Business Diplomacy: Resolving Disputes Through Mediation

Qatar is seeking mediation with its Arab neighbors to resolve the current Middle East conflict. The fracas began when Saudi Arabia, the UAE, Bahrain and Egypt cut diplomatic ties and shut their borders to Qatar on allegations of Qatari support for terrorist organizations. The source of the conflict was purportedly due to implanted false reporting in Qatari news by nefarious agents of another country.

In the Arabic culture, the use of “sulha” or “sulh” (similar to the mediation-arbitration of the West) is common. This method employs a third party committee (“jaha”) to effect shuttle diplomacy and proxy discussions between disputing parties. Normally, sulha is used to resolve victim-offender conflict that might threaten to tilt two families, and ultimately two clans or tribes into open conflict.

The utilization of mediation as a customary practice is widespread amongst native communities worldwide, and considered as the primary dispute resolution method in these societies. Resorting to courts and the litigation system is a 20th century phenomenon introduced by colonial powers. Notwithstanding, mediation is not an alternative but as demonstrated in the case of Qatar and its neighbors, a centuries old go-to tool in diplomacy. After all, before Qatar and its neighbours became states five decades ago, they were the tribes Al Thani, Al Khalifa, Al Sabah and Al Saud. 

So, why shouldn’t businesses too resort to this form of diplomacy in settling business disputes? Especially in societies where values such as face, honor, reputation and harmony are prized over profits and money. When direct negotiation between parties are deadlocked, mediation is useful for the following reasons:-

·     A mediator can invite each side to take a step towards one another, which for ego or organizational reasons, they could previously not do.

·     He or she can stimulate creativity on how to arrive at a mutually beneficial deal or how to by-pass the deadlock.

·     In private sessions, the mediator would allow each party to confide what they would otherwise not be able to express in the presence of the other party for fear of damaging bargaining leverage, and explore with the mediator any changes in their own position.

·     The mediator can invite both parties to express themselves and listen to both sides without anger, at the same time framing the views for understanding and acknowledgement.

·     The parties can explore compromise solutions or positions that either party alone would be afraid to propose.

As an alternative dispute resolution method to the traditional litigious framework, mediation brings too much value and efficacy to businesses to ignore. It saves costs, time and energy and allows executives to concentrate on what is important – building the business and making money.

Consult our experienced business mediators at www.mediate2resolveonline.com to explore more.