I recommend each time you are presented with a potential conflict it would be advisiable always to step back and consider the issue from different stand points. As you travel down the path of communicating it is necessary to not reveal sides for any of the stakeholders but to be a listener. Your directions or advice may not be forth coming until all the information has been revealed to you. As far as seriousness of the interaction depends on the subject matter being discussed. If it pertains to policy, budget or ethics it may be necessary to communicate the issue to a higher level. With all that said I would suggest you always start one on one and try to solve issues at the lowest level of managment. Depending on your level it may be best to return the issue back to their immediate supervisor. As it comes down the chain of command you will begin to see the seriousness of the communication. Always any issues in regard to ethics, budget or policy commnand a high level of importance. I don't usually consider the amount of confrontation it may cause vs the need for coaching of the indvidual(s) with the correct directions. All resolutions to issues comes from our ability to clearly research the problem. Good Question, this is something we all are faced with in a leadership role. I recommend a book titled "Credibility" by James M. Kouzes and Barry Z Pozner which outlines qualities of leadership and will give you some insight to communication.