Why did the Board engage a mediator? 2. What were the benefit of the mediation? 3. Assuming you were the Board Chairperson, what would you have done differently, and why?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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A Board of directors had been experiencing a growing divide between its members for some months and one of the directors sought legal advice independently regarding a possible case for harassment and bullying. The Board's solicitor had been trying to steer them through this difficult period but advised that proceedings were imminent and that urgent action needed to be taken to protect the organisation. The remaining members of the board were unable to agree on a way forward and the director who threatened to sue continued to attend meetings so that they became completely ineffective. They became anxious about speaking on the record and were reluctant to permeated every The Board's solicitor suggested mediation, reminding the Board of their obligation to run the organisation as effectively as possible and that mediation is something the Charity Commission favours.

tackle the obvious conflict that

meeting.

The two solicitors agreed to appoint a mediator and the board members engaged in a half-day mediation. In the secure, confidential context of the mediation issue were aired that had not previously been spoken of and the parties worked with the mediator to discover the root of the problems. Ultimately all members contributed to an agreed outcome and signed up to a charter that addressed the issues that had caused problems in the past and that would prevent the kind of division arising again in the future.

1. Why did the Board engage a mediator?

2. What were the benefit of the mediation?
3. Assuming you were the Board Chairperson, what would you have done differently, and

why?

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