As a student of the University of Washington I was instructed to present an introduction to the art of building trust and understanding ethical dilemmas in negotiations for a business negotiations course.

1. Trust & Ethics
in
Negotiations
TEAM 1

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

3. PRETEST

4. 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

5. 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

6. PREVENTING UNETHICAL
BEHAVIOR
▪ Do your research
▪ Talk privately with the person
▪ Keep doing your work
▪ Alert management

7. THE FRONT PAGE TEST

8. THE REVERSE GOLDEN RULE

9. ROLE MODELING

10. THIRD PARTY ADVICE

11. STRENGTHEN YOUR BARGAINING
POSITION

13. 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

14. Deterrence-Based Trust
▪ Based on behavioral consistency
▪ Utilizes contracts, surveillance,
and at times can involve
punishment
▪ Reactance Theory

15. Knowledge-Based Trust
▪ Based on behavioral predictability
▪ Trust is a consequence of, or response to,
uncertainty
▪ Increases dependence and commitment between
parties

16. Identification-Based Trust
▪ Based on emotional connection
▪ Means that the other people have adopted your
own preferences

17. Rational and Deliberate
Mechanisms for Building Trust
▪ Cognitive route - utilizes rational and deliberate thoughts and
considerations
▪ Affective route - utilizes intuition and emotion

18. Psychological Strategies
● Similarity
● Mere Exposure
● Physical Presence
● Reciprocity
● Schmoozing
● Flattery
● Mimicry and Mirroring
● Self Affirmation

19. What Leads to Mistrust?
▪ Breach or defection leads to suspicion
▪ Miscommunication (or lack of)
▪ Dispositional Attributions
▪ Focusing on the bad apple

20. Reputation
▪ Judgemental, consistent, immediate, inferential
▪ Halo effect
▪ Forked-Tail effect

21. Different Types of Negotiations

22. ACTIVITY

23. POST-
TEST

24. Citations
Thompson, 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

25. Citations
Harvard 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/