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  • February 2019
  • Article
  • Academy of Management Perspectives

Bounded Ethicality and Ethical Fading in Negotiations: Understanding Unintended Unethical Behavior

By: McKenzie Rees, Ann E. Tenbrunsel and Max Bazerman
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Abstract

The business scandals in the past several decades led to the rising importance of ethics as a topic central to management scholarship. Behavioral scientists in particular were attracted to the topic in far greater numbers, and the study of ethical decision-making emerged as a core subfield (Messick & Tenbrunsel, 1996). This paper draws on that framework and applies it to negotiations, arguing that not all unethical behavior is intentional; rather, negotiators fall prey to bounded ethicality, engaging in behavior that is contradictory to their values without realizing they are doing so. We further argue that ethical fading—when individuals do not “see” the ethical implications of the situation or their action—is central to explaining why this occurs. Relying on past empirical research, we identify negotiation “cues” that have been linked to unethical behavior and explore how they make a negotiator particularly vulnerable to ethical fading, resulting in subsequent unethical behavior. We discuss several opportunities for future research in the negotiation discipline and other disciplines that draw on motivated social exchange or assume intentionality and conclude with a call for scholars to define normative standards as they pertain to negotiator ethics.

Keywords

Ethics; Behavior; Negotiation; Situation or Environment; Perception

Citation

Rees, McKenzie, Ann E. Tenbrunsel, and Max Bazerman. "Bounded Ethicality and Ethical Fading in Negotiations: Understanding Unintended Unethical Behavior." Academy of Management Perspectives 33, no. 1 (February 2019): 1–17.
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About The Author

Max H. Bazerman

Negotiation, Organizations & Markets
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  • Decision Leadership: Empowering Others to Make Better Choices By: Don A. Moore and Max H. Bazerman
  • Megastudies Improve the Impact of Applied Behavioural Science By: Katherine L. Milkman, Dena Gromet, Hung Ho, Joseph S. Kay, Timothy W. Lee, Pepi Pandiloski, Yeji Park, Aneesh Rai, Max Bazerman, John Beshears, Lauri Bonacorsi, Colin Camerer, Edward Chang, Gretchen Chapman, Robert Cialdini, Hengchen Dai, Lauren Eskreis-Winkler, Ayelet Fishbach, James J. Gross, Samantha Horn, Alexa Hubbard, Steven J. Jones, Dean Karlan, Tim Kautz, Erika Kirgios, Joowon Klusowski, Ariella Kristal, Rahul Ladhania, Jens Ludwig, George Loewenstein, Barbara Mellers, Sendhil Mullainathan, Silvia Saccardo, Jann Spiess, Gaurav Suri, Joachim H. Talloen, Jamie Taxer, Yaacov Trope, Lyle Ungar, Kevin G. Volpp, Ashley Whillans, Jonathan Zinman and Angela L. Duckworth
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