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Ethics In Negotiation

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Title: Ethics In Negotiation


1
Ethics In Negotiation
  • MGT 5374 Negotiation Conflict Management
  • Section 002
  • October 6, 2005
  • John D. Blair, PhD
  • Georgie G. William B. Snyder Professor in
    Management

2
Ethics
  • Behaving in moral ways
  • Most societies have guidelines for behavior
  • What one society views as unethical may be
    considered acceptable in another society
  • Ethics is evolving rather than a set of standards
    that must never change
  • Develop code of ethics

3
Societal Ethics
  • Ethics refers to our beliefs about what
    comprises a happy life, what makes for a
    worthwhile society ethics also includes our
    beliefs about what behavior contributes to or
    frustrates the achievement of a worthwhile
    society. Finally, ethics wonders about what
    features of character are worth cultivating.
  • Delores Dooley - Philosopher

4
Ethical Negotiation
  • Importance of context
  • Locus of control
  • Internal locus of control see yourself as a
    causal agent of what happens to you
  • External locus of control view outside factors
    as the predominant cause of negative outcomes in
    your life
  • Those with internal locus of control are less
    likely to make excuses for their actions if found
    to be engaged in questionable tactics
  • Right to defend or protect self from unethical
    opponents

5
Negotiation Tactics
Distributive Negotiations (Desire to Win)
Integrative Negotiations (Achieve Mutual
Gain)
Borderline Tactics
  • Exaggerating demands
  • Pretend not to be in a hurry
  • Ask for more than you expect
  • Hiding the bottom line
  • Misrepresenting information
  • Bluffing
  • Influencing an opponents professional network
  • Encouraging others to defect to your side

6
Tactics to Avoid
  • Bluffing
  • Falsification
  • Misrepresentation
  • Deception
  • Selective disclosure

7
Recommended Tactics
  • Rely on persuasion rather than manipulation and
    coercion
  • Identify tactics to avoid (e.g. anything
    dishonest, disrespectful, irresponsible,
    manipulative)
  • Agree to common guidelines (e.g. treat others
    with respect, avoid misrepresentations)

8
Ethics and Emotion
  • Persuasion based on reason alone may be more
    ethical
  • Reasoning alone may be insufficient to convince
    or persuade others
  • Use of emotion in persuasion may be unethical if
    the negotiators intent is self-serving and may
    harm the other party

9
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

10
Resolving Moral Problems
11
Four Approaches to Ethical Reasoning
  • End-result ethics
  • The rightness of an action is determined by
    evaluating its consequences
  • Duty ethics
  • The rightness of an action is determined by ones
    obligation to adhere to consistent principles,
    laws and social standards that define what is
    right and wrong

12
Four Approaches to Ethical Reasoning
  • Social contract ethics
  • The rightness of an action is based on the
    customs and norms of a particular society or
    community
  • Personalistic ethics
  • The rightness of the action is based on ones own
    conscience and moral standards

13
Questions of Ethical Conduct that Arise in
Negotiation
  • Using ethically ambiguous tactics Its (mostly)
    all about the truth
  • Identifying ethically ambiguous tactics and
    attitudes toward their use
  • What ethically ambiguous tactics are there?
  • Does tolerance for ethically ambiguous tactics
    lead to their actual use?
  • Is it okay to use ethically ambiguous tactics?

14
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

15
Categories of Marginally Ethical Negotiating
Tactics
16
Why Use Deceptive Tactics?Motives and
Consequences
  • The power motive
  • The purpose of using ethically ambiguous
    negotiating tactics is to increase the
    negotiators 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 others expected motivation
    would be more competitive

17
Model of Ethical Decision Making
18
The Consequences ofUnethical 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

19
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

20
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
    Im just getting my due

21
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

22
A More Complex Model of Ethical Decision Making
23
What Factors Shape a Negotiators Predisposition
to Use Unethical Tactics?
  • Demographic factors
  • Sex
  • Women tend to make more ethically rigorous
    judgments than men
  • Age and experience
  • Both men and women behave more ethically as they
    age
  • Individuals with more general work experience,
    and with direct work experience, are less likely
    to use unethical negotiating tactics

24
What Factors Shape a Negotiators Predisposition
to Use Unethical Tactics?
  • Demographic factors (cont.)
  • Nationality and culture
  • Significant differences are found across
    different nationalities and cultural
    backgrounds  
  • Professional orientation
  • People in different professions differ on
    judgments of perceived appropriateness

25
What Factors Shape a Negotiators Predisposition
to Use Unethical Tactics?
  • Personality differences
  • Competitiveness versus cooperativeness
  • Machiavellianism
  • Some individuals are more willing and able con
    artists
  • Are more likely to lie when they need to
  • Better able to lie without feeling anxious about
    it
  • More persuasive and effective in their lies

26
What Factors Shape a Negotiators Predisposition
to Use Unethical Tactics?
  • Personality differences (cont.)
  • Locus of control
  • The degree to which individuals believe that the
    outcomes they obtain are largely a result of
    their own ability and effort (internal control)
    versus fate or chance (external control)
  • Individuals who are high in internal control are
    more likely to do what they think is right

27
What Factors Shape a Negotiators Predisposition
to Use Unethical Tactics?
  • Moral development and personal values
  • Preconventional level (Stages 1 and 2)
  • Individual is concerned with concrete outcomes
    that meet his or her own immediate needs,
    particularly external rewards and punishments
  • Conventional level (Stages 3 and 4)
  • Individual defines what is right on the basis of
    what immediate social situation and peer group
    endorses or what society in general seems to want

28
What Factors Shape a Negotiators Predisposition
to Use Unethical Tactics?
  • Moral development and personal values (cont.)
  • Principled level (Stages 5 and 6)
  • Individual defines what is right on the basis of
    some broader set of universal values and
    principles
  • The higher the stage people achieve
  • More complex their moral reasoning should be
  • More ethical their decisions should be

29
What Factors Shape a Negotiators Predisposition
to Use Unethical Tactics?
  • Contextual influences on unethical conduct
  • Past experience
  • Role of incentives
  • Relationship between the negotiator and the other
    party
  • Relative power between the negotiators
  • Mode of communication
  • Acting as an agent versus representing your own
    views
  • Group and organizational norms and pressures

30
How Can Negotiators Deal With the Other Partys
Use of Deception?
  • Ask probing questions
  • Force the other party to lie or back off
  • Call the tactic
  • Discuss what you see and offer to help the other
    party change to more honest behaviors
  • Respond in kind
  • Ignore the tactic

31
Responding to Unethical Negotiators
  • Be alert to the possibility of unethical behavior
    and prepared to effectively respond
  • Strategies
  • Directly confront the negotiator
  • Indirectly confront the negotiator
  • Respond with humor
  • Silence and appropriate non-verbals (e.g.
    skepticism, raised eyebrows)
  • Declarative statements (e.g. come on now, get
    real!)

32
Responses continued
  • Recognize straying from best practices is
    natural human behavior
  • Give your counterpart the benefit of the doubt
  • Enable him/her to save face
  • Correct unethical approach without disgrace
  • Always take the high road
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