E - Book Chapter (THE POLITICAL, LEGAL AND REGULATORY ENVIRONMENT)

5.4 Conflict Resolution, Dispute Settlement, And Litigation 

Conflict resolution, dispute settlement, and litigation are all different ways of resolving legal disputes between parties. Each approach has its own advantages and disadvantages, and businesses should consider which approach is most appropriate for their particular situation (Melianus T et al., 2021). 

• Conflict resolution: 

Conflict resolution involves the use of negotiation, mediation, or other nonadversarial methods to resolve disputes. This approach can be less expensive and time-consuming than litigation, and can help to preserve business relationships (Stepanova et al., 2020). However, it may not always be effective if the parties are unable to reach a mutually acceptable resolution (Skordoulis et al., 2020). 

• Dispute settlement: 

Dispute settlement involves the use of formal procedures to resolve disputes, such as arbitration or adjudication (Hosseini et al., 2019). This approach can be less formal and less expensive than litigation, and can provide a quicker resolution than going to court. However, the decision making process may be less transparent than in court, and the parties may have limited recourse to appeal the decision (J. Liu et al., 2019). 

• Litigation: 

Litigation involves taking legal action in court to resolve a dispute. This approach can be expensive and time-consuming, but may be necessary if the parties are unable to reach a resolution through other means. Litigation can provide a more formal and transparent decision-making process, but can also strain business relationships and may result in a less flexible outcome(Lin et al., 2021). 

In choosing the best approach, businesses should consider a range of factors, including the nature and complexity of the dispute, the costs involved, the potential impact on business relationships, and the likelihood of success. It is also important to seek legal advice and consider the potential risks and benefits of each approach before making a decision (Lin et al., 2021). 

5.5 The Regulatory Environment 

Environmental regulations are a series of regulations, policies and legal action that aim to protect the environment and prevent environmental damage that adversely affects human health, biodiversity and the sustainability of our planet (Paramati dkk., 2021). Environmental regulation usually contains rules regarding the use of natural resources, waste management, pollution reduction, and efforts to promote sustainable development. (Singh & Kumar, 2021) 

The following are some examples of environmental regulation: 

• Air Quality Act 

This law sets standards for safe and clean air quality. The law also authorizes government agencies to set rules to reduce air pollution from various sources, such as factories, motor vehicles and power plants. 

• Waste Management Act 

This law regulates how waste is handled and treated, including safe waste disposal and recycling. This law also contains rules regarding the supervision and monitoring of industrial waste production. 

• Biodiversity Protection Regulation