Ethics in Negotiation

ETHICS IN NEGOTIATIONPrepared ByARZU ERDALF. EBRU ENOLE. FULYA NALMANOLYA GROCAK

ETHICSIt thus seems very appropriate to define the ethical issues likely to arise in negotiation, and boundaries (if they exist) that commonly delineate ethical from unethical conduct.

ETHICS IN NEGOTIATIONIn this presentation, we explore the question of whether there are, or should be, accepted ethical standards for behavior in negotiations.It is our view that the fundamental questions of ethical conduct arise in every negotiation.The effective negotiator must recognize when the questions are relevant and what factors must be considered to answer them.

WHY DO NEGOTIATORS NEED TO KNOW ABOUT ETHICS?

WHY DO NEGOTIATORS NEED TO KNOW ABOUT ETHICS?What are ethics and how do they apply to negotiation?What are the major ethical concerns that apply to negotiation?What major types of ethical and unethical conduct are likely to occur in negotiation?What factors shape a negotiators predisposition to use unethical tactics?How can negotiators deal with the other partys use of deception?

WHAT ARE ETHICS AND WHY DO THEY APPLY TO NEGOTIATION?

What is right or wrong in a particular situationEthics define the nature of the world in which we livePrescribe rules for living together

WHAT ARE ETHICS AND WHY DO THEY APPLY TO NEGOTIATION?Make the decision on the basis of expected results, or what would give us the greatest return on investment.What the law says, on the legality of the matter.The strategy and values of my organization.My own personal convictions and what my conscience told me to do

WHAT ARE THE MAJOR ETHICAL CONCERNS THAT APPLY TO NEGOTIATION?

HOW DO WE CLASSIFY THE MAJOR ETHICAL QUESTIONS?

Three major dimensions of ethical conduct arise in negotiationsMeans/EndsRelativism/AbsolutismTruth-Telling

HOW DO WE CLASSIFY THE MAJOR ETHICAL QUESTIONS?Means/Ends

UtilitarianismSeek the greatest good for the greatest numberQuantitate and optimize happiness in society while minimizing painExamples: Interstate highways through farms benefit the larger public

HOW DO WE CLASSIFY THE MAJOR ETHICAL QUESTIONS?Relativism/Absolutism / Nihilism

AbsolutismWhat is right is universal, timeless, and absoluteRelativismWhat is right may be different for different people or culturesNihilismThere is no right or wrong

HOW DO WE CLASSIFY THE MAJOR ETHICAL QUESTIONS?Truth-Telling

How does one define truth?How does one classify various deviations from truth? All they all lies?

HOW DO WE CLASSIFY THE MAJOR ETHICAL QUESTIONS?Deception and disguise may take several forms in negotiationMisrepresentation of ones position Bluffing FalsificationDeceptionSelective disclosure or mispresentation to constituencies

WHAT MAJOR TYPES OF ETHICAL AND UNETHICAL CONDUCT ARE LIKELY TO OCCUR IN NEGOTIATION?

ETHICS IN NEGOTIATION IS MOSTLY ABOUT TRUTH TELLING

Carr (1968): Businesspeople ought to play the game as poker players do

TYPOLOGIES OF DECEPTIVE TACTICS AND ATTITUDES TOWARD THEIR USE

INTENTIONS AND MOTIVES TO USE DECEPTIVE TACTICS

OConnor and Carnevale (1997)Two forms of deception in misrepresenting the common-value issue:Misrepresentation by omissionMisrepresentation by commission

THE MOTIVATION TO BEHAVE UNETHICALLY

OConnor and Carnevale (1997) individualistic orientationcooperative orientation

THE CONSEQUENCES OF UNETHICAL CONDUCT

Consequences:Will occur depending on whether the tactic worked or notMay result depending on how the negotiator evaluates his/her use of tacticMay come from the judgements and the evaluations of that negotiator

EXPLANATIONS AND JUSTIFICATIONSThe tactic was unavoidableThe tactic was harmlessThe tactic will help to avoid negative consequencesThe tactic will produce good consequencesThey had it coming or they deserve it or Im just getting my dueThey were going to do it anyway, so I will do it firstThe tactic is fair or appropriate to the situation

WHAT FACTORS SHAPE A NEGOTIATORS PREDISPOSITION TO USE UNETHICAL TACTICS?

Demographic FactorsPersonality Differences and Moral DevelopmentMoral Development and Personal Values

WHAT FACTORS SHAPE A NEGOTIATORS PREDISPOSITION TO USE UNETHICAL TACTICS?Demographic FactorsSexAge and experienceEthnicityNationality and cultural backgroundProfessional orientationAcademic background

WHAT FACTORS SHAPE A NEGOTIATORS PREDISPOSITION TO USE UNETHICAL TACTICS?

Personality Differences and Moral DevelopmentCompetitiveness versus cooperativenessMachiavellianism Locus of control

WHAT FACTORS SHAPE A NEGOTIATORS PREDISPOSITION TO USE UNETHICAL TACTICS?

Moral Development and Personal ValuesA preconventional level (Stage 1 and 2)A conventional level (Stage 3 and 4)A principled level (Stage 5 and 6)

CONTEXTUAL INFLUENCES ON UNETHICAL CONDUCTPast experience Role of incentivesRelationship between the negotiator and the other partyRelative power between the negotiatorsMode of communicationActing as an agent versus representing your own viewsGroup and organisational norms and pressuresNational culture norms

HOW CAN NEGOTIATORS DEAL WITH THE OTHER PARTYS USE OF DECEPTION? IntimidationFulility portroyalDiscomfort and reliefBluffingGentle prodsMinimizationContradictionAltered information

HOW CAN NEGOTIATORS DEAL WITH THE OTHER PARTYS USE OF DECEPTION?A chink in the defenseSelf-disclosurePoint of deception cuesConcernKeeping the status guoDirect approachSilence

HOW CAN NEGOTIATORS DEAL WITH THE OTHER PARTYS USE OF DECEPTION?Ask Probing QuestionsRecognize the Tacticgnore the tacticAsk questionsCall the tacticRespond in kindDiscuss what you see and offer to help the other party change to more honest behaviors