G. Richard Shell, author of Bargaining for Advantage: Bargaining Strategies for Reasonable People, identifies three primary schools of ethics in bargaining. To me, they are equally valuable for examining ethics in the context of business in general.
1. 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 equitable. If you love negotiating “tactics” (low tricks, good cop / bad cop, red herrings, nibbling, etc.) and sales “tactics” (101 effective closing techniques, 30 tricks to get past the goalie, etc.) you may as well belong to this school.
2. The idealistic school – “Do the right thing, even if it hurts.”
For the idealist, there is no separation between business in life. If you wouldn’t lie to your loved ones, you won’t lie to your clients. If it’s okay to tell a “white lie” to protect a friend’s feelings or prevent a tragedy, it’s okay to tell a “white lie” to protect a corporate ally or prevent a business tragedy. While two idealists may differ on the specific set of rules they live by, they share the rigidity of doing what they think is “right,” even when it seems contrary to their business goals.
3. The pragmatic school – “What is given, is turned around”.
The behavior of a pragmatist may be inseparable from that of an idealist, but the motivation is different. While 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 they believe it is the most effective way of doing things. However, they will not hesitate to use deception as a necessary tool to achieve their goals. Because pragmatists value their reputations (being considered 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 envelope of truth when the pressure is on and the stakes are high; “Pragmatic poker players” tend not to brag to enhance their reputations as trustworthy, but they take advantage of that reputation when it really counts. The “idealistic poker players” are those among us who recognize business as a game, fully expect everyone around them to do their best to lie and cheat, but will only engage in games that they think they can win by doing the right thing”.
Possibly the most important thing to keep in mind is that not everyone follows your rules. Just because you are honest does not guarantee that others will be honest with you; Similarly, your willingness to lie, cheat, and break the rules doesn’t mean that the people you’re doing the same with.
Here are some things you can do to put these theories of business ethics into practice:
1. If you haven’t already done so, identify which “school” you belong to. Remember, your motivation is an indication of your ethics just as important as your actions.
2. Identify at least one person you know or have read about who seems to embody each of the three elementary schools and three high schools of ethics. Again, keep in mind that knowing someone’s actions without understanding their motivation will not necessarily reveal their 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!