Ethics Defined…

• Ethics– Social standards for what is right/wrong

• Morals– Individual beliefs for what is right/wrong

• Prudent– Efficacy of tactic on outcome and relationship

• Practical–What can happen

• Legal

• Types of Ethical Standards– End-result– Duty- bound– Social contract– Personal-istic

Type of Ethics Rightness is defined by… Basis of actions

End Results -effect/consequences it has-utility of ends

--Actions are aimed to promote (collective) happiness, --Actions that promote more happiness are more right

Duty -obligations to apply universal standards in all situations-intentions of actor rather than effects

--Actions that promote virtue rather than pleasure--behaviour should be based on principles/rules

Social Contract

--Customs or norms of a community

--Community defines morality which defines right & wrong--Duty binds individual to community--What is best for community is ultimate standard

Personal-isitc One’s conscience -stand up for what one believes-no absolute formulas for living

• Ethics in Negotiation– Truth telling tactics• When to tell the truth, how much of the truth to

tell?– Communication vs action

• What is truth?– Based on social contract vs. personal conscience

• How are deviations from truth decided

• Examples of tactics– Bluffing, exaggeration, concealing/manipulating info

– Negotiation involves depending on each other for information• Priorities, interests, preferences

Category Example

√ Competitive Bargaining Not disclosing BATNAInflated opening offer

√ Emotional Manipulation Fake emotions like anger, fear, disappointment, elation, satisfaction

** Misrepresenting/Deception Distorting information/events when describing to others

Misrepresenting opponent’s network

Corrupting opponent’s reputation with peers

Inappropriate Information gathering

Bribery, inflation, spying

Bluffing Insincere threats/promises

Categories of Ethically Ambiguous Tactics Questionnaire

• Misrepresenting Interests/Deception– On common value items where both parties

seek the same outcome• Omission--fail to disclose info benefitting others• Commission – lying about common value issue

– Later make concession– Omission > Comission

• Tolerance for Ethically Ambiguous Tactics– Predicts intention to use– Predicts actual use– Frequency of use• Hiding bottom line > exaggerating opening offer>

stalling for time, misrepresenting information > making empty promises

– Hiding bottom line improved negotiator performance• All others did not predict performance

• Why use deception– Power (leverage) of having information• View of negotiation as exchanging accurate &

truthful information / facts / arguments – and whoever has the better argument etc wins• Deceptive tactics used when other side is

uninformed and when stakes are high

–Maximize own outcome (competitive)– Perceive other’s motive as being competitive– Cultural predisposition to focus on own

outcome

Individual Differences•Demographic•Personality•Moral Development Stage

Context•Past Experience •Incentives•Relationship to Opponent•Relative Power b/w Negotiators•Mode of communication•Agent status•Group & Org Norms•Cultural Norms

Intentions & Motives to Use Deception

Use of Deception

Consequences •Effectiveness of Tactic•Self Evaluation•Feedback from Other Party, Constituency & Audience

• How to detect deception?– Intimidate the other to tell the truth– Portray futility of deceptive tactic– Help other reduce discomfort for deceiving– Lie to suggest you have uncovered

deception– Encourage other to share information–Minimize the importance of consequences of

deception– Point out contradictions and ask for

explanations– Alter information dramatically so that other

can correct you

• How to detect deception? (cont’d)• Try to get other to admit to a small lie and

push for admitting to larger lie• Reveal dishonesty on your part • Point out behaviors that suggest other party

is deceiving• Indicate concern for other party’s welfare• Appeal to other’s desire for a good reputation• Directly ask other to tell the truth• Remain silent to get other to talk…

• How to deal with deception• Ask probing questions• Phrase questions in different ways• Force the other party to lie/back off• Test the other party• Call the tactic• Ignore the Tactic• Discuss what you see and offer to help the

other party shift to more honest bheaviors• Respond in Kind