Rabbi Yishmael His Son Said: "[A Judge] Who Refrains From Handing Down Legal Judgments [But Instead Seeks Compromise Between The Litigants] Removes From Himself Enmity, Theft, And [The Responsibility For] An Unnecessary Oath; But One Who Aggrandizes Himself By [Eagerly] Issuing Legal Decisions Is A Fool, Wicked And Arrogant."
In a business dispute, the ability to accept compromise is important, for it demonstrates that an individual is able to see beyond his own position and make concessions for the sake of another person.
There are, however, certain matters, such as Jewish education and Torah law, where compromise must be avoided. For the Torah is eternal, G-dly truth - containing absolute values that must not be mitigated by human notions of right and wrong.
(Likkutei Sichos, Vol. XX, p. 356-357)