Businesses do not operate in a vacuum. They depend on the economy and the working relationships of multiple different parties. In some cases, conflicts can arise through the course of business operations that can complicate day-to-day workflows or even put the future of the company at risk.
Business disputes may involve contract breaches or unfair competition. They can involve allegations of misconduct. Business disputes may lead to litigation and could draw attention from the media. Those who own or help operate businesses usually want to prepare in advance for conflicts that could arise and negatively impact the organization. The following types of business disputes are among the most common.
Shareholder or partner disputes
The more that people have invested in a business, the more strongly they may feel about regular business operations. Business partners may find themselves fighting intensely over unmet expectations, misconduct and a host of other concerns. Their interpersonal conflicts can have a major impact on the day-to-day operation of the business.
Similarly, shareholders who have invested in a company have a right to influence the company’s operations and to profit through the payment of dividends when the business is successful. Shareholders may take issue with decisions that they worry may limit the company’s overall profitability. They may also object to freeze-outs where they don’t get an opportunity to vote or do not receive the dividends they deserve based on company performance.
Conflicts with other companies
Perhaps another business engaged in corporate espionage to access one company’s trade secrets. The competitor may then attempt to infringe on the other company’s intellectual property rights and market share by misusing those ill-gotten trade secrets for financial gain. There are countless other ways for companies to end up embroiled in a business-to-business dispute. One company might fail to follow through on contractual obligations to another, for example. Disputes with other businesses can damage a company’s profitability and disrupt its regular operations.
Disagreements with employees
The people who work at a company are its lifeblood. The services that they provide help keep the company profitable. They also have access to information ranging from proprietary production processes to client lists that could lead to unfair competition.
Employees might violate restrictive covenants when they take a job with a direct competitor. They might sue a company and allege that the organization violated their rights. In cases where they claim that employers mistreated workers, those allegations can damage a company’s reputation with the public and with other professionals.
Proper contracts and proactive responses to the misconduct of other parties can help leaders at organizations prevent significant setbacks caused by business disputes. Actively monitoring potential sources of organizational conflict can help executives, owners and other business leaders keep their companies running as smoothly as possible.