This paper presents two connected pieces: a critical assessment of a student essay on entrepreneurial ethics using Paul and Elder's eight guidelines for reasoning, and a rewritten version of that essay directed at a skeptical audience. The assessment evaluates how well the original paper articulates purpose, handles assumptions, selects evidence, and draws conclusions. The rewrite expands and strengthens those arguments, grounding the case for business ethics in systems thinking, Rousseau's social contract theory, stakeholder awareness, risk management, and the role of professional organizations such as the AMA in establishing ethical standards. Together, the two pieces illustrate how critical thinking frameworks can diagnose and improve argumentative writing.
Paul and Elder's first guideline reads, "All reasoning has a purpose." The purpose of the essay under review is clearly stated and broken down into sub-questions. In the opening paragraph of "Entrepreneurial Ethics: Why Study Business Ethics?", the writer's reasoning appears clear and logical, with a distinctly worded purpose: unbridled capitalism is unsustainable.
Following from its stated purpose, the original argument is broken down into constituent parts. This would be consistent with Paul and Elder's second checkpoint: "All reasoning is an attempt to figure out something, to settle some question, solve some problem." However, there is a leap from one concept to another in the following two sentences: "The idea that a perfectly stable, ethical system could be created simply through the invisible hand of capitalism was shown to be false. Functioning in enterprise today demands an astute understanding of the delicate interrelationships of modern organizational systems, emotional understanding when interpreting the wants and desires of the consumer, and an awareness of the modern regulatory environment." The leap from a question of ethics to the tripartite division of how to function in enterprise is not bridged sufficiently.
Similar leaps follow. For example: "This is why honing the tools of ethical decision-making is essential. Critical thinking skills enable an individual to break down a decision in a step-by-step fashion and to minimize personal bias." This leap represents one of the core assumptions in the paper — that ethical decision-making in business requires critical thinking when evaluating risk — but the connection is asserted rather than argued.
Assumptions need to be clarified and points of view stated explicitly, as Paul and Elder note in guidelines 4 and 5. The writer does clarify the issue of ethics with the introduction of Rousseau's theory and an appropriate reference. The writer therefore does understand what his or her assumptions are and states them explicitly. A point of view is also made clear: businesses need to follow ethical guidelines to survive and thrive. Ethics are consequently presented as good business, not simply as a matter of moral right and wrong — "negative ethical actions can impact marketing a business' products and services." Whether pursued altruistically or for purely financial reasons, ethics are presented as important.
Guideline 6 from Paul and Elder states, "All reasoning is expressed through, and shaped by, concepts and ideas." The writer addresses several business concepts, such as that of stakeholders. The author notes, for example, that direct consumers are not the only stakeholders. Evidence and quotations are judiciously selected and appropriate. This is also in keeping with Paul and Elder's guideline 5: "All reasoning is based on data, information, and evidence."
Where the paper suffers most is in relation to Paul and Elder's seventh guideline: "All reasoning contains inferences or interpretations by which we draw conclusions and give meaning to data." The author simply concludes by noting that the AMA outlines ethics for its members whereas the broader business community does not. The argument would be stronger if the author had suggested the introduction of a formal business ethics organization. Instead, the conclusion is weak: "For this reason it is even more essential that businessmen and women study ethical leadership, emotional intelligence and build their communications skills so they are able to internalize a sense of personal morality that can be reflected on their followers and colleagues."
However, the eighth and final guideline is fulfilled: "All reasoning leads somewhere or has implications and consequences." The author does conclude that ethical business practices have positive consequences for all stakeholders, both direct and indirect.
"Greed is good." While Oliver Stone meant to critique this mentality in his film Wall Street, a good number of Wall Street traders embraced this mantra without a trace of irony during the 1990s and well into the 21st century. Greed was seen as the fuel of the capitalist economy. With no offense to Angus, my uncle might be operating under the assumption that unbridled capitalism is still the primary objective of business.
After the credit meltdown of 2008, this mentality was seriously called into question. Business ethics were viewed not only as morally unjust but also as financially destructive. The Wall Street gurus who had championed deregulation were soon demanding a bailout from the federal government. The idea that a perfectly stable, ethical system could be created simply through the invisible hand of capitalism was shown clearly to be false. For business enterprises to thrive today demands an astute understanding of philosophy and ethics, which is why professors are weaving Rousseau and systems theory into enterprise courses. Successful enterprise demands respect for ethics and a critical understanding of the interrelationships among modern organizational systems.
To understand the nature of business ethics, it is critical to understand systems thinking. A business does not operate in isolation from the environment in which it exists. The university publication "The Essence of Enterprise" points out that "Every system has a purpose within a larger system." The business is therefore a system within a larger community. Ethics begins with an awareness of how businesses impact more than just their shareholders — they affect the environment, the social and political climate, and the economic stability of entire regions.
"Stakeholders, risk, Rousseau, and marketing ethics"
Medicine and law both have national organizations — in the form of the AMA and ABA — that define ethics for their members. A doctor or a lawyer who behaves unethically can lose his or her license. Business, however, has no official screening process, organization, or regulatory agency defining community and professional standards. Instead, businesspeople bear the obligation of policing themselves while also risking legal liability. An institutional ethical body modeled on the AMA would ultimately benefit the business community. However, such an institution does not yet exist.
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