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CHAPTER NINE
Ethics In Negotiation

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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

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Resolving Moral Problems

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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
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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

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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 ethically ambiguous tactics are there?
Does tolerance for ethically ambiguous tactics lead
to their actual use?
Is it okay to use ethically ambiguous 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

The decision to use ethically ambiguous tactics: A


model

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Categories of Marginally Ethical


Negotiating Tactics

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

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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
They had it coming, or They deserve it, or Im
just getting my due
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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

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A More Complex Model of Ethical


Decision Making

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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

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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

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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
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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

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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
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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

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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

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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
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