Ch8-Ethics in Negotiation

What Are Ethics and Why Do They Apply to Negotiations?

•Ethics are broadly applied social standards for what is right or wrong in a particular situation, or a process for setting those standards.

Major Ethical Questions

1)What are ethics and why do they apply to negotiation?
2)What are questions of ethical conduct are likely to arise in negotiation?
3)What motivates unethical behavior, and what are the consequences?
4)How can negotiators deal with the other party’s use of deception?

Four Standards for Evaluating Strategies and Tactics in Business and Negotiation

-Choose a course of action on the basis of results I expect to achieve
-Choose a course of action on the basis of my duty to uphold appropriate rules and principles
-Choose a course of action on the basis of the norms, values, and strategy of my organization orcommunity
-Choose a course of action on the basis of my personal convictions

Four Approaches to Ethical Reasoning

•End-result ethics
•Duty ethics
•Social contract
•Personalistic ethics

Applying Ethical Reasoning to Negotiation

-If you believed in end-result ethics, then you might do whatever was necessary to get the best possible outcome
-If you believed in duty ethics, you might perceive an obligation never to engage in subterfuge, and might therefore reject a tactic that involves an outright lie
-If you believed in social contract ethics, you would base your tactical choices on your view of appropriate conduct for behavior in your community; if others would use deception in a situation like this, you lie
-If you believed in personalistic ethics, you would consult your conscience and decide whether your need for cash for your upcoming trip justfied using deceptive or dishonest tactics

Analytical Process for the Resolution of Moral Problems

Understand all moral standards ->>>Define Complete moral problem ->>>

Determine the economic outcomes ,Consider the legal requirements and Evaluate the ethical duties ->>> Propose convincing moral solution

Recognize all moral impacts:
-Benefits to some
-Harms to others
-Rights exercised
-Rights denied

Identifying Ethically Ambiguous Tactics and Attitudes toward Their Use

•What Ethically Ambiguous Tactics Are There?
•Is It All Right to Use Ethically Ambiguous Tactics?

•Deception by Omission versus Commission

•The Decision to Use Ethically Ambiguous Tactics:

“A Model”

Why Use Deceptive Tactics? Motives and Consequences

•The power motive
•Other motives to behave unethically
•The consequences of unethical conduct
• Explanations and justifications

The Power Motive

The purpose of using ethically
Ambiguous negotiating tactics is
to increase the negotiator’s power
in the bargaining environment
Whoever has better information,
or uses it more persuasively,
stands to “win” the negotiation

Other Motives to Behave Unethically

Negotiators may rationalize the use of
marginally ethical tactics versus taking
personal responsibility
•“He is going to cheat so I might as well cheat first”

The Consequences of Unethical Conduct

A negotiator who employs an unethical tactic
Will experience positive or negative
consequences. The consequences are based
on:
•Whether the tactic is effective
•How the other person, constituencies, and audiences evaluate the tactic
•How the negotiator evaluates the tactic

Explanations and Justifications

The primary purpose of explanations
and justifications is:
•To rationalize, explain, or excuse the behavior
•To verbalize some good, legitimate reason why this tactic was necessary

Rationalizations for Unethical Conduct

•The tactic was unavoidable
•The tactic was harmless
•The tactic will help to avoid negative consequences
•The tactic will produce good consequences, or the tactic is altruistically motivated
•“They had it coming,” or “They deserve it,” or “I’m just getting my due”
•The tactic is fair or appropriate to the situation

How Can Negotiators Deal With the Other Party’s Use of Deception?

•Ask Probing Questions
•Recognize the Tactic
–Ignore the tactic
–Ask questions
–“Call” the tactic
–Respond in kind
–Discuss what you see and offer to help the other party change to more honest behaviors

Summary

Negotiators who are considering the use
of deceptive tactics ask themselves he
following questions:
1. Will they really enhance my power ad help me to achieve my objectives?
2. how will the use of these tactics affect the quality of my relationship with the other party in the future?
3. How will the use of these tactics affect my reputation as a negotiator?