Application of Critical Thinking: Why Does it Pay to be Socially Responsible in Business?

This report discusses the importance of critical thinking skills in analyzing the benefits of corporate social responsibility (CSR) in business. It examines claims using critical thinking skills and evaluates ideas expressed in the case study. The report concludes that CSR plays a major role in creating a positive impact on business and that organizations need to include shareholders' interests through transparency and engagement.

Critical Thinking Skills

Table of Contents
INTRODUCTION ..........................................................................................................................3
Examination of claims using critical thinking skills...................................................................4
Evaluation of ideas expressed in the case study..........................................................................5
CONCLUSION ...............................................................................................................................7
REFERNCES:..................................................................................................................................8
Books and Journals:....................................................................................................................8

Main topic: Application of critical thinking: Why does it pay to be socially responsible in
business?
INTRODUCTION
The aim of the report is to understand the concept of critical thinking in order to analyse
the facts from the case study to be a responsible business. Critical skills are necessary to analyse
information to provide own judgements and arguments. It could be done through going deep into
the study and find the relevant problems and issues. The case study is all about the changing
perception of investors towards the business profits. As the business are getting pressurize to
become more socially responsible. This act shows that corporate social responsibility makes the
business accountable and answerable to the society, People and investors. The more they become
ethical and concern towards the society, the more they lead to generate profits. The case study
showcases much contribution of top companies in the economy's GDP (Albanese, and Paturas,
2018). The purpose of the case study is to attract the investors in the CSR practices and make
them aware about its benefits by using effective strategies. By providing arguments, it will be
easy to better attract shareholders by ensuring them their worth and value into the business. By
analysing facts and performance of the large companies such as Unilever who have took step
towards the sustainability that resulted in reaching to two million people with companies
products. Hence, the report is going to critical evaluate that the focus on CSR activities is not a
turn off for the investors. It pays positive impact on the firm which will result in generating
highest profits and hence, high returns and dividends. The investors who were in support of
traditional business working are not sure about investing in sustainable activities as it will reduce
companies profits in their opinion. (Zhao, Narikbayeva, and 2021). It is not that investors are
not caring about the society and only look for their profits but not wholly in support of the
companies. They wanted to be the priority of the firms which will be the only way for value
creation. The more companies will make better relationships with shareholders, the more they
will be able to face financial constraints. Therefore, how companies need to react as a
responsible citizens is also differentiated in the report. This will help the firms to work ethically
and positively for all the responsibility towards society and shareholders.

Examination of claims using critical thinking skills
There are various claims analysed in the case study which are relevant to be taken in to
the consideration. The discussion will present how the act of CSR and sustainability is not a
drawback for the investor rather it becomes must for their market value. The critical examination
is presented below:
The first claim identified in the case study which has evaluating from authors by using
evidence, is all about social and economic responsibilities of the business (Everett-Thomas,
Joseph, and Trujillo, 2021). The business are required to look for the environmental protection,
health concerns of people and maintain economic development. Therefore, it becomes vital for
the companies to disclose all the facts and performance they are doing to the shareholders. This
will showcase them that the companies are moving towards the success In order to create
positive impact from society, shareholders and government as well. As the claim shows that,
investors have rights to be a part of all the business functioning which will create better
relationships with them. This shows that the organisation who have becoming socially
responsible are the one generating more revenue in total of 180 countries. As it shows that the
Unilever is taking step for a sustainable future in order set and develop goals and models to
achieve the same. Being a responsible firm leads to many power with high responsibility so that,
CSR is a good strategic choice. It will lead to create inclusive growth.
The second claim which is identified in the case study which has evaluating from
authors by using evidences about creating positive relationships on the business performance.
Creating positive impact is necessary for an organisation to survive in the contemporary business
world. Their growth and success is highly depended on how people and society thinks about the
companies product and services. This could be done through engaging large footprints by
choosing right incentives, motives, institution, people and place (Gever, and.et.al 2021). The
analyst argues that creating good relations are much necessary for maintaining the stakeholders
wealth. It shows that companies data creating a huge impact on their financial performance. The
analyst could found the issues clearly through analysing relevant data, accurate information and
insights about company. It has shown that, increasing customer loyalty would be great impact on
the firm by gaining better contribution in capital and finance. The CSR would be an impactful
activities which will maintain companies image and regular financial flow to be accountable for

shareholders. It has evaluated that not only Unilever, but other companies have also faced a lot of
benefits in attaining shareholder satisfaction.
The third claim is that The positive relationship with the CSR identified in the case
study which has evaluating from authors by using evidence activities on better financial
performance of the companies. When an organisation have good financial stability and
shareholder's wealth, they could be able to generate better revenue. It has analysed that the
investors are not in favour of CSR in traditional ways. But now in contemporary modern
business world, the financial institution are not much serving great financial help (Kabataş
Memiş, and Çakan Akkaş, 2020). This shows that, positive relations and impact is necessary
fort the business to achieve both short and long term goals. This claim shows that, business needs
to carry out much focus on CSR activities which are beneficial for society, shareholders and as
well as for business also. Many analyst thought that through CSR practices the businesses are
destroying shareholders wealth which is not the right fact. As the business are more transparent
and generated more stable relationships with stakeholders. It has seen that, it is necessary that the
companies would enable great financial terms with the society
The fourth claim, Marketers have become particular about what company premises
and ended up doing, identified in the case study which has evaluating from authors by using
evidence. It is also a claim for the business which have impact on the business performance. The
marketers can identify what company is performing in the relevant ways. Also, does the
company is able to fulfil its promises and sayings to the society. It is vital to be on their words
and premises so that, the society and people can trust easily and increase market value of the
organisation. CSR activities are beneficial for the company which enable huge corporation and
fulfil all the need of the society which it expects from the organisation. Therefore, the companies
needs to have increase stakeholders engagement, long term view and decision making for more
accountability(Kim, and.et.al 2018). It will be done through involving into sustainable
performance in which no society, environment and planet would get harm from the business
functioning. So that, marketers would notice these acts of concern and attract investors
automatically.
Evaluation of ideas expressed in the case study
as per the case study on the benefits of CSR which leads to contribute in the positive
business impact (Zaidi, and.et.al 2018). There are various ideas demonstrated in the case study

that are vital to look for the organisation. The ideas expressed does synthesize the business
functioning on the basis of modern market requirement. Business are the crucial part of the
society that fulfil the need of society in most concerned way. The main idea served in the case
study is all about creating a focus on sustainability and corporate social responsibility for the
investors. Through this they will not judge a business only by its wealth but by its performance
and value.
It is one of the idea in the project that, It has examine that, a business require growth strategies
and fundamental plans to attain positive impact on global level. Many business have secured
global position due to which they have encouraged the need of corporate social responsibilities
(López, and.et.al 2020). This way, The business are able to create positive impact on their
profitability by gaining trust and attention of the large audience. Globalisation is the strategy
which looks by every firm to ascertain growth and capture large market. It could be done through
having good financial stability through utmost support of investors and shareholders.
The another idea is that, In the traditional business functioning, the investors were not
much engaged with the companies performance. The investors are not much interested in
knowing the companies financial data and information. They only look for the market value and
take decision to provide finances. But now in dynamic business environment, it become crucial
to keep check on business activities and their continuous growth. So that, the investors would
make decisions and secure their own benefits also (Prameswari, Suharno, and Sarwanto, 2018).
CSR responsibilities are the acts which makes the investors assure about the success of business.
Critical thinking is necessary to take the potential business decisions by investors which will
helps in maintaining good relations so that, the company fulfil its financial needs as much as
possible.
Communication is the vital act which is necessary to perform by the business. There are
various effective strategies that require proper communication with all the stakeholders. Mainly
these are employees, customer and suppliers, investors and shareholders who have right to be a
part of business performance. The investors gets ready to invest in the business. Therefore,
critical thinking skills are much prominent here so that, the marketers enable a healthy
environment and innovative thinking for the business.
In the contemporary business environment, the organisation need to be ethically responsible for
the people and planet (Silberman, Carpenter, Takemoto, and Coyne, 2021). The social

responsibility refers that business are vital part of the society that works among the individuals.
Therefore, they are required to be ethically concerned about what is wrong and right for the
society and people welfare. They do not only look for profits but for economic stability as well.
This social responsibility consider the acts of environmental protection, planning the need
of people, health and safety and save natural resources (Quattrucci, 2018). The ideas has
identified in the case study that CSR is the fundamental strategic choice for the business to
access better financial stability and capital to grow business. It could be done through analysing
stakeholders needs and providing accurate data and information of the company. Recording
financial data and annual performance check is vital for stakeholders to maintain trust and
potential on the company and invest appropriately. There are many benefits for the business to
grow in the global marketplace (Sasson, Yehuda, and Malkinson, 2018). There is need for
engaging large shareholders, prioritise their expectation, communicate with them and make them
a part of business functioning, this will impact on building their trust and achieve social
responsibility targets.
CONCLUSION
The report has concluded that critical thinking skills are the most vital for analysing the
arguments imposed on the business. Due to having huge dynamic environment and responsibility
of the business, critical thinking skills become crucial to go deep down in the facts and
information. The report has identified that corporate social responsibility plays a major role in
creating positive impact on the business. It has also argued that, investors could easily trust the
companies who are contributing in the CSR practices to expect more profits and business growth
in the market. Therefore, it has ascertained that the organisation needs to includes shareholders
interest through solving critical issues, being more transparent and engage with the stakeholders.

REFERNCES:
Books and Journals:
Albanese, J. and Paturas, J., 2018. The importance of critical thinking skills in disaster
management. Journal of Business Continuity & Emergency Planning, 11(4), pp.326-
334.Kim, E., 2018.
Everett-Thomas, R., Joseph, L. and Trujillo, G., 2021. Using virtual simulation and electronic
health records to assess student nurses' documentation and critical thinking skills. Nurse
education today, 99, p.104770.
Gever, V.C., and.et.al 2021. Visual media and learning: Effect of interactive television
instruction as an intervention strategy for improving the critical thinking skills and
disposition of out-of-school nomadic children in Nigeria. Learning and Motivation, 76,
p.101767.
Kabataş Memiş, E. and Çakan Akkaş, B.N., 2020. Developing critical thinking skills in the
thinking-discussion-writing cycle: the argumentation-based inquiry approach. Asia
Pacific Education Review, 21(3), pp.441-453.
Kim, S.S., and.et.al 2018. Korean nursing students' acquisition of evidence-based practice and
critical thinking skills. Journal of Nursing Education, 57(1), pp.21-27.
López, M., and.et.al 2020. The impact of an educational intervention on nursing students' critical
thinking skills: A quasi-experimental study. Nurse Education Today, 85, p.104305.
Prameswari, S.W., Suharno, S. and Sarwanto, S., 2018. Inculcate critical thinking skills in
primary schools. In Social, Humanities, and Educational Studies (SHEs): Conference
Series (Vol. 1, No. 1).
Quattrucci, J.G., 2018. Problem-Based approach to teaching advanced chemistry laboratories and
developing students’ critical thinking skills. Journal of Chemical Education, 95(2),
pp.259-266.
Sasson, I., Yehuda, I. and Malkinson, N., 2018. Fostering the skills of critical thinking and
question-posing in a project-based learning environment. Thinking Skills and
Creativity, 29, pp.203-212.

Silberman, D., Carpenter, R., Takemoto, J.K. and Coyne, L., 2021. The impact of team-based
learning on the critical thinking skills of pharmacy students. Currents in Pharmacy
Teaching and Learning, 13(2), pp.116-121.
Zaidi, N.L.B., and.et.al 2018. Pushing critical thinking skills with multiple-choice questions:
does Bloom’s taxonomy work?. Academic Medicine, 93(6), pp.856-859.
Zhao, H., Narikbayeva, L. and Wu, Y., 2021. Critical thinking of music educators as a factor in
creative music pedagogy. Thinking Skills and Creativity, 41, p.100884.