Final answer:
The cognitive pillar supports informal institutions through the taken-for-granted values and beliefs that guide individual and firm behavior. These are learned through social interaction and culture, distinguishing them from formal norms, which are written rules.
Step-by-step explanation:
The cognitive pillar that supports informal institutions does so primarily through the B)taken-for-granted values and beliefs that guide individual and firm behavior. This is reflected in the way that informal norms, which are learned through direct interaction with social groups, as well as observation, imitation, and overall socialization, dictate appropriate behaviors within a society.
While formal norms are explicit, written rules that are strictly enforced, such as laws, regulations, or company policies, the cognitive pillar refers to the underlying, often unwritten social rules that shape conduct without the need for formal legislation. These informal norms are deeply embedded within the culture of a society and include values, traditions, and societal expectations that are passed down through various social institutions and guide individuals in their daily interactions and decision-making processes within firms and organizations.