Exam Paper: Understanding Business Decision-Making

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1. Heuristic refers to a problem-solving method which defines from learning based methods
and techniques. It is helpful and enables a person to learn something for their welfare. The
three significant examples which have been discussed in Daniel Kahneman's work refer to
(Stein, 2017):
 Availability
 Representativeness
 Anchoring and adjustment
The limitations of human reasons can be fulfilled and deal in an effective manner with the help
of these three examples of heuristic in Daniel Kahneman's theory:
 Human limitations identify in terms of brains. Thus, it is essential for a person to adjust
their mind and anchor new things to learn new ways to resolve problems.
 Another limitation of human reasons refers to understanding. This problem can be
minimised with the representativeness of a person. A representative person is more able
to resolve issues effectively.
Thus, the heuristic is helpful to learn new things and resolve problems in a periodic manner.
2. Motivated reasoning is determined as an emotion-based decision-making aspect which
evaluates in cognitive science and social psychology. Sometimes, people carried down emotion-
based decision rather actual attribute. This process is belonging to motivated reasoning where
people do not understand any factor with their mind and flow with emotions. Motivated
reasoning is related to mistrust in media because media organise some fake news which
motivates people towards inappropriate actions. Similarly, the government proclaims some false

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promises which enforce people to take an emotional decision to select a government. Most of
the human beings are a sentimental fool and never interpret things correctly and consider under
motivated reasoning. We all are susceptible and easily get influenced by government, media,
and businesses and consider as motivated reasoning part. Following examples has defined such
consideration in a clear and suitable manner:
 Easily trust in media reports without interprets things.
 Trust on government even without belief in a live performance of past years.
3. Green-washing is a sort of misleading claim about environment benefits draw by a
company towards their products, services, technology (Plec and Pettenger, 2012). Green-
washing is helpful for a company to make them more environmentally friendly as compared in
actual presence. Airbus is one of a company which found as a part of Greenwashing company.
Airbus is marketing themselves as a leader of the green industry with advertisements
showing jets filled with the natural landscape with flying in the clear sky (Knufken, 2018).
This sort of practices creates confusion among customers and creates a negative image of a
company. The two things which have been done by Air Bus reflected as follow and determine
from ten signs of Futerra Greenwashing guide:
 Firstly, they have made an irrelevant claim.
 Secondly, they have been found as Jargon in the airline industry.
4. Philanthropy is determined as an event, idea or work done for the betterment of humanity
and involves some sacrifice by business venture apart from a profit motive. This includes
donating money for a charity, volunteering for local individual and provides shelter to them,
and raising money to donate for some chronic disease. Social responsibility is essential for

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business firms as they serve communities, and work in favour of employees to improve their
morale. Philanthropy plays an essential role in business as it assists an organisation to develop a
positive attitude and image towards customers, support business to maximise their sales and
goods and services. Philanthropy plays a vital role in CSR as well as it assists business to grow
the society. Philanthropy is helpful to develop social standard and help society to grow. Thus,
the company has to consider CSR in business and consider the philanthropy aspect so that they
can contribute maximum to society and its welfare.
5. Carbon footprints refer to the amount of CO2 released into the atmosphere due to some
particular activities by an individual, community, and organisation (Sundarakani, et. al.,
2010). The earth overshoots day illustrates the level at which human population overshoots
its environment or in simple terms resources. It is calculated and measured by the total
humanity resources utilisation yearly consumption with Earth’s capacity to regenerate the
renewable energy resources. It provides a clear picture of each country consumption, and their
action carries down to control over consumption. With such a comparison, it is become natural to
determine its environment budget with other countries budget. The three significant steps
which are helpful to manage carbon footprints determine as follow:
 Unplug the devices or switch off the lights when it is not in use.
 Drive less and use bicycles
 Plan garden, trees so that proper management on the environment takes place.

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References
 Knufken, D. (2018). The Top 25 Greenwashed Products in America. [Online] Business
Pundit. Retrieved from: http://www.businesspundit.com/the-top-25-greenwashed-products-in-
america/.
 Plec, E., & Pettenger, M. (2012). Greenwashing consumption: The didactic framing of
ExxonMobil's energy solutions. Environmental Communication: A Journal of Nature and
Culture, 6(4), 459-476.
 Stein, J. G. (2017). The micro-foundations of international relations theory: Psychology
and behavioural economics. International Organization, 71(S1), S249-S263.
 Sundarakani, B., De Souza, R., Goh, M., Wagner, S. M., & Manikandan, S. (2010).
Modeling carbon footprints across the supply chain. International Journal of Production
Economics, 128(1), 43-50.