The purpose of this graduate paper is to point out the importance of applying ethical principles in negotiation processes. The goals of the paper are to analyze the relationship between ethics and morality, to clarify the process of making an ethical decision, and to investigate the perception of the influence of ethics on the negotiation process. The history of ethics is closely related to the history of the human being, and it appears as a need, a result, and a concern of man to regulate moral behavior. People have been negotiating since ancient times, and they are still negotiating today in their everyday business and private lives. The respondents who participated in the research for the purposes of writing this paper also agree with this. 45 respondents or 44% believe that negotiation is part of their everyday business and private life. 23 respondents or 22% negotiate several times together. 18 respondents or 17% believe that they negotiate only a few times a year. 14 respondents or 14% negotiate several times a month. In negotiations, important decisions are made that are sometimes immoral or on the border of morality. The process of making ethical decisions is not an easy task, especially in the conditions of global business. Companies, in view of increasing competition, turn to increasing customer satisfaction and satisfying their wishes by giving them added value. In addition, they are oriented towards retaining business partners and other stakeholders in the business process. The global environment has become increasingly prone to market changes, i.e. challenges to which companies must adapt while respecting ethical principles and values. Ethical issues are complex and adjustments and compliance depend on the appropriateness of each private situation. The most common reasons why negotiators use unethical methods are the motive of power, cultural differences, demographic factors, past (in)experience, etc. What is the situation with negotiations in Croatia? The research showed that out of a total of 103 respondents, 94 or 91% of them believe that negotiations in Croatia are unethical and at a lower level. This means that negotiators use various potentially unethical ways to achieve success at the expense of the other party.