Dispute Resolution
A Dispute Resolution Policy explains how a third sector organisation will manage disagreements fairly, consistently and constructively. In Scottish charities and voluntary organisations, disputes can arise between trustees, members, staff, volunteers, service users or partner organisations. A clear policy helps prevent disagreements from escalating into governance crises, reputational damage or breakdowns in working relationships.
The purpose of the policy is not to “win” disputes or assign blame. Instead, it establishes a transparent process that supports communication, accountability and good governance. Scottish governance guidance consistently emphasises the importance of openness, respectful challenge and properly managed disagreement as part of healthy organisational culture. A dispute resolution policy therefore acts both as a practical procedure and as a statement of organisational values.
A typical policy defines what constitutes a dispute and distinguishes it from related processes such as complaints handling, disciplinary procedures, whistleblowing or safeguarding. It normally explains which kinds of disagreements are covered, who may use the process, and which matters should instead be directed to another policy or external body.
Policy structure
Most policies are structured around staged resolution. Early and informal resolution is usually encouraged wherever appropriate, since many disagreements arise from misunderstanding, poor communication or uncertainty about roles and responsibilities. If informal discussion is unsuccessful, the policy usually outlines a formal process involving written concerns, impartial review and documented outcomes. Some organisations also include mediation or facilitated discussion as an intermediate step before escalation.
The policy also serves an important governance function. A dispute resolution framework helps trustees demonstrate that disagreements are being handled fairly and transparently, rather than through personal influence or informal power structures. Charities trustees have legal duties to act in the interests of the charity, manage conflicts appropriately and make decisions collectively.
Policy contents
An effective policy will usually include:
- guiding principles such as fairness, confidentiality and impartiality;
- clear responsibilities and authority levels;
- expected timescales;
- conflict of interest arrangements;
- escalation and appeal mechanisms;
- record-keeping expectations; and
- arrangements for policy review.
Importantly, a dispute resolution policy should support organisational learning. Patterns of repeated conflict may indicate wider governance weaknesses, unclear decision-making structures or cultural problems. By documenting and reviewing disputes appropriately, organisations can improve governance practice and reduce the likelihood of future conflict.
Within Scottish third sector organisations, dispute resolution policies are generally regarded as part of wider good governance practice rather than merely reactive procedures for difficult situations.
Further resources and links
SCVO - Managing risks and problems
For further free, well-informed information, find your local Third Sector Interface (TSI) at the directory page here