5 - ethics

• Ethics​ --> Broadly applied social standards for what is right or wrong in a particular situation, or a process for setting those standards
• • Ethics are not morals (which are personal beliefs about what is right or wrong)​
  • Grow out of particular philosophies which​:
  • Define the nature of the world in which we live​
  • Prescribe rules for living together​
• Ethical dilemma is the problem created when possible actions or strategies put the potential economic benefits of doing a deal in conflict with social obligations to other involved parties or to the broader community
• 4 approaches to ethical reasoning:

  1. end result ethics
  2. duty ethics
  3. social contract ethics
  4. personalistic ethics
• End-result ethics​ --> Doing whatever is necessary to get the best possible outcome
• Duty ethics​ --> Acting on certain obligations to direct conduct
• Social contract ethics​ --> The rightness of an action is based on the customs and norms of a particular society or community
• Personalistic ethics​ --> The rightness of the action is based on one’s own conscience and moral standards
• Deception by omission versus commission​:

  • Omission --> failing to disclose information that would benefit the other​
  • Commission --> lying about the common-value issue​
• 6 categories of marginally ethical tactics:

  1. Traditional competitive bargaining​
  2. Emotional manipulation​
  3. Misrepresentation​
  4. Misrepresentation of opponent’s networks​
  5. Inappropriate information gathering​
  6. Bluffing
• • The power motive​ --> Increase the negotiator’s power in the bargaining environment
• Factors that are predictive of deception:

  • An organization’s ethical standards of behaviour are ambiguous​
  • Concern for present circumstances than future circumstances ​
  • Perception of the current situation as a loss frame rather than a gain frame ​
  • Negotiators experience anxiety (and deception is lower when they experience optimism) ​
  • Incentives are higher ​
  • Higher level of moral disengagement (they find it easier to justify morally ambiguous choices) 
• The consequences of deceptive tactics can be negative or positive​:

  • Depends on tactic effectiveness​
  • Reactions of others (such as strong anger)​
  • Reactions of self (discomfort, guilt, stress)
• Those who employ deceptive tactics rationalize with the following reasons​:

  • The tactic was unavoidable​
  • Tactic was harmless​
  • “They were going to do it anyway, so I did it first "
• Dealing with the other party's use of deception:

  • Ask investigative questions​
  • Use contingency contracts​
  • Force the other party to lie or back off​
  • “Call” the tactic​
  • Discuss what you see and offer to help the other party change to more honest behaviours​
  • Respond in kind
• avoiding your temptation to use deception:

  • Consider the reputation costs​
  • Prepare to answer difficult questions​
  • Refuse to answer certain questions by delaying the response and straight up saying you cannot answer the question