ethics in negotiation prepared by arzu erdal f. ebru Şenol e. fulya Ünal manolya gÜrocak
TRANSCRIPT
ETHICS IN ETHICS IN NEGOTIATIONNEGOTIATION
Prepared ByPrepared ByARZU ERDALARZU ERDAL
F. EBRU ŞENOLF. EBRU ŞENOLE. FULYA ÜNALE. FULYA ÜNAL
MANOLYA GÜROCAKMANOLYA GÜROCAK
ETHICSETHICS
It thus seems very appropriate to define It thus seems very appropriate to define the ethical issues likely to arise in the ethical issues likely to arise in negotiation, and boundaries (if they exist) negotiation, and boundaries (if they exist) that commonly delineate ethical from that commonly delineate ethical from unethical conduct.unethical conduct.
ETHICS IN ETHICS IN NEGOTIATIONNEGOTIATION
In this presentation, we explore the In this presentation, we explore the question of whether there are, or should be, question of whether there are, or should be, accepted ethical standards for behavior in accepted ethical standards for behavior in negotiations.negotiations.
It is our view that the fundamental It is our view that the fundamental questions of ethical conduct arise in every questions of ethical conduct arise in every negotiation.negotiation.
The effective negotiator must recognize The effective negotiator must recognize when the questions are relevant and what when the questions are relevant and what factors must be considered to answer them.factors must be considered to answer them.
WHY DO NEGOTIATORS WHY DO NEGOTIATORS NEED TO KNOW ABOUT NEED TO KNOW ABOUT
ETHICS?ETHICS?
WHY DO NEGOTIATORS WHY DO NEGOTIATORS NEED TO KNOW ABOUT NEED TO KNOW ABOUT
ETHICS?ETHICS? What are ethics and how do they apply to What are ethics and how do they apply to
negotiation?negotiation? What are the major ethical concerns that What are the major ethical concerns that
apply to negotiation?apply to negotiation? What major types of ethical and unethical What major types of ethical and unethical
conduct are likely to occur in negotiation?conduct are likely to occur in negotiation? What factors shape a negotiator’s What factors shape a negotiator’s
predisposition to use unethical tactics?predisposition to use unethical tactics? How can negotiators deal with the other How can negotiators deal with the other
party’s use of deception?party’s use of deception?
WHAT ARE ETHICS AND WHY WHAT ARE ETHICS AND WHY DO THEY APPLY TO DO THEY APPLY TO
NEGOTIATION?NEGOTIATION?
What is right or wrong in a What is right or wrong in a particular situationparticular situation
Ethics define the nature of the world Ethics define the nature of the world in which we livein which we live
Prescribe rules for living togetherPrescribe rules for living together
WHAT ARE ETHICS AND WHY WHAT ARE ETHICS AND WHY DO THEY APPLY TO DO THEY APPLY TO
NEGOTIATION?NEGOTIATION?Make the decision on the basis of Make the decision on the basis of expected results, or what would give us expected results, or what would give us
the greatest return on investment.the greatest return on investment. What the law says, on the legality of the What the law says, on the legality of the
matter.matter. The strategy and values of my The strategy and values of my
organization.organization. My own personal convictions and what My own personal convictions and what
my conscience told me to domy conscience told me to do
WHAT ARE THE MAJOR ETHICAL WHAT ARE THE MAJOR ETHICAL CONCERNS THAT APPLY TO CONCERNS THAT APPLY TO
NEGOTIATION?NEGOTIATION?
Ethical System Definition Major Proponent
End-Result EthicsRightness of an action is determined by
considering consequences John Stuart Mill (1806-1873)
Rule EthicasRightness of an action is determined by laws
and standards Immanuel Kant (1724-1804)
Social Contract Ethics
Rightness of an action is determined by the customs and norms of a community
Jean Jacques Rousseau (1712-1778)
Personalistic Ethics
Rightness of an action is determined by one's conscience Martin Buber (1878-1965)
HOW DO WE CLASSIFY HOW DO WE CLASSIFY THE MAJOR ETHICAL THE MAJOR ETHICAL
QUESTIONS?QUESTIONS?
Three major dimensions of ethical Three major dimensions of ethical conduct arise in negotiationsconduct arise in negotiations
Means/EndsMeans/Ends Relativism/AbsolutismRelativism/Absolutism Truth-TellingTruth-Telling
HOW DO WE CLASSIFY HOW DO WE CLASSIFY THE MAJOR ETHICAL THE MAJOR ETHICAL
QUESTIONS?QUESTIONS? Means/EndsMeans/Ends
Utilitarianism•Seek the greatest good for the greatest number
•Quantitate and optimize happiness in society while minimizing pain
•Examples: Interstate highways through farms benefit the larger public
HOW DO WE CLASSIFY HOW DO WE CLASSIFY THE MAJOR ETHICAL THE MAJOR ETHICAL
QUESTIONS?QUESTIONS? Relativism/Relativism/
Absolutism / Absolutism / NihilismNihilism •Absolutism
What is right is universal, timeless, and absolute
•RelativismWhat is right may be different for different people or cultures
•NihilismThere is no right or wrong
HOW DO WE CLASSIFY HOW DO WE CLASSIFY THE MAJOR ETHICAL THE MAJOR ETHICAL
QUESTIONS?QUESTIONS? Truth-TellingTruth-Telling
•How does one define truth?
•How does one classify various deviations from truth? All they all lies?
HOW DO WE CLASSIFY HOW DO WE CLASSIFY THE MAJOR ETHICAL THE MAJOR ETHICAL
QUESTIONS?QUESTIONS?Deception and disguise may take Deception and disguise may take
several forms in negotiationseveral forms in negotiation Misrepresentation of one’s position Misrepresentation of one’s position Bluffing Bluffing FalsificationFalsification DeceptionDeception Selective disclosure or Selective disclosure or
mispresentation to constituenciesmispresentation to constituencies
WHAT MAJOR TYPES OF ETHICAL AND WHAT MAJOR TYPES OF ETHICAL AND UNETHICAL CONDUCT ARE LIKELY TO UNETHICAL CONDUCT ARE LIKELY TO
OCCUR IN NEGOTIATION?OCCUR IN NEGOTIATION?
ETHICS IN NEGOTIATION IS ETHICS IN NEGOTIATION IS MOSTLY ABOUT TRUTH TELLINGMOSTLY ABOUT TRUTH TELLING
Carr (1968): Businesspeople ought to play the Carr (1968): Businesspeople ought to play the game as poker players dogame as poker players do
TYPOLOGIES OF DECEPTIVE TACTICS TYPOLOGIES OF DECEPTIVE TACTICS AND ATTITUDES TOWARD THEIR USEAND ATTITUDES TOWARD THEIR USE
Category Example
Traditional competitive bargaining Not disclosing your walkaway; making an inflated opening offer
Emotional manipulation Faking anger, fear, disappointment; faking elation,satisfaction
Misrepresentation Distorting information or negotiation events in describing them to others
Misrepresentation to opponent's networks Corrupting your opponent's reputation with his peers
Inappropriate information gathering Bribery, infiltration, spying, etc..
Bluffing Insincere threats or promises
INTENTIONS AND INTENTIONS AND MOTIVES TO USE MOTIVES TO USE
DECEPTIVE TACTICSDECEPTIVE TACTICS
O’Connor and Carnevale (1997)O’Connor and Carnevale (1997) Two forms of deception in Two forms of deception in
misrepresenting the common-value misrepresenting the common-value issue:issue:
Misrepresentation by omissionMisrepresentation by omission Misrepresentation by commissionMisrepresentation by commission
THE MOTIVATION TO THE MOTIVATION TO BEHAVE UNETHICALLYBEHAVE UNETHICALLY
O’Connor and Carnevale (1997) O’Connor and Carnevale (1997) ““individualistic” orientationindividualistic” orientation ““cooperative” orientationcooperative” orientation
THE CONSEQUENCES OF THE CONSEQUENCES OF UNETHICAL CONDUCTUNETHICAL CONDUCT
Consequences:Consequences: Will occur depending on whether the Will occur depending on whether the
tactic worked or nottactic worked or not May result depending on how the May result depending on how the
negotiator evaluates his/her use of negotiator evaluates his/her use of tactictactic
May come from the judgements and May come from the judgements and the evaluations of that negotiatorthe evaluations of that negotiator
EXPLANATIONS AND EXPLANATIONS AND JUSTIFICATIONSJUSTIFICATIONS
The tactic was unavoidableThe tactic was unavoidable The tactic was harmlessThe tactic was harmless The tactic will help to avoid negative The tactic will help to avoid negative
consequencesconsequences The tactic will produce good consequencesThe tactic will produce good consequences ““They had it coming” or “they deserve it” or They had it coming” or “they deserve it” or
“I’m just getting my due”“I’m just getting my due” ““They were going to do it anyway, so I will do They were going to do it anyway, so I will do
it firstit first The tactic is fair or appropriate to the situation The tactic is fair or appropriate to the situation
WHAT FACTORS SHAPE A WHAT FACTORS SHAPE A NEGOTIATOR’S PREDISPOSITION NEGOTIATOR’S PREDISPOSITION
TO USE UNETHICAL TACTICS?TO USE UNETHICAL TACTICS?
Demographic FactorsDemographic Factors Personality Differences and Moral Personality Differences and Moral
DevelopmentDevelopment Moral Development and Personal Moral Development and Personal
ValuesValues
WHAT FACTORS SHAPE A WHAT FACTORS SHAPE A NEGOTIATOR’S PREDISPOSITION NEGOTIATOR’S PREDISPOSITION
TO USE UNETHICAL TACTICS?TO USE UNETHICAL TACTICS? Demographic FactorsDemographic Factors SexSex Age and experienceAge and experience EthnicityEthnicity Nationality and cultural backgroundNationality and cultural background Professional orientationProfessional orientation Academic backgroundAcademic background
WHAT FACTORS SHAPE A WHAT FACTORS SHAPE A NEGOTIATOR’S PREDISPOSITION NEGOTIATOR’S PREDISPOSITION
TO USE UNETHICAL TACTICS?TO USE UNETHICAL TACTICS?
Personality Differences and Moral Personality Differences and Moral DevelopmentDevelopment
Competitiveness versus Competitiveness versus cooperativenesscooperativeness
Machiavellianism Machiavellianism Locus of controlLocus of control
WHAT FACTORS SHAPE A WHAT FACTORS SHAPE A NEGOTIATOR’S PREDISPOSITION NEGOTIATOR’S PREDISPOSITION
TO USE UNETHICAL TACTICS?TO USE UNETHICAL TACTICS?
Moral Development and Personal Moral Development and Personal ValuesValues
A preconventional level (Stage 1 and A preconventional level (Stage 1 and 2)2)
A conventional level (Stage 3 and 4)A conventional level (Stage 3 and 4) A principled level (Stage 5 and 6)A principled level (Stage 5 and 6)
CONTEXTUAL CONTEXTUAL INFLUENCES ON INFLUENCES ON
UNETHICAL CONDUCTUNETHICAL CONDUCT Past experience Past experience Role of incentivesRole of incentives Relationship between the negotiator and the Relationship between the negotiator and the
other partyother party Relative power between the negotiatorsRelative power between the negotiators Mode of communicationMode of communication Acting as an agent versus representing your Acting as an agent versus representing your
own viewsown views Group and organisational norms and pressuresGroup and organisational norms and pressures National culture normsNational culture norms
HOW CAN NEGOTIATORS DEAL HOW CAN NEGOTIATORS DEAL WITH THE OTHER PARTY’S USE WITH THE OTHER PARTY’S USE
OF DECEPTION?OF DECEPTION? IntimidationIntimidation Fulility portroyalFulility portroyal Discomfort and reliefDiscomfort and relief BluffingBluffing Gentle prodsGentle prods MinimizationMinimization ContradictionContradiction Altered informationAltered information
HOW CAN NEGOTIATORS DEAL HOW CAN NEGOTIATORS DEAL WITH THE OTHER PARTY’S USE WITH THE OTHER PARTY’S USE
OF DECEPTION?OF DECEPTION? A chink in the defenseA chink in the defense Self-disclosureSelf-disclosure Point of deception cuesPoint of deception cues ConcernConcern Keeping the status guoKeeping the status guo Direct approachDirect approach SilenceSilence
HOW CAN NEGOTIATORS DEAL HOW CAN NEGOTIATORS DEAL WITH THE OTHER PARTY’S USE WITH THE OTHER PARTY’S USE
OF DECEPTION?OF DECEPTION? Ask Probing QuestionsAsk Probing Questions Recognize the TacticRecognize the Tactic İgnore the tacticİgnore the tactic Ask questionsAsk questions ““Call” the tacticCall” the tactic Respond in kindRespond in kind Discuss what you see and offer to Discuss what you see and offer to
help the other party change to more help the other party change to more honest behaviorshonest behaviors