Maturing Diversity Initiatives

What we will cover…  Legal Framework for Diversity  Business Case for Diversity  Diversity Trends and the Business Impact  Nixon Peabody’s Diversity Challenge

3 Legal Framework for Diversity

4 Affirmative Action Plans  Race-conscious action or decision may be permitted if done pursuant to a valid affirmative action plan  Long-standing “manifest imbalance” between racial groups  Action or decision does not trammel the rights of others (non-beneficiaries)  Program as a reasonable termination point

U.S. Supreme Court Case: Grutter v. Bollinger  Grutter upheld the University of Michigan Law School admission process  Race as a “plus” to be considered together with other factors in the admission process.

6 Grutter v. Bollinger  65 of America’s largest businesses filed a joint amicus brief supporting the law school’s “race- plus policy.”  According to these businesses: “The existence of racial and ethnic diversity in institutions of higher education is vital to [our] efforts to hire and maintain a diverse workforce... [and] such a workforce is important to [our] continued success in the global marketplace.”

7 Grutter v. Bollinger  Signatories included: Xerox, General Electric, Eastman Kodak, Lockheed Martin, John Hancock Financial Services, Microsoft, Mitsubishi Motors, Pfizer, The Boeing Company, Coca-Cola, PepsiCo…

8 Business Case for Diversity

9 Diversity Defined in the U.S.  Race  Gender  Religion  Sexual Orientation  Gender Expression/ Identity  Age  Disability  Color  National Origin  Ethnicity  Multiculturalism

10 Why Should We Care About Diversity?  The gay market segment is the fastest growing segment in the U.S.  By 2010 nearly 50% of the total U.S. workforce will be comprised of women and people of color.  By 2042, nearly a half of the total U.S. population will be people of color.

11 Why Should We Care About Diversity?  Women-owned businesses are almost one- third of all businesses in the United States.  The number of people employed with severe disabilities has quadrupled in the past twenty years.  Less than one-third of U.S employers offer benefits for same-sex or opposite-sex domestic partners.

12 Diversity Trends and the Business Impact

Minority and Women General Counsel at Fortune 500 Companies in the U.S.

Impact on Business 1999 Diversity in the Workplace Statement of Principle Endorsed by general counsel of 250 U.S. businesses “significant weight will be given to a firm’s commitment and progress in the area of diversity in the selection of outside counsel”

Impact on Business 2004 Call to Action Endorsed by more than 100 general counsel of major corporations Advances diversity using the economics of outside counsel selection decisions “intend to end or limit our relationships with firms whose performance consistently evidences a lack of meaningful interest in being diverse…”

Signatories to Diversity Pledges

Clients Asking About Our Diversity Effort Boston Housing Authority

Clients Asking About Our Diversity Efforts  Consolidation of outside counsel  Request for proposals  Diversity surveys  Electronic billing  Client relationships  Financial incentives

Nixon Peabody’s Diversity Challenge

Focus on diversity: Management Committee Departments Practice Groups Individual attorney Major Initiatives: Recruiting Training Retention Promotion Business development Community involvement

Diversity Challenge Management Involvement Report progress to management Monitor progress toward goals Lead by example

Diversity Challenge Department Involvement Assign mentors Recruit diverse attorneys Succession planning

Diversity Challenge Practice Group Involvement Track assignments Mentor, train and coach Provide opportunities – Client exposure / pitches – Financial support for development activities – Assignment of appropriate projects

Diversity Challenge Individual Involvement 40 hour annual challenge – Attend a diversity event – Mentor a diverse attorney – Train a diverse attorney – Participate in a firm-sponsored diversity initiative

“They always say time changes things, but you actually have to change them yourself.” – Andy Warhol

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