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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/