CHAPTER NINEEthics In Negotiation

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 standardsGrow out of particular philosophies whichDefine the nature of the world in which we livePrescribe rules for living together

Resolving Moral Problems

Four Approaches to Ethical ReasoningEnd-result ethicsThe rightness of an action is determined by evaluating its consequencesDuty ethicsThe 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

Four Approaches to Ethical ReasoningSocial contract ethicsThe rightness of an action is based on the customs and norms of a particular society or communityPersonalistic ethicsThe rightness of the action is based on ones own conscience and moral standards

Questions of Ethical Conduct that Arise in NegotiationUsing ethically ambiguous tactics: Its (mostly) all about the truthIdentifying ethically ambiguous tactics and attitudes toward their useWhat ethically ambiguous tactics are there?Does tolerance for ethically ambiguous tactics lead to their actual use?Is it okay to use ethically ambiguous tactics?

Questions of Ethical Conduct that Arise in NegotiationDeception by omission versus commissionOmission failing to disclose information that would benefit the otherCommission actually lying about the common-value issueThe decision to use ethically ambiguous tactics: A model

Categories of Marginally Ethical Negotiating Tactics

Why Use Deceptive Tactics?Motives and ConsequencesThe power motiveThe purpose of using ethically ambiguous negotiating tactics is to increase the negotiators power in the bargaining environmentOther motives to behave unethicallyNegotiators are more likely to see ethically ambiguous tactics as appropriate if they anticipate that the others expected motivation would be more competitive

Model of Ethical Decision Making

The Consequences ofUnethical ConductA 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 tacticReactions of self how the negotiator evaluates the tactic, feels about using the tactic

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

Rationalizations for Unethical Conduct The tactic was unavoidableThe tactic was harmlessThe tactic will help to avoid negative consequencesThe tactic will produce good consequences, or the tactic is altruistically motivatedThey had it coming, or They deserve it, or Im just getting my due

Rationalizations for Unethical Conduct They were going to do it anyway, so I will do it firstHe started itThe tactic is fair or appropriate to the situation

A More Complex Model of Ethical Decision Making

What Factors Shape a Negotiators Predisposition to Use Unethical Tactics?Demographic factorsSexWomen tend to make more ethically rigorous judgments than menAge and experienceBoth men and women behave more ethically as they ageIndividuals with more general work experience, and with direct work experience, are less likely to use unethical negotiating tactics

What Factors Shape a Negotiators Predisposition to Use Unethical Tactics?Demographic factors (cont.)Nationality and cultureSignificant differences are found across different nationalities and cultural backgroundsProfessional orientationPeople in different professions differ on judgments of perceived appropriateness

What Factors Shape a Negotiators Predisposition to Use Unethical Tactics?Personality differences Competitiveness versus cooperativenessMachiavellianismSome individuals are more willing and able con artistsAre more likely to lie when they need toBetter able to lie without feeling anxious about itMore persuasive and effective in their lies

What Factors Shape a Negotiators Predisposition to Use Unethical Tactics?Personality differences (cont.)Locus of controlThe 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

What Factors Shape a Negotiators Predisposition to Use Unethical Tactics?Moral development and personal valuesPreconventional level (Stages 1 and 2)Individual is concerned with concrete outcomes that meet his or her own immediate needs, particularly external rewards and punishmentsConventional 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

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 principlesThe higher the stage people achieve:More complex their moral reasoning should beMore ethical their decisions should be

What Factors Shape a Negotiators Predisposition to Use Unethical Tactics?Contextual influences on unethical conduct Past experienceRole of incentivesRelationship between the negotiator and the other partyRelative power between the negotiatorsMode of communicationActing as an agent versus representing your own viewsGroup and organizational norms and pressures

How Can Negotiators Deal With the Other Partys Use of Deception?Ask probing questionsForce the other party to lie or back offCall the tacticDiscuss what you see and offer to help the other party change to more honest behaviorsRespond in kindIgnore the tactic