A Primer on Critical Thinking and Business Ethics

“The unexamined life is not worth living,” said Socrates. That is, without critically inquiring into the knowledge of life, which is well-being and valuable, life is not worth living. Critical thinking questions existing theories and their unexamined and obsessive assumptions and generalizations, constraints, and the so-called “best” practices of the prevailing system of management and tries to replace them with more valid assumptions and generalizations that uphold the dignity, uniqueness, and inalienable rights of every individual and the community. In our diverse and pluralistic cultural environment, the promise of a truly generative dialogue among occidental (western) and oriental (eastern) cultures and civilizations holds great hope for the future. Critical thinking can facilitate this dialogue such that all of us have a meaningful place in this universe. In this chapter, we explore introductory working definitions of critical thinking so that we can early enough understand its demanding domains, moral calls, and ramifications in its current critical applications. Specifically, in Part I, we examine the structured layers of our thinking and reasoning to dismantle them progressively, and in Part II, in support of our claims, we explore complexity and chaos theories as a new resource for critical thinking.

In this chapter, we introduce the history of critical thinking briefly, starting from Socrates to contemporary contributions. Based on this history, we derive several modules for training in critical thinking via practical exercises in critical thinking. Three classic critical thinking models are introduced: Socratic questioning method, Cartesian doubting method, and Baconian empirical method. We discuss their potential for critical thinking as foundational methods. The material in this chapter is distributed in three parts. In Part I, we provide a brief history of critical thinking. In Part II, we design models of critical thinking based on its classic history. In Part III, we list some models of critical thinking based on its history, from the Renaissance period to the current times. In the last section, we also discuss critical thinking in the context of business ethics, by delineating its normative domain, assessing its characteristics, and reviewing its processes.

All of us are born critical thinkers; some perfect this talent; others ignore it as useful in daily life. This chapter follows those who perfected this talent in order to learn from them the art and models of critical thinking in terms of its optimal inputs, processes, and outputs. According to great critical thinkers in business management, critical thinking questions – or should question – the obsessive generalizations, constraints, and “best” practices of the prevailing system of management, and try to replace them with more valid assumptions and more meaningful generalizations that uphold the dignity, uniqueness, and inalienable rights of the individual person and the community. After setting out some cases illustrating the lack of critical thinking, in Part I of this chapter, we introduce some representative management thinkers on critical thinking, and in Part II, we introduce eight models or practical approaches for critical thinking.

Being the most powerful creatures on the planet, we humans should carefully consider our beliefs for the simple reason that the way in which we think influences our behaviors; this in turn can either transform the world or negatively affect the world. Our mores, paradigms, and worldviews translate into behaviors (e.g., factory farming for meat production and consumption) that in turn modify the environment. In general, much of our thinking system is backed up by some concept, theory, paradigm, or ideology. Our thinking systems generate our belief systems of goals and mission statements; our belief systems, in turn, determine our behavior systems (e.g., our strategies, choices, commissions, omissions as implementation systems); our behavior systems determine our impact systems (e.g., impact on us, our families and neighborhoods, our cities and villages, our state and our country, our globe and sometimes our cosmos). Thus, our behavior systems eventually impact our thinking systems, which we started with, thus completing a circular or spiral loop. This chapter examines the thinking–beliefs–behaviors–impact loop, exploring its internal and external dynamics and validities. Specifically, in Part I, we examine the structure of our belief systems in business; in Part II, we explore the power of our structured belief systems in business; in Part III, we apply critical thinking that systematically questions and seeks to redesign our presumed thinking and belief systems.

Systems thinking calls for a shift of our mindset from seeing just parts to seeing the whole reality in its structured dynamic unity and interconnectedness. Systems thinking fosters a sensibility to see subtle connections between components and parts of reality, especially the free enterprise capitalist system (FECS). It enables us to see ourselves as active participants or partners of FECS and not mere induced factors of its production–distribution–consumption processes. Systems thinking seeks to identify the economic “structures” that underlie complex situations in FECS that bring about high versus low leveraged changes. A system is strengthened and reinforced by feedback of reciprocal exchanges that makes the system alive, transparent, human, and humanizing.

In Part I, we explore basic laws or patterns of behaviors as understood by systems thinking; in Part II we examine the basic archetypes or structured behaviors of systems thinking; in both parts we strive to see reality through the lens of critical thinking to help us understand patterns and structures of behavior among systems and their component parts. In conclusion, we argue for compatibility and complementarity of critical thinking and systems thinking to identify and resolve management problems created by our flawed thinking, and sedimented by our wanton assumptions, presumptions, suppositions and presuppositions, biases, and prejudices. Such thinking will also identify unnecessary economic and political structures of the self-serving policies we create, which imprison us.

All of us seek truth via objective inquiry into various human and nonhuman phenomena that nature presents to us on a daily basis. We are empirical (or nonempirical) decision makers who hold that uncertainty is our discipline, and that understanding how to act under conditions of incomplete information is the highest and most urgent human pursuit (Karl Popper, as cited in Taleb, 2010, p. 57). We verify (prove something as right) or falsify (prove something as wrong), and this asymmetry of knowledge enables us to distinguish between science and nonscience. According to Karl Popper (1971), we should be an “open society,” one that relies on skepticism as a modus operandi, refusing and resisting definitive (dogmatic) truths. An open society, maintained Popper, is one in which no permanent truth is held to exist; this would allow counter-ideas to emerge. Hence, any idea of Utopia is necessarily closed since it chokes its own refutations. A good model for society that cannot be left open for falsification is totalitarian and epistemologically arrogant. The difference between an open and a closed society is that between an open and a closed mind (Taleb, 2004, p. 129). Popper accused Plato of closing our minds. Popper's idea was that science has problems of fallibility or falsifiability. In this chapter, we deal with fallibility and falsifiability of human thinking, reasoning, and inferencing as argued by various scholars, as well as the falsifiability of our knowledge and cherished cultures and traditions. Critical thinking helps us cope with both vulnerabilities. In general, we argue for supporting the theory of “open mind and open society” in order to pursue objective truth.