Importance of Critical Thinking in Evaluating Claims about Corporate Social Responsibility

The article emphasizes the importance of critical thinking in analyzing claims about corporate social responsibility (CSR). It evaluates the ideas expressed in the case study and highlights the significance of CSR for the success of a firm. The claims made in the article are examined using critical thinking skills. The article also discusses the benefits of being socially responsible and the impact of CSR on the overall performance of the firm.

CTS Project 1

Contents
INTRODUCTION.....................................................................................................................................3
Examination of claims using critical thinking skills................................................................................3
Evaluation of ideas expressed in the case study......................................................................................5
CONCLUSION..........................................................................................................................................7
REFERENCES..........................................................................................................................................8

INTRODUCTION
Critical thinking can be defined as a process that involves analyzing, applying as well as
evaluating the information effectively through various sources in order to make informed
decisions in the future. It can be said that critical thinking is important because it helps in making
important decisions as well as help in developing a better understanding of a particular event.
One of the primary purposes of critical thinking is that it helps in clearly understanding the main
points of an article (Boccia and Sarno, 2019). This is because sometimes the key points of an
article may not be analyzed at a glance and hence, critical thinking helps with the same. But a
person who has critical thinking skills is able to analyze as well as understand the same. The
article that is given in the case study tries to convince the different organizations about the
importance of corporate social responsibility or CSR in the modern world. There are a lot of
companies that are facing the challenge of becoming environmentally as well as socially
responsible. The article is also about why it pays to be responsible socially in business. One of
the other key points that is mentioned within the article is that investors have not always been
very positive about companies that are socially responsible as well as financial performance.
The author has also ensured that all of the key points are mentioned in an effective
manner and that helps in completing the research in an effective manner. Critical thinking also
promotes creativity among the people as well as problem solving ability (Fakoya, 2020). This
ensures that the goals and objectives are achieved to a great extent. One of the other points that
the author has mentioned is that the organizations that are socially as well as environmentally
responsible, are usually characterized by various governance mechanisms as well as
understanding of the needs of the stakeholders as well as their needs. Effective communicators
communicate approximately the long run and convince long-time period buyers to put money
into their inventory. More probable to measure statistics related to key stakeholders such as
employees, clients and providers, and to increase the credibility of these measures by means of
the use of auditing tactics. They measure and expose fantastically extra and higher first-rate non-
economic records.

Examination of claims using critical thinking skills
One of the claims that are made in the respective article is that companies perform better
when making a contribution to the overall sustainable as well as inclusive growth. This is
because they gain a better access to finance and hence, the customers are satisfied with the
services that they receive in an effective manner. This is because they are able to enhance the
overall performance of the firm as well as it is able to achieve the goals as well as objectives of
the firm. It can be said that the different claims that are made by the author are effective. It can
also be said that when the customers are satisfied, they are most likely to make a purchase again
(Farooq and et.al., 2021). It is important to make sure that the companies are able to make an
effective contribution to the overall development of the employees and ensure that the goals as
well as objectives are achieved to a great extent.
Another claim that the author has made in the article, is that stakeholder primacy is one
of the major ways in which value can be created for the company. The evidence for this is that
when the customers are treated as a priority by an organization, helps it in gaining their loyalty as
well as trust. Value creation is one of the major areas of focus for any organization because
customers prefer buying products that offer them value and are of use to them. value creation
also contributes to the overall success as well as growth of the company to a great extent and
ensures that the company is able to function in an effective manner. It can be stated that the
claim that is made is string enough to have valid evidence for the same. Stakeholder primacy is
also important because it ensures that a firm can have various stakeholders, both internal as well
as external. They can influence all the decisions that are made by the company to a great extent.
And hence, it can be said that it is important to give them the priority.
One of the claims that the author has made in the article is that organizations that are
environmentally as well as socially responsible, understand the needs of their stakeholders and
maintaining long relationships with them. The longer the purchaser keeps with your commercial
enterprise, the extra is the value supplied in the course of their lifetime courting. High CLV
approach every purchaser will carry in greater revenue on your corporation. When it involves
consumer success, one must spare no efforts in building strong customer relationships. Acquiring
a brand new customer can price five instances extra than preserving an current consumer (Fritz
and von Schnurbein, 2019). How you hold accurate patron relationships, determines your

purchaser loyalty. By fulfilling the clients’ call for high stages of customer service can improve
inform their stage of delight. When customers are happy, they go on recommending logo with
wonderful phrase of mouth.
Another claim by the author in the respective article is that many companies have set
ambitious goals as well as targets so as to build a sustainable future. As evidence, the author has
stated that CSR or corporate social responsibility is one of the many significant ways in which
companies are focusing towards achieving their respective goals as well as targets. Goals that
have been achieved are an opportunity for celebration. Successful companies set goals that
support the business mission and recognize employees for a job well done. Even a sole proprietor
can benefit from goal setting and celebrating accomplishments. Now is the time to create goals to
make those outcomes happen. A company’s leaders must know their company intimately its
weaknesses, opportunities, threats and strengths. They must be critical in their assessment and
allow feedback from multiple levels of the organization. It is only once a company’s leaders have
taken a transparent look at their organization and clearly defined its purpose in the market that
goals should be created.
Goal-putting ought to be a joint attempt. Leaders need to constantly ask employees for
their input in preference to simply creating a purpose for an employee or crew without enticing
them. Listen on your personnel after they explicit any uneasiness or if they create up different
regions to obtain in the purpose. To set viable organizational desires, take a look at your past
performance and then add an incremental increase of 20% for the following quarter or cycle.
Remember, getting buy-in from those who will position the stake inside the ground is essential
for this process to deliver the intended outcomes.
Evaluation of ideas expressed in the case study
One of the ideas that have been provided in the given case study is that organizations now
play a chief function over many governments. The general sales of the 10 maximum profitable
businesses would location them in third region at the listing of wealthiest international locations.
According to Belinchón and Moynihan (2021), many agencies in the international have income
exceeding the gross domestic product (GDP) of many nations. Walmart profits passed the
GDP of Belgium in 2017 (Inger and Vansant, 2019). Spotify earned more than Mauritania inside
the same year. The modern-day employer’s huge footprint highlights its capability to have a

advantageous impact on society and the surroundings if the right incentives, reasons, institutions
and those are in region. Just consider the wonderful impact that one employer, together with
Unilever, should have while it specializes in making sustainable living commonplace. This is a
organization whose products and services attain up to two billion human beings daily.
In current years many businesses have set themselves formidable desires and targets, to
assist build a sustainable destiny. In other words, corporate social responsibility (CSR) is turning
into increasingly more influential in terms of the way businesses operate, set strategies and
expand their business models.
The ideas that have been discussed in the case study, are well structured and this will be
helpful for the readers to develop an understanding of the same. Being a socially accountable
enterprise can bolster an employer's picture and build its emblem. Social responsibility
empowers employees to leverage the corporate assets at their disposal to do good. Formal
company social obligation programs can increase employee morale and cause greater
productiveness within the workforce. Socially responsible groups generally tend to draw
personnel who're eager to make a difference within the world—in addition to clearly amassing a
paycheck. With huge agencies, there is power in numbers, where collective worker efforts can
achieve sizable consequences, which increases workplace morale and boosts productiveness.
Socially responsible companies cultivate tremendous logo popularity, boom client loyalty, and
entice top-tier personnel. These factors a number of the keys to attaining multiplied profitability
and lengthy-time period monetary achievement.
(Jermsittiparsert and et.al., 2019)
Social contribution and sustainability are functions that appeal to a whole new elegance
of customers for any solution. These functions are extremely essential in penetrating client units
in distinct cultures around the arena, and more discerning clients in every geography.
Sustainability and social obligation are approaches to extend your exclusivity and added cost,
thus decreasing danger, improving profitability, and justifying a top class fee. All stakeholders
see this as a bonus, encouraging new buyers and elevating the valuation of your business. These
days, present patron advocacy is a key attractor of recent customers. In addition, consistent with
latest information, the fee of bringing a new customer to the same level of profitability as old
ones is as much as sixteen instances more. Loyal clients put up exceptional reviews and convey

in lots of new people. Sponsoring social projects and imparting time for employees to help their
personal tasks builds loyalty, pride, and motivation among team individuals and disparate
companies inside the employer. This makes anybody within the business enterprise extra
engaged, more responsive, and extra efficient.
Therefore, it can be stated that the case study has listed the ideas as well as the various
key points in a significant as well as structured manner in order to ensure that the goals as well as
objectives are achieved. Companies often favor providers who have accountable rules, on the
grounds that this will replicate on how their clients see them. Some clients don't just prefer to
cope with accountable businesses - they insist on it. By decreasing resource use, waste and
emissions, you can assist the environment and store money too. Being a accountable, sustainable
enterprise may additionally make it simpler to recruit new employees or preserve current ones.
Employees can be stimulated to stay longer, as a result decreasing the costs and disruption of
recruitment and retraining.
(Kumar, 2019)
CONCLUSION
From the above report, it can be concluded that CSR is an important aspect for any
organization. There are a number of businesses which are going through the mission of
becoming environmentally as well as socially accountable. The article is likewise about why it
can pay to be responsible socially in enterprise. One of the alternative key factors that is referred
to within the article is that buyers have now not usually been very fantastic approximately
companies which can be socially accountable in addition to economic performance. Therefore, it
can be said that CSR is an important aspect for the overall success of the firm.

REFERENCES
Books & Journals
Boccia, F. and Sarno, V., 2019. Socially responsible food behavior: Perspectives from empirical
evaluations. Food Research International, 121, pp.91-96.
Fakoya, M.B., 2020. Investment in hazardous solid waste reduction and financial performance of
selected companies listed in the Johannesburg Stock Exchange Socially Responsible
Investment Index. Sustainable Production and Consumption, 23, pp.21-29.
Farooq, Q. and et.al., 2021. Behaviorally harmonized ethical discussions for socially responsible
decision making: A counter-argumentative team approach. Current Psychology, pp.1-9.
Fritz, T.M. and von Schnurbein, G., 2019. Beyond socially responsible investing: Effects of
mission-driven portfolio selection. Sustainability, 11(23), p.6812.
Gorokhova, T., 2020. The Development of Socially Responsible Marketing as a Consequent
Effect of the Socio-Economic Transformation in the Society. Public Security and Public
Order, (24).
Inger, K.K. and Vansant, B., 2019. Market valuation consequences of avoiding taxes while also
being socially responsible. Journal of Management Accounting Research, 31(2), pp.75-
94.
Jermsittiparsert, K. and et.al., 2019. Do consumers expect companies to be socially responsible?
The impact of corporate social responsibility on buying behavior. Uncertain Supply
Chain Management, 7(4), pp.741-752.
Kumar, N., 2019. Corporate Social Responsibility: An analysis of impact and challenges in
India. International Journal of Social Sciences Management and Entrepreneurship
(IJSSME), 3(2).