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# Speaker: Contemporary business firms need to recognize that

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Intern
Joined: 06 Jun 2007
Posts: 40
Followers: 0

Kudos [?]: 55 [0], given: 0

Speaker: Contemporary business firms need to recognize that [#permalink]

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12 Sep 2007, 02:11
00:00

Difficulty:

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Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 1 sessions

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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 Blomstrom’s Iron Law of
Responsibility: “In the long run, those who do
not use power in a manner which society
considers responsible will tend to lose it.” The
law’s application to human institutions
certainly stands confirmed by history. Though
the “long run” may require decades or even
centuries in some instances, society ultimately
acts to reduce power when society thinks it is
not being used responsibly. Therefore, a
business that wishes to retain its power as long
as it can must act responsibly.
Which one of the following statements, if true, most
weakens the speaker’s argument?
(A) Government institutions are as subject to the
Iron Law of Responsibility as business
institutions.
(B) Public relations programs can cause society to
consider an institution socially responsible
even when it is not.
(C) The power of some institutions erodes more
slowly than the power of others, whether they
are socially responsible or not.
(D) Since no institution is eternal, every business
will eventually fail.
(E) Some businesses that have used power in
socially responsible ways have lost it.

Plz explain the approach.. OA later

Cheers,
Circkit
Manager
Joined: 20 Jun 2007
Posts: 156
Followers: 1

Kudos [?]: 19 [0], given: 0

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12 Sep 2007, 02:30
Process of Elimination:

A - out - it supports the argument
C - out - comparisons across different businesses is irrelevant
D - irrelevant

Between B and E.

E weakens the argument only slightly. The fact that acting responsibly doesn't always work is not an argument against acting responsibly.

B is the best. It weakens the argument by suggesting that a business can adopt an alternative approach to acting responsibly and still retain power (you might not like the cynical approach, but that is irrelevant).
12 Sep 2007, 02:30
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# Speaker: Contemporary business firms need to recognize that

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