The three schools of business ethics

G. Richard Shell, author of Bargaining for Advantage: Negotiation Strategies for Reasonable People, identifies three primary schools of negotiation ethics. They are equally valuable to me for examining ethics in the context of business in general.

1. The Poker School – “It’s a Game”

For poker players, business is a game and anything that can be done to gain an advantage within the rules of the game (broadly speaking, the laws of the land) is fair and just. If you love negotiating “gambits” (trash, good cop/bad cop, red herrings, bites, etc.) and sales “tactics” (101 effective closing techniques, 30 tricks to pass the keeper, etc.) go to this school.

2. The Idealist School – “Do the right thing, even if it hurts.”

For the idealist, there is no separation between business in life. If you don’t lie to your loved ones, you don’t lie to your customers. If it’s okay to tell a “white lie” to protect a friend’s feelings or prevent tragedy, it’s okay to tell a “white lie” to protect a corporate ally or prevent business tragedy. While two idealists may differ on the specific set of rules they live by, they share a rigidity to do what they believe is “right,” even when it seems contrary to their business goals.

3. The Pragmatist School – “What goes around comes around.”

The behavior of a pragmatist may be inseparable from that of an idealist, but the motivation is different. Whereas the idealist tells the truth and treats people fairly because it is “the right thing to do,” the pragmatist tells the truth and treats people fairly because he believes it is the most effective way to do things. However, they will not hesitate to use deception as a necessary tool to achieve their goals. Because pragmatists value their reputation (being seen as honest), they will tend to make “misleading” statements rather than outright lies.

There are also combinations of these schools. “Pragmatic Idealists” do the right thing because of their ideals, but they are not above pushing the limits of truth when the pressure is on and the chips are high; “Pragmatic poker players” tend not to bluff to build their reputation as trustworthy, but will instead take advantage of that reputation when it really counts. “Idealistic poker players” are those among us who recognize business as a game, expect everyone around them to do their best to lie and cheat, but will only engage in games they believe they can win by doing the “right” thing. “.

Possibly the most important thing to keep in mind is that not everyone follows your rules. Being honest does not guarantee that others will be honest with you; Similarly, your willingness to lie, cheat, and break the rules doesn’t mean the people you’re doing it with will.

Here are some things you can do to put these theories of business ethics into practice:

1. If you haven’t already, identify which “school” you belong to. Remember, your motivation is as important an indication of your ethics as your actions.

2. Identify at least one person you know or have read about who seems to embody each of the three primary and three secondary schools of ethics. Again, keep in mind that knowing someone’s actions without understanding her motivation will not necessarily reveal her ethical bent.

3. Discuss this tip with friends and see what else you can discover that will allow you to be who you are while dealing more and more effectively with others.

Have fun, learn a lot and remember: a good poker player will inevitably tell you that he is an idealist!

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