Developing Critical Thinking Skills for Examining Claims in Business Case Studies

This report focuses on the ways of critical thinking on the case study which states that why it pays to be socially responsible in business. It examines claims related to CSR and financial performance, the importance of engaging stakeholders, and the four pillars of CSR. The report concludes that critical thinking plays a significant role in analysing the situation and drawing conclusions from the same.

Thinking Skills 1

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ..............................................................................................................................................3
Purpose of applying critical thinking.....................................................................................3
Demonstrate an understanding of critical thinking skills by examining claims.....................3
Using developing critical thinking skills, evaluate the ideas expressed in the case study ...5
CONCLUSION ...............................................................................................................................7
REFERNCES:..................................................................................................................................9
Books and Journals:................................................................................................................9

INTRODUCTION
The report aims to develop knowledge and understanding about critical thinking. Critical
thinking is necessary to look deep into the concept which create cause and uncertainty. An
individual applies critical thinking to demonstrate the positive and negative outcomes for the
aspects. This report is going to focus on the ways of critical thinking on the case study which
sates that why it pays to be socially responsible in business (Widana, 2017). There are various
factors which needs critical thinking to analyse the two way concept of the case study. Therefore,
this will be analyse through examining claims and evaluate the ideas in the case study.
MAIN BODY
TASK
Purpose of applying critical thinking
Every business wants to grow socially as well as look to the profitability of company to
survive and expand into market. So the statement is quite relevant that business needs to pay a
high price to be socially responsible. They need to function ethically well and in favour of the
stakeholders and society interest. But it cost a high sacrificing value in terms of not being
innovative and attractive as company largely have to focus on CSR practices. Therefore, the
purpose of applying critical thinking is to demonstrate the ideas from the case study over
business that how could CSR practice drives profits from the business. Generally, the business
wants to secure a sustainable growth in the economy to have positive impact and being
accountable for the investors (Tohir, and Abidin, 2018). It will be done through applying critical
ways in which organisation could think about some aspects to regulate social practices as well as
attain high revenue. These strategies are a part of social well-being and companies growth
perspective. The CSR practices are likely to have good impact on society due to ethical practices
and undertaking all the external factors into consideration.
Demonstrate an understanding of critical thinking skills by examining claims
The business is linked with CSR and financial performance as it has suggested in the case
study that CSR practices will lower down the cost of business and its supply chain so that,
financial performance will be strong for business to take relevant decision for business growth.
The business analytics in tradition at times were not known about the importance of engaging

CSR initiatives. so that, the significance of critical thinking has not been yet developed in the
analyst which is the most important aspect to look in modern future. In case of Unilever, It is
one the most renowned organisation and set its goals to achieve sustainability standards and
ascertain CSR roles (Kustijono, and Zuhri, 2018). The business are facing pressure of being
socially responsible which is not a common things and leads to make more responsibilities over
business that is not subsequently focus on achieving organisational objective. Therefore, the
purpose of critical thinking is applied here as organisation gain more power so more
responsibility which signified that there is need to think out of the box concept which reflect the
organisation could handle both innovative as well as responsible practice.
There are more behaviours which are required to analyse for undertaking the benefits of
critical thinking. It will boost the ability to think more strategically, analyse both pros and cons
of the concept. Therefore, it has ascertained that it is vital to know about the whole concept of
business practices so that, the organisation will not be working only for social acts and
simultaneously perform activities which are beneficial for organisation profitability as well. It
has ascertained that, in order to be effective, there is need for innovative solutions as well as
CSR control it will largely impact on the reputation of the company. They work for customer
satisfaction but decreasing the whole carbon footprints to secure healthy environment. So that,
these are a part of critical thinking which shows that problem solving is the most vital concept of
critical thinking in examining claims. It is important to understand the negative and positive
aspects being evaluated from the case. The claims are discussed underneath:
 Socially and economically responsible: The global organisations are now becoming
more responsible. The take proper care to make all the stakeholders aware about the
transparency and communicate each and every thing to the stakeholders. It is said that
great power comes with great responsibility. This is the reason the organisations have
started becoming more responsible. In case of Unilever and other organisation, the
companies always try to come up with new products without involving waste in
inventory and production operations. To provide maximum value to shareholder, there is
need to include the CSR in DNA of organisation as it will showcase the regular
implementation of political and environmental standards that automatically influence the
society and attract investors within organisation. Shareholders primacy is must to be at

first priority as per analyst perception which required knowledge about how investors
think and wants a percentage of return form the organisation.
 Positive relationship in financial performance and CSR: It is examined that the
business organisation that spend on CSR are able to earn more profits. They maintain
transparency and share all the relevant information with the important stakeholders. They
share reliable, accurate and comparable data that helps to solve all the issues and to deal
with the issues in an effective manner. Businesses are concerned about CSR practices
and its impact on business profitability, they need to create good relations with investors
to provide awareness about the positive impact of the responsible acts. The marketing
major plays a vital role here as to adopt more likely ways of promoting products by
considering environmental factors. Various scholars believe that there is both short-term
and long-term benefits of CSR on financial performance of an organisation.
 Investment analysts are less optimistic about CSR: The investors are not interested in
social responsibility. They are only interested in financial information of the company.
The analyst are only interested in the selling and buying decisions that are made by the
organisation. But it is important to note that the perception of stakeholders has changes
and they believe that the company that follows the concept of sustainability disclose
every thing to the stakeholders and develop good relations with them. Analyst has
defined the concept by undertaking CSR practices as the sell will be effective and as per
the maximum range of company. So that, it must be understand by the stakeholders and
do not neglect the opportunity to invest in responsible firms. Problem solving is the vital
benefit for individuals working with large organisations. Therefore, it enables them to
manage huge department and think best policy for production, hiring people, prepare
strategies for marketing and delivery and other important work criteria.
 The four pillars of CSR: The claim reaching to governments for the organisation is
being wide and it is argued that business role in more important than the government in
making society welfare (Rahardjanto, 2019). The stakeholders play a major role in the
organisation and must have right to information. So company must develop relations with
them and should be proactive, transparent and accountable to engage stakeholders. There
must be regular communication in order to persuade long-term investors. All the
stakeholders must be given credibility and disclose higher quality non-financial data to

them. Business are the one who connects with society directly and knows about providing
a healthy lifestyle on which government could not make much presence rather than
supporting these business in favour of sustainable development. In order to undertake
new idea of the concept, Critical thinking is necessary to examining claims as
organisation face claims of not reducing plastic waste due to not having any reports and
regular updates which are required to fulfil the roles and responsibility towards society.
Using developing critical thinking skills, evaluate the ideas expressed in the case study
According to understanding of case study, there are several ideas which regenerate or
develop through critical thoughts and behaviour. The businesses are said to be the most crucial
part of the society which leads to undertake direct control over the demand of customers. It has
analyse that critical thinking will help in understanding the competition and impact of CSR that
creates a drastic change on the overlook of business functioning. The ideas which has evaluated
form the understanding is in favour of the practices which organisation need to perform while
making Corporate governance acts of responsibility.
 It is seen that due to globalisation the business organisation must use corporate social
responsibility. The company which use CSR tries to find the solution and work in favour
of environmental and social objective. The main motto behind this idea or solution is to
make good financial growth as social power helps in gaining investors trust and
reputation into financial market.
 The financial investors were not at all interested in information related to corporate social
responsibility used by company. But they have changed their views and now understand
the importance of CSR and its impact on financial performance of company. The other
ideas which is to understand the stakeholders and involve their investment as large as
possible (Puspita, Kaniawati, and Suwarma, 2017). This will be done through applying
critical thinking to focus on their needs and interest for making good relations. These
interpersonal relations are the key to attain investors’ attention by making them indulge
in all the internal and external decision making of the business environment. This will
benefit in giving an insight about the quality of relationship and these stakeholders will
play their role through utmost transparency and accountability. Also, providing them
awareness about the social acts and being eco-friendly it improved their behaviour and

creates a proactive nature about maintaining relationship and hold retention for future
growth of business.
 The organisation could think of ability to communicate effectively with effective with all
the key stakeholders such as employees, customers and suppliers. There is need of active
and vital communicators who could provide their own decision and ideas about long term
growth of company. This idea is effective and it undertake own need of charging high
dividend from company so that, innovative ideas and creative thinking will come in the
path of business. These are the vital concept of critical thinking in which investors act as
the active board committee in deciding policies and strategies of company (Bustami,
Syafruddin, and Afriani, 2018). Therefore, it has ascertained that communication must be
the key concept between organisation and investors to inspire, initiate and encourage
them towards organisational working. The much they get to know about organisation
policies, the more they will invest in the stock market.
 Due to rising globalisation there is need to be ethically, socially and environmentally
strong. The idea behind being social and environmental is require much planning and
knowledge about internal and external market. In large firms, the financial planning are
depends upon the investors contribution and applicants for taking shares. So, the
stakeholders such as employees, customers and every individual connected with the
company is uphold a right position in contribution of organisation success. Therefore, in
order to be accountable and credible for them and analyse the performance, it is
necessary to take auditing procedure and believes in preparing records and financial data
for making better comparison. It helps to promote sustainable growth of the company.
 Not only financial data will involve in this segment but non-financial is also included.
This will impact on the profitability of the company. Corporate governance states to be
accountable with stakeholders and investors who are the major people in the success of
company (Naimnule, and Corebima, 2018). The business will not only generate social
welfare, but by immense support of stakeholders and their ideas boost with in product
expansion, market area and critical development of knowledge and skills within them.
So that, these stakeholders will look for career opportunities and appropriate the act of
corporate governance of the company.

 In this current market, CSR is no longer the turn off for the investors. This statement is
highly true as CSR is the key term to keep the investment secure in the organisation.
(Wati, and Halim, 2020). Rather, they will focus on the being positive with good
practices. So the investors will also attain good name in society by being a part of CSR
organisation to implement support and their ideas for their betterment. The company are
able to achieve their targets of profitability so that they are able to achieve goals and
objectives.
All are these are the crucial pillars and practices for the organisation in order to be
accountable for environment and society. It consist the welfare of employees, customers,
investors and shareholders all together which is a positive aspect for the growth of business.
CONCLUSION
The report has concluded that critical thinking plays a significant role in analysing the
situation and drawing conclusion from the same. It is important to understand the positive and
negative impact of a situation and tries to find solutions of business problems. In this report there
is discussion related to purposes of applying critical thinking. Along with that there is evaluation
of a case study with critical thinking. There is discussion related to the claims related to study
and important ideas are mentioned in the report. The change in perception level of the investors
in being evaluated in the case with the help of understanding need and importance of CSR along
with its pillars.

REFERNCES:
Books and Journals:
Bustami, Y., Syafruddin, D. and Afriani, R., 2018. The implementation of contextual learning to
enhance biology students’ critical thinking skills. Jurnal Pendidikan IPA
Indonesia, 7(4), pp.451-457.
Kustijono, R. and Zuhri, F., 2018. The use of Facebook and WhatsApp application in learning
process of physics to train students’ critical thinking skills. In IOP Conference Series:
Materials Science and Engineering (Vol. 296, No. 1, p. 012025). IOP Publishing.
Naimnule, L. and Corebima, A.D., 2018. The correlation between metacognitive skills and
critical thinking skills toward students’ process skills in biology learning. Journal of
Pedagogical Research, 2(2), pp.122-134.
Puspita, I., Kaniawati, I. and Suwarma, I.R., 2017, September. Analysis of critical thinking skills
on the topic of static fluid. In Journal of Physics: Conference Series (Vol. 895, No. 1, p.
012100). IOP Publishing.
Rahardjanto, A., 2019. Hybrid-PjBL: Learning Outcomes, Creative Thinking Skills, and
Learning Motivation of Preservice Teacher. International Journal of Instruction, 12(2),
pp.179-192.
Tohir, M. and Abidin, Z., 2018, April. Students creative thinking skills in solving two
dimensional arithmetic series through research-based learning. In Journal of Physics:
Conference Series (Vol. 1008, No. 1, p. 012072). IOP Publishing.
Wati, S. and Halim, A., 2020, February. The impact of the media tracker on student critical
thinking skills. In Journal of Physics: Conference Series (Vol. 1460, No. 1, p. 012139).
IOP Publishing.
Widana, I.W., 2017. Higher order thinking skills assessment (HOTS). JISAE, 3(1), pp.32-44.