170 GCs pen open letter to law firms: improve diversity or lose our business
Top lawyers at companies including Cable & Wireless, Heineken and Getty Images set out ultimatum over 'largely male and largely white' partnership intakes
January 28, 2019 at 12:00 AM
5 minute read
The original version of this story was published on The American Lawyer
More than 170 GCs and chief legal officers have signed an open letter to big law firms, lamenting partnership intakes that "remain largely male and largely white" and saying that their companies will divert legal spend to firms that commit to diversity and inclusion.
The letter has been signed by chief legal officers in a variety of industries, including those in technology, retail, media, hospitality and financial services, at companies including Cable & Wireless Communications, Google Fiber, Etsy, Heineken USA, Mozilla, Waymo, Lyft, Getty Images and S&P Global Ratings.
"We, as a group, will direct our substantial outside counsel spend to those law firms that manifest results with respect to diversity and inclusion, in addition to providing the highest degree of quality representation. We sincerely hope that you and your firm will be among those that demonstrate this commitment," reads the letter.
The letter and signatures were shared with ALM and also posted on a general counsel group page on LinkedIn. Many general counsel who signed the letter also plan to email copies to the firms they work with and request that they share it with all their partners, said Michelle Fang, who spearheaded the letter and is chief legal officer at car-sharing company Turo.
The letter is a direct result of the discussion sparked last month by Paul Weiss Rifkind, Wharton & Garrison and other law firms appearing to promote few women and minorities to partner in their most recent round of promotions. (Paul Weiss chair Brad Karp has since said the firm "can – and will – do better" and has outlined steps the firm has taken to address the issue.)
Fang said a large network of general counsel began discussing law firms that had very diverse promotion classes and those that didn't, and they agreed an open letter to firms would have a broader message compared with individual conversations between firms and general counsel.
"We applaud those firms," the letter reads, "that have worked hard to hire, retain and promote to partnership this year outstanding and highly accomplished lawyers who are diverse in race, colour, age, gender, gender orientation, sexual orientation, national origin, religion, and without regard to disabilities."
"At the same time," the letter continues, "we are disappointed to see that many law firms continue to promote partner classes that in no way reflect the demographic composition of entering associate classes. Partnership classes remain largely male and largely white."
While those lawyers in non-diverse new partner classes worked hard and deserved success, the letter says, "We also know that there are women, people of colour" and others who are equally deserving but haven't been rewarded.
"We are left to wonder if you and your partners value diversity enough to put into place programmes to develop, promote and retain talented and diverse attorneys," the letter adds.
"Collectively, our companies spend hundreds of millions of dollars annually on legal services and we are committed to ensuring equality in the legal profession," states the letter. "We expect the outside law firms we retain to reflect the diversity of the legal community and the companies and the customers we serve."
'Bottom line' incentive
The letter is meant to address firms that have taken a variety of approaches to diversity, Fang said.
For those firms that have prioritised diversity efforts, Fang said the letter will give "validation and support that they may need with partners to keep doing more of it". For those firms that are trying but not doing enough to hire and promote diverse lawyers, she said, it gives them the incentive to recommit.
And for those firms not at all focused on improving diversity, it provides an ultimatum. "If they don't continue to invest in these areas, it will ultimately hurt their bottom line. These diversity and inclusion efforts have a good return on investment," she said. "It will bring them more clients, more talented lawyers and more cases."
Fang, volunteering to take the lead in drafting the letter, worked with other general counsel in writing it. The letter, which is still open for signatures, spread beyond a women's general counsel group to many others' professional networks.
In interviews, several general counsel ticked off reasons why diversity in law firms mattered, from ethical and equality principles to having an effect on the outcome of cases.
"The only way you can flesh out an idea is with diversity of opinion and that needs to be reflected in the diversity of peopling giving us the opinion," said Lyft general counsel Kristin Sverchek, who signed the letter. She said Lyft is considering mandating diversity goals for the law firms it works with, after sharing the letter with firms.
Thomas Chow, a general counsel at online advertising platform PubMatic, said he signed the letter because he has found law firms "need to have repeated and continuous feedback" about the importance of diversity and inclusion at their firms. Sometimes firms trumpet their efforts, but "a lot of the times it feels like lip service when we look at their partner rosters" or promotion announcements, he said.
Chow said the letter was also important to encourage racial and ethnic diversity as well as gender diversity in firms.
Amy Keating, general counsel of Mozilla, the organization behind the popular Firefox web browser, said she signed it because she believes collective voices "are powerful voices for change, and especially so when those voices are clients".
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 AllLinklaters Sees Latest Partner Exit as UK Leveraged Finance Partner Walks To Simpson Thacher
2 minute readEx-Dewey & LeBoeuf Banking Lawyer on Trial in Germany’s Cum-Ex Tax Scandal
DLA Piper & Hogan Lovells Expand German Construction and Property Practices
2 minute readWhite & Case, Cleary Among Firms Gearing Up for Biggest London IPO Since 2022
3 minute readTrending Stories
- 1UN Treaty Enacting Cybercrime Standards Likely to Face Headwinds in US, Other Countries
- 2Clark Hill Acquires L&E Boutique in Mexico City, Adding 5 Lawyers
- 36th Circuit Judges Spar Over Constitutionality of Ohio’s Ballot Initiative Procedures
- 4On The Move: Polsinelli Adds Health Care Litigator in Nashville, Ex-SEC Enforcer Joins BCLP in Atlanta
- 5After Mysterious Parting With Last GC, Photronics Fills Vacancy
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