1. Negotiation Methods that address ethics problems between individuals, and between and within teams and organizations

2. 3 Questionable Negotiation Tactics Lies (limits, alternatives, intentions, time, authority, commitments, acceptability of offer, resources) Puffery (exaggerating values – of payoffs, alternatives, cost, importance of issue…) Deception (deliberate misleading: promises, threats, excessive initial demands, getting unnecessary concessions, misstatements)

3. 4 more Questionable Negotiation Tactics Weakening the opponent (blame, personally abrasive statements, undermining alliances) Strengthening one’s own position (by deliberately using third parties eg media) Nondisclosure (holding back information that would benefit the other party) Information exploitation (using information provided by the other party to weaken them)

4. 3 more Questionable Tactics Change of Mind (accepting offers rejected earlier, withdrawl of promised offers) Distraction (adding in extra information to purposefully lure the other party to ignore something important) Maximization (single-minded pursuit of payoffs at the cost of the opponent’s payoffs)

5. 3 schools “It’s a game” Poker School: Q: Does everyone have/play by the same rules? “Do the Right Thing Even if it Hurts” Idealist School: Q Is this realistic? Doesn’t it open you to exploitation? “What Goes Around Comes Around” Pragmatist School: Q How can you stall and avoid lies at the same time?

6. Ethical Criteria Golden Rule Universalism Utilitarianism Distributive justice Do the greatest good for the greatest number of people Do unto others as you would have them do unto you Everyone is better off because of this act People are not to be used as a means to an end

7. Ethics Framework Embedded Tradition System Governing Ethics Values Actions Errors or Mismatch Source: Nielsen 1996, Adapted from Argyris 1990 Single-Loop Win-Lose Politics Single-Loop Win-Win Politics Double-Loop Dialog Politics Triple-Loop Dialog Politics

8. Notes on the Ethics Framework In single-loop methods, there can be learning, individuals or groups may devise new methods to negotiate outcomes: learning takes place and behaviors are changed through errors or mismatch of methods and results In double-loop methods, both governing values and action strategies are held open to questioning and learning through dialog. Both methods frame ethical problems as located primarily at the level of individuals. In triple-loop methods, the underlying cultural belief systems and traditions are held open to questioning. Triple-loop methodologies hold the embedded tradition system both open to critique and as a partner in mutual learning. Through negotiation at the triple-loop level, individuals beliefs are reexamined and behaviors are questioned. It thus includes both double- and single-loop considerations.

9. Single-Loop, Win-Lose Methods Use forcing methodology Pros: Short-run effectiveness: more peaceful, cooperative, constructive, and sophisticated methods may be ineffective in particular situations. Cons: Destructiveness with respect to internal organization cooperation –The purpose of an organization is to enable us to do more through cooperation than we can atomistically

10. Top-Down Ethics Generals Ethics Generals are top managers who unilaterally write ethics rules and force compliance through punishment –Examples of punishment What makes this “single-loop?”

11. Notes on Ethics Generals Ethics Generals view workers as naturally lazy and in need of supervision. This is referred to as “Theory X” management, which was first described in 1960 by McGregor. Theory Y management is a more participative form. How can a boss punish his or her subordinates? –Punishment: e.g., firing, denial of unemployment benefits after firing, criminal and civil prosecution, demotion, transfer, loss of promotion opportunities, suspension, reduction in pay, lower salary increments, public embarrassment Theory X is still practiced in some industries and countries. This is single-loop in that the boss does not hold his driving ethical values open to discussion with subordinates.

12. Bottom-Up Ethics Guerillas Mirror image of the Ethics General What makes this single-loop?

13. Notes on Ethics Guerillas –individuals who engage in sabotage of a larger system; they attempt to change unethical behavior in their organizations. –Mirror image of the Ethics General, like a Myers-Briggs shadow, but unlike the Ethics General, tend to be more focused on a particular boss’s behavior –This is single-loop: the employee thinks it is not possible to discuss ethics with the boss he thinks is initiating or permitting unethical behavior

14. What can Ethics Guerillas do? Secretly blow the whistle inside the organization (or quietly blow the whistle to a responsible higher-level manager) Secretly threaten the offender/ an ethically responsible manager with blowing the whistle Publicly threaten a responsible manager with blowing the whistle or publicly blow the whistle outside the organization Sabotage the implementation of the unethical behavior

15. Strengths of Single-Loop Forcing Methods –Quick behavioral effectiveness –Focuses on behavior, and lack of understanding is not always the problem –Relatively safe for users Limitations of Single-Loop Forcing Methods –No opportunity to learn with others about what is more or less ethical –Might teach narrow, routinized, unthinking obedience more than individual or organizational ethical learning –Both cooperative relationships and the organization can be damaged

16. Single-Loop, Win-Win Methods Mutual Gain Negotiating: Parties agree to a deal because each gets enough of what they want to make the deal worthwhile for each of them. Case: Oskar Schindler: German owner of a confiscated Jewish factory in Poland made a series of win-win deals to protect and rescue his Jewish workers. In exchange for the Jews, Schindler supplied the Nazis with plenty of black market cognac, liquor, food, diamonds, and parties paid for with the factory’s profits. He closed deals with the phrase, “And everybody’s happy!” Win for Schindler in that he kept his factory and workers. Win for the Nazis in that they received these black market products. Win for the Jews in that they survived and received relatively humane treatment working for Schindler. This is Fisher and Ury’s method. There are 4 components to their method: (1) Separate the people from the problem (2) Focus on interests, not positions, (3) Invent options for mutual gain and (4) Insist on using objective criteria. “BATNA” is a tool used in mutual gain negotiating that refers to your “best alternative to a negotiated agreement.” If it is clear that you are not going to negotiate an agreement, be prepared to compromise with your BATNA.

17. Single-Loop, Win-Win Methods Persuasion: Show through language and/or illustration why an idea or behavior should be adopted. Persuader wins in that the other adopts the idea or behavior s/he is advocating. Persuaded person wins in that s/he now agrees with that idea or behavior.

18. Single-Loop, Win-Win Methods Minimal Peaceful Coexistence: Point is to reduce losses, not achieve mutual gains, as in mutual gain negotiating.

19. “Win-Win” Methods can be effective … –and conducive to organizational cooperation –without requiring belief conversion among individuals with different driving ethical values –across cultures with different ethical values –with individuals who learn more through personal experience than through analytic reasoning Limitations of Win-Win Methods –May foster little, if any, ethical learning or organization culture development

20. Win-Lose Negotiators Leverage building: Build a type of power that the offender is vulnerable to and then explicitly or implicitly threaten to use that power against him or her unless he or she gives in to what you want. Good guy-bad guy: ( Good cop-bad cop) “Bad guy” makes extreme demands and appears threatening. Good guy offers to make a deal that he or she can convince the bad guy to accept. Extreme demands

21. Iterative Socratic Dialog (“I” and “Other”) (1) The I’s first motion toward the other is respectful and friendly. (2) The I asks the Other(s) for a potential solution and helps to consider the positives of that solution. (3) The I asks the Other(s) to help consider the negatives of the potential solution and to iteratively consider other potential solutions, in an attempt to retain the positives and reduce the negatives of earlier solutions. (4) The process continues iteratively until we can’t improve the evolving transformed solution.

22. Strengths of Double-Loop Dialogic Methods –Can help build or sustain an ethical organizational culture. –Can result in belief conversion toward the ethical. –Can as a by-product effectively produce integrative, win-win results. Limitations of Double-Loop Dialogic Methods –People may understand what is ethical but act unethically for personal or organizational gain or fear of punishment. –Some organizational environments discourage dialog. –Dialog can expose good people to retaliatory harm.