Glossary Chapter 17 corporate culture a system of shared values and beliefs that actively influence the behaviour of the organization's members. corporate governance a system of checks and balances between the board, management and investors that that contribute to the efficient functioning of the corporation, resulting in producing long-term value. corporate social responsibility (CSR) a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments. corporation this comes into existence when the corporate registrar receives properly documented articles of incorporation. ethics the moral obligation to separate right from wrong. managerial opportunism managers putting self-interest with ‘sneakiness’ before the interest of the firm’s shareholders. policy implies there is discretion given to the decision maker. social obligation the notion that a firm has no responsibility beyond economic obligation to the owners and stockholders, as may be prescribed by law or contract. sustainable development has been defined as living “off the earth’s interest, not its capital." triple bottom line “sustainable development involves the simultaneous pursuit of economic prosperity, environmental quality, and social equity."