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Promoting Honesty in Negotiation: An Exercise in Practical Ethics

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  • Cramton, Peter C.
  • Dees, J. Gregory

Abstract

In a competitive and morally imperfect world, business people are often faced with serious ethical challenges. Harboring suspicions about the ethics of others, many feel justified in engaging in less-than-ideal conduct to protect their own interests. The most sophisticated moral arguments are unlikely to counteract this behavior. We believe that this morally defensive behavior is responsible, in large part, for much undesirable deception in negotiation. Drawing on recent work in the literature of negotiations, we present some practical guidance on how negotiators might build trust, establish common interests, and secure credibility for their statements, thereby promoting honesty. We also point out the types of social and institutional arrangements, many of which have become commonplace, that work to promote credibility, trust, and honesty in business dealings. Our approach is offered not only as a specific response to the problem of deception in negotiation, but as one model of how research in business ethics might offer constructive advice to practitioners.…there is such a gap between how one lives and how one ought to live that anyone who abandons what is done for what ought to be done learns his ruin rather than his preservation …—Niccolo MachiavelliWe must make the world honest before we can honestly say to our children that honesty is the best policy.—George Bernard Shaw

Suggested Citation

  • Cramton, Peter C. & Dees, J. Gregory, 1993. "Promoting Honesty in Negotiation: An Exercise in Practical Ethics," Business Ethics Quarterly, Cambridge University Press, vol. 3(4), pages 359-394, October.
  • Handle: RePEc:cup:buetqu:v:3:y:1993:i:04:p:359-394_00
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    Cited by:

    1. Jason R. Pierce & Leigh Thompson, 2022. "Feeling Competitiveness or Empathy Towards Negotiation Counterparts Mitigates Sex Differences in Lying," Journal of Business Ethics, Springer, vol. 178(1), pages 71-87, June.
    2. Hillie Aaldering & Alfred Zerres & Wolfgang Steinel, 2020. "Constituency Norms Facilitate Unethical Negotiation Behavior Through Moral Disengagement," Group Decision and Negotiation, Springer, vol. 29(5), pages 969-991, October.
    3. Al-Khatib, Jamal A. & Malshe, Avinash & AbdulKader, Mazen, 2008. "Perception of unethical negotiation tactics: A comparative study of US and Saudi managers," International Business Review, Elsevier, vol. 17(1), pages 78-102, February.
    4. Moshe Banai & Abraham Stefanidis & Ana Shetach & Mehmet Özbek, 2014. "Attitudes Toward Ethically Questionable Negotiation Tactics: A Two-Country Study," Journal of Business Ethics, Springer, vol. 123(4), pages 669-685, September.
    5. Desmond, John & Crane, Andrew, 2004. "Morality and the consequences of marketing action," Journal of Business Research, Elsevier, vol. 57(11), pages 1222-1230, November.
    6. Massoud Moslehpour & Mein-Woei Suen & Yu-Te Tu & Ranfeng Qiu, 2021. "The Moderating Role of Gender in the Relationship between Ethics and Negotiation Style," Advances in Decision Sciences, Asia University, Taiwan, vol. 25(3), pages 26-45, September.
    7. SimanTov-Nachlieli, Ilanit & Har-Vardi, Liron & Moran, Simone, 2020. "When negotiators with honest reputations are less (and more) likely to be deceived," Organizational Behavior and Human Decision Processes, Elsevier, vol. 157(C), pages 68-84.
    8. Peter Cramton & J. Gregory Dees, 1995. "Deception and Mutual Trust: A Reply to Strudler," Papers of Peter Cramton 95beq, University of Maryland, Department of Economics - Peter Cramton, revised 09 Jun 1998.
    9. Kerry Pedigo & Verena Marshall, 2009. "Bribery: Australian Managers’ Experiences and Responses When Operating in International Markets," Journal of Business Ethics, Springer, vol. 87(1), pages 59-74, June.
    10. Muhammad Alshurideh & B. H. Al Kurdi & Anu Vij, Zaid Obiedat & Abdallah Naser, 2016. "Marketing Ethics and Relationship Marketing - An Empirical Study that Measure the Effect of Ethics Practices Application on Maintaining Relationships with Customers," International Business Research, Canadian Center of Science and Education, vol. 9(9), pages 78-90, September.
    11. Claudio Weber Abramo, 2003. "What If? A Look at Integrity Pacts," Public Economics 0310008, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • M29 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Other

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