Corporate governance: Moving beyond reactive dispute resolution system

Desmond explains that conflict is an inevitable feature of complex organisations, particularly in high-pressure, high-expectation work environments. Rather than defaulting to litigation, which can have significant long-term consequences, Kenyan law provides organisations with the option of resolving disputes through Alternative Dispute Resolution (ADR) mechanisms.

Desmond further notes that forward-thinking organisations are moving beyond reactive dispute resolution by embedding ADR into their governance structures. This proactive approach, known as Dispute System Design (DSD), aims to prevent disputes from escalating, rebuild trust and foster a healthier organisational culture.

Desmond also highlights that unresolved internal conflicts can expose organisations to significant reputational, financial and governance risks. Matters such as sexual harassment allegations, disputes between directors and unfair labour practices can have far-reaching consequences, particularly when they escalate or become public.

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