"In the culture of mediation, much work remains to be done. We need to develop new mediators and specialised institutions that have experience in this area, while also guaranteeing a legal system that generates trust and transparency," commented Julio Fuentes, Coordinator of the Unit for Insolvency Law, Arbitration and Mediation at the Spanish Ministry of Justice, at a panel discussion entitled "Efficient Conflict Management in Companies: International Best Practices", organised by ESADE Law School's Conflict Management Research Group and ARAG, an insurance company specialised in legal defence. He added: "Spain does not have a voluntary tradition of alternative conflict resolution, and the approval of Law 5/2012, on mediation in civil and commercial cases, was not enough." Finally, Mr. Fuentes concluded: "The Ministry of Justice is analysing the possibility of introducing changes in the system by modifying the Law on Mediation, Civil Procedure and Free Legal Assistance in order to move, in the medium term, towards a concept of ‘mitigated voluntariness', but without abandoning the voluntary nature."

Alternative dispute resolution techniques

Teresa Duplá, Professor and Director of the Conflict Management Research Group at ESADE Law School, observed that "in our society, in addition to managing people, we manage conflicts". Therefore, she added, "society must believe and trust in the advantages of mediation when it comes to managing conflicts". Prof. Duplá then observed: "It is possible to enter into an alternative conflict management culture, but first we must conduct a study of the possible conflicts that we are exposed to and figure out which ones are measurable, since not everything is."

M. Belén Pose, Director of the Corporate Legal Consultancy Division at ARAG, mentioned the need to promote alternative conflict resolution techniques such as conciliation, negotiation, arbitration and mediation – approaches which, in legal terms, are known as alternative dispute resolution (ADR). "A system based on alternative conflict management tends to be more effective", argued Ms. Pose. "It's important to foster a culture of mediation, but without excluding other alternatives."

During her remarks, Ms. Pose noted: "Insurance companies in Spain can handle these types of claims internally, whereas in Germany they cannot, because the law gives lawyers a monopoly on legal services. In Germany, mediation is not considered a legal service, so it can be offered as a direct service to the client. It has been very well received, with more than 12,000 cases handled each year."
Over the past year, ARAG has handled 79,463 conflicts in Spain, 75% of which have been resolved using ADR techniques, mainly negotiation and transaction. Judicial proceedings were necessary in 25% of the cases, although 6% of these were resolved without the need for a court ruling.
Technology and non-market risks: new factors in conflict management

The technology boom has brought about changes in the way confrontations are managed

"Technology has to play a role in the conflict management process, because it helps us resolve conflicts", commented Lidia Peyrona, Legal Director for IBM Spain, Portugal, Greece and Israel. "Artificial intelligence shouldn't be seen as a replacement for people, but rather as a tool that helps us manage conflicts and knowledge, among other things." By way of example, Ms. Peyrona mentioned Watson, an artificial-intelligence-based computer system capable of answering questions formulated in natural languages.

Juan Antonio de Rueda, Director of Corporate Affairs at Equatorial Coca-Cola, commented: "Companies must take a holistic view of risk, incorporating non-market situations into the classic risk map matrix." Practices of this sort, he argued, "make it possible to quantify not only strictly financial risks but also reputational risks", noted Mr. de Rueda, adding that such risks should be integrated into a company's business model and decision-making process. Good risk management, he concluded, has a direct impact on conflict management, which in turn has a positive impact on the company's bottom line.