Importance of Ethical Behavior in Negotiation - Essay Example

rinсiрlе of Nеgоtiаtiоn Name Institution Question 2: Importance of Ethical Behavior in Negotiation Negotiation is almost a daily occurrence in human life. In business, people are always confronted with scenarios where they have to negotiate for their interest and that of their business. Negotiation is all about striving to have one’s interest prevail when striking a deal with another party. Business involves interacting with other players in the market, and the points of interactions always entail making compromises and securing opportunities. A good negotiation is that one which results in a party securing its interests and benefits at the end. Business people and any ordinary person negotiate for many things in day to day activities. The intention of negotiation is for people to change the current nature of their relationship (Taylor, 2017). Having high negotiating abilities leads to most of one’s interests and demands being met while low negotiation skills lead to one failing to meet his/her demands and interests. The success in business is therefore bolstered through successful negotiation (Dinctopal, et al., 2007). Due to the nature of the imperfect world where competition is fierce, business people are always faced with serious moral and ethical challenges which lead them to compromise ethics in negotiations. In protecting their interest, people often feel justified in engaging in less ethical behavior in negotiations. The consequences of unethical behavior in negotiations are always dire for businesses and people. This essay discusses the importance of maintaining ethical behavior throughout the negotiation process. In negotiation, preparation is a key component, and the negotiator should first identify the issues concerning the bargaining mix that will best serve his interests. When handling a negotiation process, one is expected to apply proper terminologies as well as identify opening offers and target. Negotiation involves a give and takes policy, and the negotiator has the responsibility to understand the impact of the negotiation terms and the role of reciprocity. Consequently, framing negotiations and resolving conflict requires one to make ethical decisions. Exhibiting ethical behavior in negotiation is important for the success of a negotiation process. Ethical behavior in negotiation involves doing what is right and applying the honest and fair principle in decision making. Reputation is important in determining the success, and the outcomes of negotiation and all the negotiating parties rely so much on the goodwill of their counterparts. Even as many parties in the negotiating table always find reasons to be unethical for the sake of defending the interests of their businesses, the consequences of negotiating in bad faith always backfire in the face of the businesses. An example of unethical negotiation is found in the legal profession where lawyers prioritize loyalty to the clients as opposed to ethical values like honesty, truth and justice (Hinshaw, et al., 2013). In most cases, lawyers negotiate in bad faith with the main objective of protecting the interest of their client even at the expense of dispensing justice. It takes several years to overcome the consequences of unethical negotiations since the damage on the reputation of the businesses is always irreparable (Business Insider, 2011). The success in the marketplace always favors those who have a non-compromised reputation and can be trusted. Those who have a record of not maintaining ethical negotiations behaviors are punished. If a negotiating partner goes all the way in building the record of unethical negotiation practices, then it will be expected that his/her business will receive increased scrutiny and skepticism from the business world. People in a negotiating table are always under duress to consider unethical tactics in negotiation. Some of the factors which motivate people to adopt an unethical approach to negotiation include the pursuit for profit or the desire to overcome competition through any means available. An example of unethical negotiation in leadership is where a negotiator uses his powerful influence and makes false promises in order to arm-twist the other partner (Alvoine, 2014). A good negotiator should, however, understand that as much as it is always possible to influence the opinions of the other negotiating parties through lying, the consequences of other parties being privy to deceptive act in the negotiation is too much to bear. It is common in business for a negotiator to present wrong statistics and financial statement about his company so as to obtain favorable offers from the other negotiator who is probably an investor and is not well conversant with the business. It s difficult to detect unethical behaviors but the use of neutralizing behaviors can reduce the tendencies of people using unethical approaches in negotiation (Fleck, et al., 2014). One of the major ethical elements in negotiation is trust. Negotiators are expected to maintain the highest level of trust in their negotiation so as to improve the positive outcomes of negotiations. It is said that those negotiators who have the highest level of trust always have a belief that their negotiating counterparts will share all the necessary information in good faith and for the good of the businesses. On the other hand, those negotiators who have a low level of trust do not believe that their counterparts will share sufficient and necessary information in good faith (Tu-Te, 2013). Consequently, when there is a high level of trust in the negotiation table, the shared information can help the negotiators in striking deals that will have mutual benefits for their businesses. It suffices to state that in a negotiation environment that is marred with the lowest level of trust, the transaction cost can be high for both parties. There is also evidence that trust in negotiation is an ethical attribute that promotes relationships in business and leads to better performances. Apart from the reducing the costs of transfer and renegotiations, trust is also helpful in eliminating the control and evaluation mechanism which in most cases makes negotiation costly and bureaucratic. Finally, when trust has been maintained between the negotiating parties, there is a long-term development of adaptive behaviors as well as a higher degree of organizational flexibility which again improves the efficiency in negotiation (Dellech, 2012). With an ethical approach to negotiation, particularly on the issue of trust, mutual adjustments in negotiation can just be effected through an informal negotiation. An integrative negotiation relies so much on trust as an ethical approach that facilitates information sharing between the parties negotiating. Dependence is another key element in negotiation. It is common that negotiation always happens between organizations or parties who are wielding power over the other in certain areas. The power asymmetry involving the negotiating parties means that one firm dominates or depends on the other in a given area. An ethical approach in negotiation demands that dependence should be utilized in a manner that brings mutual benefits and not harm, as well as improving relationships between the parties. Opportunism, where one party uses its power over the other in a negative way, leads to negative outcomes. As indicated above, negotiation relies heavily on the existence of information. It is imperative that the negotiators have unlimited access to information that can be helpful in determining the success of the negotiation. Benefits can be accrued from adequate information sharing in negotiations. The credibility of the shared information is, however, another key factor since when information is false, it may result in irreparable damage to the negotiation process. The use of power in negation is essential and that ethical negotiation will utilize the productive power that improves the stake of the business and not compromise the position of the other business. Unethical negotiations will utilize destructive power whose only intentions is to safeguard own interests at the expense of those for the other company (Alavoine, 2014). Dealing with an unethical negotiating party is a tough task in the negotiation process. It is always important that one approaches the negotiating table with open arms. It is said that whoever expects equity should always come with cleans hands and that no other cards should be hidden under the table. Sadly, we live in an imperfect society where people are prone to using any means available to have their ways. It is the responsibility of the negotiating party to be prepared to handle an unethical partner. To surmount the negotiation barriers arising from divergence in ethical considerations, the negotiators need to come together, state and appreciate their cultural and background difference as well as agree on what they will accommodate and what they are not willing to accommodate (Tsay&Bazerman, 2009). There is always a difference in ethical perceptions arising from the cultural difference among the negotiating partners. Hence, there is a sharp difference among cultures when considering the ethical concerns involving immediate opponents in a negotiation. Gender and age also determine the stands on ethical issues in negotiation. These cultural underpinnings on ethical concerns in negotiation reinforce the notion that cross-cultural negotiations involve a lot of ethical issues which calls for the negotiating parties to understand cultural dynamics when dealing with unethical behaviors in negotiations (Rivers &Lytle, 2007). In conclusion, it is safe to say that negotiations involve championing for the interests of the business. A successful negotiation always leads to the improvement of relationship with other players for the interest of the business. However, in pushing for the safeguarding of one’s business interests, people often resort to unethical behaviors in negotiations. Ethical conduct in negotiation is important, and businesses stand to benefit a lot from the adoption of ethical behavior in negotiation. It is, however, beneficial for the negotiator to understand the best way of handling unethical behaviors in negotiation. References Alavoine, C. (2011). Ethics in Negotiations: The Confrontation between Representation and Practices. World Academy of Science, Engineering and Technology, International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 5(6), 836-841. Alavoine, C. (2014). Unethical Practices in Negotiations. The Confrontation between Internal and External Factors (No. 2014-223). Business Insider.(2011). Why We Need More Ethics In Business Negotiations. Retrieved on 6th May, 2017 from http://www.businessinsider.com/why-we-need-more-ethics-in-business-negotiations-2011-7?IR=T Dellech, D. (2012). Relational variables and ethical behaviour of Negotiator. Journal of Business Studies Quarterly, 3(3), 57. Fleck, D., Volkema, R., Pereira, S., Levy, B., & Vaccari, L. (2014). Neutralizing Unethical Negotiating Tactics: An Empirical Investigation of Approach Selection and Effectiveness. Negotiation Journal, 30(1), 23-48. Hinshaw, A., Reilly, P., & Schneider, A. K. (2013). Attorneys and Negotiation Ethics: A Material Misunderstanding?. Negotiation Journal, 29(3), 265-287. Rivers, C., & Lytle, A. L. (2007). Lying, cheating foreigners!! Negotiation ethics across cultures. International Negotiation, 12(1), 1-28. Taylor, W. (2017).The Importance of Ethical Negotiations. Retrieved on 6th May, 2017 from http://thoughtreach.com/importance-ethical-negotiations/ Tsay, C. J., &Bazerman, M. H. (2009). A decision‐making perspective to negotiation: A review of the past and a look to the future. Negotiation Journal, 25(4), 467-480. Yu-Te, T. (2013).The Relationships between Trust and Unethical Negotiation. Read More