Calculating and Believing: Ideological Norms in the Cradle of Utility Maximization

An individualist approach to political phenomena is not necessarily an economic approach. We can assume that beliefs and commitments as well as selfishness motivate individuals. Ideology provides a basis for individual choice for policy makers and for citizens and is as much a micro-foundation as narrow “self-interest.” Employing a “least-likely” case approach this paper shows that we can find legitimacy and norm-sensitive behavior in the cradle of utility maximization, the firm. In this paper I will lay out some puzzles found in the general areas of business, politics, and policy-making and show how the particular piece of behavior can be understood within the logic of ideological frameworks and the normative acceptability or legitimacy of actions. The purpose is more an “analytical narrative” than a systematic empirical investigation. It suggests the critical importance of examining the normative as well as the self-interest foundation of behavior. To that end, the empirical context of the discussion is provided by business social responsibility, by business participation in elections, by a snapshot of an ideologically driven political career, and by an antibusiness policy decision. The narrative moves from the generosity of business corporations, to foreign-owned corporations' political activity decisions in the host country, to Mrs. Thatcher and the median voter, and finally to the decision to abolish the slave trade.