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A lie is a lie: the ethics of lying in business negotiations

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  • Sherwood, Charles

Abstract

I argue that lying in business negotiations is pro tanto wrong and no less wrong than lying in other contexts. First, I assert that lying in general is pro tanto wrong. Then, I examine and refute five arguments to the effect that lying in a business context is less wrong than lying in other contexts. The common thought behind these arguments—based on consent, self-defence, the “greater good,” fiduciary duty, and practicality—is that the particular circumstances which are characteristic of business negotiations are such that the wrongness of lying is either mitigated or eliminated completely. I argue that all these “special exemption” arguments fail. I conclude that, in the absence of a credible argument to the contrary, the same moral constraints must apply to lying in business negotiations as apply to lying in other contexts. Furthermore, I show that for the negotiator, there are real practical benefits from not lying.

Suggested Citation

  • Sherwood, Charles, 2022. "A lie is a lie: the ethics of lying in business negotiations," LSE Research Online Documents on Economics 113331, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:113331
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    More about this item

    Keywords

    business ethics; negotiation; lying; consent; self-defence; fiduciary duty;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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