Google, JPMorgan and GSK among companies joining push to send more work to diverse law firms
Group of 32 major companies spent $226m on law firms owned by women and minorities last year
July 19, 2017 at 06:24 PM
4 minute read
When Prudential Financial's Rick Meade first heard, more than a decade ago, that some top companies were prioritising the use of more minority-owned law firms, he wanted to join them. But back in 2006, he said his company's efforts on that front were not developed enough for him to jump in just yet.
During the next few years, Meade, who is chief legal officer for international businesses at Prudential Financial, collaborated with a handful of other senior lawyers who decided to be proactive and start engaging female- and minority-owned businesses through their own efforts.
"Everybody was doing their own thing, which was great, but we wanted to organise and create some momentum to stretch this idea further," said Meade, who is chairperson of the Inclusion Initiative, a group of corporations dedicated to hiring a diverse group of lawyers as outside counsel.
Within a few years, Prudential and the other legal departments at some of the largest corporations were making inclusion within legal more of a priority.
Now, a decade later, 8%-10% of Prudential's legal spend on outside counsel goes to firms owned by women and minorities. Meade declined to provide numbers on the total amount the department spends on these firms, or the total number of firms involved.
Prudential is not alone in its efforts to improve diversity numbers. The company is one of 32 corporations that are part of the Inclusion Initiative, which was founded by Prudential and 10 other companies in 2010 to commit to selecting female- and minority-led firms.
The companies – which include Wal-Mart, Coca-Cola and McDonald's – announced this week that they had collectively spent $226m (£173m) in 2016 with minority- and female-owned law firms.
Since the initiative began in 2010, companies have spent a total of more than $1.24bn (£952m) on this group of firms, allocating at least $200m (£153m) each year.
The Inclusion Initiative is administered through the National Association of Minority and Women Owned Law Firms, a group of 174 firms in 42 US states.
The group, which meets on a semi-annual basis, must spend at least $1m annually on female- and minority-owned firms. Meade said the group does not break out how much each company spends, but said most are spending well above the minimum.
As for Prudential's team, they continue to actively look for firms to do work, with an increasing focus on those that are minority-led. They have an existing list that they have vetted. The department of 181 lawyers sets financial goals each year for how much it will spend on those firms and they monitor spend on a monthly basis.
Meade said the group of members involved with the initiative has steadily grown each year. Among the newest members are Target and Toyota Financial Services, which both joined in 2017.
"I've worked with the Inclusion Initiative for a number of years and have been impressed by their work in bringing organisations together around a shared commitment to increasing spending with minority-owned law firms," said Don Liu, chief legal officer at Target, who formerly served as the top lawyer at Xerox, in a press release. "At Target, we believe that diversity and inclusion make teams better."
Full list of Inclusion Initiative participants
3M Accenture Allstate American Airlines AT&T Bank of America Coca-Cola Comcast Exelon Federal Deposit Insurance General Mills GlaxoSmithKline Google JPMorgan Chase McDonald's Macy's Merck Microsoft Morgan Stanley Nationwide NBCUniversal Prudential Financial Sempra Energy Shell Oil State Farm Target Toyota Financial Services UPS Verizon Wal-Mart Wells Fargo Xerox
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllUK Black History Month: Four A&O Shearman Staffers Honour Their Unsung Heroes
6 minute read'But We Exist': The Stigma Around Disability and Neurodivergence in Law Firms Persists
6 minute readTrending Stories
- 1Infant Formula Judge Sanctions Kirkland's Jim Hurst: 'Overtly Crossed the Lines'
- 2Trump's Return to the White House: The Legal Industry Reacts
- 3Election 2024: Nationwide Judicial Races and Ballot Measures to Watch
- 4Climate Disputes, International Arbitration, and State Court Limitations for Global Issues
- 5Judicial Face-Off: Navigating the Ethical and Efficient Use of AI in Legal Practice [CLE Pending]
- 6How Much Does the Frequency of Retirement Withdrawals Matter?
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250