Negotiation and Ethics

Paper Summary:

This paper explains that unethical behavior undermines the first step towards negotiating and, more importantly, eliminates the possibility of non-table issues, issues that were not included in the original negotiating agenda, but grow from effective communications. The author summarizes that the literature on ethics considers nine situations as being unethical and capable of resulting in failed negotiations, including lies, puffery, deception, weakening the opponent, strengthening one's own position, nondisclosure, information exploitation, change of mind, and distraction. The paper relates that, for an action in a negotiation to be moral or ethical, it must respect the inherent worth and dignity of those involved or affected; people must never be used primarily as a means to an end.

From the Paper:

"Use of a specific example demonstrates the best way in developing an understanding of the concept and correlation of negotiations and ethics. Assume that ABC Internet Company sells video DVDs that it buys from XYZ supplier for $8 and resells them on its website for $12. Several competitors begin selling the same DVDs for $10, effectively cutting ABC's margin. ABC Internet can enter negotiations for a lower price from XYZ. However, ABC Company suffers from an internal theft problem, which has increased overhead expense, thereby cutting further into the profit margin. The internal problem stems from an employee who has stolen more than $7,000 (by ordering equipment to sell and steal, by using the company card, by 'rigging' accounts, etc.) who had previously been so otherwise exceptional that he/she had previously been promoted to an account management capacity for the XYZ supplier account in addition to a few other prosperous accounts (before the management team was made aware of the theft)."

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