IB Topic 13

November 11, 2025

Topic 13 .- Negotiation Ethics

Module 3: Negotiating Competitiveness

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Evidence 3

Presentation by teams, in English and Spanish. 5 to 10 minutes per team. Dress code: Business casual (10 points of your evidence). Determine the order...

What is legal is not necessarily ethical What is ethical is not necessarily legal. The range of possibilities reacts to the cultural aspects that inevitably intervene in an international negotiation.

Introduction

What does Ethics mean? What does it mean to you?

13.1 Ethics: concepts and scope

“Ethics is the study of morality and the morality systems or conduct principles. Ethics is related to the concepts of good and evil, and to what it has to be or not to be done in every human decision and action.” - Canvas

13.1 Ethics: concepts and scope

Ethics, also called moral philosophy, the discipline concerned with what is morally good and bad and morally right and wrong. The term is also applied to any system or theory of moral values or principles. Encyclopaedia Britannica

13.1 Ethics: concepts and scope

We must understand that moral responsibility of the negotiators is an action of consequences that go beyond the immediate result of negotiation. Nonetheless, just for a few times we are aware of the possible consequences of our actions while negotiating.

13.1 Ethics: concepts and scope

It is totally necessary to create clear and determined awareness of this responsibility, and to have in mind the interests of the possible people affected during the negotiation period

13.2 Cultural interpretation of values

• Cultural groups establish their own value scales and the social sanction for failure to fully fulfill them.
• However, during any international business there is not just the risk that those social principles do not match, but also that there will be opposite perceptions of one same situation or different criteria for accepting or rejecting a certain behavior or the counterparty.

Jaipur, India

13.2 Cultural interpretation of values

• In the international experience, western diplomats have encountered the problem of respecting traditional behaviors in other regions.
• They also have encountered with hard criticism to the way they perceive values to which the principle of respect to such differences is present, trying to avoid discussing them during a negotiation.

Bunaken Marine Park, Indonesia

Business Ethics

• Business ethics studies appropriate business policies and practices regarding potentially controversial subjects, including corporate governance, insider trading, bribery, discrimination, corporate social responsibility, fiduciary responsibilities, and much more.
• The law often guides business ethics, but at other times business ethics provide a basic guideline that businesses can follow to gain public approval.

Business Ethics.- key facts

• Business ethics refers to implementing appropriate business policies and practices with regard to arguably controversial subjects.
• Some issues that come up in a discussion of ethics include corporate governance, insider trading, bribery, discrimination, social responsibility, and fiduciary responsibilities.
• The law usually sets the tone for business ethics, providing a basic guideline that businesses can choose to follow to gain public approval.

Types of Business Ethics

• There are several theories regarding business ethics, and many different types can be found.
• But what makes a business stand out are its
• corporate social responsibility practices,
• transparency and trustworthiness,
• fairness,
• and technological practices.

Ruins of the ancient city of Angkor, Cambodia

Types of Business Ethics

Corporate social responsibility practices,

• Businesses should hold themselves accountable and responsible for their environmental, philanthropic, ethical, and economic impacts.

Transparency and Trustworthiness

• It's essential for companies to ensure they are reporting their financial performance in a way that is transparent. For example, many corporations publish annual reports to their shareholders.

Ruins of the ancient city of Angkor, Cambodia

Types of Business Ethics

Technological Practices and Ethics

• The growing use of technology of all forms in business operations inherently comes with a need for a business to ensure the technology and information it gathers is being used ethically.

Fairness

• A workplace should be inclusive, diverse, and fair for all employees regardless of race, religion, beliefs, age, or identity.
• A fair work environment is where everyone can grow, be promoted, and become successful in their own way.

Ruins of the ancient city of Angkor, Cambodia

13.3 Ethical Negotiator

Lax and Sebenius, in their article Three Ethical Issues in Negotiation (as cited by Ávila, 2008), explain that people act in an ethical way for two reasons.

13.3 Ethical Negotiator

• This brings positive consequences for both negotiating parties, when they do not believe that negotiation must be a result of a false and advantageous position, since this would bring a desire for revenge for sure by those who may feel offended.
• Even though the negotiator does not matter about ethical values in a negotiation, the values should be taken into consideration.

Ruins of the ancient city of Angkor, Cambodia

13.3 Ethical Negotiator

• It is more possible for an honest negotiation to provide more benefits than loses.
• For this purpose, the following aspects must be considered before a negotiation.
• Strategies to be used, its principles and limits.
• Range of benefits the parties will obtain.
• The consequences a negotiation will have on those who did not decide on it.

Great wall of China; Huairou, China

13.3 Ethical Negotiator

As the Deloitte firm establishes, the main points in a code of ethics are the following (Deloitte, 2007):

• Language must be simple, concise, and easily understood by all the employees.
• It must not be an authoritarian code; it must indicate all the expected behaviors.
• The code must apply to every employee, and its scope must be global.

13.3 Ethical Negotiator

As the Deloitte firm establishes, the main points in a code of ethics are the following (Deloitte, 2007):

• The code must be written, reviewed, and edited by a multidisciplinary team, so it is reasonably trusted to have congruence with other policies and business communications.
• In addition, it must consider the significant risk areas, if it is accepted by the company and if it represents its culture.
• The code must be reviewed and updated, when necessary, to represent the business and regulatory changes.

13.3 Ethical Negotiator

Some sections that should be included are as follows (Deloitte, 2007):

• A letter of introduction written by the senior leadership team or by the general manager, in which the tone is established, and the importance of ethics and compliance are defined for each employee and the company.
• The mission, vision, values, and guiding principles that represent the commitment of the company to ethics, integrity, and quality.

13.3 Ethical Negotiator

Some sections that should be included are as follows (Deloitte, 2007):

• An ethical decisions framework to help the employees to make decisions.
• The final goal is that the employees think before acting and look for advice when they are not sure.
• They must be encouraged to think in this kind of questions in an ethical dilemma context,
• “Would I be willing to tell my family, friends, or coworkers about this?
• Would I be ashamed?”

13.3 Ethical Negotiator

Some sections that should be included are as follows (Deloitte, 2007):

• A list of available resources that serve as a guide, and for reporting any suspicion of misconduct.
• A list of additional resources of ethics and compliance, and the identification of complementary policies and procedures for its location.

Closure

• Its reputation grows, and it begins to experience the benefits a moral establishment reaps:
• Brand recognition and growth
• Increased ability to negotiate
• Increased trust in products and services
• Customer retention and growth
• Attracts talent
• Attracts investors