Enhancing Corporate Governance: The Role of Alternative Dispute Resolution (ADR) in Resolving Corporate Disputes

  • Unique Paper ID: 168470
  • Volume: 11
  • Issue: 5
  • PageNo: 1074-1083
  • Abstract:
  • Corporate governance refers to the mechanisms, processes, and relations by which corporations are controlled and directed. It is critical for maintaining transparency, accountability, and fairness in corporate structures, which ultimately contributes to the sustainability and long-term success of businesses. A key challenge in corporate governance is the resolution of disputes among shareholders, directors, management, and other stakeholders. These disputes, if unresolved, can lead to reputational damage, financial loss, and erosion of shareholder confidence. In this context, Alternative Dispute Resolution (ADR) has emerged as an efficient and effective method for resolving corporate disputes without the need for costly, time-consuming litigation. ADR includes methods such as arbitration, mediation, and negotiation, which emphasize flexibility, confidentiality, and preservation of business relationships. These methods are particularly well-suited to corporate disputes because they allow for tailored solutions, reduced conflict escalation, and less disruption to business operations. This abstract explores how ADR can complement corporate governance frameworks by providing mechanisms to handle internal and external disputes. It discusses the role of ADR in enhancing boardroom decision-making, resolving conflicts among shareholders, and addressing issues related to compliance and regulatory frameworks. Moreover, ADR processes can contribute to better governance by promoting transparency, accountability, and ensuring that disputes are resolved in a manner that upholds the best interests of the company and its stakeholders. By integrating ADR into corporate governance structures, companies can create a more resilient and responsive system for handling disputes, thereby fostering a culture of trust, collaboration, and long-term stability in corporate operations. This abstract highlights the growing importance of ADR in the corporate world and underscores the need for its continued adoption to support effective governance practices.

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