The 21st Century Corporate ADR Pledge
On August 20 2013, the International Institute for Conflict Prevention and Resolution (CPR) and CEDR announced a ground-breaking agreement that provides for CEDR to be CPR’s exclusive 21st Century Corporate Pledge Partner in the United Kingdom. On November 12th, signatories of the Pledge in the UK will be made public at a special event in London.
With this agreement, the two organisations have agreed to promote jointly the CPR 21st Century Corporate ADR Pledge in the United Kingdom. The 21st Century Pledge provides for signatories to commit their resources to manage and resolve disputes through negotiation, mediation and other ADR processes when appropriate, with a view to establishing and practising global, sustainable dispute management and resolution processes. The agreement also provides that CEDR and CPR will collaborate on substantive programs and initiatives to further the goals of the CPR 21st Century Corporate ADR Pledge.
Kathy A. Bryan, CPR’s President & CEO, and Dr Karl Mackie CBE, Chief Executive of CEDR, both underline the benefits of this unique collaboration: “The purpose of this unique agreement between our two organisations is to magnify the power and international reach of the CPR 21st Century Corporate ADR Pledge. It will serve to expand CPR and CEDR’s international reach to benefit their members and users. Indeed, this agreement will result in greater promotion and use of ADR internationally by providing both our organisations’ users with a more extensive list of signatories who support ADR in different jurisdictions.”
The CPR’s website about the Pledge can be found here.
Media Coverage of the Pledge
The Times (Edward Fennell) Mediate not litigate to trim the bills, December 11 2013 [Paywall]
The Law Society Gazette (Catherine Baksi) ADR Pledge may change approach to litigation, November 18 2013
International Bar Association (Rebecca Lowe) Back to Basics, December 2013
The 21st Century Pledge:
"Our company believes the costs, delay and damage to relationships resulting from adversarial litigation practices have risen to levels that are unsustainable in the present day global business arena. Alternative dispute resolution (ADR) practices developed over the last 30 years have encouraged more cost-effective and collaborative solutions.
Nevertheless, we recognise innovation and advancement need to continue. We believe it is a priority to explore the use of cost-efficient, sustainable, dispute resolution; We believe that our businesses can and should engage in a systematic and collaborative approach to dispute management and resolution with domestic and global customers, suppliers, partners and competitors;
We believe that outside counsel can be an integral part of our dispute management team and law firms schooled in ADR can better serve our legal needs;
We believe that disputes can be resolved using ADR methods so that the outcome enhances both the company’s short and long term well-being, as well as sustaining its vital business relationships. In recognition of the foregoing, we subscribe to the following statement of principle on behalf of our company and its global subsidiaries".
“Our company pledges to commit its resources to manage and resolve disputes through negotiation, mediation and other ADR processes when appropriate, with a view to establishing and practicing global, sustainable dispute management and resolution processes.”
Signatories of the CPR Pledge in the United States
WHAT IS THE 21st CENTURY PLEDGE?
The 21st Century Corporate ADR Pledge lays the foundation for sustainable domestic and international dispute resolution processes within the corporate business model. It states that a company has pledged to commit its resources to manage and resolve disputes through negotiation, mediation and other ADR processes, when appropriate. It does not preclude litigation, but instead, promotes alternative forms of resolution.
WHAT IS THE ADVANTAGE TO SIGNING THE 21st CENTURY PLEDGE?
By creating systemic and sustainable business processes, the 21st Century Pledge helps a company manage the conflicts that inevitably occur in business relationships, while using processes designed by parties to help reduce legal spend and decrease risk.
HOW IS THE NEW PLEDGE DIFFERENT FROM THE EARLIER PLEDGE?
The 21st Century Corporate ADR Pledge exists side-by-side with the original CPR Corporate Policy Statement on Alternatives to Litigation, launched in 1984. The 21st Century Corporate Pledge is broader than the founding Corporate Pledge because it is not limited to a two-party dispute resolution framework. Instead, it points to proactive dispute management and systems designs. The 21st Century iteration of the Pledge, along with the accompanying toolkit of ADR resources, provides an even greater ability to achieve efficient, sustainable dispute management and resolution processes.
DO I HAVE TO BE A CEDR OR CPR MEMBER TO SIGN THE 21st CENTURY PLEDGE?
No. Any company can sign the Pledge without becoming a CEDR or CPR member.
DO YOU HAVE TO SIGN THE FOUNDING CORPORATE PLEDGE IN ORDER TO SIGN THE 21st CENTURY PLEDGE?
While not necessary, if your company wishes to appear as signatories to both, you can find the original pledge on CPR’s website.
CAN I STILL PURSUE LITIGATION IF MY COMPANY SIGNS THE 21st CENTURY PLEDGE?
Yes. The Pledge specifically indicates that a company will use ADR processes when appropriate with the understanding that in some cases litigation is necessary.
For further information about the CPR pledge please contact CEDR’s Director of Communications, Andy Rogers at email@example.com