Chapter 5: Ethics in Negotiation Flashcards
Why is ethics important 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
What are the 4 approaches to ethical reasoning
- End-result ethics
Whatever it takes to get the best possible outcome - Duty ethics (can think about it as kantian ethics)
An obligation to apply universal standards and principles - Social contract ethics
Based on the customs and norms of a particular society
or community - Personalistic ethics
The rightness of the action is based on one’s own conscience and moral standards
List down some marginally ethical negotiating ethics
T-E-M-M-I-B
Category:
Traditional competitive bargaining :
Deliberately vague and misleading statements; making inflated opening offer
Emotional Manipulation:
Faking anger fear disappointment satisfaction
Misrepresentation:
Distortion of information to serve your interests
Misrepresentation to opponent’s networks:
Corrupting/sliming opponent’s reputation among peers
Inappropriate information gathering:
Bribery, infiltration, spying
Bluffing:
Insincere threats or promises
What is omission and commission
- Omission – failing to disclose information that would benefit the other
- Commission – actually lying about the common-value issue
What are some of the motives behind the use of deceptive tactics (list 5)
- The power motive
Ethically ambiguous negotiating tactics increases the
negotiator’s power in the bargaining environment
Other motives to behave unethically
2. Negotiators are more likely to see ethically ambiguous tactics as appropriate if they anticipate that the other’s expected motivation would be more competitive
- Trust issues
- Time constraints
- Pressure from superiors
What are the consequences of unethical conduct
Rather what are the consequences based on
1) Effectiveness - whether the tactic is effective
2) Reaction of others - how the other party evaluate the tactic
3) Reaction of self - how negotiator evaluates the tactic (self perception)
What are some of the rationalizations for unethical conduct (List 7)
- 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 “I’m just getting my due”
They were going to do it first - They started it
- Tactic is fair or appropriate to situation
What demographic factors shape a negotiator’s approach to use unethical ethics (list 4)
1.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 - Professional orientation
People in different professions differ on judgments of perceived appropriateness – Businessman vs Nurse - Nationality and culture
Significant differences are found across different nationalities and cultural backgrounds
Explain different cultures negotiation styles
Are some countries supportive of Ethically Ambiguous Negotiation Tactics (EANT)
- Australians
Frown on ethically ambiguous negotiation tactics (EANT)
But ok to use EANT to make colleagues look bad in front of boss - Brazilians
Highly supportive of deceptive EANT - Greeks
Supported EANT more than Australians - Japanese
Strongly supported honest negotiators; relationship important - Russians
Most supportive of deceptive EANT - Taiwanese
Highly supportive and satisfied with deceptive bargaining
strategies
*Japanese
Strongly supported honest negotiators; relationship important
- Americans
Supported big claims and exaggerated demands, but lost out when negotiating against deceptive cultures
What factors shape a negotiator’s predisposition to use unethical tactics
Looking at personality differences
1.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 - 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
Why do negotiators use unethical tactics
- Contextual Influences
- past experience
- role of incentives - Characteristics of other party
- relationship between negotiator and other party - Relationship between negotiating parties
- past relationships and future expectations
- long term or short term working relationship - Relative power between negotiators
- Mode of communication - hiding behind technology
- Acting as a agent vs on your own
- Group and organizational norms
How can negotiators deal with other party’s use of deception
- Ask probing questions
- Phrase questions in different ways
- Force the other party to lie or back off
Based on more cases of lying by omission - Test the other party – know the answer first
- “Call” the tactic – depends on culture
- Ignore the tactic – does this encourage similar behaviour?
- Discuss what you see and offer to help the other party change to more honest behaviors
- Respond in kind – depends
Tips for more ethical negotiations
(List 5)
- Accept that we are all prone to stereotypes and biases – don’t give favours to insiders
- Speak up against policies that promote unethical behavior
- When negotiating as an agent, try to align your incentives with your client’s
- Don’t excuse unethical behavior that has been delegated to another party
- Hold negotiators accountable for the process that led to the results
