Ethical Considerations of Mediation

Commercial mediation is a popular form of alternative dispute resolution that involves a neutral third-party mediator who helps parties in a commercial dispute reach a mutually acceptable resolution. Compared to litigation, mediation is quicker, more affordable, and more adaptable, making it a preferred option for many businesses. However, commercial mediation presents ethical considerations that must be addressed to ensure the process’s integrity and effectiveness.


Neutrality is a primary ethical consideration in commercial mediation. Mediators must remain unbiased throughout the mediation process, avoiding taking sides or showing favoritism toward any of the parties involved. They must not have any financial or personal stake in the outcome of the mediation, as such bias can undermine the process’s trust and fairness.


Confidentiality is another critical ethical consideration in commercial mediation. Mediators must maintain the confidentiality of all information shared during the mediation, preventing any unauthorized disclosure to outsiders. This confidentiality enables parties to speak freely and explore options without fear of negative consequences. It also safeguards the parties’ interests and protects their reputation.

Informed Consent

Informed consent is also essential in commercial mediation. Mediators must provide a clear explanation of the mediation process and the mediator’s role to the parties involved, ensuring that they understand the possible outcomes and the advantages and disadvantages of settling the dispute through mediation. This helps parties make informed decisions and avoid being coerced or misled into making decisions that may not serve their best interests.

Mediators must have the necessary qualifications and training to conduct commercial mediations effectively. This includes a comprehensive understanding of the commercial environment, including the legal and financial aspects of the dispute, and training in conflict resolution and mediation techniques.

In conclusion, commercial mediation is a valuable alternative to litigation in resolving commercial disputes. However, ensuring the integrity and effectiveness of the process requires that mediators maintain neutrality, confidentiality, informed consent, and adequate qualifications and training. By adhering to these ethical considerations, mediators can ensure that parties can trust the process and reach mutually satisfactory agreements, benefiting all involved.

For an experienced Mediator to help negotiate a resolution to your commercial dispute contact Ken Strongman. Here.

About the Author: As a professional Mediator and Arbitrator since 2004 Ken Strongman has years of experience and has successfully resolved disputes in the fields of Business/Commercial, Securities, Estates/Probate/Trusts, Real Estate, Intellectual Property, Construction Defects, Construction Contracts, Employment, and Environment. He is also a Mediator and Arbitrator for FINRA.  

© 2023 Ken Strongman. All Rights Reserved. Please do not copy or re-post without permission.



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