The economic benefits of business mediation in the Brazilian scenario
This study aims to measure the economic benefits of business mediation in Brazil compared to lawsuits, investigating whether choosing mediation to resolve a business conflict is more economically advantageous than filing a lawsuit in the judiciary and whether opting for extrajudicial mediation to settle a business dispute is more economically advantageous than reaching an agreement in judicial mediation.
Being involved in a conflict can be harmful in many ways. In business, it is necessary to consider the damage they can cause to the company and its reputation. The manager/CEO has the option to choose how he/she intends to end this conflict. However, often due to lack of adequate information about conflict resolution methods, he/she end up delegating to the judge, a third party who does not know the dynamics of the company and, therefore, the final decision often does not meet expectations.
In Brazil, the traditional culture is to seek the Judiciary for all issues, from the simplest to the most complex.
In Brazil, the traditional culture is to seek the Judiciary for all issues, from the simplest to the most complex. This causes congestion, resulting in a delay in the solution, high costs and a decision that is not aligned with the company’s real needs.
This article provides updated data on the comparison between extrajudicial mediation X judicial mediation X judicial process in the Brazilian scenario. Research was carried out in judicial processes and private conflict resolution chambers.
Costs involved in resolving the conflict
The article demonstrates the economic advantage of extrajudicial (private) mediation in relation to judicial mediation and the judicial process. Resolving a conflict through court is the most economically costly way for those involved.
Time spent resolving the conflict
It was also evident that the time taken to resolve the conflict in extrajudicial mediation was shorter than in judicial mediation and the judicial process.
Result of the method used to resolve the conflict
It was observed that in mediation (extrajudicial and judicial) there are possibilities for those involved to reach agreements different from the initial request so that interests are achieved.
Conclusion
The article demonstrates that, in Brazil, (a) choosing mediation to resolve a business conflict is more economically advantageous than litigating in the Judiciary and (b) opting for extrajudicial mediation to end a business conflict is more economically advantageous than signing a agreement in judicial mediation
Business executives and lawyers should exercise the decision process by looking carefully at a decision tree to achieve better and more rational results. As a practical contribution from this research, organizations can contemplate a decision tree with current data to seek an efficient and effective method for dealing with business conflicts.
Choosing mediation to resolve a business conflict is more economically advantageous than litigating in the Judiciary and opting for extrajudicial mediation to end a business conflict is more economically advantageous than signing a agreement in judicial mediation.
Given the current Brazilian scenario in which the Judiciary is overloaded and takes a long time to deliver a definitive answer, the development of extrajudicial business mediation is deemed important for both companies and public institutions. Developing the Multi-Door concept is essential for understanding that the idea is to choose the best way to solve a conflict/problem – to choose the adequate method.
It is possible to state that mediation is more economically advantageous than lawsuits, confirming the initial hypotheses of the research. This contributes to the positive long-term economy by enabling the implementation of Sustainable Development Goal 16 of the UN 2030 Agenda, which deals with peace, justice, and the search for effective institutions, which must be fulfilled by the government, civil society, and the private sector.
Methodology
The research, conducted in the Southeast region of Brazil after the implementation of the Brazilian Code of Civil Procedure in 2016, employed quantitative methods, analyzing 397 judicial processes. Bibliographic and archival studies were carried out. Exploratory research was done in the Southeastern region (due to the economic and business importance of this area) courts after the validity period in 2016 of the Brazilian Civil Procedure Code (CPC – Law nº 13.105/2015) calling for judicial mediation and stimulating ADR in Brazil up to 2017 (the year of data collection). Quantitative methods were used to compare mediation with lawsuits. An exploratory, descriptive analysis of the data is necessary.
Applications and beneficiaries
This article provides essential information for businesses to make informed decisions in the resolution of business disputes. This also contributes to the positive long-term economy by enabling the implementation of Sustainable Development Goal 16 of the UN 2030 Agenda, which deals with peace, justice, and the search for effective institutions, which must be fulfilled by the government, civil society, and the private sector. This study fills a literature gap in the empirical data about the economic benefits of business mediation in Brazil. Given the current Brazilian scenario in which the Judiciary is overloaded and takes a long time to deliver a definitive answer, the development of extrajudicial business mediation is deemed important for both companies and public institutions.
Reference to the research
CARNEIRO, C. D.; DUZERT, Y.; ALMEIDA, R. A. de. The economic benefits of business mediation in the Brazilian scenario. RAE – Revista de Administracao de Empresas , [S. l.], v. 64, n. 3, p. e2023–0132, 2024. DOI: 10.1590/S0034-759020240304.
