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International Support for Effective Dispute Resolution Between Companies and Their Stakeholders: Assessing Needs, Interests, and Models

David Kovick Consensus Building Institute

Caroline Rees Corporate Social Responsibility Initiative, Harvard Kennedy School

June 2011  Working Paper No. 63

A Working Paper of the: Corporate Social Responsibility Initiative Mossavar-Rahmani Center for Business and Government

Citation This paper may be cited as: Kovick David, and Caroline Rees. 2011. “International Support for Effective Dispute Resolution Between Companies and Their Stakeholders: Assessing Needs, Interests, and Models.” Corporate Social Responsibility Initiative Working Paper No. 63. Cambridge, MA: John F. Kennedy School of Government, Harvard University. Comments may be directed to the authors.

Acknowledgements This paper was made possible by the generous financial support of the World Legal Forum. The World Legal Forum foundation (WLF) structures the interaction between international law and public and private stakeholders worldwide. WLF’s activities include organizing conferences on international law related topics, and developing and establishing international market oriented products and services. The authors would like to thank Mayada Shakkour for her significant contributions to the research for this project.

Corporate Social Responsibility Initiative The Corporate Social Responsibility Initiative at the Harvard Kennedy School of Government is a multi-disciplinary and multi-stakeholder program that seeks to study and enhance the public contributions of private enterprise. It explores the intersection of corporate responsibility, corporate governance and strategy, public policy, and the media. It bridges theory and practice, builds leadership skills, and supports constructive dialogue and collaboration among different sectors. It was founded in 2004 with the support of Walter H. Shorenstein, Chevron Corporation, The Coca-Cola Company, and General Motors. The views expressed in this paper are those of the authors and do not imply endorsement by the Corporate Social Responsibility Initiative, the John F. Kennedy School of Government, or Harvard University.

For Further Information Further information on the Corporate Social Responsibility Initiative can be obtained from the Program Director, Corporate Social Responsibility Initiative, Harvard Kennedy School, 79 JFK Street, Mailbox 83, Cambridge, MA 02138, telephone (617) 496-9764, telefax (617) 496-5821, email [email protected] The homepage for the Corporate Social Responsibility Initiative can be found at: http://www.hks.harvard.edu/m-rcbg/CSRI/

INTERNATIONAL SUPPORT FOR EFFECTIVE DISPUTE RESOLUTION BETWEEN COMPANIES AND THEIR STAKEHOLDERS: ASSESSING NEEDS, INTEREST AND MODELS Table of Contents I. II.

III. IV. V.

VI.

Executive Summary……………………………………………………………………………………………Page 1 Background…………………………………………………….………………………………………….…..….Page 3 National Judicial Mechanisms……………………………………………………………………………..Page 3 Non-Judicial Mechanisms………………………………………………………………………………….. Page 4 The Role of Adjudication…………………………………………………………………………………....Page 5 The Role of Mediation…………………………………………………………………………………..…….Page 6 Research Premises and Methodology……………………………………………………………….…Page 7 Relevant Precedents………………………………………………………………………………………..…Page 7 Research Methodology……………………………………………………………………………………....Page 8 Research Findings……………………………………………………………………………….…………...Page 10 Framing Issues……………………………………………………………………………………….………..Page 10 Substantive Findings………………………………………………………………………….…………….Page 11 Analysis and Conclusions………………………………………………………………...…………….…Page 20 Framing Propositions………………………………………………………………………………………Page 20 Roles and Functions—First Tier…………………………………………………………………….…Page 21 Roles and Functions—Second Tier……………………………………………………………………Page 23 Observations and Recommendations on Institutional Design…………………………….Page 24 Concluding Observations……