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Speaker: Contemporary business firms need to recognize that [#permalink]
13 Jul 2005, 18:17
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Speaker: Contemporary business firms need to recognize that avoiding social responsibility leads to the gradual erosion of power. This is Davis and Blomstromâ€™s Iron Law of Responsibility: â€œIn the long run, those who do not use power in a manner which society considers responsible will tend to lose it.â€
The conclusion states - "a business that wishes to retain its power as long as it can must act responsibly". Please note that the conclusion refers to a business and not an institution. Choices A and D are irrelevant.
Out of choices B, C and E, only choice E explicitly refers to business. So if some businesses have lost power, inspite of acting socially responsible, then there is another cause that caused these businesses to lose power. This directly contradicts the conclusion, that a business can retain power as long as it acts responsibly.
Thank you for correcting me fresinha12. I got bogged down by specifics. I can see why B should be the answer. B clearly weakens the argument. It states that any institution can pretent to be socially responsible by means of a public relations program, which weakens the conclusion that " a business that wishes to retain its power as long as it can must act responsibly".