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The case describes the international problem of money laundering and summarizes U.S. bank regulations aimed at reducing money laundering activities. The introduction of H.R. 3886 in 2000 was one in a series of attempts to formalize U.S. banks' monitoring of their customers. The bill was prompted by a government report that named and criticized U.S. banks for laundering billions of dollars linked to drug trafficking, fraud, and organized crime. Interest groups in favor of H.R. 3886 were predominantly law enforcement agencies that viewed current anti-money laundering laws as ineffective. Groups opposed to the bill included the American Civil Liberties Union, which believed that the collection of more information about bank customers' activities was an invasion of privacy, and the American Bankers Association, which claimed that the legislation would impose unnecessary costs on banks. The case can be used to introduce the distributive politics framework for analyzing non-market issues and formulating nonmarket strategies in the context of government institutions. The epilogue reveals that H.R. 3886 died before it ever reached the House floor, but that an expanded version of the legislation ultimately passed---with the support of stakeholders who originally fought it---as part of the USA PATRIOT Act after the terrorist attacks of September 11, 2001. This stance reversal provides an opportunity to explore how events, public opinion, and the media can create windows of policy opportunity

Utilize a framework for analyzing options for non-market action – Formulate a strategy for nonmarket action – Recognize how public opinion influences the opportunity for non-market action through events and/or new information, political actors, media coverage, and policy windows

This paper develops an organizing framework for research on corporate political strategy. It reviews the literature and then identifies a number of open research questions and streams for potential investigation. The paper closes by developing a theory to explain why, when, and how a firm will pursue multi-forum political action as part of its nonmarket and integrated strategy.

United Learning is a family-owned leader in the K-12 supplementary teaching material market. In January 2001, United Learning realized that sales for one of its flagship products, a drug and prevention program, were rapidly deteriorating because the program was not mentioned on a recently released U.S. Department of Education list of recommended products. United Learning must decide on which action to take: regain sales or focus on its other educational products--which are also threatened by changes in the regulatory environment.

The spread of bird flu outside of Asia, particularly in Africa and Europe, topped headlines in 2006. The migration of wild birds brought the virus to Europe, where for the first time it spread to productive livestock, bringing it closer to the Western world. Due to today's globalized and highly interconnected world, the consequences of a potential bird flu pandemic are expected to be much more severe than those of the Spanish flu, which killed 50-100 million people between 1918 and 1921. A vaccine for the bird virus is currently not available. As of July 2006, 232 cases of human infection had been documented, mostly through direct contact with poultry. Of those, 134 people died. The best medication available to treat bird flu was Roche's antiviral drug Tamiflu. However, Tamiflu was not widely available; current orders of government bodies would not be fulfilled until the end of 2008. Well aware that today's avian flu might become a global pandemic comparable to the Spanish flu, Roche CEO Franz Humer had to decide how Roche should respond. While the pharmaceutical industry continued its research efforts on vaccines and medications, Tamiflu could play an important role by protecting healthcare workers and helping to contain the virus---or at least slow down its spread. Due to patent protection and a complicated production process with scarce raw ingredients, Roche had been the only producer of the drug. Partly in response to U.S. political pressure, in November 2005 Roche allowed Gilead to produce Tamiflu as well. Even so, it would take at least until late 2007 for Roche and Gilead to meet the orders of governments worldwide. The issue was a difficult one for Roche: What were the risks; what were the opportunities? If a pandemic occurred before sufficient stockpiles of Tamiflu had been built up, would Roche be held responsible? What steps, if any, should Roche take with respect to patent protection and production licensing in the shadow of a potential pandemic?

Students will weigh the benefits of short-term profit maximization against the risks that a highly uncertain event could pose to a business and consider nonstandard approaches to mitigate these risks. Students will discuss the challenges of addressing low-probability, high-impact events; potential conflicts with the short-term view of the stock market and analyst community; and challenges of the patent protection model for drugs for life-threatening diseases.

United Learning is a family-owned leader in the K-12 supplementary teaching material market. In January 2001, United Learning realized that sales for one of its flagship products, a drug and prevention program, were rapidly deteriorating because the program was not mentioned on a recently released U.S. Department of Education list of recommended products. United Learning must decide on which action to take: regain sales or focus on its other educational products—which are also threatened by changes in the regulatory environment.

Purpose – The authors conclude the “Engaging with Capitalism” volume with a discussion of social theory focusing on the implications of the volume for practices in international and community development.Approach – This chapter draws together some of the key themes in this collection to identify the development implications of the efforts of local communities to socially embed their engagement with capitalism and markets to better serve their socioeconomic and cultural needs. Discussion is informed by the literature on social embeddedness of economies, critical development theory, and the authors’ ongoing empirical research in rural Papua New Guinea.Findings – There is growing recognition within anthropology and geography of the enduring influence of indigenous social and economic practices and values and their capacity to condition the introduced market economy and capitalist economic practices. The chapters in this collection, from the “Engaging with Capitalism” sessions of the 2011 and 2012 ASAO conferences, speak to this issue directly by exploring how indigenous forms of socioeconomy interact with introduced capitalist and market processes to influence sociocultural and economic change at the local level.Research and social implications – The challenge for development researchers is how to conceptualize local engagements with capitalism, and to identify how such concepts and concerns might be applied in development practice to better serve the needs of local communities. We outline some key principles that could be incorporated into development planning to make development projects more sustainable and better tailored to the needs of recipient communities.

This paper aims to apply internalization theory in the context of economic efficiency-driven institutions interacting with societal institutions that pursue broader goals.

The analysis builds upon Buckley and Boddewyn’s (2015, this issue) recent work on the perceived need for multinational enterprises (MNEs) to supply public goods outside of their sphere of technical competences. This paper proposes a more restrictive approach: external markets will only be internalized if, on balance, the efficiency benefits of internalization outweigh its costs at the firm level, in line with orthodox internalization theory.

MNEs replacing the activities of failing (or even absent) public sector institutions is a business phenomenon commonly observed in less developed economies. However, positive distributional effects and societal externalities without the required efficiency benefits at the firm level are insufficient for MNEs’ supply to occur.

Managerial decisions in the internalization sphere will be guided by the transactional characteristics of the MNEs’ firm-specific advantages (FSAs) and the requisite complementary resources held by host country economic actors. Internalization theory thinking suggests applying various, specific principles to assess in a comparative institutional fashion whether “diversification” into supplying public goods will serve the MNEs’ efficiency goals, namely, the “cost of entry” test, the “better-off” test and the “value capture” test.

Internalization theory provides a solid, efficiency-driven rationale to guide MNE choices on which activities the firm will conduct internally. The nature of the MNEs FSAs and the most efficient, feasible option to bundle firm-level resources and locally held resources in host environments are critical to these choices.

The purpose of this paper is to provide an exposition of the concepts relevant to measuring the economic effect of premature mortality and the conception of how the social loss from premature mortality can be incorporated into social welfare measurement. None of the conventional welfare measures currently pick up this welfare signal.

Various concepts are examined in the conventional and “new” literatures of welfare measurement. Six Venn diagrams show how various concepts “fit together”.

This paper outlines a framework for measuring the economic effect of premature mortality in a conceptually appropriate way. Thus the paper shows how the welfare loss associated with premature mortality can be incorporated into social welfare measurement.

Accurate premature mortality measurement is difficult but this data problem hardly limits this exercise. Sensitivity analyses can alleviate this measurement problem.

The main practical implication is that empirical applications are feasible. Time series data can be analysed from this conceptual framework to determine whether the problem of the social loss from premature mortality is improving through time, or worsening.

Knowing the size of the welfare impact of premature mortality is useful not only on policy fronts concerning premature mortality prevention.

“New welfare measurement” has not yet been applied to the notion of the social loss from premature mortality.

This paper provides a perspective on the field of nonmarket strategy. It does not attempt to survey the literature but instead focuses on the substantive content of research in the field. The paper discusses the origins of the field and the roles of nonmarket strategy. The political economy framework is used and contrasted with the current form of the resource-based theory. The paper argues that research should focus on the firm level and argues that the strategy of self-regulation can be useful in reducing the likelihood of challenges from private and public politics. The political economy perspective is illustrated using three examples: (1) public politics: Uber, (2) private politics: Rainforest Action Network and Citigroup, and (3) integrated strategy and private and public politics: The Fast Food Campaign. The paper concludes with a discussion of research issues in theory, empirics, and normative assessment.