Trust & Ethics in Negotiations

Trust & Ethics in NegotiationsTEAM 1

Agenda

▪ Pretest ▪ Ethics in negotiations▪ Avoiding unethical situations▪ How to build trust in negotiations▪ Relational negotiating ▪ Activity ▪ Post-Test

PRETEST

WHAT ARE ETHICS?

▪ Situational Analysis

▪ Ethics: The moral principles that govern an individual (or group's) behavior

▪ The Benefits of Being Ethical

▪ The Consequences of Being Unethical

WHY DO PEOPLE LIE AND DECEIVE IN NEGOTIATIONS?

▪ Motivations For Deception: -Illusion of Superiority, Illusion of Control, Overconfidence

▪ Conditions For Deception: -One-shot, Not getting caught, Protect reputation, etc.

▪ Six Things People Lie About The Most: -Positions -Interests -Priorities/Preferences -BATNAs -Reservation Prices -Key Facts

PREVENTING UNETHICAL BEHAVIOR

▪ Do your research

▪ Talk privately with the person

▪ Keep doing your work

▪ Alert management

THE FRONT PAGE TEST

THE REVERSE GOLDEN RULE

ROLE MODELING

THIRD PARTY ADVICE

STRENGTHEN YOUR BARGAINING POSITION

Building Trust in Relationships

▪ Trust: An expression of confidence in another person or group of people that you will not be put at risk, harmed, or injured by their actions

▪ Trust is the pillar of strong relationships

Deterrence-Based Trust

▪ Based on behavioral consistency

▪ Utilizes contracts, surveillance, and at times can involve punishment

▪ Reactance Theory

Knowledge-Based Trust

▪ Based on behavioral predictability▪ Trust is a consequence of, or response to,

uncertainty▪ Increases dependence and commitment between

parties

Identification-Based Trust

▪ Based on emotional connection

▪ Means that the other people have adopted your own preferences

Rational and Deliberate Mechanisms for Building Trust

▪ Cognitive route - utilizes rational and deliberate thoughts and considerations

▪ Affective route - utilizes intuition and emotion

Psychological Strategies

● Similarity

● Mere Exposure

● Physical Presence

● Reciprocity

● Schmoozing

● Flattery

● Mimicry and Mirroring

● Self Affirmation

What Leads to Mistrust?

▪ Breach or defection leads to suspicion

▪ Miscommunication (or lack of)

▪ Dispositional Attributions

▪ Focusing on the bad apple

Reputation

▪ Judgemental, consistent, immediate, inferential

▪ Halo effect

▪ Forked-Tail effect

Different Types of Negotiations

ACTIVITY

POST- TEST

CitationsThompson, L. (2012). The mind and heart of the negotiator (5th ed.). Boston: Pearson.

How Your Environment Not Your Personality Determines If You're Unethical. (2014, October 16). Retrieved May 22, 2015, from http://www.fastcompany.com/3037134/the-future-of-work/how-your-environment-not-your-personality-determines-if-youre-unethical

The 5 most common unethical behaviors in the workplace - Philadelphia Business Journal. (n.d.). Retrieved May 22, 2015, from http://www.bizjournals.com/philadelphia/blog/guest-comment/2015/01/most-common-unethical-behaviors-in-the.html?page=all

A Timeline of the Madoff Fraud. (2009, June 29). Retrieved May 22, 2015, from http://www.nytimes.com/interactive/2009/06/29/business/madoff-timeline.html?_r=0

How Unethical Behavior Becomes Habit. (n.d.). Retrieved May 22, 2015, from http://www.orthospinenews.com/how-unethical-behavior-becomes-habit

Paula Deen Scandal. (n.d.). Retrieved May 22, 2015, from http://www.huffingtonpost.com/news/paula-deen-scandal/

Watergate scandal. (n.d.). Retrieved May 22, 2015, from http://en.wikipedia.org/wiki/Watergate_scandal

Should You Kill The Fat Man? (n.d.). Retrieved May 22, 2015, from http://www.philosophyexperiments.com/fatman/

MailOnline, D. (n.d.). How 80% think it's OK to steal from work as study reveals our wavering moral compass. Retrieved May 22, 2015, from http://www.dailymail.co.uk/sciencetech/article-1211629/How-80-think-OK-steal-work-study-reveals-wavering-moral-compass.html

CitationsHarvard Business School. (n.d.). Retrieved May 22, 2015, from http://hbswk.hbs.edu/item/5697.html

Reactance Theory. (n.d.). Retrieved May 22, 2015, from http://www.psychwiki.com/wiki/Reactance_Theory

Sharks, Saints, and Samurai: The Power of Ethics in Negotiations. (n.d.). Retrieved May 22, 2015, from http://onlinelibrary.wiley.com/doi/10.1111/j.1571-9979.2008.00174.x/abstract

Yes, You Should Negotiate with Your Friends. (n.d.). Retrieved May 22, 2015, from http://www.forbes.com/sites/shenegotiates/2011/09/04/yes-you-should-negotiate-with-your-friends/