Final answer:
Conciliation is a nonbinding agreement where a mediator helps disputing parties reach a resolution. It differs from arbitration, where the third party's decision is usually binding. Conciliation emphasizes an informal approach and aims to keep relationships cordial.
Step-by-step explanation:
Conciliation is a nonbinding agreement between parties to resolve disputes by asking a third party to mediate differences. Unlike arbitration, which typically involves a binding decision made by the third party, conciliation is an informal process that aims to help the disputing parties reach a mutually acceptable agreement. The conciliator does not make a ruling; instead, they assist the parties in understanding each other's perspectives and finding common ground. This method is often favoured when parties seek to maintain a cordial relationship or when an informal approach has been ineffective.