CHAPTER EIGHT Ethics In Negotiation

negotiation & conflict management s. kaufman based on lewicki & al.

Plan
Ethics SINS scale

negotiation & conflict management s. kaufman based on lewicki & al.

Ethics
What Do We Mean by Ethics?

Why Do They Matter in Negotiation?

negotiation & conflict management s. kaufman based on lewicki & al.

What Do We Mean by Ethics?

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
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Resolving Moral Problems

negotiation & conflict management s. kaufman based on lewicki & al.

Four Approaches to Ethical Reasoning

1. End-result ethics
The rightness of an action is determined by evaluating its consequences

2. Duty ethics
The rightness of an action is determined by ones obligation to adhere to
consistent principles laws social standards

that define what is right and wrong

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Four Approaches to Ethical Reasoning

3. Social contract ethics
The rightness of an action is based on the customs and norms of a particular society or community

4. Personalistic ethics
The rightness of the action is based on ones own conscience and moral standards
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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 tactics are there? Does tolerance for ethically ambiguous tactics lead to their actual use? Is it OK to use ethically ambiguous tactics?
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Categories of Marginally Ethical Negotiating Tactics

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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

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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
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Model of Ethical Decision Making

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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, audiences evaluate the tactic Reactions of self how the negotiator evaluates the tactic, feels about using it
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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

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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
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Rationalizations for Unethical Conduct They had it coming, or They deserve it, or Im just getting my due 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
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SINS scale
SEVEN CLUSTERS OF MARGINALLY ETHICAL TACTICS:
1.Traditional Competitive Bargaining 2.Attacking Opponent's Network 3.False Promises 4.Misrepresentation 5.Inappropriate Information Gathering 6.Strategic Misrepresentation of Positive Emotions 7.Strategic Misrepresentation of Negative Emotions
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SINS scale
Traditional Competitive Bargaining
Average T/3 5.50*

Inappropriate Information Gathering

Average T/3 2.35

Attacking Opponents Network

Average T/3 1.91

Strategic Misrepresentation of Positive Emotion

Average T/3 5.09

False Promises
Average T/3 2.06

Misrepresentation
Average T/4 3.02

Strategic Misrepresentation of Negative Emotion

Total T/6 4.82

Numbers represent mean ratings for MBAs at leading business schools.

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2.9 Three schools of bargaining ethics its a game poker school

negotiation as a game with rules
all sorts of strategies are allowed (including deception) bluffs realistic, attractive, difficult-to-check what is outside the rules is unethical no outright fraud

problems: assumes
all treat it as a game all know the rules cold the law is fixed, uniform and known
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2.9 Three schools of bargaining ethics

do the right thing even if it hurts idealist school
negotiation as an aspect of social life
same ethics as in all other situations no lying omission allowed can decline to answer questions honesty preferred even at own expense rooted in philosophy/religion poker school viewed as predatory

problems: standards too high!

difficult to uphold open to exploitation (troublesome for agents)

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2.9 Three schools of bargaining ethics what goes around comes around pragmatist school,
combines elements of the other two

poker school
deception is a necessary part of negotiation

idealist school with a prudent twist

deception is to be avoided because it does not pay and it can hurt (not because its wrong) avoid lying about core facts

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