Dispute Resolution: The Dynamics of Conflict Resolution - Assignment Example

Dispute Resolution: The Dynamics of Conflict Resolution Dispute resolution has been experienced in the business sector due to the market competitions (Bercovitch and Jackson, 2009). All firms want to emerge as winners in their fields of operation though profit maximization; hence leading to conflicts in different fields. As a result, there are conflict resolution approaches that can be used in the business sector according to the set determinants. The U.A.E has provided a market and business environment that has contributed to the influx of organizations into the country. The high numbers have also contributed to conflicts since all want to maximize their growth strategies. An example of such a firm is the Kaloti Jewellery International and an audit firm by the name Ernst & Young. The dispute arose after the audit firm realized that he Kaloti had been making cash and illegal transaction in the acquisition of its gold inputs. Arbitration It has been incorporated in the Arab countries since the Ottoman's era when the Sharia law. The policy was used to oversee conflicts that were mostly business in nature. They call for dispute resolution using legally appointed arbitrators. Since then, the U.A.E government has adopted the use of arbitration in conflict resolutions. In the case of Ernst & Young and Kaloti, the use of an arbitrator would be a good solution since the organization would make rational decisions on behalf of the country. Various organizations offer arbitration services in the U.A.E. The Dubai Multi Commodities Centre (DMCC) would in this case act as the arbitrator since it deals with the control of metal purchases and sales in the U.A.E. Its purpose is to monitor the situation and get advice from both parties. The data should be analyzed and classified in various sectors and scrutiny of the audit books to verify the information provided by Ernst & Young (Hamdan and Pearson, 2014). Case evaluation should be the core process that is used to solve the issue. Without a clear comprehension of the situation, organizations such as Kaloti may seem to benefit from the situation. However, the process has to be voluntary to clear any personal differences between the organizations. Kaloti argues that all the provided data valid and that all truncations were held legally. However, the audit firm has proof on some of the dishonest purchases of gold bars from an African country. The case can be closed through Kaloti’s acceptance of the purchases and face legal action in the end. Negotiation It can be used by business to solve conflicts without the need of a third party (Hamdan and Pearson, 2014). The two organizations have to review the situation and discuss the current situation. For example, Kaloti and the audit firm should have representatives that analyze the case of fraud and illegal businesses and later come up with a conclusion. The final decision will depend on the key points and finding in the negotiation process. In most cases, firms settle the situation using individual ideas such as repaying the lost money or changing the ways of operation. Most negotiations end in a win-win situation but in businesses there are strategies that have to be followed due to the competitions. In the case of Kaloti, the firm’s management should take responsibility of the accusation such as failure to report cash transactions and to check gold quality purchased from high-risk suppliers. The cash transactions amount to more than $5 billion that cost the country more of its taxes. The negotiations should be used to let Kaloti accept its actions and come up with a way forward before legal action is taken by the state. Results should be based on the negative impacts that led to the conflict. Lawsuit It happens when the organizations have legal representatives (Mayer, 2010). They first have to comprehend the case and defend each party depending on the principles. The U.A.E has strict laws that govern its business environment since it relies mostly on the taxes to increase its national income. Ernst & Young has been hired to carry out auditing processes in most of the organizations in the country. Since the argument includes the state, one of the legal representatives may originate from the state while Kaloti offers its lawyer. The law procedures may be presented in a court of law or be settled through legal agreements (Raines, 2013). For example, Kaloti may pay the fines incurred due to the illegal process and settle all tax bills that were not met during the period. The consequences of the procedure are that the losing party will have to undergo the set legal standards. In this case, if Kaloti loses it will have to repay the state the taxes that have been evaded and at the same time fines due to the engagement in illegal activities within the U.A.E. A jury may be used to come up with the final decision after information has been provided from all parties through their lawyers. Ernst & Young has nothing to lose but it not have the same influence and loyalty in the auditing of firms in the U.A.E. Additionally, since it is a global firm, its legal situation may contribute to its failures in other countries. The U.A.E consists of seven states, and there is the presence of devolved laws that based on individual states. However, the Federal Constitution provides legal measures to the country despite the devolved laws. There are also Sharia laws that can be used in local courts to handle small cases. Conclusion Dispute resolution is a significant strategy in the business environment (Emerson 2009). It may lead to personal hatred whereby individuals working in both firms take their differences to another level. The case of Kaloti VS Ernst & Young should be handled with extreme with the right legal procedure because it involves four parties. The state should benefit from the taxes if it is proven that the organization engaged in illegal transactions. It will also prevent other organizations from forfeiting taxes in the U.A.E leading to a transparent and accountable business environment. References Bercovitch, J., & Jackson, R. (2009). Conflict resolution in the twenty-first century principles, methods, and approaches. Ann Arbor: University of Michigan Press. Dispute resolution in The United Arab Emirates. (n.d.). Retrieved December 17, 2014, from http://www.out-law.com/sectors/infrastructure1/dispute-resolution-in-the-united-arab-emirates/ Emerson, R. (2009). Business law (5th ed.). Hauppauge, N.Y.: Barron's Educational Series. Hamdan, N., & Pearson, F. (2014). Arab Approaches to Conflict Resolution Mediation, Negotiation and Settlement of Political Disputes. Hoboken: Taylor and Francis. Mayer, B. (2010). The dynamics of conflict resolution a practitioner's guide. San Francisco: Jossey-Bass. Raines, S. (2013). Conflict management for managers resolving workplace, client, and policy disputes. San Francisco: Jossey-Bass. Revealed: Why Dubai's first conflict gold audit never saw the light of day. (2014, February 26). Retrieved December 17, 2014, from http://www.globalwitness.org/library/revealed-why-dubai's-first-conflict-gold-audit-never-saw-light-day Read More