P.T. Barnum once said, “There’s no such thing as bad publicity.” That ideology may work for 19th-century showmen, but today’s business owners might disagree.
Protecting your company’s reputation and brand is crucial to its success. Unfortunately, a lawsuit can destroy everything you’ve worked hard to create.
Why is litigation damaging to a business?
Conflicts are inevitable in any company. It may be an issue with a supplier, a disagreement with a client or employee problems. As a business owner, you likely deal with multiple conflicts throughout the day, most of which are resolved quickly. However, there are some conflicts where you and the other party can’t seem to come to a resolution. It escalates until it becomes too big for either of you to handle.
Litigation may seem like a way to resolve your differences once and for all, but it comes with its own set of problems that could be damaging to your business. Court cases are usually public, meaning sensitive business information can become public record. This could open the door to negative publicity and damage your company’s reputation.
One of the most significant advantages of mediation is confidentiality. It takes place in a private setting. Therefore, disputes and the details of their resolution remain confidential. In addition, mediation allows you and the other party to come to a mutual agreement. With the communication that comes from mediation, both parties walk away satisfied, rather than disgruntled. This lessens the likelihood that they will bad-mouth you and your business.
Public perception can make or break a business. People often form their opinions based on what they see in the media, even if it’s false or incomplete. Mediation keeps the dispute out of the public eye. This privacy ensures that your company and brand remain untarnished.