It is clear that people are less likely to sue doctors whom they believe are acting in the patient's interest and who communicate clearly and kindly. Doctors discovered that good bedside manner is good business.

This same principle holds true for business, good corporate bedside manner translates into sound risk management.

A 2004 Chubb Group of Insurance Companies' survey of top executives at 300 privately held companies found that an employee or former employee had sued 26 percent of these companies. Twenty-two percent reported that employees had filed discrimination or harassment complaints with the U.S. Equal Employment Opportunity Commission (EEOC) during the past few years.

Forty-four percent of the executives felt it was likely that an employee or former employee will sue them this year. Fifty percent of the respondents expect an employee to file an EEOC complaint. While the respondents estimated that it would cost more than $100,000 to settle an employee lawsuit, 10 percent of them predicted that it would cost at least $1 million.

New leaders often are thrown into supervisory roles with little training and no ongoing mentoring or support. This easily can lead to errors in judgment, such as mishandling communications with employees or asking an illegal question during an employment interview. However, leaders can be taught skills that will make them more effective.

Employees, like medical patients, rarely take legal action against people with whom they have good relationships. When leaders show respect by taking the time to talk and listen, employees are less likely to file a lawsuit. By teaching and monitoring good corporate bedside manner, risk is reduced and employee satisfaction enhanced.

Here are five tips that corporate America can learn from physicians:

Be empathetic and genuine. One of the worst responses a leader can make in response to an employee's complaint is to say "You are being too sensitive" or "Don't be silly." If an employee voices a concern, give him or her your full attention. Ask open-ended questions and get the facts. Find out what the employee wants.

Be fair and consistent. Organizations need to proactively develop, publicize, and follow company policies that treat employees with respect and reflect legal standards. In turn, leaders need training on EEOC laws, company policies, and company values.

Listen with an open mind. When an employee comes to a leader with a complaint, it is the quality of the time the leader gives that is important. Your tone is as important as your words. If you can't do what the employee wants, calmly explain your rationale and business reason. Ask the employee if he or she has any questions and be prepared to answer them. If it makes good business sense to change a policy, do so, and thank the employee for bringing the suggestion to your attention.

Take action and follow up. Any time an employee makes a complaint; take action within one or two days, to investigate the complaint fully. Document everything that is done with regard to the investigation. And, follow up with the employee to assess his or her morale.

Create a sense of psychological safety. Employees need to feel that it is safe for them to voice negative views. Leaders can make this possible by seeking regular feedback through anonymous surveys or other methods. Be sure that no one faces retaliation for bringing a potential complaint to management.

Poor corporate bedside manner can lead to lowered morale, loss of productivity, increased employee turnover, and lawsuits. Good business dictates that corporations invest in coaching for managers to maintain professional relationships and practice good corporate bedside manner.