Ethics in Negotiation McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Ethics:  Are broadly applied social standards for what is right or wrong in a particular situation, or a process for setting those standards  Grow out of particular philosophies which Define the nature of the world in which we live Prescribe rules for living together 8-2

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 Using ethically ambiguous tactics: It’s (mostly) all about the truth  Identifying ethically ambiguous tactics and attitudes toward their use What ethically ambiguous tactics are there? Is it all right to use ethically ambiguous tactics? 8-4

 Deception by omission versus commission Omission – failing to disclose information that would benefit the other Commission – actually lying about the common- value issue  The decision to use ethically ambiguous tactics: A model 8-5

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 The power motive The purpose of using ethically ambiguous negotiating tactics is to increase the negotiator’s power in the bargaining environment  Other motives to behave unethically Negotiators are more likely to see ethically ambiguous tactics as appropriate if they anticipate that the other’s expected motivation would be more competitive 8-7

A negotiator who employs an unethical tactic will experience positive or negative consequences. The consequences are based on:  Effectiveness – whether the tactic is effective  Reactions of others – how the other person, constituencies, and audiences evaluate the tactic  Reactions of self – how the negotiator evaluates the tactic, feels about using the tactic 8-8

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 8-9

 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” 8- 10

 “They were going to do it anyway, so I will do it first”  “He started it”  The tactic is fair or appropriate to the situation 8- 11

 Ask probing questions  Phrase questions in different ways  Force the other party to lie or back off  Test the other party  “Call” the tactic  Ignore the tactic  Discuss what you see and offer to help the other party change to more honest behaviors  Respond in kind 8- 12