Chapter 8 Ethics 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, They differ from morals, which are individual and personal beliefs about what is right and wrong. Ethics grow out of particular philosophies.
The dictionary definition of ethics is: "a system of moral principles or values; the rules or standards governing the conduct of the members of a profession; accepted principles of right or wrong." Ethics establish the means of doing what is right, fair and honest.
When we view negotiation from this perspective, we can see how important it is to improve our ability to negotiate so we can be more successful in achieving our goals. What we want to ensure is that when we do negotiate, we do so in a way that will ensure a win-win outcome--one that meets the needs and goals of both counterparts, and makes both of them willing to come back to the bargaining table to negotiate with each other again at a later time.

Four approaches to Ethical Reasoning
1. End-result ethics – Rightness of an action is determined by considering consequences.
2. Duty ethics – Rightness of an action is determined by considering obligations to apply universal standards and principles.
3. Social contract ethics – Rightness of and action is determined by the customs and norms of a community.
4. Personalistic ethics – Rightness of an action is determined by one’s conscience
When we view negotiation from this perspective, we can see how important it is to improve our ability to negotiate so we can be more successful in achieving our goals. What we want to ensure is that when we do negotiate, we do so in a way that will ensure a win-win outcome--one that meets the needs and goals of both counterparts, and makes both of them willing to come back to the bargaining table to negotiate with each other again at a later time.
In a negotiation, whenever you are ethical and honest even though it costs you something, you gain points. If a counterpart makes an invoice error that is to your advantage and you inform him of it, that costs you something--but it also earns you respect. A client recently called to inform us that we had not sent an invoice for services we had performed for her. That one telephone call let us know that this client is honest