Deceptive Tactics and Lies
Mar 14, 08 Posted in GeneralIn the India section of Lothar Katz’ book Negotiating International Business, it reads “Deceptive techniques might be used and it may be effective to use some of those yourself.” The latter half of that sentence implies that it’’s ok to lie, etc. as in the next few sentences. For other countries, for instance Israel, it even says “…and can be effective.”
To that I’d suggest adding something like: “Of course, we advise against using such tactics….” The main point is that it is good to be vigilant for the use of deceptive tactics by foreign counterparts, but such tactics are inconsistent with the creative, long-term relationships that should be the main goal in most commercial negotiations.
6 Responses to “Deceptive Tactics and Lies”
By Lothar on Mar 14, 08
I’m not sure I agree with your basic assumption. A somewhat paradoxical reality of international negotiations, at least in my view, is that in many countries, deceptive tactics, from misleading counterparts and omitting facts all the way to outright lying, seem ok and are NOT viewed as affecting relationships, unless one of the parties takes it too far. This seems particularly pronounced in countries such as China, Russia, Israel, and others, where I have often experienced elaborate attempts at deceit that my local counterparts obviously did not view as a threat to the ongoing relationship building.
I believe that the notion that such tactics are inconsistent with long-term relationship building is rooted in the American expectation of “fair play” and “good-faith negotiating.” It exists in other countries, mostly western ones, as well, but I know few where it’s valued as highly. In a way, I often find that Americans have a feeling of betrayal when encountering such behaviors.
By John on Mar 14, 08
This is such an interesting topic. I see 2 problems with deceit generally:
1. It may ruin relationships — what happens for example if you run into an honest Russian and you’re caught lying? According to Peter Shikerev, a Russian author I worked with, there are both sharks and dolphins in both our countries. And, hopefully you’re working with a “dolphin.”
2. Deceit is inefficient and particularly destructive to both integrative bargaining and especially creative bargaining. Accurate information yields the most efficient commercial processes and outcomes.
The key for me is that we say (1) watch out for this “deceit” stuff, and (2) don’t engage in this yourself. At the most fundamental level (i.e., how markets work) I would argue that deceit is at best simply inefficient, as the key to the best negotiation solutions is the exchange of accurate information. Too bad we can’t discuss all this over a beer.
By Lothar on Mar 14, 08
Appreciate the thought you’ve given to this and the suggestions on how to get it right. I completely agree on your observation that deceitful tactics can ruin relationships.
I don’t agree as completely on your premise that deceit is ineffective, as I do not see it as a universal position. Rather, it strikes me as an American one that is founded in American values. I have dealt with many cultures where certainly not everyone had the same attitude, but clearly a majority had a very different take from the U.S. one when it comes to the value and moral legitimacy of deceit in negotiations. We’re obviously talking shades of gray here; it goes without saying that “too much deceit” exists in all cultures. Where the line is drawn varies across cultures, though. I have done business with people in many where deceptive tactics clearly helped one side or the other without causing much damage to the business or the relationship.
You’ve given me valuable food for thought, and I’ll likely work your points into my next edition of the book. Thank you!
By Harry on Apr 19, 08
My experience with deceit in business is limited to domestic (US) businesses. For instance, we provide our clients with initial estimates on every project before beginning work. When an invoice comes in over budget, we make sure that the client gets billed for every dime over the initial estimate, but when we come in under budget it’s a different story. I’ve watched as managers have added false work to the final invoice in order to bring the total up to match the initial estimate. They’ve gone so far as to fake whole days of work and false purchases of materials. In that regard, the deceit doesn’t damage the client relationship. Basically, they are unaware of the false information and as far as they are concerned, we didn’t come in over budget, so they don’t even know about it. The difference is, I know about it and I think it’s wrong.
By Lothar on Apr 28, 08
Yes, when deceit becomes fraud, it is ethically and morally wrong. In addition, it’s usually illegal.
Smart negotiators NEVER cross this line. They keep in mind, though, that deceit is used in negotiations to mislead counterparts and stimulate them to accept less favorable deals. In international negotiations, you’ll want to stay alert of such tactics.
By john on May 2, 08
In our most recent book we describe three kinds of bargaining — competitive, integrative, and creative. Perhaps deceit fits, even works, in competitive bargaining? (please notice I am ignoring ethical issues here). Deceit is incosistent with the notion of integrative bargain where negotiators intend to help one another and endeavor to “make the pie bigger before splitting it.” Creative negotiations depend completely on long-term, interpersonal relationships and TRUST. Deceit has no place in creative bargaining because creativity depends completely on copius exchange of honest information.