Procurement ethics

Remaining ethical in negotiation techniques

Published By
Jeremy Ferrer
Tags
Purchasing profession

How do you convince your suppliers?

If you're like most shoppers, you're under pressure to save money. Unfortunately, pressure is pushing some buyers to cross the yellow line when it comes to ethics. They use dubious techniques.

We can identify 5 bad attitudes. Do you find yourself in any of these profiles?

He will tell any lie to a supplier to convince him to improve his proposal. An example of a lie would be telling a supplier that a competitor is offering a 10% lower rate, when this is not true. UNETHICAL!

The one who exaggerates — He may not lie directly, but his words and behavior may be designed to trick a supplier into believing in a larger quantity or in signing a long-term contract. The intention of the person who exaggerates is to get a better price without putting into practice his words about a greater quantity or a long-term commitment. UNETHICAL!

The one who says it all — He will give information to suppliers about competing offers in order to get him to make a better offer. Of course, competing suppliers expect their proposals to remain confidential. UNETHICAL!

LB19 Attitude

The one that is “bought” — Despite the fact that he is engaged in a negotiation situation with the supplier, he will accept meals, entertainment and/or gifts from the supplier. Even if this acceptance does not influence his decision-making, he creates the illusion within the organization that he is “bought.” UNETHICAL!

THE professional — He considers ethics when negotiating. He knows the characteristics of the other four profiles and consciously avoids this type of behavior. And he does a great job negotiating, too!

There are so many effective ethical negotiation techniques available. You should never have to resort to practices such as who is lying, who is exaggerating, who says everything, or who is bought to get the results you want.

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