1. CHAPTER EIGHT
Ethics in Negotiation
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 8-2
What Do We Mean by Ethics and
Why Do They Matter 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
• Grow out of particular philosophies which
– Define the nature of the world in which we live
– Prescribe rules for living together

3. 8-3
Resolving Moral Problems

4. 8-4
Questions of Ethical Conduct
that Arise in Negotiation
• Using ethically ambiguous tactics: It’s
(mostly) all about the truth
• Identifying ethically ambiguous tactics and
attitudes toward their use
– What ethically ambiguous tactics are there?
– Is it all right to use ethically ambiguous tactics?

5. 8-5
Questions of Ethical Conduct
that Arise in Negotiation
• Deception by omission versus commission
– Omission – failing to disclose information that
would benefit the other
– Commission – actually lying about the common-
value issue
• The decision to use ethically ambiguous
tactics: A model

6. 8-6
Model of Deception in Negotiation

7. 8-7
Why Use Deceptive Tactics?
Motives and Consequences
• The power motive
– The purpose of using ethically ambiguous
negotiating tactics is to increase the negotiator’s
power in the bargaining environment
• Other motives to behave unethically
– Negotiators are more likely to see ethically
ambiguous tactics as appropriate if they anticipate
that the other’s expected motivation would be
more competitive

8. 8-8
The Consequences of
Unethical Conduct
A negotiator who employs an unethical tactic
will experience positive or negative
consequences. The consequences are based on:
• Effectiveness – whether the tactic is effective
• Reactions of others – how the other person,
constituencies, and audiences evaluate the tactic
• Reactions of self – how the negotiator evaluates the
tactic, feels about using the tactic

9. 8-9
Explanations and Justifications
The primary purpose of explanations and
justifications is:
– To rationalize, explain, or excuse the
behavior
– To verbalize some good, legitimate
reason why this tactic was necessary

10. 8-10
Rationalizations for
Unethical Conduct
• 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”

11. 8-11
Rationalizations for
Unethical Conduct
• “They were going to do it anyway, so I will do it
first”
• “He started it”
• The tactic is fair or appropriate to the situation

12. 8-12
How Can Negotiators Deal With the
Other Party’s Use of Deception?
• Ask probing questions
• Phrase questions in different ways
• Force the other party to lie or back off
• Test the other party
• “Call” the tactic
• Ignore the tactic
• Discuss what you see and offer to help the other party
change to more honest behaviors
• Respond in kind