification and response
a. External risk (Independent)
 Rapid technological changes
 Downturns in the industry
 Unrealistic earnings
expectations by analysts
b. Operating/internal risk
c. Information and control risk
AUDITING - a systematic process by which
a competent, independent person
objectively obtains and evaluates evidence
reagrding assertions about economic
actions and events.
FACTORS THAT CONTRIBUTE
INFORMATION RISK
1. Remoteness of information
providers to the information users
2. Bias of information providers
3. The volume of data
4. Complexities in transactions
AUDITOR'S DUTIES - a legal duty to make a
report to the enterprise on the fact and
fairness of the entity's annual accounts.
IN THE CONDUCT OF AN AUDIT, THE
AUDITOR MUST CONSIDER WHETHER THE
FOLLOWING ARE PRESENT
1. Proper accounting records being
kept by the company
2. Financial statement figures that
agree with accounting records
3. Adequacy of notes to financial
statement and other disclosures
necessary
4. Compliance with relevant laws and
standards of financial accounting
and recording
CHIEF EXECUTIVE OFFICER (CEO) - usually
the singular organizational position that is
principally accountable in carrying out the
strategic policies and procedure as
established by the board of directors.
RESPONSIBILITIES OF THE CEO
1. Support to the Board
2. Delivery of Program, Product and
Service (PPS)
3. Financial, Risk and Tax Management
4. Human Capital Management
5. Public Relations (PR)
TO
LEGAL ENVIRONMENT - refers to the
framework of laws, regulations, and rules
that govern a particular jurisdiction or area.
LEGAL ENVIRONMENT HAS THREE
DISTINCT DIMENSIONS
1. The domestic laws of home country
2. The domestic laws of each of
foreign markets
3. International law in general
MARKETS - considered the most important
institution of corporate governance.
THREE CENTRAL AND IMPORTANT
POINTS OF THE TERM MARKETS
1. The firm's product market
2. Capital market
 3. The managerial labor market
PRODUCT MARKETS - considered as the
most feared disciplinarian by managers; It is
a simple "no product, no firm" thing.
CAPITAL MARKETS - favor those who have
good track records in terms of governance.
LABOR MARKETS - important variable in
selecting the "right" people for positions in
the company.
POLITICAL ENVIRONMENT - politics of a
country or region that an organization is
functioning affects the policies and benefits
that an organization derives from a system.
TECHNOLOGICAL ENVIRONMENT - new
development may render an organization's
processes and systems obsolete if it is not
quick to adapt to the new changes.
SOCIAL ENVIRONMENT - comprises the
general behavior of the society and the
ethical leanings of the individuals
responsible for the functioning and eventual
long-term existence of the organization.
CLASSES OF STOCK
1. Ordinary shares - standard shares
with no special rights or restrictions
2. Preference shares - typically carry a
right that gives the holder
preferential treatment when annual
dividends are distributed to
shareholders
3. Cumulative preference shares - give
holders the right that, if a dividend
cannot be paid one year, it will be
carried forward to the succeeding
years
4. Redeemable shares - come with an
agreement that the company can
buy them back at a future date - this
can be at a fixed date or at the
choice of the business
SUPERMAJORITY - refers to percentage of
ownership that is way above the simple
majority which is, one half (%) plus one (1)
share of the total shares outstanding.
SHAREHOLDER VOTING AGREEMENT - a
legal contract among shareholders of a
corporation involving voting of shares.
SHAREHOLDERS MANAGEMENT
AGREEMENT - also known as shareholder
agreements or stockholders' agreements,
are legal documents that outline the rights,
responsibilities, and relationships among
the shareholders of a company and its
management team.
BEHAVIORAL MANAGEMENT THEORY -
often called the human relations movement
because it addresses the human dimension
of work.
MORAL REASONING - process of
determining whether human actions,
institutions, or laws are morally acceptable
or unacceptable.
TWO KEY ELEMENTS OF MORAL
REASONING
1. Metaethics - examines the
foundations and processes of moral
judgements.
2. Normative ethics - investigates the
guidelines for how people should
live.
MORALITY - came from the Latin word
"moralitas", which means "manner,
character, or correct behavior".
APPLIED ETHICS - examines concerns like
hoarding of basic goods or exploitation of
workers, as was moral issues in fields like
business or medicine.
CULTURAL RELATIVISM - includes two
components on the one hand, choose your
moral beliefs by adhering to what your
society accepts, and on the other hand,
"Good" implies socially acceptable dealings.
SELF INTEREST - refers to decisions or
pursuits that are profitable to entrepreneurs
or stockholders.
PROFIT MOTIVE - the intention to make
money out of a business, transaction, or
exchange.
ETHICS - a branch of philosophy that deals
with the study of what is right and wrong,
good, and evil, just and unjust, and other
ultimate questions of morality.
LOGIC - a branch of philosophy that deals
with the study of methods and principles of
correct reasoning.
IMMANUEL KUNT (1724-1804) - a German
philosopher maintain that logic is "forcefully
proved to be formal and systematic.
PSYCHOLOGY - the scientific study of the
mind and behavior.
SOCIOLOGY - a social science that deals
with the study of society, human social
behavior, social interaction patterns, and
aspects of daily life related to culture.
MORAL ABSOLUTISM - it holds that there
are unchanging moral principles that may
be used to determine moral dilemmas and
that some behaviors are good or wrong
regardless of their circumstances.
ECONOMICS - the study of how to use
scarce resources effectively and fairly in
order to satisfy as many people's needs and
wants as possible.
LAW - generally understood to be a system
of regulations that are made by competent
authority and enforced by social or political
organizations to control conduct.
ETHICAL POSITIVISM - holds that laws are
made up of things that have been ordered,
determined, practiced, tolerated, etc.
CORPORATE CODE OF CONDUCT - an
established set of moral principles that
businesses strive to uphold.
RELIGION - refers to a social-cultural
system of prescribed values, beliefs, worlds
views, holy books, holy sites, prophecies
religious ethics or organization.
EXISTENTIALISM - a school of
philosophical thought that focuses on the
individual experience of thinking, feeling,
and acting while exploring the issue of
human existence.
PRAGMATISM - a philosophical school that
rejects the notion that cognition derives to
explain, portray or mirror reality and instead
views language and thoughts tools and
instruments for prediction, problem solving
and actions.
MORAL RELATIVISM - used to characterize
numerous philosophical viewpoints
concerned with the disparities in moral
judgements across different peoples and
their own distinct cultures or religious belief.
PROFESSIONAL CODE OF CONDUCT - a
statement, usually a corporate rule, that
informs staff members of how they should
conduct themselves while representing their
employer, usually it embodies company's
value, sanctions, and obligation.
CODE OF ETHICS - is a collection of values
and guidelines that people, and
organizations use to guide their decision
making and to discern between right and
wrong.
ETIQUETTE - an ethical code that outlines
the anticipated and accepted social
behaviors in accordance with the customs
and norms practiced by a society, a social
class, or a social group.
EDUCATION - the act or process of gaining
and conveying broad information,
strengthening ones analytical and decision
making skills, and generally getting oneself
or others intellectually ready for adulthood.
ETHOS - a Greek word that means character.
PRIMARY FACIE APPROACH - maintain that
moral obligations are the subject of
fundamental moral principles.
ROSS ACKNOWLEDGED SEVEN
FUNDAMENTAL, PRIMARY FACIE
OBLIGATIONS
1. Fidelity – Don’t break your word
2. Reparation – Repay the wrong
you’ve caused someone else
3. Gratitude – Give kindness back to
those who have shown it to you
4. Justice - upset happiness or
pleasure allocations that don’t line
up with merit
5. Beneficence - Treat others well
6. Self-improvement - Develop your
character and knowledge
7. Nonmaleficence - Hurt no one else
ETHICAL DILEMMA - a scenario when an
agent is subject to two or more competing
moral obligations, none of which take
precedence over other.
ETHICAL RESPONSIBILITY - a capacity to
perceive, understand, and uphold a variety
of ethical concepts and values in
accordance with the norms in a certain
industry or context, in this case, business
industry.
THE GLOBAL REPORTING INITIATIVE (GRI)
- a global, independent standards-setting
body that aids in understanding and
communicating the effects of businesses,
governments, and other organizations on
issues including climate change, human
rights, and corruption.
BUSINESS FOR SOCIAL RESPONSIBILITY
(BSR) - seeks to create a just and
sustainable future with the help of it's
almost 300 member enterprises worldwide.
THE SUSTAINABLE DEVELOPMENT GOALS
(SDGs) - enacted by the United Nations in
2015 as a global call of action to eradicate
poverty, safeguard the environment, and
guarantee that by the year 2030, peace and
prosperity will be experienced by everyone.
SOCIAL RESPONSIBILITY - an ethical
principle wherein, each person is
responsible for carrying out their civic
responsibilities, and their deeds must
benefit society.
ISSUES BUSINESS HAVE WITH SOCIAL
RESPONSIBILITY
1. Climate change
2. Additional environmental issues
 deforestation
 air pollution
 illegal fishing
3. Safety and health of workers (also
known as occupational health and
safety)
4. The promise of corporate social
responsibility and its challenges
BUSINESS CULTURE - critical for a
corporation to show a unified front when it
comes to business ethics and its positions
on social, political, and environmental
problems.
CSR INITIATIVES - can benefit businesses
in two ways: hard value, such as cost
savings from going paperless with cloud-
based data management and robotic
process automation and soft value, such as
attracting more qualified talent with quality -
of-life benefits and a forward thinking,
inclusive workplace.
ENVIRONMENTAL RESPONSIBILITY - refers
to the obligation that an organization must
conduct its business in a way that protects
the environment.
COMMUNITY ENGAGEMENT - its primordial
engagement is the concern for the
workplace, the market, the environment, and
corporate social responsibility (CSR).
DISCRIMINATION AND HARASSMENT -
Discrimination and harassment are two of
the most significant ethical issues that
managers and HR professionals need to
deal with.
SEVERAL ANTI-DISCRIMINATION AREAS
1. Age
2. Disability
3. Equal pay
4. Pregnancy
5. Race
6. Religion
7. Sex and gender
EMPLOYEE SAFETY CONSIDERATIONS
1. Fall protection
2. Hazard communication
3. Scaffolding
4. Respiratory protection
5. General electrical regulations
WHISTLEBLOWER - an individual, frequently
an employee, who divulges information
about conduct inside a private or public
organization that is thought to be unlawful,
immoral, illegitimate, dangerous, or
fraudulent corporate activities.
CORPORATE ESPIONAGE - an illegal activity,
tantamount to theft or acquisition of
intellectual property, including important
trade secrets, patent information,
manufacturing methods, concepts, and
formulas.
NONDISCLOSURE AGREEMENT (NDA) - a
promise made under contract law that
specific information would be kept private.
TECHNOLOGY AND PRIVACY PRACTICES -
rapid advancement of technology and its
application or utilization in the business
organization brings huge issues both on the
part of the organization and employees
themselves.
SURVEILLANCE FOOTAGE - videotaping
employees may be in the best interest of
the employer's business.
ONLINE VIA EMAIL - a privy capability on
the part of senior managers to look into the
personal information found in the online and
email address of its employee and staff,
then its violative of the right to privacy, that
is guaranteed by the Philippine Constitution,
and some statutory rights, such as Republic
Act No. 10173, otherwise known as "An Act
Protecting Individual Personal Information
in the Information and Communication."
INFORMATION AND COMMUNICATION -
protects any natural or legal person
participating in the processing of personal
information, including controllers and
processors who are not based in the
Philippines but utilize Philippine-sourced
equipment.
SOCIAL MEDIA SITES - social networking
sites are rapidly being used by employees
for a variety of purposes, both personal and
professional.
NEPOTISM OR FAVORITISM - a sort of
favoritism that is extended to friends and
family in a variety of spheres, including
business, politics, academics, entertainment,
sports, fitness, and other pursuits.
OBLIGATION TO THE FIRM
1. Loyalty to the company
2. Conflicts of interest
3. Unlawful exploitation of one's
position for personal gain or abuse
of official position
4. Bribes and kickbacks
5. Gifts and hospitality
THIRD PARTY - refers to an organization, or
a person, or thing that takes part in a
transaction but is not a principal and has a
smaller stake.
WHISTLEBLOWING PROGRAM - set of
company policy and guidelines, that is,
usually aligned with statutory laws on
whistleblowing and international principles
for whistleblowers in order to encourage
responsible whistleblowing and provide
whistleblowers with adequate protection.
PRINCIPAL-AGENT SPECIFIC ISSUES
1. Diversification vs. dividends
2. Managerial opportunism
3. Power supremacy vs. technical
expertise
4. Trust
IDENTIFIED AGENCY PROBLEMS
1. Adverse selection
2. Agency costs
3. Legal requirements vs. opportunistic
behavior
REMEDIES WITHIN SHAREHOLDERS
1. Proxy voting
Benefits of Proxy voting
 Routine decisions
 Governance
 Issues on anti-takeover
DERIVATIVE SUIT - a lawsuit filled by a
shareholder on behalf of the corporation
against third party.
SPECIFIC FEATURE - under the Corporation
Code of the Philippines shareholders are the
owners of a corporation but for practical
reasons, they are empowered to manage
the day-to-day operations and other
routinary concerns of the corporation.
PROCESS - a shareholder must satisfy
various requisites to prove that he has
strong and valid status before being
permitted to proceed with the action.
TAKEOVER - corporate takeover is the
general term referring to transfer of control
of a firm from one group of shareholders to
another group of shareholders.
TYPES OF TAKEOVER
1. Friendly takeover
2. Hostile takeover
3. Reverse takeover
4. Tender offers
5. Financing a takeover
DEPT FINANCING - a company acquiring
another pays a specific amount of money
for the merger transaction to complete.
PARTIAL OR FULL EQUITY CONVERSION -
done by giving the shareholders of the
target company offers that include a debt
instrument in partial or in full payment of
shares.
SHARE SWAP/ALL SHARE DEAL -
sometimes the transaction can entirely be
financed by a share swap or all share deal.
EXTERNAL FACTORS AFFECTING
GOVERNANCE
1. Competitors
2. Financiers
3. Regulatory agencies
4. Watchdogs
5. Predator companies
6. Information enhancers, providers,
and gatekeepers
7. Investment bankers
ORIGINATION - covers the secondary
operations of discovery, investigation and
negotiation.
INVESTIGATION - Investigation typically
involves an analysis of the financial history
of the corporation by accountants and other
finance people, investigation of legal factors,
ocular survey of its physical property by
engineers and other technical professionals,
and a thorough review of company's
operation.
DISTRIBUTION - marketing the security
issue is another role of an investment
banker. Here, the investment banker acts as
a professional firm to distribute securities
efficiently for the corporation.
STOCK EXCHANGES - refers to an entity
which offers trading services and facilities
for stock brokers and traders, to buy and
sell shares of stock and other securities.
ROLES OF STOCK EXCHANGES
1. Raise capital
2. Mobilize savings
3. Facilitates growth
4. Distributes profit
5. Improves corporate governance
6. Creates opportunities for small
investors
7. Facilitates raising capital for the
government
8. Indicator of economy
FINANCIAL PRESS - refers to newspapers,
magazines, TV channels, broadcast
programs and other media specializing in
financial news and updates.
ECOLOGY - scientific study of how living
things interact with one another and their
surrounding environment.
GLOBAL ALLIANCE ON HEALTH AND
POLLUTION (GAHP) - a network of nations
and international organizations dedicated to
using a multi-sectoral, cooperative
approach to solve the problem of global
pollution and its effects on health and the
economy.
EARTH SYSTEM GOVERNANCE PROJECT
(ESGP) - an ongoing, interdisciplinary social
science research project that was first
created under the aegis of the International
Human Dimensions Program on Global
Environmental Change.
SCHOOL STRIKE FOR CLIMATE - an
international movement of school students
who skip Friday classes to take part in
protests demanding political leaders to take
action to prevent climate change.
GLOBAL GREEN GROWTH INSTITUTE
(GGGI) - an intergovernmental organization
for worldwide development has headquarter
in Seoul, South Korea, and is based on
treaties.
INTERGOVERNMENTAL PANEL ON
CLIMATE CHANGE (IPCC) - a United
Nations intergovernmental organization
charged with promoting scientific  Vertical social structure -
understanding of human-caused climate defined as referring to “ ways in
change. which a society or group ranks
people in a hierarchy, with some
INTERNATIONAL UNION FOR more “equal” than others”.
CONSERVATION OF NATURE (IUCN) - a
global organization dedicated to protecting  Horizontal social structure -
the environment and promoting the wise defined as referring to “ ways in
use of natural resources. which a society or group ranks
people in a hierarchy, with some
UNITED NATIONS ENVIRONMENT more “equal” than others”.
PROGRAM (UNEP) - oversees organizing
the United Nations systems solutions to COMPONENTS OF SOCIAL STRUCTURE
environmental problems.
1. Status - is the social position that a
EUROPEAN ENVIRONMENT AGENCY (EEA) person holds throughout society.
- the organization of the European Union (EU)
that offers unbiased environmental 2. Role - the behavior expected of
information. someone who occupies a particular
rank.
PARTNERSHIP IN ENVIRONMENTAL
MANAGEMENT FOR THE SEAS OF EAST GROUPS AND ORGANIZATIONS - every
ASIA (PEMSEA) - a regional cooperation society is composed of several groups, both
program run by the United Nations Office large and small.
for Project Services (UNOPS) and the United
GROUP - made up to two or more
Nations Development Program (UNDP).
individuals who regularly interact based on
THE DIMENSIONS OF SOCIOLOGICAL shared expectations and who have a
PROBLEM common culture, identity, or interest.

1. Social problem - any situation or TWO DIFFERENT KINDS OF GROUPS

activity that has unfavorable effects
1. Primary groups
on a significant number of
individuals. 2. Secondary groups
 Objective component - involves SOCIETIES - main element of the social
empirical evidence of the structure.
negative consequences of a
social condition or behavior. SOCIAL NETWORKS - refers to the totality
of our social relationships to other groups
 Subjective component - involves and individuals, as well as those
empirical evidence of the relationships through subsequent groups
negative consequences of a and individuals.
social condition or behavior.
SOCIAL INSTITUTIONS - a macro-level
2. Social structure - one of the social structure they specifically refer to
fundamental concepts in sociology beliefs and conduct patterns that fulfill a
and this is referred to as “the social society’s requirements.
patterns by which a society is
constituted”. INDUSTRIAL SOCIETIES - where the
individual is situated, the social structure is
more impersonal and individualistic, and
people tend to be more preoccupied with
their own lives.

TRADITIONAL SOCIETIES - the collection of

people that dealt with social activities
involving the community, and are
highlighted in traditional societies, which
are community-oriented and collectivistic in
nature.

FERDINAND TONNIES - employed specific

German terms to delineate these societies.

GEMEINSCHAFT - means “human

community” to refer to traditional societies
as life in community and family.

EMILE DURKHEIM - wrote about these

societies in his work ‘The Division of Labor
in Society’.

THE TRAGEDY OF THE COMMONS -

highlights the importance of the
environment in human interest.

INCENTIVES - government has several

options for rewarding businesses that
reduce their negative environmental impact.

UTILITARIANISM - an ethical principle that

distinguishes between right and wrong by
emphasizing consequences.