69/100 of the largest entities are businesses (some are countries!) Business: an organization that is engaged in making a product or providing a service for a profit (interdependent with society) Society: refers to human beings and to the social structures they collectively create; specifically refers to segments of humankind, such as members of a particular community, nation, or interest groups (interdependent with business) Stakeholder: all those who affect or are affected by a company and their actions. Theory posits that organisms cannot be understood in isolation, even though they have clear boundaries; they can only be understood in relationship to their surroundings. Shareholder theory of the firm (property theory) The purpose of a firm is to max shareholder value, and the rest will follow - The purpose of the firm is to maximize its long-term market value, to make the most money it can for shareholders. Owners" interests are more important than the interests of others.