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
Ttherefore, a business that wishes to retain its power as long as it can must act responsibly
Public relations programs can cause society to consider an institution socially responsible even when it is not.