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Week 3 Lesson 1:
Introduction to Negotiation
&
Ethics

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Learning Outcomes

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• Explain what is  Negotiation 
• Explain the importance of ethics in Negotiation and ways to
handle unethical conduct in negotiation 
• Discuss possible ethical dilemmas encountered in BETA
project and how the team can better tackle them 

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“Negotiation and

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discussion are the
greatest weapons we
have for promoting
peace and
development.”
Nelson Mandela

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Activity: In a group of 5-6:
What Makes In 15 min, do a research as a group and answer the

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a Negotiation? following questions on a flipchart:
1. “What is Negotiation?”
2. “What needs to be present (i.e. Conditions) for
Negotiations to be effective?”

Time
Allocated: 30 Take the next 15mins to share with the class.
minutes
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What is Negotiation?

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Negotiation is something that everyone does, almost daily!

It occurs when there is a need between parties:

To Agree To Create To Resolve

on how to share or something that neither a problem or
divide limited party could attain on dispute between
resource(s) his/ her own the parties
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Win–win situations such as those
that occur when parties try to find
a mutually acceptable solution to a
complex conflict

How much do you agree with the above statement?

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Characteristics of a

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Negotiation Situation

TWO OR MORE parties

CONFLICT of needs and desires

between the parties

Parties think they can get A BETTER

DEAL than by simply accepting what
the other side offers them

Parties expect a “GIVE-AND-TAKE”

process
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Characteristics of a

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Negotiation Situation

Parties SEARCH FOR AGREEMENT

rather than:
• Fight openly
• Give in easily
• Break off contact permanently
• Take their dispute to a third party
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Successful Negotiations involves

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Management of Resolution of
Tangibles Intangibles
Which can include the Which can include the
price or the terms and underlying psychological
conditions to the triggers of parties (such as
agreement the motivation of winning,
losing/ saving face, etc.)
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Activity: In a group of 5-6 (Total of 4 groups):
Pasta War Read the instruction sheet given by the tutor.

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The group has to make a decision as a group.
Each group will report their profits to the key
shareholder (tutor) at the end of the game.

Time
Allocated: 45
minutes
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DEBRIEF

PASTA WAR Should a business look at short term or long term

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gains? Which would be a better approach in your
opinion and why?
How would a business owner feel when others do not
keep to their words? Would you do business with
them in the long term?
HOME
What happens when businesses have unethical
Entrepreneurial
practices? What would be the long term effects?
activities differ

Why is ethics important when doing business?

substantially
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Ethics in
Negotiation

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What is Ethics in Negotiation?

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Ethics are broadly applied social standards for what is right or wrong
in a particular situation, or a process for setting those standards

Ethics define the Ethics prescribe

world/ society in which rules for living
we live or operates together

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2 Types of Deception

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By Commission By Omission
actually lying about the failing to disclose
common-value issue information that would
benefit the other

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Rationalisation for Unethical Conduct

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1. It was unavoidable
2. It was harmless
3. It helped us avoid negative consequences
4. It produced good consequences
5. They deserve it
6. I was just getting what I deserve
7. “They were going to do it anyway, so I will do it first.”
8. The other party started it
9. It was fair or appropriate to the situation
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Dealing with the use of Deception

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1. Ask probing questions
2. Rephrase questions
3. Point out inconsistencies
4. Ignore the deception
5. Discuss what you see and check for clarifications
6. Respond in kind
7. Offer help and give assurance

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Activity: In your BETA team:
Ethical In 10 min, discuss the following:

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dilemmas 1. Why is it important for a business to be ethical?
encountered in
2. What are the possible ethical dilemmas
BETA project
encountered in BETA project and how the team can
better tackle them.

Time
Allocated: 15 Take the next 5 mins to share with the class.
minutes

Explain what is
 Negotiation
Negotiation occurs when there
is a need between parties to
agree on how to share or divide
a limited resource, to create
something new that neither
party could attain on his or her
own, to resolve a problem or
dispute between the parties
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Explain the Discuss possible
importance of ethical dilemmas
ethics in Explain tactics to  encountered
Negotiation handle unethical and the
Ethics define the nature conduct in solutions to
of the world in which we
live and prescribe rules negotiation  them
for living together. There are many tactics It’s time to get the
undertaken to handle team together to think
unethical conduct in through the possible
negotiation. Use the ethical dilemmas 
tactic that you are most encountered and how
comfortable and best in can we deal with them.
tackling the situation.
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Thank You.