Ethics in Negotiations
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Consider the mission and vision statements for PepsiCo and
then answer the questions included below:
1)Evaluate the mission and vision statements of Pepsico against the theoretical purpose of such
statements.
2)How effective are they in linking strategy with individual performance?
3)We can argue, with important support, that the mission and vision statement of a firm should be linked
to individual performance. How do we get from a mission and vision statement to individual performance?
4)To what extent are the mission and vision statements developed using the evironment, the managerial
philosophy of the firm, the public image sought by the organization and/or the self-concept of business
adopted by the leadership and stockholders? Is culture an influencer?
- Explain the role of ethics in negotiations
Success in business typically requires successful negotiation. In the capitalistic market
where business success is defined by competition and morals, the business executive often face
ethical problems in business activities. Ethics in a business context is what is morally right or
wrong in a meticulous circumstances or practice for coming up with those values (Barraquier,
2011). Moral principles often arise from philosophies defined by the nature of the place we live
in and the natural rules of living together.
Ethics is important in negotiation as it helps to establish a means of doing what is right,
honest and fair during the negotiation process. Building reputation in every negotiation is
critical so as to achieve a win-win outcome. A person with a reputation of being fair, honest
and willing to perform what is right will make good concessions during negotiation. People
often guard their reputation by acting in an ethical manner hence successful negotiation.
The negotiation process is multifaceted. The central part of the negotiation is
persuading and convincing others to accept the information provided and influences their
decision. Though, it is possible to influence people by lying, but when other parties in the
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negotiation find out that they have been lied to, then the credibility of the party in negotiation
goes down.
- Situations where it might not be best to take complete advantage of the other side
negotiations
Some of the situations where it might not be best to take advantage of the other side
negotiation are when; the other party has power or authority over us. For instance, when
negotiating with attorneys, doctors, teachers, clerks, etc. In such situations, it is good to get
along and understand the status quo. Secondly, is in situations where the other party has a walk-
away alternative that meet their interests. In such situations, the other party can walk away if
they feel they are not satisfied, or they feel cornered. Therefore, it is not best to take complete
advantage of them. - Win-Win Approaches to negotiations that watch for the best interests of both
parties
There are different approaches to negotiation. However, to achieve a win-win situation
the best approach to negotiation is a principled negotiation approach. This approach can be
employed in a collaborative manner. This method focuses on four important considerations
during the negotiation process. That is People, Interests, Options, and Criteria (POIC). The
negotiating parties should be able to separate people from the problem, focus on interests and
not positions (Weiss, 2014). On the same note, the parties should generate a variety of
possibilities before making conclusions. Finally, the parties should insist on the result to be
based on the set objective standards. - Ethical negotiations and win-win negotiations in the real world
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Ethical negotiation follows that, both parties are guided by what is right, honesty, and
fairness in their dealings. On the other hand, win-win negotiation centers on coming up with
jointly beneficial agreements. This objective is achieved through the bargaining process that is
forged in the course of collaboration, cooperation and accommodating. It is feasible to achieve
a successful negotiation by ensuring that ethical the moral principles of doing what is right in
an honest and fair manner and coming up with beneficial agreements for both parties.
This is evident in the case of UAW Chrysler agreement with the workers union
governing the company’s employees. The workers agreed to sacrifice and dedicate themselves
for the company. In return, Chrysler workers were rewarded for contributing to the success of
the company. Their salaries were increased o $19.28% and the workers were ensured of job
security.
- The biggest impediments to ethical behavior in business
One of the biggest impediments to ethical behavior in business is hidden agendas in the
organization. This barrier is evident in organizations with an incentive to induce change or
behavior that encourages a negative tendency within the organization.
Another barrier is over valuing of outcomes. That is where a company rewards results
of activity instead of rewarding high-quality decisions (Burnes & Oswick, 2012). This often
results in organization rewarding unethical decisions since they often result in good results. - How ethical behavior can be instilled while trying to make profits for shareholders
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In pursuit of profit for the organization, it is imperative to ensure ethical conduct in
business activities to ensure the reputation for credible profession principles and organization
values. The organization achieves this objective through rewarding of ethical behavior.
Organization should prove and reward the solid ethical behavior by employees in the
organization. Secondly, the company should consider the work-life balance of the employee.
According to Fells (2012), employees with a better work-life balance are likely to make a good
ethical decision during work. On the same note, an organization can train employees to operate
ethically as dictated by the organization’s code of conduct.
Therefore, an organization will often end up making more profit and build their
reputation by ensuring that ethical behavior is observed when conducting the company’s
dealings. By striving to ensure that employees do what is right, in an honest manner, and
ensuring fairness during the negotiation process. Then, the company will be able to build a
corporate image and enjoy business sustainability.
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References
Weiss, J. W. (2014). Business ethics: A stakeholder and issues management approach (6th ed.).
San Francisco, CA: Berrett-Koehler Publishers, Inc
Fells, R. (2012). Effective negotiation: From research to results. Cambridge University Press.
Barraquier, A. (2011). Ethical behaviour in practice: decision outcomes and strategic
implications. British Journal of Management, 22(s1), S28-S46.
By, R. T., Burnes, B., & Oswick, C. (2012). Change management: Leadership, values and
ethics. Journal of Change Management, 12(1), 1-5.
