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Business Ethics

Breaking up Amicably: Leveraging Mediation in Phoenix

The case focuses on the process of mediation in Phoenix, a family business that faced a decade-long dispute that escalated to litigation. In 2022, Preeti Gupta, the daughter of the founder, Surajmal Gupta, and Mamta Subramanian, the mediator, reflected upon the events surrounding the 2012 family mediation with Preeti's nephew, Vivek Gupta, who now serves as the managing director of Phoenix. Subramanian was pleased to note that 10 years after she facilitated the mediation at the Phoenix family in 2012, the company was doing very well. The family members had left the acrimony of the past behind. They met and spent time with each other regularly. Subramanian recalled the day she had met Preeti at his father's funeral and suggested mediation to resolve the family's conflicts. Despite the initial resistance and hesitation, the family agreed to mediation, and Subramanian was appointed the mediator. Mediation helped the family reach an agreement and settle their disputes, leading to improved relationships and business growth. The case emphasizes the importance of mediation as a valuable tool for resolving conflicts in business families and suggests incorporating mediation in family charters or constitutions.

Learning Objectives

The key learnings of the case are as follows: Recognize the challenges and dynamics of family business disputes: The case sheds light on the complexities and emotional nature of family business disputes, including the impact on relationships, succession issues, and conflicting interests. To explore the process and principles of mediation: The case outlines the key stages and principles of the mediation process, such as contracting and convening, establishing neutrality, active listening, exploring interests and concerns, and facilitating negotiations. Examine the role of the mediator: The case presents the role of the mediator in facilitating the mediation process and ensuring neutrality, trust, and confidentiality. Reflect on the importance of early intervention and awareness of mediation: The case emphasizes the need for increased awareness and adoption of mediation as a mainstream conflict resolution mechanism.

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