Question

A.

What is meant by the “triple bottom line” and how does it relate to ethical corporate decision-making? What four factors should business leaders evaluate when making business decisions?

B. 

In what circumstances might a court disregard the corporate entity (“pierce the corporate veil”) and hold the shareholders personally liable?

Answer 1

ans: (A) The triple bottom line (TBL) is a framework or theory that recommends that companies commit to focus on social and environmental concerns just as they do on profits. The TBL posits that instead of one bottom line, there should be three: profit, people, and the planet.

There are several important factors that influence decision making. Significant factors include past experiences, a variety of cognitive biases, an escalation of commitment and sunk outcomes, individual differences, including age and socioeconomic status, and a belief in personal relevance.

(B) 578 This might occur when corporate privilege is abused for personal benefit or when the corporate business is careless that creates the corporation and the shareholder in control are no longer separate entities, a court will require the shareholders to assume personal liability.