Developing Critical Thinking Skills for Effective Decision Making

This report discusses the importance of critical thinking skills in decision making through a case study analysis. It examines the claims made in the study and evaluates them based on research and understanding of the topic. The report highlights the direct relationship between CSR and financial performance of a company and the need for effective communication with stakeholders. It also emphasizes the role of transparency and accountability in building trust with stakeholders.

Critical Thinking
Skills
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
The purposes of applying critical thinking to the above case study............................................3
Demonstrate an understanding of critical thinking skills by examining claims made in the
given case study...........................................................................................................................4
Using your developing critical thinking skills, evaluate the ideas expressed in the case study
based on your research and understanding of the topic...............................................................6
Conclusion.......................................................................................................................................7
REFERNCES:..................................................................................................................................9
Books and Journals:.....................................................................................................................9
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INTRODUCTION
Critical thinking can be defined as analysis of the facts in order to make a judgement. It is
seen that when there is complex subjects that must be analysed to know about the situation and
grab information for the same (Suardana and et.al., 2018). It is important to note that there is
need of effective critical thinking skills in order to analyse a situation. It is necessary to
understand the case and take information that is useful. In the case study there is discussion
related to changing perception of investors. There is discussion related to purpose of applying
critical thinking skills in the case study. The claims are also examined so that they are able to
demonstrate the study. All the key areas being evaluated in the case study are also mentioned in
this report.
MAIN BODY
The purposes of applying critical thinking to the above case study
The purpose of using critical thinking skills is to gather the useful information from the
case study. There is discussion related to corporate social responsibility in the article. The key
points that are useful are identified with the help of using critical thinking skills (Spector and
Ma, 2019). It is necessary to have effective critical thinking skills so that meaningful insights are
grabbed from the study. There are various situations in life when an individual has to use their
critical thinking ability so they are able to overcome the situation and find best solution from the
same. It is important to understand that there is need of CSR in the present scenario. All the
business organisations must use the concept of sustainability in order to gain success. There are
various big business organisations that apply the concept of CSR in their working and that helps
them to attain profitability. There is discussion related to various investors that do not believed
that CSR is necessary for the company. They used to say that only financial information must be
checked while investing in an organisation (Mulyanto, Gunarhadi and Indriayu, 2018). But,
afterwards there perception change and they agreed to the fact that there is relationship seen in
CSR and profitability position of an organisation. It is also evaluated that the top 10 companies
that use CSR are successful than the 180 of the poorest countries combined. It is seen that the
business organisation must understand the importance of CSR so that they are able to use them
and enhance their profitability position. It is necessary to note that organisation such as Unilever
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work to reduce carbon footprints from the environment. For this reason they use renewable
resources (Itmeizeh and Hassan, 2020). It is not only the case of Unilever; various big
organisation makes efforts to reduce the wastage of resources. They find it as their own
responsibility. It is critically evaluated that a company must use corporate social responsibilities
as there are huge benefits associated with the same.
Demonstrate an understanding of critical thinking skills by examining claims made in the given
case study
It is important to note that there is discussion related to various claims in this article. The
critical evaluation related to them is done below:
 The first claim is related the social and economic responsibility of the business
organisation. It is seen that to take care of the environment it is necessary to be
transparent and communicate all the details to the stakeholders. It will help them to
attract the investors in the organisation. It is necessary for the organisation to become
accountable for them and provide them all the information. It provides positive impact on
the promoting inclusive and sustainable growth. The task is to provide best and detailed
information to the stakeholders so that their point of view changes. There is discussion
related to benefits of following corporate social responsibility. The 10 big business
organisation that are following CSR are able to earn more revenue than the 180 of the
poorest Countries combined. The information is being taken from ‘global Justice Now’.
The reason is they are more responsible and the customers prefer the organisation.
 The second claim is related to positive relationship in CSR and the financial performance
of the organisation. It is seen that the business organisation that are able to work
effectively are indulged in CSR activities. The modern organisations show the large
footprint highlights. They believe that they get motivation and initiatives by working
according the sustainability principles. Example of Unilever is considered as the
company is able to achieve more than two billion customers daily. It is because of the
efforts made by them and their focus on main sustainable living commonplace. It is seen
that Unilever is not alone in this other business organisations are also following the
practice in order to achieve the goals of sustainability. It is necessary to note that these
big organisations are able to achieve success and enhance their financial performance by
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taking proper care of sustainability. Now the companies believe that it is their
fundamental choice to adopt CSR. The data published by the companies help to know
details about the organisation and it helps the investors to identify the reliable, accurate
and comparable data.
 The third claim is that Investment analysts are less optimistic about CSR. The investors
were only interested in financial information and data of the company. It is seen that they
want to know about the monetary transactions related to the company. To make any
decision related to investment in company they have to analyse the data to make buy and
sell decisions. It is seen that the analyst were not able to understand the real concept of
CSR. Now they have to you changed your perception and believe that CSR practices
have direct impact on the profitability position of a company. All the stakeholders have
taken it as an opportunity and invested in the organisation that follow the principles of
corporate social responsibility. It is necessary for investors to understand the positive
contribution of the company towards sustainable and inclusive growth. It is seen that the
customer loyalty also enhances in the organisation that are positive and more socially
responsible. The reason is that the investors are able to watch the reality and that builds
their trust in the organisation.
 The fourth claim say that CSR has benefit the companies. It is analysed that organisation
that truly committed to corporate social responsibility are able to find comfort. They are
able to maximise the shareholder value due to their effective work. There is difference
between increase in stakeholder engagement and the decision making of the stakeholders.
Important to note that the transparency and accountability of the organisation have
attached the stakeholders towards the organisation. There are four pillars of CSR that
support the practice. The government mechanism help the companies to work according
to CSR for stop it helps to safeguard the environment and follow the social objective of
the organisation. These organisations understand the needs of stakeholders and invest
their time in managing the relationship. By providing them detailed transparent
information they are able to engage the stakeholders. It is also believe that effective
communication helps to achieve the long-term investors. All the stakeholders play a vital
role in the organisation and must be valued
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Using your developing critical thinking skills, evaluate the ideas expressed in the case study
based on your research and understanding of the topic
It is important to study the article effectively. The critical analysis of this article helps to
evaluate the ideas that are being discussed in the case study. Some of them are discussed below:
 One of the ideas derived from the article is related to businesses. It is observed that
business play a major role in the profitability position of the nation. In the article there is
this question related to big organisations that are able to contribute a lot to GDP of the
nation and are earning more than other small companies. As per the study it is alleged
that the organisations that follow CSR are able to on more profits. Unilever is one of the
examples of the organisation that uses corporate social responsibility and working for
reducing the carbon footprints. It is rightly said the organisations must work according to
the responsibility (Kumar, Lahiri and Dogan, 2018). The organisations that take care of
environment get full support of Government and are able to operate smoothly.
 Another idea in this case study is related to financial investors. It is observed that the
investor not interested in the corporate social responsibility and information related to the
same. But the perception level of the investors changed when they understood the
relationship between financial performance and corporate social responsibility and
investors have changed their perception and are interested in the information of the
company. It is seen that a report says that now the investors have understand the
importance of CSR for stock they view it as an indicator of investing in the company.
This studies the corporate culture of the organisation so that they are able to avoid the
process steps like financial fraud. It is important to note that there is need to change the
mind and use all the necessary information while investing in an organisation (Stuart,
Bedard and Clark, 2021). It helps a company to take wise steps and invest in an effective
company.
 The next idea is related to huge numbers of stakeholders that are interested in the
organisation. It is important for a company to invest. In the article it is said that the
company must invest time in stakeholders and manage relationship with them. It will help
to build partnership with them and engage them in the organisation. It is seen that one of
the benefit of effective communication is that it helps to engage the client of stakeholder.
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The overall objective of the organisation is achieved if they are able to effectively
communicate with the stakeholders it is necessary to provide all the information to the
stakeholders so that they are able to trust the organisation. It is seen that providing details
to the customers is necessary and beneficial for a company (Hawrysz and Maj, 2017).
The company is able to increase the credibility by take measure of disclosing all the
important points. The quality of data helps to serve the stakeholders and fulfil their
purpose.
 Another idea is there is direct relationship in financial position and CSR of the company.
It is analysed that a company that is able to follow corporate social responsibility gains
success. The organisation must disclose all the information to the investors in the
customers. The customers become lawyer for the organisation when they understand the
abilities and functions of the organisation that they are ethically responsible. The
company that is able to take care of environment is able to attract more customers and on
more profitability. There is a direct relationship among CSR and profitability of a
company (Cho, Chung and Young, 2019). As per the studies it is seen that the more focus
on CSR makes the business organisation more profitable. They are able to provide all the
information to the investors and that helps them to achieve profitability position.
Conclusion
From the above report it is analysed that critical thinking skills are important for an
individual. To analyse the situation and to find out ideas from the case critical thinking skills are
required. There is discussion related to purpose of using critical thinking in this report. The
important claims are identified from the article full stop in the end basic ideas discussed in the
article are mentioned and evidence for them are also given.
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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.
Cho, S. J., Chung, C. Y. and Young, J., 2019. Study on the Relationship between CSR and
Financial Performance. Sustainability, 11(2), p.343.
Hawrysz, L. and Maj, J., 2017. Identification of stakeholders of public interest
organisations. Sustainability, 9(9), p.1609.
Hudha, M.N. and Batlolona, J.R., 2017. How are the physics critical thinking skills of the
students taught by using inquiry-discovery through empirical and theorethical overview?.
Eurasia Journal of Mathematics, Science and Technology Education, 14(2), pp.691-697.
Kumar, V., Lahiri, A. and Dogan, O.B., 2018. A strategic framework for a profitable business
model in the sharing economy. Industrial Marketing Management, 69, pp.147-160.
Saputra and et.al., 2019. Developing Critical-Thinking Skills through the Collaboration of
Jigsaw Model with Problem-Based Learning Model. International Journal of Instruction, 12(1),
pp.1077-1094.
Shirazi, F. and Heidari, S., 2019. The relationship between critical thinking skills and learning
styles and academic achievement of nursing students. The Journal of Nursing Research, 27(4),
p.e38.
Stuart, A. C., Bedard, J. C. and Clark, C. E., 2021. Corporate social responsibility disclosures
and investor judgments in difficult times: The role of ethical culture and assurance. Journal of
Business Ethics, 171(3), pp.565-582.
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 and et.al., 2018. Higher order thinking skills assessment towards critical thinking on
mathematics lesson. International journal of social sciences and humanities, 2(1), pp.24-32.
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