Shame is the feeling that “I am bad,” and the natural response to shame is for the individual to hide, or the community to ostracize the person. Guilt is the feeling that “This specific action I did was bad.” The natural response to feeling guilt is for the guilty person to want to repair the harm of their action.
I think these definitions that show the distinctions of the two words/feelings is really important when reading this chapter. I tend to use these words interchangeably, but having the clear definitions helped me to better understand concepts in the entire chapter.