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

8-2 What Do We Mean by Ethics and Why Do They Matter in Negotiation? 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

8-3 Resolving Moral Problems

8-4 Questions of Ethical Conduct that Arise in Negotiation 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?

8-5 Questions of Ethical Conduct that Arise in Negotiation 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

8-6 Model of Deception in Negotiation

8-7 Why Use Deceptive Tactics? Motives and Consequences 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

8-8 The Consequences of Unethical Conduct 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

8-9 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

8-10 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”

8-11 Rationalizations for Unethical Conduct “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

8-12 How Can Negotiators Deal With the Other Party’s Use of Deception? 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