Microsoft hits $100m milestone in push to hand more work to women and minority-owned law firms
Tech giant's diversity push sees more than $100m in legal fees go to women and minority-owned law firms since 2010
November 02, 2016 at 08:39 AM
3 minute read
More than $100m (£81m) of Microsoft's legal spend since 2010 has gone to women and minority-owned law firms, the company's chief legal officer has announced.
"This spend not only represents the valuable contributions made by these firms to our business, but signifies Microsoft's deep engagement with law firms owned and operated by underrepresented groups in the legal profession," writes Brad Smith in an article published on the tech giant's website.
In the article, Smith states that working with women and minority-owned law firms is a win-win for everyone involved. These firms "bring experience, perspectives and creativity into our business", he explains. Meanwhile, the firms benefit from having a big-name client such as Microsoft.
Smith points to a small Seattle firm named Snodgrass Annand, which has just three lawyers, all of who are women. The firm "found it difficult to compete for corporate business against bigger, more established firms", but Microsoft's commitment has helped it flourish, Smith reveals.
Microsoft has been a leader in recent years in implementing diversity initiatives. In 2008, it introduced a programme under which Microsoft's preferred provider firms could earn a 2% bonus on their legal fees each year, by increasing the diversity of their lawyers over the previous year.
Last year, it upped the ante, agreeing to award a 3% bonus to the firm that scored the highest on a number of diversity metrics.
Law firms the company has worked with in recent years include Simpson Thacher & Bartlett, Olswang, Cadwalader Wickersham & Taft, King & Wood Mallesons, Covington & Burling, Orrick Herrington & Sutcliffe, Sidley Austin and Weil Gotshal & Manges.
The news comes after Uber general counsel Salle Yoo recently called on clients to support law firm diversity efforts by sending more work to female lawyers.
In a keynote address at a dinner honouring this year's 65 Women Leaders in Tech Law, she said: "Women cannot become partners, and they certainly cannot become powerful partners, ones that could demand and effect change, without a book of business. If we fail to be intentional about who we call [with new work], we are failing to optimise the opportunity that we have, as clients, to effect real change in law firms."
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