N08: Ethics 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, they differ from morals, which are individual and personal beliefs about what is right and wrong. Ethics grow out of particular philosophies.

 

            The dictionary definition of ethics is: "a system of moral principles or values; the rules or standards governing the conduct of the members of a profession; accepted principles of right or wrong." Ethics establish the means of doing what is right, fair and honest.

            When we view negotiation from this perspective, we can see how important it is to improve our ability to negotiate so we can be more successful in achieving our goals. What we want to ensure is that when we do negotiate, we do so in a way that will ensure a win-win outcome--one that meets the needs and goals of both counterparts, and makes both of them willing to come back to the bargaining table to negotiate with each other again at a later time.

 

            Four approaches to Ethical Reasoning
            1. End-result ethics – Rightness of an action is determined by considering consequences.
            2. Duty ethics – Rightness of an action is determined by considering obligations to apply universal standards and principles.
            3. Social contract ethics – Rightness of and action is determined by the customs and norms of a community.
            4. Personality ethics – Rightness of an action is determined by one’s conscience.

 

            In a negotiation, whenever you are ethical and honest even though it costs you something, you gain points. If a counterpart makes an invoice error that is to your advantage and you inform him of it, that costs you something--but it also earns you respect. A client recently called to inform us that we had not sent an invoice for services we had performed for her. That one telephone call let us know that this client is honest.

 

 

Question

1. What are ethics and why do they apply to negotiation?
            Ethics proceed from particular philosophies, which support to (a) define the nature of the world in which we live, and (b) prescribe rules for living together.

            There are four type of ethics: 1)end-result ethics: in that the rightness of an action in determined by evaluating the pros and cons of its consequences, 2) rule ethics: in that the rightness of an action is determined by existing law and contemporary social standards that define what is right and wrong and where the line is., 3) social contract ethics: in that the rightness of an action is based on the customs and norms of a particular society or community., and 4) personality ethics: in that the rightness of an action is based on one’s own conscience and moral standards.

 

2. How do negotiators choose to use ethical or unethical tactics?
            Ethical tactics in negotiation are mostly about truth telling – concerned with standards of truth telling—how honest, candid, and disclosing a negotiator should be.
            Typologies of deceptive tactics – seen as inappropriate and unethical in negotiation.

 

3. How can negotiators deal with the other party’s use of deception?
            (a) Asking probing questions about the other’s position, point of view, information, and so on may help you uncover the key information that was omitted.
            (b) Recognize the tactic: ignore the tactic, ask questions, “call” the tactic, respond in kind, and discuss what you see and offer to help the other party change to move honest behaviors.