The Consequences of Unethical Negotiation Practices

In one of the classes I am teaching I assigned my book "Getting Back to the Table" for the students to read. They have come up with some really wonderful and practical examples that I want to share (anonymously of course). Here is a very good example of the Pennywise and Pound Foolish Failure: "One time I learned the wrong lesson from a negotiation was early in my supply chain career. I believed that the key to success was to be aggressive in every negotiation, with the sole focus of cutting costs regardless of the context or long-term impact. Looking back, that mindset was not only flawed, but it led to a situation that I still regret. I was negotiating with a small, long-standing vendor, one that had maintained a strong relationship with the company I worked for over the previous 12 years. Driven by my goal to maximize savings, I took an overly aggressive approach and used our purchasing power which made up about 70% of their total revenue to push for deep cost reductions. While I achieved short-term savings, the consequences were far more damaging. I later learned that the vendor had reduced the number of clients they served to prioritize our business and meet our high demand. My negotiation left them financially vulnerable and, in the process, severely strained a valuable partnership that had taken over a decade to build. When I fully understood the impact of my actions, I felt terrible. That experience taught me an important lesson: effective negotiation isn’t just about cutting costs, it’s about creating value and maintaining healthy, sustainable relationships, especially with smaller vendors. Since then, I’ve been much more mindful in my approach, focusing on strategies that support mutual benefit and long-term success."

𝐓𝐡𝐚𝐭’𝐬 𝐜𝐫𝐚𝐳𝐲… 𝐓𝐫𝐮𝐞 𝐒𝐭𝐨𝐫𝐲: I recently had a candidate, after receiving a rejection, offer me a portion of their future salary in exchange for getting in front of the hiring manager. Let me be very clear: 𝐭𝐡𝐢𝐬 𝐢𝐬 𝐧𝐞𝐯𝐞𝐫 𝐚 𝐠𝐨𝐨𝐝 𝐢𝐝𝐞𝐚. 𝐇𝐞𝐫𝐞’𝐬 𝐰𝐡𝐲: 𝐋𝐞𝐠𝐚𝐥 𝐑𝐚𝐦𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬: Offering or accepting any kind of payment in exchange for favors in the hiring process is highly unethical and could have serious legal consequences. Most companies have strict policies against bribery, and violating these can result in immediate termination for all parties involved. It could even lead to legal action against you or the company. This kind of behavior puts both your reputation and your career at risk. 𝐌𝐨𝐫𝐚𝐥 𝐚𝐧𝐝 𝐄𝐭𝐡𝐢𝐜𝐚𝐥 𝐂𝐨𝐧𝐜𝐞𝐫𝐧𝐬: Beyond legality, it raises significant moral issues. Recruitment should be a merit-based process, where the best candidates are chosen based on their skills, experience, and fit for the role. Attempting to "buy" your way in undermines this integrity. It’s not just about breaking rules; it’s about compromising the fairness of the process for everyone involved. No job is worth sacrificing your integrity for. 𝐏𝐫𝐨𝐟𝐞𝐬𝐬𝐢𝐨𝐧𝐚𝐥 𝐂𝐨𝐧𝐬𝐞𝐪𝐮𝐞𝐧𝐜𝐞𝐬: Tactics like these can backfire in the worst way possible, ruining your professional reputation. Trust and ethics are crucial in any career path, and recruiters network closely with one another. Word spreads quickly, and this kind of behavior can tarnish your name across the industry, closing doors instead of opening them. If you’re serious about advancing your career: ✅ Focus on growing your skills ✅ Improving your resume ✅ Building meaningful connections No amount of money can ever buy my integrity, ethical recruiting standards, or foundational recruiting principles. I got that its a very tough market and way more people need jobs than there are available, but times WILL GET BETTER. The right opportunity will come through merit, not shortcuts. Let's keep the hiring process fair, honest, transparent, and ethical—for everyone involved. #EthicsInRecruiting #StayProfessional #RecruitmentIntegrity #FairHiring #LegalAndMoralDilemma #PostsByLB

I often meet negotiators who openly admit: “Yes, of course I bluff. That’s part of the game.” But here’s the uncomfortable truth: If you bluff in a negotiation, you’re intentionally deceiving your counterpart. In another setting, we wouldn’t call that clever. We’d call it embezzlement. My study found that 49% of professional negotiators admit to lying during negotiations. Let that sink in. Nearly half. So here’s my question: If lying is unethical in finance, law, or leadership—why should it be acceptable in negotiation? Negotiation isn’t poker. It’s not about deception—it’s about creating value through trust, transparency, and collaboration. That’s what SMARTnership Negotiation is built on. Because when you lie to win, the deal may close… but the relationship collapses. And that costs far more than any short-term gain. #Negotiation #EthicalLeadership #TrustCurrency #SMARTnership #NegoEconomics #TheSmartNegotiator Tine Anneberg Juan Manuel García P. Darryl Legault Gražvydas Jukna Jason Myrowitz Moïse NOUBISSI Loise Waruingi Francisco Cosme World Commerce & Contracting Tim Castle