The Importance of Ethics and Trust in Conflict and Negotiation

This essay explores the crucial role of ethics in the negotiation process, highlighting the tension between deceptive techniques and the need for honesty and transparency. It emphasizes that while techniques like bluffing exist, negotiators should prioritize ethical conduct to build trust and long-term reputation. The essay also discusses the importance of trust and mutual confidence for successful negotiations, arguing that unethical behavior leads to a loss of reputation and ultimately undermines the negotiation process. It suggests that despite the incentive for self-interest, modern mechanisms and a focus on good faith are essential for maintaining ethical standards in negotiations. Desklib provides access to this essay and many other resources to aid students in their studies.

CONFLICT AND NEGOTIATION
JOURNAL
STUDENT ID:
[Pick the date]

CONFLICT AND NEGOTIATION
Question 1
Ethics is a critical element of the negotiation process owing to which it needs to be
discussed in the class. Relevant literature on negotiation and collective bargaining highlights
existence of various techniques such as bluffing. These techniques are quite common in
various negotiations but tend to trot on the fringes of unethical conduct. This is because these
negotiation techniques sometimes assume deception and may thereby enter into the realm of
“unethical” conduct. Such unethical conduct would be unacceptable. However, the lines of
ethical and unethical practices in negotiations are often quite blurred and highly contested
(Provis, 2000). As a result, ethics assumes significance in the context of negotiation. Proper
understanding of ethical conduct in the negotiation process would enable the negotiators to
ensure that the techniques that they deploy to maximize gains tend to fall within the domain
of ethical practices
While the presence of deceptive techniques in the field of negotiation cannot be
denied but the focus of the future negotiators should be to prefer a honesty based approach as
it would be morally more acceptable and also may yield superior outcomes (Cramton &
Dees, 1993). As a result, it is imperative that techniques should be narrated and demonstrated
in the class which can result in greater honesty and transparency without compromising the
favorable outcome. Further, the key enablers such as institutional support, legal systems,
presence of professionals in the current negotiation context also need to be highlighted which
have altered the underlying ecosystem. The presence of these enablers provides more comfort
for the negotiators to act in an honest manner thereby establishing a reputation (Cramton &
Dees, 1993). This positive culture can be cultivated in future negotiators only if they have
requisite understanding of ethics in the negotiation process.
2

CONFLICT AND NEGOTIATION
Question 2
Trust and mutual confidence are the lynchpins on which the success of negotiation
process rests on (Provis, 2000). Considering that humans have limited rationality, hence we
would not be able to extract gains using deception in every situation. Also, a negotiator who
has used deception tends to have a inclination to act in such manner with a bias towards gain
in the short term. The impact of such behavior is that in the long run, there is loss of
reputation without which trust cannot be established. This leads to failure of the negotiation
process. Further, while self-interest provides a strong incentive to act in an unethical manner
but in the modern times, there is a host of mechanism to negotiate in an ethical manner
(Cramton & Dees, 1993).
Also, it is noteworthy that unethical behavior in negotiation is not limited to a
particular transaction. Once it begins, then over time it keeps building and is selectively
deployed with self-serving prophecy justifying the tactic deployed. In the long run, there is a
significant reputation risk on account of our limited rationality and intelligence. Further, if
every individual starts losing their reputation, then the negotiations cannot continue as these
ought to be carried out in good faith (Cramton & Dees, 1993). Thus, in order to prevent this
vicious cycle which potentially ends in loss of reputation, it makes sense not to start the
process by acting unethically in any instance.
3

CONFLICT AND NEGOTIATION
References
Cramton, P.C. & Dees, J.G. (1993) Promoting Honesty in Negotiation: An Exercise in
Practical Ethics, Business Ethics Quarterly, Vol. 3, No. 4, pp. 359-394
Provis, C. (2000) Ethics, Deception and Labor Negotiation, Journal of Business Ethics, Vol.
28, No. 2, pp. 145-158
4