The future of diversity in corporate law departments is impacted by many issues, from globalization to pipeline programs. But as shown by MCCA's 2005 "Study of Law Department Best Practices," there is a positive change in the legal departments' place in the diversity Pathways "continuum."
In 2000, MCCA® published its first research report titled, Creating Pathways to Diversity⪚: A Study of Law Department Best Practices. In this report, MCCA postulated the "Pathways Concept" as a continuum for successful diversity programs.
The first step is Compliance—bringing women and minorities into the organization to simply meet equal employment opportunity goals and objectives and not doing anything that would violate employment laws. The second step is Diversity, in which an organization would demonstrate an appreciation for the differences in culture, perspectives, and approaches that diverse employees may offer. The third and final step on this continuum is Inclusion, in which organizations create a work environment that recognizes and values diverse employees' skills and talents, and utilizes this diversity to the fullest advantage, thereby contributing to organizational success.
The 2005 research generally shows a positive change in corporate legal departments' place on the Pathways continuum. A vast majority of those interviewed for the latest study said that their diversity programs had changed in the last five years. None of those reviewed were still in the Compliance stage. Most were in the Diversity phase and had goals, initiatives, or programs that would lead them into the Inclusion phase. And there were several legal departments that clearly have reached an inclusive environment for attorneys and staff, and are using their influence to improve diversity within the legal profession.
The 2005 research was managed by an independent research company, which conducted in-depth interviews with 25 corporate legal departments selected by MCCA. This body of knowledge was then combined with research and interviews completed by MCCA staff in its selection of 23 recent Employer of Choice Award winning legal departments, recognized for developing exceptional diversity programs.
Summary of the 15 Best Practices: Diversity in Corporate Legal Departments
Among the many best diversity practices of the 48 companies studied for the Pathways Report, a number of them stood out as the best of the class. They are summarized here. Many of these best practices are not new, but in fact were identified in MCCA's 2000 Pathways Report. However, what the latest research found is that these practices have been adopted by many more legal departments because they have proven to be successful. MCCA's objective in the Pathways Report was to present best practices that all companies could undertake or use as guidelines. The Pathways Report strives to give examples that other law departments can emulate.
The first five practices summarized below are current corporate diversity practices that have a direct impact on the legal department's diversity activities. The second 10 are current practices of the law departments themselves.
A. Best Corporate Diversity Practices (that Impact Law Department Diversity):
- Diversity is considered a strategic objective and is included in the company's strategic plan.
Most legal department leaders interviewed see diversity as a business imperative for two main reasons:- The need to bring diverse thinking and representation into the legal department and to reflect the growing diversity of their corporation's employees and customers, as well as the judges, juries, and government agencies the legal staff interacts with; and
- The need to do business with diverse populations in a global economy, especially with the growing focus on emerging markets in Asia and South America.
- Diversity goals, initiatives, and accomplishments are communicated throughout the organization and the degree of attainment is measured, with many companies linking compensation of senior executives to diversity results.
Some companies posted their diversity goals, statements, and/or visions on their external web sites to show their commitment. Others have information on their goals, actions, and accomplishments only on their intranets. Many discuss initiatives and progress at company-wide meetings, in internal newsletters and e-newsletters, and they also make them part of initial employee training programs. - Recruitment efforts have more of a diversity focus and include mandating top-level managers to consider a diverse slate of candidates.
- A best practice in corporate diversity recruiting includes mandating that search firms, human resource departments, as well as managers with hiring capabilities, consider a diverse slate of candidates for all open positions.
The corporation has developed focused retention programs aimed at creating an inclusive environment and supporting the career development of diverse staff members.
To retain minority attorneys and legal staff, law departments have adopted many corporate initiatives, including diversity training for all employees, alternative work schedules, leadership development programs, mentoring programs, and work/life balance programs. - Formal outside supplier/vendor programs encourage and track strong supplier relationships with minority, women, and veteran-owned businesses.
Law departments have increasingly become part of corporate supplier diversity programs or have begun to set individual departmental goals for spending with diverse legal service suppliers, including diverse outside counsel at majority and minority-owned law firms.
B. Best Diversity Practices of Corporate Law Departments
Internal Best Practices:
- The general counsel is committed to diversity and demonstrates that dedication through ongoing support and evaluation of internal and external diversity efforts.
For legal departments, the commitment of the general counsel is essential. It is clear that the higher up in the organization the commitment to diversity, the more pervasive it becomes throughout the organization. - Diversity is interpreted very broadly to include not only race and gender, but also ethnicity/national origin, age group, sexual preference, veteran status, disabilities, parental status, lifestyle, and educational background.
One interviewee likened his legal department's definition of diversity to an iceberg. He explained, "To have true diversity is a maturing process. First comes representation within the department—what you can see, the tip of the iceberg. And as true diversity evolves into inclusiveness, you get the full value of the diversity—what's below the surface." - The legal department has a diversity plan that includes metrics to measure progress, and the plan is implemented by a diversity committee or task force comprised of members of the department.
The majority of law departments interviewed have developed some form of written "diversity action plan" that includes diversity initiatives, goals, and metrics in key areas, such as staffing and outside spending.
- Innovative recruiting techniques are used to find talented minority and women attorneys and diverse legal staff.
Many of those interviewed do expect all members of their staff to help recruit. Some said they ask the women and minorities in their departments to play active roles. Two interviewees, one from a large and one from a small legal department, explained their rationale for this, saying, "Once you have women and minorities on staff, it is much easier to attract others." - Reducing the attrition rate of minority and women attorneys through focused retention and inclusion efforts—especially mentoring programs—is part of the department's diversity plan.
Most of those interviewed mentioned "inclusiveness" as the way to keep talented staff; for example, creating an environment in which people want to stay. This was defined as: feeling secure and accepted, being included as part of the team, having others like them in leadership positions as role models, and having mentors who were interested in their success. In fact, mentoring has become a best practice in retention of legal staff. - The department's succession planning includes a focus on inclusiveness that ensures diverse attorneys are included among those identified for key promotion and career development opportunities.
For some of the larger departments, succession plans were very structured. Some general counsel from smaller departments said that including diversity in succession planning is their responsibility. - The general counsel and his or her direct reports have a percentage of their compensation tied directly to diversity objectives and measurable results.
One general counsel said his direct reports are required, as part of their annual review, to discuss what they have done to improve the department's diversity; for example, hire a diverse candidate or work with diverse outside counsel. - The law department influences diversity in outside law firms by requesting and measuring diverse counsel representation on legal matters, and by developing preferred partner relationships based in part on diversity progress of outside firms.
Measuring diversity of outside law firms was one of the most notable changes found in the latest research. Many legal departments view their dollars spent with outside firms as a major way to increase legal work done by minorities and women. - The law department sponsors or invests in scholarships, internships, and other "pipeline" programs aimed at helping develop the career path for a greater number of diverse attorneys.
Some of those interviewed have made financial commitments to scholarship funds as a means to keep minorities in the pipeline to a legal career. Many interviewed conveyed that they participate with local high schools and speak about their jobs at Career Day functions. - Networking with other organizations that share the company's diversity values, such as the minority bar associations and diverse business groups, is encouraged by the general counsel and seen as a way to advance the diversity principles of the law department and cultivate a network of diverse lawyers for future internal hiring or outside counsel retention.
Many of those interviewed encourage staff not to just join, but to also become active members. Many noted that specific staff held leadership roles in these organizations and help direct the diversity initiatives of the organizations.
External Best Practices:
Trends
Most agreed that corporate law departments must remain committed to diversity and lead the way to change.
So, with the growing implementation of these best practices, what is the outlook for legal department diversity? The latest report listed several trends that will impact the future.
While many leading corporate law departments have established formal diversity and inclusion programs, and made significant strides in achieving diversity both among their internal staffs and external representation by law firms, most interviewees of the study acknowledged that more needs to be done to achieve true diversity in the profession. Most agreed that corporate law departments must remain committed to diversity and lead the way to change.
Some of the trends identified that will continue to impact legal department diversity in the future are:
Globalization—As many corporations continue to grow internationally, some contend that diversity will become a natural outgrowth of having staff of all different backgrounds participate in the corporate environment and network more closely with each other. That being said, corporate legal department leaders understand that they still need to provide more management opportunities for attorneys of color and other diverse backgrounds. There are still not enough diverse lawyers in management positions in corporate law departments and as partners in law firms. Several interviewees of the study commented that this lack of diversity among leadership in law departments makes it harder to attract and retain other diverse attorneys.
Stronger Requirements of/and Relationships with Outside Counsel—One of the major trends identified in the study in comparison to the 2000 Pathways Report is the influence corporate legal departments have exerted on their outside counsel to provide more diverse representation and leadership on corporate matters. More and more law departments are requiring their firms to report specific metrics on diverse representation and progress in diversity, and this trend will continue to build in the future. Many corporate legal leaders view their outside firms as partners in the commitment to inclusiveness and for investing in relationships with minority-owned firms and other diverse legal suppliers. Many feel that law firms will become more proactive in their hiring and assignment of diverse counsel and this will trickle down to other legal service suppliers.
Targeted Pipeline Programs—The effort to fill the pipeline for legal jobs with diverse attorneys has received more attention from the legal departments that participated in the study. Companies are offering internships, scholarships, and other opportunities not only to diverse law students and college-level students, but in many cases to those as young as high school age, with the goal of exposing young people to the career of law and opportunities available to them. Looking toward the future, some law department leaders claim that investing in pipeline programs will be one of the most important strategies of their diversity initiatives.
Continued Networking of Diversity—Minded Organizations and Law Departments value of networking with national organizations, both legal and diversity-focused, and with other diversity-focused law departments, colleges and universities, and other business groups, cannot be underestimated, according to interviewees of the study. Whether for recruitment opportunities, shared scholarship programs, recognizing best practices, or other diversity-centered strategies, general counsel and other law department leaders identify networking with other diversity leaders as a key strategy for improving inclusiveness within their own companies and also in the legal profession as a whole.
Click here to view MCCA’s Creating Pathways to Diversity®: A Study of Law Department Best Practices research report.
Diane Nowak-Waring, APR, is an account supervisor at Crosby Marketing Communications. Crosby, which conducted the research for this study, is an integrated marketing communications firm with many years of experience conducting research for corporate legal departments and diversity organizations. Crosby has offices in Annapolis and Chevy Chase, Md.
Veta T. Richardson is the executive director of MCCA. She also serves as the CEO and director of publications for Diversity & The Bar®.
From the July/August 2006 issue of Diversity & The Bar®