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 F business ethics is to have a significant impact on business practice, many of us working in the field will need to take a more pragmatic approach to our craft (Dees and Cramton, 1991). Our work should help ethically sensitive business people establish stable institutional arrangements that promote and protect ethically desirable conduct, and it should help individuals to develop strategies for effective ethical behavior in a competitive and morally imperfect world. This paper is offered as one model of more practical business ethics To illustrate the model we have selected the topic of deception in negotiation. Negotiation is a pervasive feature of business life. Success in business typically requires successful negotiations. It is commonly believed that success in negotiation is enhanced by the skillful use of deceptive tactics, such as bluffing, exaggeration, posturing, stage-setting, and outright misrepresentation. As White (1980, p. 927) candidly states, "The critical difference between those who are successful negotiators and those who are not lies in this capacity both to mislead and not to be misled." Some shrewd practitioners have advanced the art of deception beyond prudent concealment of preferences to more aggressive forms of strategic misrepresentation.
1Given the high value placed on honesty, the incentives for deception in negotiation create a serious moral tension for business people, as well as a public relations problem for business. The public relations problem is not new. In ancient Athens, Hermes, a trickster who stole his brother's (Apollo's) cattle on the day he was born and later lied about it, was the patro...