Bargaining under the influence: The role of alcohol in negotiations

Abstract

Executive Overview Managers consume alcohol across a broad range of organizational contexts. In many cases, alcohol is consumed with little or no consideration of the risks or benefits involved. This article identifies hazards of managerial drinking, as well as the role alcohol can play in developing relationships. We describe results from recent experiments that investigated the influence of alcohol on negotiations, and discuss the role of alcohol in many cross-cultural settings. We argue that the decision to consume alcohol should be made rationally and strategically, and offer advice for managers setting corporate policy or making individual decisions to consume alcohol.