Business Negotiation Discussion.
Ethics in Negotiation
Consider the scenario presented on page 171 of your textbook: You are a vice president of human resources, negotiating with a union representative for a new labor contract.
The union refuses to sign a new contract unless the company agrees to raise the number of paid holidays from six to seven. Management estimates it will cost approximately $220,000 for each paid holiday, and argues that the company cannot afford to meet the demand.
However, you know that, in reality, money is not the issue – the company simply doesn’t think the unions demand is justified. To convince the union leaders that they should withdraw their demand, you have been considering these alternatives:
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Order Paper Now(a) tell the union that the company simply can’t afford it, without further explanation;
(b) prepare erroneous financial statements that show that it will cost about $300,000 per paid holiday, which you simply can’t afford; and
(c) offer union leaders an all-expenses-paid “working” trip to a Florida resort if they will simply drop the demand. Employing one of the four approaches to ethical reasoning presented in the text, justify or criticize each of the three alternatives.
Lewicki, R. J., Saunders, D. M., & Barry, B. (2011). Essentials of Negotiation (5th ed.). McGraw-Hill ISBN: 0073530360
- Chapter 6
