Table of contents for Business and its environment / David P. Baron.

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Contents
List of Cases
Preface
Part I Strategy and the Nonmarket Environment
CHAPTER 1 MARKET AND NONMARKET ENVIRONMENTS
Introduction
The Environment of Business
The Role of Management
Market and Nonmarket Environments
Analysis of the Nonmarket Environment: The Four I's
The Nonmarket Environment of the Automobile Industry
Issues
Interests
Institutions
Information
Change in the Nonmarket Environment
Anticipating Change in the Nonmarket Environment
EXAMPLE: GRADUATION CARDS
The Nonmarket Issue Life Cycle
Summary
Organization of the Book
Cases
The Nonmarket Environment of the Pharmaceutical Industry
An Emerging Issue: MTBE
The Nonmarket Environment of McDonald's
CHAPTER 2 INTEGRATED STRATEGY
Introduction
Strategy in the Nonmarket Environment
The Importance of Nonmarket Strategy
Competition and Change in the Nonmarket Environment
Strategy and the Nonmarket Issue Life Cycle
Strategies and Borders
Integrated Strategy
Nonmarket Positioning
EXAMPLE: EBAY'S POSITIONING IN LEGAL SPACE
Nonmarket Positioning and Market Strategies
Positioning Spaces
The Perils of Positioning
Nonmarket Assets, Competencies, and Reputation
A Framework for the Analysis of Nonmarket Issues
EXAMPLE: CITIBANK AND CREDIT CARDS FOR UNDERGRADUATES
Organization of the Nonmarket Strategy Function
Summary
Cases
Exclusive Resorts: Entrepreneurial Positioning and Nonmarket Defense
Envirotest Systems Corporation (A)
Personal Watercraft, aka Jet Skis
CHAPTER 3 THE NEWS MEDIA AND NONMARKET ISSUES
Introduction
The Role of the News Media in Nonmarket Issues
Messages and Their Interpretation
A Theory of News Media Coverage and Treatment
Intrinsic Audience Interest
Societal Significance
Combining the Perspectives
Extending the Theory
Newsworthiness
The Cost of Coverage
Balance and Fairness
The Nature of the News Media
News Organizations as Businesses
The Profession
Does the News Media Treat Issues Selectively?
Bias, Accuracy, and Fairness
Business Interactions with the News Media
The Need for Information
Media Strategies
Responses and Vacuums
Media Interviews
Anticipating Issues
Unanticipated Events
EXAMPLE: THE BODY SHOP
Recourse in Disputes with the Media
Private Recourse
EXAMPLE: PROCTER & GAMBLE AND NEIGHBOR TO NEIGHBOR
Recourse to the Law: Defamation and Libel
Political Recourse
Summary
Cases
The Alar Episode
General Motors Like a Rock (A)?
Illinois Power Company (A)
CHAPTER 4 PRIVATE POLITICS
Introduction
Campaigns
EXAMPLE: PIZZA HUT AND HEALTH INSURANCE REFORM
Private or Public Politics?
Activist Strategies
Advocacy Science
EXAMPLE: FISH FARM ACTIVISM
Target Selection
A Generic Strategy of Activists
Activist Organizations
Activists and Their Organizations
Greenpeace
Interacting with Activist Groups
Assessment
Strategy and Negotiations
EXAMPLE: NEGOTIATING WITH ACTIVISTS: ONBANK
Challenging the Activists
Summary
Cases
Shell, Greenpeace, and Brent Spar
Nike in Southeast Asia
Strategic Activism: The Rainforest Action Network
Part I Integrative Case
Anatomy of a Corporate Campaign: Rainforest Action Network and Citigroup (A)
Part II Nonmarket Strategies and Government Institutions
CHAPTER 5 POLITICAL THEORY AND GOVERNMENT INSTITUTIONS
Introduction
Markets
The Role and Functioning of Markets
Consumer Surplus and Economic Rents
The Connection Between the Market and Nonmarket Environments
The Demand for Nonmarket Action
The Costs of Nonmarket Action
The Free-Rider Problem and Collective Action
Social and Political Dilemmas
The Prisoners' Dilemma
Dilemmas, Repeated Encounters, and Cooperation
Majority Rule Institutions
Properties of Majority Rule
Condorcet's Paradox and Arrow's Impossibility Theorem
Agendas
Committees in Legislatures
The Median Voter Theorem
Bargaining Versus Voting
Vote Trading and Pivotal Voters
Institutions
Congress
The Organization of Congress
The Legislative Process
Committees
Committee and Individual Power
Bargaining in Political Institutions
Delegation
Legislators and Their Constituents
Committee and Personal Staffs
Parties
The Presidency and the Executive Branch
State Governments
Politics and the Public Interest
The Politics of the Extension of Daylight Saving Time
The Nature of Political Explanations
The Legislative History of the Extension
The Politics of Daylight Saving Time
The Role of Information
An Analytical Characterization of the Politics of Daylight Saving Time
Summary
Cases
Summertime in the European Union
Repeal of the Luxury Tax
UPS and Multi-Employer Pension Plans
CHAPTER 6 NONMARKET ANALYSIS FOR BUSINESS
Introduction
A Framework for the Analysis of Nonmarket Action in Public Politics
Interests and Interest Groups
The Amount of Nonmarket Action
The Demand for Nonmarket Action
The Costs and Effectiveness of Nonmarket Action
The Distributive Politics Spreadsheet
The Nature of Political Competition
EXAMPLE: INTERNET WINE SALES
Institutions and Institutional Officeholders
Moral Determinants of Collective Action
Boeing in a Pickle
Analysis of Boeing in a Pickle
The Nonmarket Issue
Distributive Consequences
Boeing's Nonmarket Agenda and Objectives
The Nature of the Politics
Interests and the Demand for Nonmarket Action
The Supply Side
The Distributive Politics Spreadsheet
Institutions and Institutional Officeholders
Nonmarket Strategy Formulation
The Outcome
Summary
Cases
Tobacco Politics
Scrubbers and Environmental Politics
Leasebacks by Tax-Exempt Entities
CHAPTER 7 FORMULATING NONMARKET STRATEGIES FOR GOVERNMENTAL ARENAS
Introduction
Responsible Nonmarket Action
Criticisms of Business Nonmarket Action
Nonmarket Strategy Formulation
Managers and Nonmarket Strategies
An Approach to Strategy Formulation
Generic Nonmarket Strategies
Representation Strategies
EXAMPLE: TOSHIBA AND TRADE SANCTIONS
Majority-Building Strategies
Informational Strategies
Public Officeholders as Targets of Nonmarket Strategies
EXAMPLE: CHINA AND MOST FAVORED NATION STATUS
Institutions, Interests, and Strategy Choice
Institutions
Interests: Client and Interest Group Politics
Summary
Cases
Federal Express and Labor Organization
The Bermuda Triangle
Wal-Mart and Its Urban Expansion Strategy
CHAPTER 8 IMPLEMENTING NONMARKET STRATEGIES IN GOVERNMENT ARENAS
Introduction
EXAMPLE: PACIFICARE'S NONMARKET PORTFOLIO
Lobbying
The Nature of Lobbying
Technical and Political Information
Credibility of Information
Access
Timing and Focus
Government Allies
Controls on Lobbying
Electoral Strategies
Myths and Realities of Campaign Financing
EXAMPLE: CAMPAIGN FINANCE INNOVATION OR ABUSE?
Election Financing Laws
The Pattern of Campaign Contributions
Purposes of Campaign Contributions
EXAMPLE: SILICON VALLEY GOES TO WASHINGTON
Grassroots and Constituency Campaigns
Mobilization
Business Grassroots Campaigns
The Effectiveness of Grassroots Programs
Coalition Building
Peak Associations
Trade Associations
EXAMPLE: CALGENE AND CANOLA
Ad Hoc Coalitions
Coalitions and Consensus
EXAMPLE: PHARMACEUTICAL POLITICS
Testimony
Public Advocacy
Judicial Strategies
Organizing for Nonmarket Effectiveness
Summary
Cases
Drexel Burnham Lambert and Junk Bond Politics
Proposition 211: Securities Litigation Referendum (A)
Internet Taxation
Part II Integrative Case
CAFE Standards 2002
Part III Government and Markets
CHAPTER 9 ANTITRUST: ECONOMICS, LAW, AND POLITICS
Introduction
Antitrust Law
The Antitrust Statutes
EXAMPLE: MONOPOLY
Exemptions
Enforcement of the Antitrust Laws
Government Enforcement
Private Enforcement
Per Se Violations and the Rule of Reason
Antitrust Thought
The Structural Approach
The Chicago School
The New IO Approach
Examples of the Differences in Antitrust Thought
Vertical Arrangements
Predatory Pricing and Entry Deterrence
Collusion and Price Fixing
Mergers and Merger Guidelines
Compliance
The Politics of Antitrust
Summary
Cases
Apple Computer and Mail-Order Sales
The Staples-Office Depot Merger?
The Microsoft Antitrust Case
CHAPTER 10 REGULATION: LAW, ECONOMICS, AND POLITICS
Introduction
Periods of Regulatory Change
The Constitutional Basis for Regulation
Regulatory Commissions and Agencies
Delegation, Rule Making, Due Process, and Discretion
The Nonmarket Environment of Regulatory Agencies
EXAMPLE: REGULATORY RULE MAKING IN THE BUSH ADMINISTRATION
Explanations for Regulation
Market Imperfections
Natural Monopoly
Externalities
Public Goods
Asymmetric Information
Moral Hazard
Government Imperfections
The Political Economy of Regulation
Capture and Rent-Seeking Theories
A Nonmarket Theory of Regulation
Redistribution and Cross-Subsidization
Cost-of-Service Regulation
Deregulation
Telecommunications
Electric Power
Auctions
Summary
Cases
The FCC and Broadband Regulation
Echelon and the Home Automation Standard (A)
The FCC Media Ownership Rules
CHAPTER 11 ENVIRONMENTAL PROTECTION: ECONOMICS, POLITICS, AND 
MANAGEMENT
Introduction
Socially Efficient Regulation of Pollution Externalities
The Coase Theorem
EXAMPLE: THE COASE THEOREM
Transactions Costs and the Limits of the Coase Theorem
Tradable Permits System
Acid Rain and Tradable Permits
Global Climate Change and Emissions Trading Systems
Emissions Trading Within BP plc (British Petroleum)
The Environmental Protection Agency
Enforcement
Standard Setting and Engineering Controls
EXAMPLE: INTEL AND THE PROJECT XL
Incentive Approaches
Superfund
The Politics of Environmental Protection
The Nature of Environmental Politics
Judicial Politics
Advocacy Science
Distributive Politics
EXAMPLE: ENVIRONMENTAL POLITICS: SCRUBBERS AND THE CLEAN AIR ACT 
AMENDMENTS
Private and Public Politics
EXAMPLE: THE EQUATOR PRINCIPLES
NIMBY and Private Politics
EPA Activism and Cost-Benefit Analysis
Management of Environmental Protection Issues
EXAMPLE: DOW CHEMICAL AND LOCAL ENVIRONMENTALISTS
EXAMPLE: MCDONALD'S AND WASTE REDUCTION
Voluntary Collective Environmental Programs
Summary
Cases
Philips and the Low-Mercury Fluorescent Lamp
Environmental Activism at Home Depot
Procter & Gamble and Disposable Diapers
CHAPTER 12 LAW AND MARKETS
Introduction
The Common Law
Property
Bargaining
Incentives and Appropriability
Intellectual Property
EXAMPLE: INTELLECTUAL PROPERTY ENFORCEMENT AND DIGITAL PIRACY
Intellectual Property Protection
EXAMPLE: MICKEY MOUSE POLITICS AND LAW
Contracts
EXAMPLE: GENENTECH AND CITY OF HOPE
Enforceability
Breach
Remedies
Torts
The Product Safety Problem and Social Efficiency
Entitlements, Liability, and Social Efficiency
Entitlements and their Protection
The Assignment of Social Costs and the Choice Between Liability and Regulation
Products Liability
The Development of Products Liability Law
Allowable Defenses Under Strict Liability
Damages
Imperfections in the Liability System
EXAMPLE: SILICONE BREAST IMPLANTS
The Politics of Products Liability
Summary
Cases
California Space Heaters, Inc.
eBay and Database Protection
Obesity and McLawsuits
CHAPTER 13 INFORMATION INDUSTRIES AND NONMARKET ISSUES
Introduction
The Economics of Winner-Take-Most Markets
Internet Privacy
EXAMPLE: BANKRUPTCY AND INTERNET PRIVACY: TOYSMART.COM
The Internet and Tax Policy
Online Communities
Summary
Cases
DoubleClick and Internet Privacy
eBay: Private Ordering for an Online Community
Google: Gmail and Privacy
Part III Integrative Case
Pharmaceutical Switching
Part IV International Political Economy
CHAPTER 14 THE POLITICAL ECONOMY OF JAPAN
Introduction
Issues
Interests
Institutions
The Diet (Parliament)
Political Parties and the Electoral System
The Bureaucracy
Economic and Political Reform
The Judicial System and the Antimonopoly Law
Cultural Foundations
Tying the Components Together: A Framework of Political Exchange
Political Exchange
Characteristics of Business
Business-Government Interactions
The Organization of Business for Nonmarket Action
Nonmarket Strategies
Information
Corporate Nonmarket Styles
Summary
Cases
The Breakup of Nippon Telephone and Telegraph?
The Privatization of Japan Post
Uniqlo: Success Breeds Nonmarket Challenges
CHAPTER 15 THE POLITICAL ECONOMY OF THE EUROPEAN UNION
Introduction
The European Union
The Single European Act
The Maastricht Treaty
The Institutions of the European Union
The European Commission
The Council of Ministers
The European Parliament
The Court of Justice
The European Economic and Social Committee
The EU Legislative Process
Economic and Monetary Union
The EU Constitutional Treaty
Competition Policy
EXAMPLE: MICROSOFT AND EU COMPETITION POLICY
State Aids and the Common Agriculture Policy
The Social Charter, Social Democracy, and Labor Markets
Nonmarket Issues
EXAMPLE: DATA PRIVACY
Interests and Their Organization
Nonmarket Strategies in the European Union
EXAMPLE: PRONUPTIA AND FRANCHISING
Summary
Cases
The European Union Carbon Tax
The European Union Data Protection Directive
Aldeasa and the EU Duty Free Abolition (A)
CHAPTER 16 CHINA: HISTORY, CULTURE, AND POLITICAL ECONOMY
Introduction
Historical Background
Pre-Republican
The Republican Era
The Communist Era
The Reform Era
Confucianism and Social Explanations
Applications in Society, Politics, and Business
The Nonmarket Environment and the Four I's
Institutions and Government
State Institutions
Provincial and Local Governments
Business: State-Owned Enterprises, Investment, and International Trade
State-Owned Enterprises
Foreign Direct Investment
Regulation
International Trade
Continuing Issues
Human Rights and Political Reform
EXAMPLE: AN INTELLECTUAL PROPERTY CHALLENGE
Summary
Cases
Wugang and the Reform of State-Owned Enterprises
Direct Selling in China
Fresenius Medical Care in China
CHAPTER 17 THE POLITICAL ECONOMY OF INTERNATIONAL TRADE POLICY
Introduction
The Economics of International Trade
Competitive Theory
Strategic Trade Theory
The Political Economy of International Trade Policy
The Dual Nature of the Politics of International Trade
Assymetries in the Politics
International Trade Agreements
The World Trade Organization
General Agreement on Trade in Services (GATS)
Trade-Related Aspects of Intellectual Property Rights (TRIPS)
Agriculture
Government Procurement
Antidumping, Countervailing Duties, and Safeguards
Dispute Settlement
The Doha Round of WTO Negotiations
Other Trade Agreements
U.S. Trade Policy
The Structure of U.S. Trade Policy
U.S. Trade Law and Its Administration
The Political Economy of Protectionism
Formal Policies
Channels of Protection
EXAMPLE: STEEL IMPORTS AND THE NONMARKET CAMPAIGN
The Political Economy of Market Opening
The North American Free Trade Agreement
Market Opening Under the Threat of Retaliation
Summary
Cases
Cemex and Antidumping
The Kodak-Fujifilm Trade Dispute
Sophis Networks and Encryption Export Controls (A)
Part IV Integrative Case
Toys '?' Us and Globalization
Part V Ethics and Responsibility
CHAPTER 18 CORPORATE SOCIAL RESPONSIBILITY
Introduction
Compliance with the Law
EXAMPLE: ENRON AND MERRILL LYNCH: GO DIRECTLY TO JAIL
The Role of Business in Society
The Societal Efficiency Perspective
Concerns About the Efficiency Perspective
Market Capitalism and Managerial Capitalism
The Social Responsibility Perspective
The Stakeholder Concept
Corporate Social Responsibility or Rosponsiveness
EXAMPLE: TUNA AND DOLPHINS
Conceptions of the Social Rosponsibility of Business
Corporate Social Responsibility as Profit Maximization
The Business Roundtable Statement on Social Responsibility
Discussion
Strategic Corporate Social Responsibility
Fulfilling Expectations
Corporate Social Performance
A Framework for Assessing Corporate Social Responsibility
Examples of Corporate Social Responsibility?
Corporate Governance
Social Accountability
The Duties of Boards of Directors
Sarbanes-Oxley
The Market for Control
Summary
Cases
The Collapse of Enron: Governance and Responsibility
Advanced Technology Laboratories, Inc.
Delta Instruments, Inc.
CHAPTER 19 ETHICS SYSTEMS: UTILITARIANISM
Introduction
The Managerial Role of Ethics
What Ethics Is and Is Not
Business Ethics
Issue: Integrity Tests
Ethics and Private Interests
Ethics, Politics, and Change
Casuistry
EXAMPLE: SAVING THE DIVISION
The Methodology of Ethics
The Relationships Among Moral Philosophy, Ethics, and Political Philosophy
Utilitarianism: A Consequentialist System
Utilitarianism and Self-Interest
Aligning Self-Interest with Societal Well-Being
Utilitarianism, Distribution, and Altruism
Summary of the Components of Utilitarianism
Utilitarian Duty and the Calabresi and Melamed Principles
Act and Rule Utilitarianism
Jointly Determined Consequences
Decision Making in the Face of a Moral Transgression
Utilitarianism and Rights
Criticisms of Utilitarianism
Philosophical Criticisms
Interpersonal Comparisons of Utility
Identifying Costs and Benefits
The Measurement Problem
The Information Problem
Utilitarianism in Application
Categories of Situations
Methodology
EXAMPLE: LIVING BENEFITS
EXAMPLE: INTEGRITY TESTS
EXAMPLE: LIFE INSURANCE SCREENING FOR PREEXISTING CONDITIONS
EXAMPLE: REDLINING
Summary
Cases
Pricing the Norplant System
Enron Power Marketing, Inc., and the California Market
Merck and Vioxx
Pfizer and Celebrex
CHAPTER 20 ETHICS SYSTEMS: RIGHTS AND JUSTICE
Introduction
Classification of Ethics Systems
Classes of Rights
Kantian Maxims or Moral Rules
EXAMPLE: LIVING BENEFITS
The Relationship Between Maxims and Rights
Intrinsic and Instrumental Rights
EXAMPLE: PRIVACY
Criticisms of Kantian Rights
Applied Rights Analysis
Claimed and Granted Rights
A Methodology for Rights Analysis
EXAMPLE: INSURANCE SCREENING FOR PREEXISTING CONDITIONS
Conflicts Among Rights
Rights and Interests
Prioritization
EXAMPLE: INTERGITY TESTS
Equal Employment Opportunity
Disabilities and Rights
Neoclassical Liberalism
Categories of Justice Theories
Distributive Justice
Compensatory Justice
Injustice
Rawls's Theory of Justice
The Framework for Justice as Fairness
The Principles of Justice
The Role of Incentives
EXAMPLE: LIVING BENEFITS
Duty in Rawls's Theory
EXAMPLE: CLINICAL TRIAL OBLIGATIONS
Criticisms of Rawls's Theory
EXAMPLE: AFFIRMATIVE ACTION
Applying the Principles of Justice
EXAMPLE: INTEGRITY TESTS
EXAMPLE: INSURANCE SCREENING FOR PREEXISTING CONDITIONS
Higher Order Standards for Exaluating Ethics Systems
Summary
Cases
Genetic Testing in the Workplace
Environmental Justice and Pollution Credits Trading Systems
RFID Tags
CHAPTER 21 IMPLEMENTING ETHICS SYSTEMS
Introduction
EXAMPLE: LEVI STRAUSS & COMPANY AND GLOBAL SOURCING
Moral Determinants of Nonmarket Action
EXAMPLE: CIRCLE K'S HEALTH CARE POLICY
The Challenge of Corporate Social Responsibility
Corporate Social Responsibility and Ethics in Practice
BP and Social Responsibility
Wal-Mart: Reputation and Stakeholder Management
Citigroup: Responsibility Under Fire
Statements of Commitment and Expectations
EXAMPLE: JOHNSON & JOHNSON'S OUR CREDO
Core Principles and Their Evolution
The Body Shop and the Social Audit
Codes of Conduct
Competitive and Proprietary Information
Principles and Reasoning
Ethics Programs
Compliance
Tensions in the Implementation of Ethics Principles
Paternalism
Political Action and Restraint
Sources of Unethical Behavior
Summary
Cases
Denny's and Customer Service
Citigroup and Subprime Lending
Reporting of Clinical Trial Results
CHAPTER 22 ETHICS ISSUES IN INTERNATIONAL BUSINESS
Introduction
International Law and Institutions
Cultural Relativism
Human Rights and Justice
Slave Labor in Saipan?
Operating in Developing Countries
AIDS and Developing Countries
EXAMPLE: GLAXOSMITHKLINE AND NONMARKET SPILLOVERS
Responsibility for Working Conditions in Suppliers' Factories
Sweatshops
Private Governance and Self-Regulation: The Fair Labor Association
Company Responses
Social Entrepreneurship
EXAMPLE: IGNITE INNOVATIONS
International Codes
Questionable Foreign Payments and Corruption
Questionable Payments and Ethics Principles
The Lockheed Case
A Utilitarian Analysis of Bribery
The Foreign Corrupt Practices Act
Company Codes
Cummins Practice
Transparency International
The OECD Anti-Bribery Convention
Summary
Cases
Complications in Marnera
The Fair Trade Movement
University Games, Inc.
Part V Integrative Case
GlaxoSmithKline and AIDS Drugs Policy
References
Index

Library of Congress Subject Headings for this publication:

Social responsibility of business.
Industrial policy.
Commercial law.
Business ethics.