This article examines business donations to the Conservative Party dur
ing the Thatcher era. It argues that these donations cannot be treated
as equivalent to PAC (political action committee) contributions in th
e United States. On the basis of data collected for the largest 500 Br
itish firms, the article argues that beyond market characteristics, it
is also important to look at the motivations of businessmen and what
the party can do to encourage donations. This represents an alternativ
e explanation to Useem's influential inner circle thesis for why firms
contribute to the Conservative Party.