Download 8.1 What are ethics

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Chapter 9 Ethics in Negotiation
Evangeline Wu
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 negotiator’s predisposition to
use unethical tactics?
How can negotiators deal with the other party’s use
of deception?
8.1 What are ethics?
 Ethics defined
 Ethics: Broadly applied social standards for
what is right or wrong in a particular situation,
or process for setting those standards.
Ethics define the nature of the world in which
we live
Prescribe rules for living together
8.1 What are ethics ?
 Ethics vs. prudence vs. practicality vs. Legality
 Ethical: Appropriate as determined by some
standards of moral conduct
 Prudent: Wise, based on trying to understand the
efficacy of the tactic and the consequences it might
have on the relationship with others
 Practical: What is the easiest, cheapest, or fastest
way of getting something done to achieve an
objective
 Legal: What the law defines as acceptable practice
8.1 What are ethics ?
E.g. What standards could a salesperson preparing a
presentation on a new product use in determining
her strategy?
“What is the truth about this new product?”
---- Ethical judgement
“How can I best present this product?”
---- Prudent judgement
“What is the cheapest or most cost-effective way
to sell this product?”
---- Practical judgement
“H. Ross Perot gave this advice to young
business people: ‘Don’t govern your life by what is
legal or illegal, govern it by what’s right or wrong’”
“Unethical bargaining practices are, as often
as not, illegal or become so after they are brought
to light. The law simply expands to include them”
From “When is it Legal to Lie in Negotiations? “
by G. Richard Shell, Wharton in Sloan Mgt Review
Spring1991
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
Ethical System
Definition
Major Proponent
End-Result
Ethics
Rightness of an action is
determined by considering
consequences
John Stuart Mill
(1806-1873)
Rule Ethics
Rightness of an action is
determined by laws and
standards
Immanuel Kant
(1724-1804)
Social
Contract
Ethics
Rightness of an action is
determined by the customs and
norms of a community
Jean Jacques
Rousseau (17121778)
Personalistic
Ethics
Rightness of an action is
Martin Buber
determined by one's conscience (1878-1965)
8.1 What are ethics ?
 Different approaches to ethical reasoning
End-result ethics: The rightness of an action is
determined by evaluating the pros and cons of its
consequences.
Duty ethics: The rightness of an action is determined by
one’s obligation to adhere to consistent principles, laws,
and social standards.
8.1 What are ethics ?
Social contract ethics: The rightness of an action is
based on the customs and norms of a particular
community.
Personalistic ethics: The rightness of an action is based
on one’s own conscience and moral standards.
Three major dimensions of ethical conduct
arise in negotiations
Means / Ends
Relativism / Absolutism
Truth - Telling
Means/Ends
Utilitarianism
•Seek the greatest good for the
greatest number
•Quantitate and optimize
happiness in society while
minimizing pain
•Examples: Interstate highways
through farms benefit the larger
public
 Relativism/Absolutism /Nihilism
•Absolutism
What is right is universal,
timeless, and absolute
•Relativism
What is right may be different
for different people or cultures
•Nihilism
There is no right or wrong
 Truth-Telling
•How does one define truth?
•How does one classify
various deviations from
truth? All they all lies?
TYPOLOGIES OF DECEPTIVE TACTICS AND
ATTITUDES TOWARD THEIR USE
Category
Example
Traditional competitive
bargaining
Not disclosing your walkaway; making an
inflated opening offer
Emotional manipulation
Faking anger, fear, disappointment; faking
elation,satisfaction
Misrepresentation
Distorting information or negotiation events in
describing them to others
Misrepresentation to
opponent's networks
Corrupting your opponent's reputation with his
peers
Inappropriate information
gathering
Bribery, infiltration, spying, etc..
Bluffing
Insincere threats or promises
THE MOTIVATION TO BEHAVE
UNETHICALLY
O’Connor and Carnevale (1997)
 “individualistic” orientation
 “cooperative” orientation
• Conditions under which negotiators say they
would engage in deception
• lie-for-a-lie
• one shot
• personal gain
• not getting caught
• life or death
• low power
• protecting reputation
• dislike
• fixed pie
 psychological bias and unethical behavior
 bounded ethicality: the limit of people to make ethical decisions
because they are either unaware or fail to fully and deliberately
process information
 illusion of superiority: people view themselves and their actions
much more favorably than others view them
 illusion of control: people believe they have more control over
events than they really do
 overconfidence: people are overconfident about their knowledge
how can negotiators best answer the question of
whether a given behavior is ethical:
the front-page test
reverse golden rule
role modeling
third-party advice
strenghten your bargaining position
EXPLANATIONS AND
JUSTIFICATIONS
The tactic was unavoidable
The tactic was harmless
The tactic will help to avoid negative consequences
The tactic will produce good consequences
“They had it coming” or “they deserve it” or “I’m just
getting my due”
“They were going to do it anyway, so I will do it first
The tactic is fair or appropriate to the situation