One prominent argument against being socially responsible makes ...

[HudsonKB16]

One prominent argument against being socially responsible makes the claim that business managers are ________ to address social concerns.
 
  A) too impractical
  B) not competent
  C) too wealthy
  D) too out of touch

Question 2

Suppose that a study shows that companies that were not socially involved tended to be less profitable than socially involved companies. Which of the following can be concluded?
 
  A) Social involvement definitely causes a company's profits to decrease.
  B) Social involvement definitely causes a company's profits to increase.
  C) Social involvement may cause a company's profits to increase.
  D) Social involvement may cause a company's profits to decrease.

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Answer to Question 1

Answer: B
Explanation: No one makes the claim that business leaders are too impractical or too out of touch to be socially responsible, though the ideas may have a small measure of validity. Similarly, wealthy business leaders would in no way be prevented from addressing social concerns and in fact, according to the idea of noblesse oblige, wealth might be a good reason to act in a socially responsible way. That leaves the choice not competent, which states that many people think that business leaders, not having training in social areas, are not qualified to try to help in these areas as the correct response.

Answer to Question 2

Answer: C
Explanation: A correlation cannot be mistaken for a cause and effect relationship. Here we see that lack of social involvement correlates with low profits. The correlation does not mean that lack of social involvement was the cause of low profits. For example, the low profit companies that were not socially involved may have avoided social involvement because these companies were unsuccessful and felt that they needed to devote their attention to the practical matter of becoming more profitable. In other words, they were a self-selected group of troubled companies that did not feel that they could take the time to be socially involved.