Hi anilvb. Both D and E are wrong.
Here is my explanation.
ANALYZE THE STIMULUS:Recommendation: Avoiding social responsibility leads to the gradual erosion of power.
Example: This is Davis and Blomstrom’s Iron Law of Responsibility: “In the long run…..” To support the recommendation
Conclusion: a business that wishes to retain its power as long as it can must act responsibly.
Assumption: There is no other ways to demonstrate socially responsible except “act responsibly” (defender assumption).
STRATEGY TO WEAKEN AN ARGUMENT:
In order to weaken the speaker’s argument, we have two approaches.
(1) Direct method: Attack the conclusion directly: You can show a business can retain its power without acting responsibly. (Just for easy questions)
(2) Indirect method: Attack the assumption: You can show the assumption is not strong. For example, if you can find a way other than “act responsibly” to demonstrate socially responsible, the conclusion is weaken. (
The theory behind this strategy is that the assumption must be true for a conclusion to be true).
ANALYZE EACH ANSWER:(A)
Government institutions are as subject to the Iron Law of Responsibility as business institutions.
Wrong. Out of scope.
(B) Public relations programs can cause society to consider an institution socially responsible even when it is not.
Correct. B clearly shows that the assumption is not strong. An institution (a sub-set is a business) can find a way other than “act responsibly” to demonstrate its socially responsible. A public relation program is an example. Hence, B wekens a conclusion.
(C) The power of some institutions erodes more slowly than the power of others, whether they are socially responsible or not.
Wrong. Out of scope. We
do not talk about the “speed” of power erosion.
(D) Since no institution is eternal, every business will eventually fail.
Wrong. Out of scope.
“fail” differs from “erode power”. In the scope of this question, we just focus on the power errosion. A business may errode its power, but it does not fail.
(E) Some businesses that have used power in socially responsible ways have lost it.
Wrong. SHELL GAME. This is a very common trap in both GMAT and usual conversations. The trap is about NECESSARY condition vs SUFFICIENT condition Why E is wrong? Before explaining why E is wrong, please see my example:
Peter: People who want to get 750 GMAT score must study really hard.
Mary: No, you’re wrong! I know some people who work really hard but did not get 750 GMAT score.
Do you think Mary’s statement can weaken Peter’s conclusion? Nope. Peter says if you want to get 750 GMAT, you must work hard. He does not mean if you work hard, you WILL get 750 GMAT. It means
“work hard” is a necessary condition, not sufficient condition. If you do not work hard, you WILL NOT get 750 GMAT for sure. But if you work hard, it does not guarantee that you WILL get 750 GMAT.
Back to the question, the pattern is the same. The conclusion says: a business that wishes to retain its power as long as it can must act responsibly.
"Act responsibly" is only a necessary condition. It means if a business does not act responsibly, it will lose its power. But it does not mean, if a business act responsible, it WILL retain its power. E only shows some business act responsibly still loses powers. Hence, It does not weaken the conclusion.
Hope it helps.