BUSINESS NEGOTIATIONS

BUS310

Fall 2018/2019

Assignment

Submitted to

Dr. Sayel Sabha

Submitted by

Ahmed Saeed Alqubaisi

ID: #201620115
THE IMPORTANCE OF NEGOTIATION ETHICHS
Commonly held assumptions reflect negatively on the ethics of the negotiation tactics of car
salespeople, lawyers, horse traders, and other people who have a reputation of trying to influence
folks into reaching agreements by misrepresenting facts. This kind of stereotyping has attached
itself to people from different countries, ethic groups, or even as reflected in the expression from
the 60s ‘Don’t trust anyone over 30’.

Negotiation is about many things; one of its central elements is convincing others to accept the
accuracy or reality of information that will influence their decision. Most negotiators know that it
is, indeed, possible to influence people by lying to them. But good negotiators also realize that
when other parties find out they have been on the receiving end of lies, the lying negotiator’s
credibility goes down to tubes.

There is an old expression ‘If you cheat me once, shame on you. ‘If you cheat me twice, shame
on me.’ People who have been taken in by dishonestly resent it; if they are able, they try to get
out of deals where there’s been misrepresentation.

In general, a general negotiator must make positive misstatement to be held liable fraud. First,
when the negotiator makes a partial disclosure that is; or becomes, misleading. Second, where
the negotiator acts as a fiduciary. Third, when the negotiator has important information about the
transaction not accessible to the other side. Fourth, where required by statue.

On the other side we can say that negotiation is not a competitive sport. In competitive sports,
the object is to end up winning the game, the race, or the event. Negotiators who focus on
treating other parties as opponents run the risk of ending up with reluctant counterparties to
whatever agreements may be reached. Unless all the parties are fully committed to their
agreement, it may well fall apart; in those circumstances the negotiation has failed.

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 The ethics of negotiation should be based on several understandings;
 Reluctant partners make undependable partners so treating negotiation partners
with respect and honesty simply makes common sense.
 Negotiators need to recognize up front that the only reason to use negotiation to
resolve a conflict, agree on a project, or conclude a sale because other parties may
be able to add value an individual or a single company cannot do acting alone.
 Transparency in the negotiation process is more likely to bring about buy-in than
hidden agendas or tricky maneuvers.
 Other parties have feelings.

Last understanding is the Golden Rule of treating others as you would wish to be treated has the
bottom line value of increasing other parties’ enthusiasm about negotiating with you as well as
their enthusiasm about the ultimate agreement.
Good negotiation ethics: honesty, transparency, respect for others are all genuinely pragmatic
approaches to use. A negotiator’s reputation is not unlike that of a restaurant; if you have bad
meal, you are not likely to return. And a negotiator with whom others don’t want to deal is
effectively out of business.
Negotiator also should understand four major approaches to ethical reasoning: end-result ethics,
or the principals of act utilitarianism; rule ethics, or the principle of rule utilitarianism; social
contract ethics, or the principles of community-based socially acceptable behaviour; and
personalistic ethics, or the principles of determining what is right buy turning to one’s
conscience. Each of these approaches may be used by negotiators to evaluate appropriate
strategies and tactics.
Consequently we can say that negotiation ethics is more important for negotiator that’s why
negotiator should recognize ethics carefully. Also unethical behaviours are most important to the
negotiator. Because when he or she faced with unethical behaviour he or she should find the
reasons for unethical behaviour.

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MANAGING NEGOTIATIONS ON THE INTERNATİONAL BUSİNESS
When doing business internationally, there are numerous areas for negotiation. What happens if
the merchandise is damaged during transportation? What inspections or authorization paperwork
is necessary? When will payment be made, in which currency and by what date? What, if
anything, will the packaging consist of? What are the regulations related to importing and
exporting the product, in all countries involved with the transaction? Negotiation is where these
and numerous other questions should be answered. If the contract does not address these
questions, or is not clear, they will be answered by applying the law of whatever country or
international convention has been chosen to govern the contract. Negotiation is the fulcrum of
commercial transactions. When parties consider buying or selling, importing or exporting goods,
it is with the intention of gaining something that will benefit their bottom line. These gains are
often at the expense of other parties who have their own gains in mind. The final agreement on
what will be exchanged is often the result of rounds of negotiations full of concessions: some
voluntary and some based on foreign legislation .
Hire a consultant If there is no in-house expertise skilled in the international negotiation arena,
retain one to help. If cost is an issue, purchase literature or search online to subscribe to an
accredited expert.
Choose your team wisely Consider a small, competent team to manage expenses, schedules and
communication more effectively, especially if travel is necessary. Also, if there is a language or
cultural barrier, be sure to include a translator and/or customary expert as part of your team.
Gauge your counterpart’s bargaining power and negotiation style Usually one party has
substantially more to gain or lose from an international venture. Over or underestimating the
balance of bargaining power can result in unnecessary concessions or failed negotiations.
Similarly, if you approach negotiations too aggressively and your counterpart is more passive, or
if you are technically focused and they are financially focused, the business venture will not
seem like a good fit.
Meet them in person If at all possible, it is important to meet with prospective parties face-to-
face. Be conscientious of cultural norms. Be on time, dress in appropriate attire and demonstrate
proper manners and respect. First appearances go a long way in establishing the tone and trust

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level for further negotiations. Similarly, choosing a neutral site or persuading them to come to
your home territory can help you overcome or address cultural biases.
Fix the agenda and keep detailed records In addition to being perceived as professional and
informed, an agenda (or a checklist) helps keep time, expenses and schedules in check, limits the
number of issues that can be overlooked, keeps further rounds on track, and provides reference
for future negotiations.
You have to understand that the longer a deal takes to get completed, the more likely that
something will occur to derail it. So be prompt at responding, get your lawyer to turn documents
around quickly, and keep the deal momentum moving. However, that doesn’t mean you should
rush through negotiations and make concessions that you don’t need to make. Understand when
time is on your side and when time could be your real enemy.
Negotiating requires give and take. You should aim to create a courteous and constructive
interaction that is a win-win for both parties. Ideally a successful negotiation is where you can
make concessions that mean little to you, while giving something to the other party that means a
lot to them. Your approach should foster goodwill, regardless of the differences in party
interests.
There are several different formats and styles of negotiations, and which one you use depends on
a host of factors such as the strength of the relationship, the urgency of the situation, the
complexity of the issues, and the content of the negotiation. Each format and style has its own
strengths and weaknesses and can be strategically used in various types of situations. While
positioned bargaining may be adequate for quick and informal negotiations such as price
haggling, principled negotiations provide a sound backdrop for successful agreements that add
value to both parties by fulfilling mutual interests. In addition, the five different negotiation
styles (competing, accommodating, avoiding, compromising, and collaborating) are appropriate
in different situations, though the collaborative style is universally recommended for principled
negotiation as it helps increase value. Finally, preparation is a key element of a successful
negotiation, and specifically the Seven Elements can serve as a strong foundation for
comprehensive preparation and strategizing.

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BIBLIOGRAPHY

 LEWICKI J. Roy, David M. SAUNDERS, John W. MINTON, 2000

Negotiation (McGraw-Hill International Editions)
 THOMPSON Leigh, 1998
The Mind and Heart of the Negotiator (Prentice Hall)
 BAZERMAN M. H., & Roy J. Lewicki, 1983
Negotiation in Organizations (Beverly Hills)
 WHITE James, 1980
Machiavelli and the Bar:Ethical Limitations on Lying in Negotiation
(Journal of Personality and Social Psychology)
 http://www.busiweek.com
http://www.culture-at-work.com/ethics.html
http://www.negotiatormagazine.com/article217_1.html
http://www.negotiatormagazine.com/article301_1.html
http://www.nextlevelpurchasing.com/articles/negotiation-ethics.html
http://oregonstate.edu/instruct/comm440-540/ethicsanddeception.html
http://www.negotiations.com/articles/ethical-negotiation/