What is the core principle behind the use of Alternative Dispute Resolution (ADR)?

CIPS Managing Ethical Procurement and Supply Test is designed to enhance your understanding of ethical practices in procurement. Study with comprehensive questions and explanations. Prepare effectively for your exam!

The core principle behind the use of Alternative Dispute Resolution (ADR) is to resolve disputes without the need for court intervention. ADR encompasses various methods, such as mediation and arbitration, which provide parties involved in a disagreement with a way to settle their issues outside the traditional courtroom setting. This approach is advantageous as it tends to be less formal, quicker, and often more cost-effective than pursuing litigation.

By focusing on collaborative solutions, ADR fosters communication and understanding between disputing parties, potentially leading to more satisfactory outcomes. Since court processes can be lengthy and adversarial, ADR offers an alternative that can preserve relationships, especially in business environments where ongoing partnerships are important. This emphasis on resolution through methods other than litigation is what fundamentally distinguishes ADR from traditional legal proceedings.

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