Tag: Diversity

Illinois House Bill Requires Corporations to Report to Secretary of State

House Bill 3394, approved by the Governor on August 27, 2019 and effective immediately (Public Act 100-589), amends the Business Corporation Act of 1983 (“BCA”) to add new Section 8.12 and amend Section 14.05.

New BCA Section 8.12 provides that domestic and foreign corporations, as soon as possible but not later than January 1, 2021, to report to the Secretary of State, on its Annual Report:

  1. Whether the corporation is a publicly held domestic or foreign corporation with its principal executive office located in Illinois
  2. Data on specific qualifications, skills and experience that the corporation considers for its board of directors, nominees for the board of directors and executive officers
  3. Whether each member of the corporation’s board of directors self-identifies as a minority person and, if so, which race or ethnicity to which the member belongs
  4. Other information

New BCA Section 8.12 also requires the Secretary to State to make the information public and report the information to the University of Illinois which is to review the reported information and publish, on its website, a report that provides aggregate data on the demographic characteristics of the boards of directors and executive officers of corporations filing an annual report for the preceding year along with an individualized rating (establish by the University of Illinois assessing the representation of women and minorities on corporate boards)  for each such corporation. The University of Illinois’ is also required to identify strategies for promoting diversity and inclusion among boards of directors and corporate executive officers.

BCA Section 14.05 as amended adds new Sections 14.05(k) and 14.05(l).  New BCA Section 14.05(k) requires each corporation or foreign corporation to state on its Annual Report whether the corporation has outstanding shares listed on a major United States stock exchange and is thereby subject to the reporting requirements of new BCA Section 8.12.  New BCA Section 14.05(l) requires corporations subject to new BCA Section 8.12 to provide the information required by new BCA Section 8.12.

It is our understanding that Form 14.05, Illinois Annual Report, is currently being amended to reflect these changes.

© Horwood Marcus & Berk Chartered 2020. All Rights Reserved.

For more on corporate reporting requirements, see the National Law Review Corporate & Business Organizations law page.

California Board Gender Quota Law Challenged In Federal Court

Cydney Posner at Cooley LLP wrote last week about a new challenge to California’s Board Gender Quota law.  The lawsuit, Creighton Meland v. Alex Padilla, Secretary of State of California, was reportedly filed in federal district court in California by a shareholder of OSI Systems, Inc.  According to OSI’s most recently filed Form 10-Q, the company is incorporated in Delaware, its principal executive offices are in California, and its shares are traded on The Nasdaq Global Select Market.  The lawsuit alleges violation of the equal protection clause of the Fourteenth Amendment and seeks declaratory and injunctive relief.

As this case progresses, one question might be whether the plaintiff’s claim is direct or derivative.  OSI is not named as a party to the lawsuit and the plaintiff alleges that the law injures his “right to vote for the candidate of his choice, free from the threat that the corporation will be fined if he votes without regard to sex”.  The Delaware Supreme Court’s test for whether a stockholder’s action for breach of fiduciary duty is derivative or direct asks two questions:

“Who suffered the alleged harm–the corporation or the suing stockholder individually–and who would receive the benefit of the recovery or other remedy?”

Tooley v. Donaldson, Lufkin & Jenrette, Inc., 845 A.2d 1031 (Del. 2004).  Although the corporation will be fined and the fine suffered by all of the stockholders, the plaintiff is alleging that he is being injured by being denied the freedom to vote without regard to sex.  Presumably, that injury would be removed if the law is enjoined.

Interestingly, OSI does not appear in the California Secretary of State’s listing of SB 826 corporations published earlier this year.  According to the proxy statement filed by OSI last month, all of the current directors are men, but a female has been nominated for election at the upcoming meeting.

© 2010-2019 Allen Matkins Leck Gamble Mallory & Natsis LLP

More on Corporate Board diversity rules on the Corporate & Business Organizations law page of the National Law Review

Gaming Industry Associations Agree on Universal Esports Principles

Earlier this month, a set of gaming industry representatives agreed upon and released a set of unifying esports principles. These representatives include the Entertainment Software Association (ESA), as well as associations from Canada, Australia and New Zealand, the UK, and Europe. These “Principles of Esports Engagement” were developed in a collaborative effort and form a set of values applicable in all aspects of the global esports environment.

The principles include the following:

  • Safety and Well-Being
    • All esports community members deserve to participate in and enjoy esports in safe spaces and to be free from threats and acts of violence and from language or behavior that makes people feel threatened or harassed.
  • Integrity and Fair Play
    • Cheating, hacking, or otherwise engaging in disreputable, deceitful, or dishonest behavior detracts from the experience of others, unfairly advantages teams and players, and tarnishes the legitimacy of esports.
  • Respect and Diversity
    • Esports promotes a spirit of healthy competition. Whether in person or online, all members of the esports community should demonstrate respect and courtesy to others, including teammates, opponents, game officials, organizers, and spectators. 
    • Esports is truly global and brings together players from different backgrounds, cultures, and perspectives. We believe the broad and diverse player base of esports contributes to its success. We support an open, inclusive, and welcoming environment for all, no matter one’s gender identity, age, ability, race, ethnicity, religion, or sexual orientation.
  • Positive and Enriching Game Play
    • Esports can help build self-confidence and sportsmanship and boost interpersonal communication and teamwork skills. Esports brings players and fans together to problem solve through strategic play, collaboration, and critical thinking. Participation in esports can also lead to the development of new and lasting friendships among teammates, competitors, and members of the broader esports community.

The goal of these organizations in releasing this set of principles is to foster an esports community that is responsible, welcoming, engaging, and of course, fun. Notably, in ESA’s press release announcing these principles, the association highlighted the growth of esports, citing research that estimates that, in 2019, global esports viewership will hit nearly 500 million and revenues will exceed $1 billion USD. With this level of growth, the esports community has a vested interest in supporting the best conditions for play and ensuring esports remains an exciting and inclusive activity and industry at all levels.

Copyright © 2019, Sheppard Mullin Richter & Hampton LLP.

For more video gaming issues, see the National Law Review Entertainment, Art & Sports law page.

5 Ways Traditional Law Firm Culture Burdens Lawyers of Color

City University of New York Scholar and Sociologist Tsedale M. Melaku studies diversity in the legal field, and in a recent Harvard Business Review article she wrote specifically about the social and professional challenges nonwhite lawyers face when they work for traditional law firms. While most white law leaders now appreciate the importance of fostering diversity, their own life experiences may blind them to the specific ways in which conventional law firm culture complicates the path for the lawyers they sincerely want to recruit, retain and support.

Fortunately, Melaku’s interviews with these lawyers illuminate the very concrete problems — and hint at solutions, many of which can be driven, or at least implemented, by marketing and business development teams. Here’s a handful of the challenges these lawyers face:

PR and marketing support automatically follows the rainmakers.

When an attorney lands a game-changing client or nabs a record settlement, the firm promotes the win with a press release, mention in the legal press and maybe even an opportunity for that lawyer to write a column on his practice area. Those are all smart PR moves. But if your marketing and PR “carrots” are distributed just to your firm’s big winners, you may find that every time a picture of one of your lawyers runs in the legal press, it is one of the same handful of white men.

Instead, firms need to imagine a broader purpose for PR: spotlighting attorneys for what makes them unique can be a catalyst for growth and advancement, rather than just a reward that comes after an important deal. Do you have attorneys taking a novel approach to some niche within their practice area? Or who came to their work in the law by an unusual route? What about interesting pro bono work? An active blog, a podcast or other creative use of technology to reach clients? All of these traits represent potential avenues for feature stories, bylined thought leadership articles, conversations with reporters or ideas for conference panels that will give new attorneys a chance to build their individual profiles and the overall brand of the firm.

Serving as the “face” of the firm’s diversity initiatives is (uncompensated) work.

Sadly, diversity is so rare in the leadership class that when firms do manage to advance a lawyer of color, that person is often tasked with representing the firm on panels and at events in addition to serving their clients. While some lawyers may welcome these opportunities, others might prefer to focus on the practice of law. So, even as firms provide additional PR and marketing support for diverse attorneys, firm leaders must recognize that contributing to outreach and diversity initiatives is work — and should be treated as such. Some firms allow attorneys to bill for this time just as they would for client work. Others consider it on performance evaluations when it comes time for raises or bonuses. Find a way to compensate these attorneys for this extra work.

Traditional networking depends on access.

Snagging clients on the golf course, in the country club, or during an ivy league alumni weekend are great business development strategies — for some people. But not all lawyers grew up playing golf, and many elite clubs in this country still have a checkered relationship with diversity, making membership far from routine or even comfortable for lawyers of color. Does your firm celebrate these “chance” encounters with clients at the expense of more formal and inclusive forms of networking?

Support your hires from nontraditional backgrounds by helping them build professional networks that feel authentic to their own experience. This might include support from communications professionals to pitch them for conference panels, nominate them for awards and help them get involved in professional organizations. There is more than one way to network, and lawyers need to know their firm supports their pursuit of new business in ways that honor who they are.

Mentors tend to choose mentees who look like them.

Mentoring has been held up as a key tool for improving retention and advancement. But when senior attorneys think about grooming the lawyers who will someday lead the firm — and inherit their clients — they tend to choose the lawyers who remind them of themselves. Firms are fond of saying that mentoring relationships should come together “naturally,” but for young lawyers who don’t see people like them in leadership positions, this often leads to no mentoring at all.

Firms can take action on this without getting paralyzed by the chicken-and-egg problem (the only way to advance young minority lawyers is to put minority mentors in place, but those lawyers need mentors to get there). Proactive planning to make mentoring part of the work process, and careful matchmaking to connect your firm’s best teachers with the lawyers who can benefit from their experience are good first steps. Not everyone is cut out to be a mentor, and that’s fine. The firm should take responsibility for facilitating these relationships and for evaluating the effectiveness of mentors. Are their mentees advancing in demonstrable ways? Mentorship should involve more than just offering advice; mentors should also be actively sponsoring and promoting their protégés for stretch assignments and leadership opportunities.

Dress codes privilege European standards.

Lawyers of color face both explicit and implicit expectations about how members of the firm should dress and wear their hair. While written dress codes that prohibit, for example, garments worn for religious reasons are obvious violations of equal employment opportunity laws, rules that bar styles worn for cultural or personal reasons may be legal but no less burdensome. In some firms, the written dress code is quite vague, requiring “professional dress,” but the implicit expectations that come along with it are specific and exacting.

The truth is, the notion that conservative business suits for men and women set the standard for professionalism is a white, Western idea. So are norms around hairstyles, facial hair, makeup, jewelry, fingernails, heel height and other aspects of personal expression. Body sizes vary, and not everyone can easily (or affordably) adhere to traditional requirements. Or they may not want to. Dressing authentically is, for many people, an expression of pride in their identities and an opportunity to increase visibility and inclusion, sending a message to younger attorneys on the way up that they, too, belong. If your firm insists on conformity, even when it doesn’t impact job performance, whom might that exclude? And what does your firm miss out on when your lawyers aren’t comfortable bringing their whole selves to work?

Firms that are truly serious about moving the needle on diversity and inclusion understand that the secret is not rearranging the seats at the table, but making that table bigger. In every aspect of work life at the firm — office culture, client engagement, mentoring, promotion and, of course, the practice of law itself — you must establish policies that encourage your attorneys to bring their unique perspectives and insights with them each day. It’s how you will retain and advance the diverse leadership class your clients demand. And it’s the only way you will realize the true benefits that come from different kinds of people solving problems in different ways.

© 2019 Page2 Communications. All rights reserved.

For more on law firm diversity, see the National Law Review Law Office Management page.

Your Firm Is Walking the Walk on Diversity, But Are Your Leaders Talking the Talk?

When it comes to getting the word out about their firm’s gender diversity, many marketing directors focus on publicizing stats that demonstrate progress. Using external communications to spotlight an evenly split associate class, a new equity partner who is a woman or the contributions of women attorneys on marquee cases is a great way to promote your firm’s commitment to gender equality.

But statistics are only one piece of the story about how your firm supports its women lawyers. And that full story may already be on display for prospective clients and recruits, whether you realize it or not. Your overall messaging comes across not just in the communications you produce — on your website, on social media, in ads and thought leadership pieces — but also in who speaks for your firm in the media and what they say. There’s nothing worse than launching an ambitious information campaign to modernize your firm’s image, only to have it undermined by comments to a reporter that are way off message.

Let’s look at two hypothetical cases of law firm leaders quoted in a legal media story on the lack of women represented in banking and finance law.

Law leader A describes his firm’s talent-driven effort to bring in the best women attorneys as well as a robust mentoring and sponsorship program focused on advancing them to leadership positions. “It’s important to us to promote top women attorneys,” he says. “But inclusion isn’t something the firm is embracing out of social correctness or benevolence. Instead, we know, and research shows, that more diverse teams of lawyers are better problem solvers, which means they provide better service to clients. More women in leadership is good for the firm and good for our clients.”

Law leader B talks about his firm’s efforts in a different way. He notes that he’s pretty sure the firm won the business on a $30 billion deal because they included a woman on the team at the pitch meeting, though he doesn’t say whether that woman will play a significant role on the work itself. On the matter of advancing women attorneys in this practice area, he says, “We’re trying, but this job is just inherently demanding and unpredictable, and it’s tough for someone with childcare responsibilities to fully participate.”

Leader A’s comments underscore the marketing department’s work to get the word out about the progress the firm is making on gender diversity. He skillfully articulates not just what the firm is doing but why, and how these initiatives will ultimately benefit clients.

Leader B’s comments, however, will make most marketing directors break into a sweat. He talks about diversity as a legal obligation but also a burden on the firm. And while he seems genuinely to believe that a lack of women in power is a loss for those women, he does not articulate an understanding that the firm and its clients are worse off without the unique contributions those women attorneys would make to the work. Comments like these to a reporter are off message and undermine the firm’s overall goal to demonstrate that it is willing to change things like work processes and schedules to prioritize gender diversity.

Marketing directors don’t always have control over who takes a reporter’s call or what that person chooses to say. But as much as possible, marketers must take proactive steps to harness the power of these media opportunities and make sure they work in service of the firm’s overall communications strategy. Here are three ways you can start this work today:

Integrate messaging across internal and external communications. Has your firm articulated how its gender-equality initiatives line up with its stated values or mission statement? Your internal communications are the place to begin distributing those talking points. All members of the firm should understand not just what you are doing to support the advancement of women but why, and how the initiatives serve clients. This messaging should be consistent across your internal and external outreach.

Advocate for media training. High-quality media training will prepare your firm’s leaders to speak knowledgably about the firm’s diversity initiatives and stay on message. It will also help to create a plan for which leaders should speak on which topics to maximize credibility.

Broker relationships between key reporters and select attorneys. You can influence who becomes the face of the firm in the media by taking proactive steps to match reporters with your best spokespeople and steering them away from less reliable partners. To maximize the effectiveness of these introductions, prepare both parties for the conversation: help your firm representative understand the reporter’s specific interests, and provide the reporter with background on the attorney’s expertise and roles within the firm. Don’t leave anything to chance.

Your efforts to promote your firm’s diversity initiatives will only be successful if your messaging is consistent across all channels. Get proactive to ensure that your firm’s media opportunities support your communication strategy and build the firm’s brand overall.

© 2019 Page2 Communications. All rights reserved.

For more information, see the National Law Review Law Office Management page.

Three Ways Legal PR Specialists can Support Your Firm’s Diverse Attorneys

Law firms serving corporate clients face increasing pressure not only to make their workplaces more diverse and inclusive overall, but also to ensure that more women and people of color occupy top positions of power. Last January’s open letter from 170 general counsel serves as the most pointed example of this client demand. In it, they called on law partners to “develop, promote and retain talented and diverse attorneys”—or risk losing business to firms that take diversity and inclusion seriously.

Law firm leaders who have long paid lip service to these goals without actually changing their recruiting, professional development or performance evaluation practices face a true crisis, and mapping out a path forward that satisfies client demand, not to mention the moral imperative to create firms that better represent our society, will require a multifaceted approach. It might surprise you to learn that a sophisticated communications and media strategy is a crucial piece of that plan.

While public relations may not seem to have an obvious connection with diversity efforts, PR partners who specialize in the legal sector can provide law firm leaders with strategic, targeted support to meet their goals for equity. Effective law firm PR partners can help you:

Audit current initiatives. Most firms are doing something on diversity and inclusion, with varying results. If these initiatives are not yielding the desired outcome, it’s time to think about why. Sometimes the real problem is not a lack of effort but the flawed thinking behind a program.

For example, many initiatives intended to address gender equality target differences in women’s approach to risk-taking, negotiation, and work-life balance. While that may sound like progress, focusing on individual women’s choices furthers beliefs and stereotypes that have been debunked by decades of reliable data about fundamental gender differences. Men and women are not nearly so different as we persist in believing. They behave differently in various settings not because of inherent traits but because of organizational practices that reward and punish men and women differently. Equity initiatives that target systemic issues like parental leave and the pay gap are more likely to improve the promotion and retention of women.

As your approach to improving diversity evolves, your internal and external communications need to evolve too. PR support can help you demonstrate a more sophisticated understanding of the problems and the solutions—and show clients that you are serious about making measurable progress.

Reimagine networking. Today’s attorneys know they must provide excellent client service and master the art of business development. That typically involves some form of networking: getting out of the office to form relationships with clients and prospects, and planting the seeds for referrals and new business down the road. But old-fashioned networking—on the golf course, in the bar, at the country club—is not always a strategy that works for women, people of color, LGBTQ lawyers, and others who have come to the field from outside the old boys’ network. If you are serious about supporting your diverse attorneys, you can get proactive about professional development that helps them build their business in ways that work for them. And your PR team can help these attorneys become more active in relevant professional organizations, nominate them for awards, boost their online and social media presence, and facilitate alternative networking opportunities.

Activate a hands-on media strategy. A customized, targeted plan to promote your diverse attorneys’ immense skills and experience, as well as their innovative approaches to old problems, is key to raising their profiles and, by extension, your firm’s profile as well. PR support can help attorneys build relationships with the reporters who cover issues in their practice area so that they can become expert sources. Attorneys can partner with writers to create thought leadership articles for the publications most widely read by their clients and prospects. Nothing helps you take control of the narrative about your firm like media opportunities that highlight the skills and experience of your current and future diverse superstars.

With clients pressuring law firms to change their ways, creating a diverse and inclusive workplace has gone from a lofty goal to a strategic imperative. This necessary transformation presents leaders with significant challenges, but the good news is you don’t have to go it alone. Experts in communications and media strategy can help you take practical steps to develop and support the diverse attorneys who serve your most valued clients.  And, of course, as you would expect, PR professionals can also help you share the good news about the progress you’re making in advancing diversity and inclusion in your firm.

© 2019 Page2 Communications. All rights reserved.

This article is by Debra Pickett of Page 2 Communications.

Inclusion Does Not Stop Workplace Bias, Deloitte Survey Shows

In Deloitte’s 2019 State of Inclusion Survey, 86% of respondents said they felt comfortable being themselves all or most of the time at work, including 85% of women, 87% of Hispanic respondents, 86% of African American respondents, 87% of Asian respondents, 80% of respondents with a disability and 87% of LGBT respondents. But other questions in the company’s survey show a more troubling, less inclusive and productive office environment, and may indicate that simply implementing inclusion initiatives is not enough to prevent workplace bias.

While more than three-fourths of those surveyed also said that they believed their company “fostered an inclusive workplace,” many reported experiencing or witnessing bias (defined as “an unfair prejudice or judgment in favor or against a person or group based on preconceived notions”) in the workplace. In fact, 64% said that they “had experienced bias in their workplaces during the last year” and “also felt they had witnessed bias at work” in the same time frame. A sizable number of respondents—including 56% of LGBT respondents, 54% of respondents with disabilities and 53% of those with military status—also said they had experienced bias at least once a month.

Listening to those who say they have witnessed or experienced bias is especially important. When asked to more specifically categorize the bias they experienced and/or witnessed in the past year, 83% said that the bias in those incidents was indirect and subtle (also called “microaggression”), and therefore less easily identified and addressed. Also, the study found that those employees who belonged to certain communities were more likely to report witnessing bias against those communities than those outside them. For example, 48% of Hispanic respondents, 60% of Asian respondents, and 63% of African American respondents reported witnessing bias based on race or ethnicity, as opposed to only 34% of White, non-Hispanic respondents. Additionally, 40% of LGBT respondents reported witnessing bias based on sexuality, compared to only 23% of straight respondents.

While inclusion initiatives have not eliminated bias, Deloitte stresses that these programs are important and should remain. As Risk Management previously reported in the article “The Benefits of Diversity & Inclusion Initiatives,” not only can fostering diversity and inclusion be beneficial for workers of all backgrounds, it can also encourage employees to share ideas for innovations that can help the company, keep employees from leaving, and insulate the company from accusations of discrimination and reputational damage.

But building a more diverse workforce is only the first step, and does not guarantee that diverse voices are heard or that bias will not occur. Clearly, encouraging inclusion is not enough and more can be done to curtail workplace bias. And employees seeing or experiencing bias at work has serious ramifications for businesses. According to the survey, bias may impact productivity—68% of respondents experiencing or witnessing bias stated that bias negatively affected their productivity, and 70% say bias “has negatively impacted how engaged they feel at work.”

Deloitte says that modeling inclusion and anti-bias behavior in the workplace is essential, stressing the concept of “allyship,” which includes, “supporting others even if your personal identity is not impacted by a specific challenge or is not called upon in a specific situation.” This would include employees or managers listening to their colleagues when they express concerns about bias and addressing incidents of bias when they occur, even if that bias is not apparent to them or directly affecting them or their identity specifically.

According to the survey, 73% of respondents reported feeling comfortable talking about workplace bias, but “when faced with bias, nearly one in three said they ignored bias that they witnessed or experienced.” If businesses foster workplaces where people feel comfortable listening to and engaging honestly with colleagues of different backgrounds, create opportunities for diversity on teams and projects, and most importantly, address bias whenever it occurs, they can move towards a healthier, more productive work environment.

Risk Management Magazine and Risk Management Monitor. Copyright 2019 Risk and Insurance Management Society, Inc. All rights reserved.
For more on workplace discrimination issues, please see the National Law Review Labor & Employment law page.

“Inclusion Riders” On The Storm

Oscar-winner Frances McDormand ended her acceptance speech with a reference to two words – “Inclusion Rider” – that sent many Oscar viewers scrambling to Google her cryptic message. But the term, and its legal implications, are somewhat more complicated than several news and entertainment outlets are reporting today. The term “inclusion rider” was coined a few years ago by Dr. Stacy Smith, the founder and director of the Annenberg Inclusion Initiative  at USC. Dr. Smith delivered a Ted Talk in 2016 describing an inclusion rider as a potential solution to ongoing diversity issues and concerns in Hollywood. Specifically, she described the idea of having A-list actors demand provisions in their contracts that call for all the roles in whatever project they are working on to reflect broader demographics.

There is likely nothing wrong with a narrowly-tailored and creative provision like the one Dr. Smith described in her Ted Talk. Creative types already have in some instances exercised considerable leeway in setting their own casting criteria, and one need look no further than the hit Broadway musical “Hamilton” with its famously diverse casting to understand that under the rubric of creative choice, such standards can pass muster (although they may still face opposition).

Notwithstanding what may happen in the creative/artistic space, explicit demands or requirements based on race, religion, gender, or any other protected characteristic could run into challenges. In an interview backstage last night, McDormand told reporters “I just found out about this last week. It means you can ask for and/or demand at least 50 percent diversity in, not only casting, but also the crew.”  When it comes to a film or television crew, although an actor may request that good faith effort be undertaken to hire a diverse crew, demanding that certain race or gender quotas be met could run afoul of Title VII of the 1964 Civil Rights Act and comparable state law, which generally bans employment discrimination and quotas by private employers.

An inclusion rider like the one described by Dr. Smith might work in the entertainment industry based on First Amendment and creative license protections. But employers, both in the entertainment industry and outside of it, should be wary of agreeing to riders demanding that specific quotas be met. Those demands, no matter how well-intentioned, could be challenged as being discriminatory.

 

© 2018 Proskauer Rose LLP.
For more entertainment legal news go to the National Law Reviews Entertainment Law Page.

Mind the Gap: Reducing the Sponsorship Gap Between Men and Women in the Workplace

Recently posted in the National Law Review an interesting  article by Brande Stellings of Catalyst Inc. regarding how a mentor differs from a sponsor and compensation that women face and the gaps in career advancement and compensation that women face

While recently moderating a panel on mentors and sponsors in the workplace, I was struck when one of the panelists, a seasoned, extremely accomplished General Counsel at a prestigious institution, mused aloud that she had had many sponsors in retrospect, but did not know there was a name for it.

This is not surprising.  Everyone knows what a mentor is.  But not everyone knows how a mentor differs from a sponsor.  And recent Catalyst researchindicates it is this critical difference that helps explain the gaps in career advancement and compensation that women face right out of the gate, as well as over time, in comparison to their male peers.  

Statistics regarding women’s advancement in the legal profession are well-known.  The National Association of Women Lawyers (“NAWL”) annual survey of women in AmLaw 200 law firms shows that women’s representation in the equity partner ranks has plateaued at the 15-16% range in the five years since NAWL began the survey.  The MCCA survey of women general counsels in the Fortune500 fares a bit better, with women clocking in just under 19%.  These numbers are not dissimilar to women in US business generally. The annual Catalyst census of women’s representation of Fortune 500 Board directors and executive officers has also stalled out in the 14-15% range.

How do we move off this plateau and get closer to gender parity in our top leadership positions?

For years, many have looked to mentoring as a solution.   Yet, for all the time and resources invested in mentoring, it has not yielded dramatic results. Indeed, Catalyst research has revealed a paradox. According to Catalyst’s landmark study of high-potential MBA graduates, Mentoring: Necessary but Insufficient for Advancement, more women than men reported having mentors, but mentoring provided a much bigger pay-off for men than women.  For example, mentoring was a statistically significant predictor of promotion for men but not for women.   We also found that men with mentors made more than women with mentors in their first post-MBA job – to the tune of $9260.

Why is it that men reap much bigger rewards from mentoring than women in terms of promotion and compensation?

Mentoring: Necessary but Insufficient for Advancement found that although more women than men have mentors, women’s mentors have less clout.  In other words, men are more likely to be mentored by CEOs or other senior executives who are in a position to act on behalf of their protégés.  These powerful mentors act as sponsors.  A sponsor is someone with power and rank and significant influence on decision-making processes.  A sponsor can ensure that a high-performing woman’s work is noticed, that she is put on key projects or client engagements, and advocate for her promotion.

Take the example of a woman partner who is now a leader in her firm and in the profession.  When she first came up for partner at her firm, she and her supporters assumed she would make partner. When she did not, her supporters rallied around her, engaged the support of other partners, including, critically, a member of the partner election committee, and she made partner the following year.

In the example above, note that the most important work of the lawyer’s sponsors was done behind closed doors.  As a sponsor stated in our latest report:

A lot of decisions…are made when you’re not in the room, so you need somebody who can…advocate for you and can bring up the important things of why you should advance. You need somebody or people at that table…speaking for you….I can’t think of a person who rose without a sponsor or significant sponsors.

Catalyst research regarding differences between women and men’s mentors in the high-potential MBA population corresponds to the findings in Catalyst’sWomen of Color in US Law Firms research report.  Of all the groups of lawyers Catalyst surveyed, women of color were the most likely to say they had a mentor, and white men were the least likely to say they had a mentor.  The difference emerges in terms of access to influential mentors.  Women of color were leastlikely to feel their mentors were influential.

Sponsorship does not replace mentoring, by any means.  Mentoring is still necessary, but it is not sufficient on its own.   Good advice without the opportunity to put that advice into action will take one only so far.  As Catalyst research demonstrates, women get a lot of advice, but are not getting ahead.

To learn more about the latest research on sponsorship, and hear from women leaders in the business and legal world, join me at the Seventh Annual National Association of Women Lawyers General Counsel Institute on November 3, 2011 for a panel discussion, Beyond Mentoring: Career Advancement Strategies.  For more information on NAWL’s General Counsel Institute and to register, visit NAWL’s website.

© 2011 Catalyst Inc.

Diversity and Its Impact on the Legal Profession

Recently posted in the National Law Review an article by Jon Minners of Vault Inc. regarding the importance of diversity in law firms:

“Diversity is a very critical element of our society,” said Robert J. Grey, Jr.—a partner at law firm Hunton & Williams—during a keynote speech at the 6th Annual Vault/MCCA Legal Diversity Career Fair, held on Friday, July 29, 2011 in Washington, D.C.

In discussing his path to Washington and Lee University School of Law, Grey engaged the audience with a story about his first meeting with the then-dean of the law school.  While his story was filled with humor, Grey conveyed an important message: rather than judging a book by its cover, the dean gave Grey the opportunity to fulfill his dream of becoming a lawyer.  Grey—who formerly served as president of the American Bar Association—has been an influential voice in the legal profession through his work and his commitments to pro bono and diversity.  He was nominated by President Obama to serve as a Board Member of the Legal Services Corporation—a post he now fills—and also currently serves as the Executive Director of the Leadership Council on Legal Diversity.

“Recognizing talent and giving it a chance – that’s what diversity is about,” said Grey.

Grey’s speech formed a fitting backdrop for the day as hundreds of minority, female, LGBT candidates and candidates with disabilities gathered at the Renaissance Hotel in downtown D.C. to speak with recruiters and hiring partners from law firms, as well as corporate and government employers.  Earlier in the week, candidates and legal employers on the West Coast participated in the career fair at the Westin Bonaventure in downtown Los Angeles.

Vault kicked off the career fair in D.C. by honoring the Top 25 Law Firms for Overall Diversity, Top 3 Law Firms for Diversity for LGBT, Top 3 Law Firms forDiversity for Women and Top 3 Law Firms for Diversity for Minorities. While recognizing that diversity is important throughout all careers, Vault.com‘s Law Firm Diversity Rankings focus on the legal profession. These rankings are the result of a survey taken by close to 16,000 law firm associates throughout the country.  This year, and for the third consecutive year, Carlton Fields was ranked the No. 1 Firm for Overall Diversity.

“This represents how far we have come as a nation and an industry,” said Gary Sasso, President and CEO of Carlton Fields, during the award ceremony.  “We have a very long-standing tradition of diversity.  We like to say we celebrate diversity in all things at all times.  It’s in our DNA.”

And it is fast becoming part of the DNA of many organizations who truly see the potential of a more diverse office makeup.  During a panel discussion moderated by Vault.com law editor Mary Kate Sheridan, various professionals in the legal industry weighed in on the subject and discussed ways to make sure that diversity is not just an idea, but a part of the everyday practice.

“Diversity wasn’t really something on top of anyone’s discussion list in the 80s,” said Jackie Stone, a partner at the law firm McGuireWoods.  “But it is an important discussion today.”

Thomas E. Zutic, a partner at the law firm DLA Piper, stated that because of its importance today, “diversity is not about window dressing.  It’s not a one time, show off to the client aspect of business.”

Stone added: “Clients are watching very closely.  They want to see that diversity continues in terms of who actually gets to do the work.”

Lori L. Garrett, vice president and managing director of the southeast region of theMinority Corporate Counsel Association (MCCA), said that once you recruit diverse talent, the best way to keep them is to make them feel like they are part of the team.  “Mentoring is one of the most important ways anyone can connect to supervisors,” she said.  “They understand what it takes to reach the next level, but diverse employees should not just speak to supervisors.  They need to create relationships everywhere.”

Zutic also noted that diverse candidates need to make sure they take ownership of their careers by making themselves desirable candidates.  “Grades are still important,” he said, noting that students should approach law school as their jobs and perform as well there as they would in their careers.  “It’s so basic, but it’s so important,” he said.  “We can talk diversity, but in the end, if you are not bringing the right skill set and the right credentials, it’s not going to work.”

© 2011 Vault.com Inc.