International Negotiations

Part 7: Communication and Ethics in Negotiations

Prof. Dr. Rolf-Dieter Reineke

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Chapter Overview

Part 7 examines the process by which negotiators communicate their interests, positions, and goals.
• We first consider what is communicated in a negotiation.
• Followed by exploring how people communicate in negotiation.
• We conclude with discussions of how to improve communication in negotiation.
• Finally, a few remarks on ethics in negotiations.

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What is Communicated during Negotiation?

When studied, 70% of verbal tactics are integrative.

Also, buyers and sellers tend to behave reciprocally.

Most of the communication during negotiation is not about preferences.

• The blend of integrative versus distributive content varies as a function of the issues being discussed.
• And of the expectation parties have for their future relationship.
• Yet communication content is only partly responsible for negotiation outcomes.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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What Is Communicated during Negotiation?
Category of Communication Why It Is Important
Offers convey the negotiator’s motives and preferences, which in
Offers and counteroffers
turn influence actions of the other party.
Strong alternatives confer a strategic advantage, but only if the other
Information about alternatives
party is aware of those alternatives.
Negotiators’ evaluations of their own outcomes will vary depending
Information about outcomes
on what they know about how well the other party did.
The negative effects of relatively poor outcomes can be alleviated
Social accounts/explanations
when the other party offers social accounts.
When conflict intensifies, risking progress, conversation about
Communication about process process may interrupt a conflict spiral and restore a constructive
tone or approach.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

You will find more details in the Annex

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What is Communication in Negotiation?

Are negotiators consistent or adaptive?

• Negotiators are more likely to be consistent in their strategies than to vary their approach.
• They react to smaller proportions of cues as negotiations proceed.
Does it matter what is said early in the negotiation?
• Evidence suggests that joint gains are influenced by what happens early on.
Is more information always better?
• Negotiators who know the complete preferences of both parties may have difficulty determining fair outcomes.
• The influence of the exchange of accurate information does not automatically lead to better understanding of
the other party’s preferences or to better negotiation outcomes.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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How People Communicate in Negotiation

It may seem obvious that how negotiators communicate is as important as what they have to say.
• Here we address three aspects related to the “how” of communication.
• The characteristics of language that communicators use.
• The use of nonverbal communication in negotiation.
• The selection of a communication channel for sending and receiving messages.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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Characteristics of Language

Language operates on two levels: the logical and the pragmatic.

We respond to the substance of threats and the unspoken message.

The use of polarized language.

The conveyance of verbal immediacy.
Communication depends on the
The degree of language intensity. speaker’s ability to encode thoughts, and
The degree of lexical diversity. the listener’s ability to understand and
decode the intended message(s).
The extent of a high-power language style.
A negotiator’s choice of words may signal
• Threats are more credible and compelling when using negatively a position and also shape and predict the
polarized, high immediacy, high intensity, high lexical diversity and resulting conversation.
a high-power style of language.
• It is not just what is threatened but how the threat is conveyed.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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Use of Nonverbal Communication

Much of what is communicated is transmitted nonverbally through facial expressions, body language, head
movements, and tone of voice.
• Attending behaviors let the other know that you are listening and prepare the other party to receive your
message.

Make eye contact.

• Make eye contact when delivering the most important part of the message and when receiving information.
Adjust body position.
• Hold your body erect, lean slightly forward, and face the other person.
Nonverbally encourage or discourage what the other says.
• Brief eye contact, a smile, or a nod provides encouraging cues.
• Frowns or scowls signal disapproval of the other’s message.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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Again, there are cultural differences

Proximity
Close Distant
Eye Contact
Frequent Infrequent
Gestures
Expressive, large Restrained, subtle
Touching
Frequent Infrequent or none
Pacing
Pauses between Interruptions, no
exchanges pauses
Self-presentation
Formal dress/ Informal dress/
gestures/ setting gestures/ setting

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The way how to present yourself in different countries (1)

U.S.A U.K. France

 Humour  Humour  Formality
 Joking  A story  Innovative product
 Modernity  „Nice“ product  „Sexy“ appeal
 Gimmicks  Reasonable price  Imagination
 Slogans  Quality  Logical presentation
 Catch phrases  Traditional rather  Reference to France
 Hard sell than modern  Style, appearence
 Personal touch
 May interrupt
Source: Richard D. Lewis

Caution: Avoid stereotyping

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The way how to present yourself in different countries (2)

Spain Italy Germany

 Warmth  Friendliness  Solidity of company
 Originality  Flexibility  Solidity of product
 Eloquence  Style  Technical Info
 Liveliness  Tasteful product  Context
 Strong eye contact  Elegance  Beginning – middle
 Humour  Well-dressed - ending
 Overt body language  Personality  Lots of print
 Charisma  Loughter  No jokes
 Good price  Some cultural  Good price
reference  Quality
 Delicacy  Delivery date
 Design-conscious

Source: Richard D. Lewis

Caution: Try to adapt, but be authentic; intercultural adaptation is not a one-way-street

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The way how to present yourself in different countries (3)

India Japan Sweden

 Humility  Good price, USP  Modernity
 Flowery speech  Diagrams  Quality
 Respect  Synergy with Co. Image  Design
 Know-how  Harmony  Technical
 Trust  Politeness information
 Flexibility  Respect for their Co.  Delivery dates
 Tolerance for ambiguity  Good name of your
 Sympathy Co.
 Patience  Quiet presentation
 Rock bottom prices  Well-dressed presenter
 Formality

Source: Richard D. Lewis

How should foreigners present themselves in your country?

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Selection of a Communication Channel
Virtual negotiation or e-negotiation uses different channels.
• The key variation distinguishing one communication channel from another is social bandwidth.
There are important distinctions between email and other forms of written communication—seen as informal and
may use emoticons.
• Negotiation through written channels is more likely to end in impasse.
Developing rapport and sharing information are aspects of face-to-face communication, which may also allow
conveyance of toughness.
• Email can mask or reduce power differences between negotiators.
• Email negotiations lack schmoozing.
Email has a “slow-tempo” while texting is a “fast-tempo” medium more closely approximating oral communication.
• Sellers do better with complex arguments in the “quick” medium.
Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

Do you believe that a sequence of just 3 e-mails can destroy a previously strong business relationship
forever ?
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10 Rules for Virtual Negotiation

• Create a face-to-face relationship before
negotiation.
• Be explicit about the normative process to be
followed during the negotiation.
• If others are present, make sure everyone
knows who is there and why.
• Pick the channel effective at getting details on
the table for consideration by both sides.
• Avoid “flaming” by labeling emotion so others
know what it is and what’s behind it.
• Formal turn-taking is not strictly necessary, but
synchronize offers and counter-offers.
• Check out assumptions as inferences will get
you in trouble, so ask questions.
• Be careful not to make unwise commitments.
• Unethical tactics may be easier to use in virtual
negotiation, but resist the urge.
• Develop a negotiation style that is a good fit with
the channel you use.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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How to Improve Communication in Negotiation

Failures and distortions in perception, cognition, and communication are the paramount contributors to
breakdowns and failures in negotiation.
• Just as we evaluate the quality of a deal, we can evaluate the quality of communication—its
efficiency and effectiveness—that occurs.
Three main techniques are available for improving communication in negotiation.
• The use of questions.
• Listening.
• Role reversal.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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The Use of Questions
Asking questions enables negotiators to secure information about the other party’s position, supporting arguments,
and needs.

Manageable questions cause attention.

• They prepare the other person’s thinking for further questions.
• They get information and generate thoughts.
Unmanageable questions cause difficulty.
Negotiators can also use
• They give information. questions to manage difficult
or stalled negotiations.
• And bring discussions to a false conclusion.
• They are more likely to elicit defensiveness and anger from the other party.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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Questions in Negotiation
Manageable Questions. Unmanageable Questions.
• Open-ended questions. • Close-out questions.
• Open questions. • Loaded questions.
• Leading questions. • Heated questions.
• Cool questions. • Impulse questions.
• Planned questions. • Trick questions.
• Treat questions. • Reflective trick questions.
• Window questions.
• Direct questions.
• Gauging questions.
Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

Give some examples for unmanageable questions.

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Questions for Tough Situations
The Situation Possible Question
Are you feeling pressure to bring the negotiation to a
“Take it or leave it” ultimatum
close?
Pressure to respond to an unreasonable
Why can’t we negotiate about this deadline?
deadline
Highball or lowball tactics What’s your reasoning behind this position?
What else can we do to close the gap between out
An impasse
positions?
Indecision between accepting and rejecting What’s your best alternative to accepting my offer right
a proposal now?
A question about whether the offer you just Do you believe that I think it’s in my best interest to be
made is the same as that offered to others unfair to you?
Attempts to pressure, control, or Shouldn’t we both walk away from this negotiation
manipulate feeling satisfied?
Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)
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Listening
There are three major forms of listening.

Passive listening involves receiving the message while providing no feedback

about accuracy.
• If your counterpart is talkative, the best strategy may be to sit and listen.
Acknowledgement is slightly more active than passive listening. Active listening is a skill that
• Receivers may nod, maintain eye contact, or interject responses like “I encourages others to speak
see.” more fully about their feelings,
priorities, frames of reference,
Active listening is the third form of listening. and, by extension, the
positions they are taking.
• Receivers restate or paraphrase the sender’s message in their own
language.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

What is the most important rule for active listening?

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Role Reversal

Role reversal allows negotiators to understand the other party’s position by arguing these positions
until the other party is sure they understand.
• The impact and success of the role-reversal techniques point to two implications for negotiators.
• First, the party using role reversal may understand the other party’s position, which can lead to
convergence between positions.
• Second, the technique may end up sharpening perceptions of differences if the positions are
fundamentally incompatible.
Role reversal can be most useful during the preparation stage of negotiation or during a team caucus
when things are not going well.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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A Sampling of Ethical Quandaries
You are selling your e-bike to raise money for an upcoming trip overseas.
• Is it ethical to say you have another offer, when there is no other offer?
To gain inside knowledge of a competitor’s business, you have a consultant call and ask about problems or threats
in the company.
• Is this an ethical way to learn about the competitor’s company?
When selling your laptop, you decide not to tell buyers the computer crashes without warning.
• Is this ethical? Would you be likely to do this?
You buy a new pair of shoes on sale (no returns) but you make a scene in the store and the manager refunds your
money.
• Is this ethical? Would you be likely to do this?

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

Always remember the „golden rule“

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Ethical Conduct in Negotiation

Why do some negotiators use unethical tactics?

• The first answer – immoral – may be too simplistic.
• People regard other people’s unsavory behavior as due to personality and attribute their own
behavior to factors in the social environment.
• A negotiator might consider an opponent’s use of an ethically questionable tactic as
unprincipled.
• In contrast, if the negotiator uses the same tactic themselves, they tend to say they have a
good reason for deviating from principles, this one time.
The following section discusses negotiation tactics that bring issues of ethicality into play.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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Consequences of Unethical Conduct
Effectiveness.
Deceptive tactics are effective in certain circumstances.
Consequences occur whether the tactic worked or not.

Reactions of others. Reactions of self.

• “Targets” are typically angry and now • When the other party suffers, a
mistrust you. negotiator may feel discomfort.
• They may seek revenge. • Negotiators who have no problem
using deceptive tactics may use
• For serious and personal deception, the
them again and ponder how to
relationship suffers.
use them more effectively.
• Damage to your reputation can be difficult
to repair.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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Explanations and Justifications
Here are some typical examples.
• The tactic was unavoidable – so the negotiator is not responsible.
• The tactic was harmless – according to the deceptive party.
• The tactic will help to avoid negative consequences – for who?
• The tactic will produce good consequences, or altruistically motivated.
• “They had it coming,” or “They deserve it,” or “I’m getting my due.”
• They were going to do it anyway, so I will do it first – anticipation.
• “He started it” – anticipation in the past tense.
• The tactic is fair or appropriate to the situation – ethical relativism.

Explanations allow the negotiator to convince others – particularly the victim – that conduct is acceptable.
They also help rationalize the behavior to themselves.
Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

Does the concept of „situational ethics“ has any justification?

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Additional information for self-study

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Special Communication Considerations at the Close of Negotiations

Avoid fatal mistakes.

• Know when to shut up.
• Refrain from making “dumb remarks.”
• Don’t respond to other party’s dumb remarks.
• Watch out for nitpicking or second-guessing.
• Put agreement in written form.

Achieving closure involves decisions on: framing, gathering intelligence, coming to conclusions, and learning from
feedback.
• Feedback is largely a communication issue.
• Track your expectations and incorporate feedback into similar future decisions.
• Decision traps resulting from perceptual and cognitive biases may occur at the end of negotiations.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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Offers, Counteroffers, and Motives
Preferences are communicated during a negotiation and can have an influence on the actions of the other party
and on outcomes.
Communication may also convey emotions experienced in relation to the exchange of positions and offers.

A communication framework is based on the The offer-counteroffer process is dynamic, interactive,

assumptions that: and subject to situational and environmental
• The communication of offers is dynamic. constraints.

• The offer process is interactive.
• Various internal and external factors drive the
interaction and motivate a bargainer to change
their offers.
• The process constantly revises the parameters of
the negotiation.
• Eventually narrowing the bargaining range and
guiding the discussion toward a settlement.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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Information about Alternatives

The existence of a BATNA changes several things in a negotiation.

• Negotiators with attractive BATNAs set higher reservation prices.
• When the other party has attractive BATNAs, negotiators set lower reservations points for themselves.
• When both parties are aware of one party’s attractive BATNA, that negotiator receives a more positive
outcome.

Negotiators with attractive BATNAs should tell the other party if they expect to receive its full benefits—but style
and tone matter.
• Politely, or subtly, make the other party aware of your good BATNA which can provide leverage without
alienating the other party.
• Waving a strong BATNA is the other’s face may be construed as aggressive and threatening.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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Information about Outcomes

One study found that winners and losers evaluate their own outcomes equally when unaware how well the other
party did.
But, if they find out the other did better, or was pleased with their outcome, then negotiators felt less positive about
their own outcome.

Another study suggests that even when negotiators Be cautious about sharing your outcome or even your
learn the other party did poorly, they are less satisfied positive reaction to an outcome.
with the outcome than when they have no comparison • Especially if you will negotiate with that party
information. again in the future.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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Social Accounts

Communication during negotiation consists of “social accounts,” which are explanations made to the other party.
Especially when negotiators need to justify bad news.

Three types of explanations are important.

• Explanations of mitigating circumstances where
negotiators suggest they had no choice in taking
the positions they did. Negotiators who use multiple explanations are more
likely to have better outcomes.
• Explanations of exonerating circumstances explain
positions from a broad perspective.
The negative effects of poor outcomes can be
• While current positions appear negative, it alleviated by communicating explanations for them.
derives from positive motives.
• Reframing explanations, where outcomes can be
explained by changing the context.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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Communication about Process

Some communication is about the process itself.

• Some takes the form of small talk, but some communication about process is critical—as when conflict
intensifies and hostilities progress.
• One strategy is calling attention to contentious actions and labeling them as counterproductive.
• More generally, negotiators should resist reciprocating contentious communication.
• Sometimes a break in the substantive conversation and attention to the process is precisely what’s needed.

Source: Roy J. Lewicki, Bruce Barry and David M. Saunders (2021): Essentials of Negotiation, 7th Edition (McGraw Hill)

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