Conciliation is voluntary and private. The third party meets with the parties to the dispute at separate times, analyzes the disputed facts, and issues his or her findings in a non-binding report or recommendation. This process may be especially useful in handling sensitive internal disputes, such as an allegation of discrimination within a company. Such cases often provoke strong emotions, internal divisions, and even conflicts of interest that can interfere with a supervisor's or manager's ability to conduct a fair and impartial investigation of an allegation. To avoid the appearance of unfairness, a company may turn to an outside neutral third party in hopes of reaching a settlement all employees will respect.
Every panel has one neutral advisor.
A mini-trial can help to define the issues and develop a basis for realistic settlement negotiations. The representatives from the two sides provide an overview of their positions and arguments to the panel. As a result, each party becomes more knowledgeable about the other party's position. After hearing each side's presentation, the panel, including the advisor, meets to develop a compromise solution, as in the mediation process. The neutral advisor also may issue an advisory opinion regarding the merits of the case.