CCDI Study shows law firm senior leadership still largely white and male

Interesting study by the Canadian Centre for Diversity and Inclusion.

In general, I find a three-year time series too short to show much change given the nature of promotion and equivalent processes (a minimum of five years is better, ten is more reliable).

However, it is nevertheless informative in terms of its breakdown by seniority  and a good initiative:

Despite much talk over the last decade around boosting diversity and inclusion in law firms, women and racialized lawyers continue to be under-represented in the Canadian legal profession with Caucasian men continuing to far outnumber those two groups in senior leadership roles, according to a study from the Canadian Centre for Diversity and Inclusion.

Level Chan says a lack of women and racialized lawyers at the top of law firms is a matter of retention and advancement. He says there continues to be “over-representation” at the associate and entry-level areas of the firms but they don’t tend to stay.

In fact, the study shows Caucasian men who responded to the survey have the greatest odds of being an equity partner, and they are seven times more likely than racialized women to be an equity partner.

The study, “Diversity by the Numbers: The Legal Profession,” conducted by the CCDI in partnership with the Canadian Bar Association, shows the representation of minority groups in the legal profession has not changed substantially over the last three years that the CCDI has been collecting data. In 2014 and 2015, 73.99 per cent and 76.88 per cent of senior leader respondents were men. In 2016, 75.34 per cent of senior leader respondents to the survey were men and 90.78 per cent of senior leaders were Caucasian.

In 2014 and 2015, 89.28 per cent and 88.91 per cent of senior leader respondents were Caucasian respondents, respectively. Another statistic of note is that 81.9 per cent of senior leaders are equity partners.

“Results from 2014, 2015 and 2016 do not show a shift towards a more diverse and inclusive workforce, particularly in partner and leadership roles,” the report states.

The study, sponsored by Borden Ladner Gervais LLP, Cassels Brock & Blackwell LLP, Dentons Canada LLP, McCarthy Tétrault LLP and Miller Thomson LLP, shows women and racialized respondents are under-represented in equity partner and senior leader roles and over-represented as associates and articling or summer students.

Authors of the report say factors contributing to the perpetuation of these numbers include “inflexible working conditions, rigid firm culture, high client expectations and overall economics of the profession.”

While some might point to a tough economy since 2008, Deanna Matzanke, director, measurement and analytics at the CCDI, says the economy is a “significant red herring” and what the report shows is “a compelling validation” that the current law firm model makes it difficult for women and minorities to rise to equity partner positions.

“ . . . the process of billable hours, the emphasis placed on client relationships, and the hierarchal ‘Old Boys Club’ network in law firms do not support or foster a diverse and inclusive environment.”

The report goes on to say that women find themselves in a difficult position when faced with trying to balance family needs with law firm demands. Also, “ . . . lawyers from minority groups do not have the same social and cultural capital to network and find mentors who relate to them, because the pool is very small.”

That means many leave the law firm culture for more flexible and accommodating environments elsewhere, such as in-house roles or solo practice.

Matzanke, a lawyer herself, says the results of the study are disappointing and show that diversity and inclusion are not being successfully implemented in the legal profession, despite the fact the pool of potential lawyers in law school has increased in diversity and at the associate level at law firms shows fairly high diversity.

The majority of racialized respondents in the legal profession are Asian, while all other groups show very small representation.

A total of 11 firms from nine provinces and one territory participated in the 2016 survey. Firms were invited to participate directly by CCDI via the Law Firm Diversity and Inclusion Network, and the Canadian Bar Association sent a letter to all members.

“There’s nothing surprising here really,” says Level Chan, a partner with Stewart McKelvey LLP in Halifax and the CBA’s representative on the CCDI’s advisory committee.

“As to why we’re not moving the needle much, I think it’s a matter of retention and advancement, and as you see particularly with women, there continues to be over-representation at the associate and entry level areas of the firms, but we’re not keeping them. I think that in turn is translating to having fewer people available for senior roles and as equity partners. That is the ongoing issue we’ve had in the legal profession.”

Source: Study shows law firm senior leadership still largely white and male

Link to the study:Diversity by the Numbers: The Legal Profession

Law Society report proposes changes to combat systemic racism

Will be interesting to see whether the report and its recommendations are fully or partially adopted, and the degree to which they are implemented.

But it all starts with data and pleased that one of the recommendations is for just that:

Law Society of Upper Canada working group is proposing that the regulatory body step in to ensure that law firms and other legal workplaces move to eradicate systemic racism in the legal profession, and to penalize those that fail.

The Challenges Faced by Racialized Licensees Working Group spent the past four years studying the issue and holding consultations and will present its final report and recommendations Thursday to the Law Society’s benchers — its board of directors — for information purposes. A final vote is expected on Dec. 2.

“The challenges faced by racialized licensees are both longstanding and significant,” reads part of the report, obtained by the Star. “In our view, the Law Society must take a leadership role in giving legal workplaces reasonable deadlines to implement steps that are important to bring about lasting culture change.”

The report goes on to say: “It is clear from the working group’s engagement and consultation processes that discrimination based on race is a daily reality for many racialized licensees; however, many participants stated that they would not file a discrimination complaint with the Law Society for various reasons, including fear of losing their job, fear of being labeled as a troublemaker, and other reprisal-related concerns.”

Lawyer Paul Jonathan Saguil said it’s important that the public, as well as lawyers, see themselves reflected in the legal profession.

“What happens when you get to the pinnacle of the profession — people who are applying to the bench or to tribunals? As you go up the pipeline, you get people who are more and more removed from what is the true diversity of the Canadian population, and that has an impact,” he said. “For lawyers, too, it has a psychological impact when they don’t see themselves reflected at their firm, and wondering how they can succeed.”

Saguil, who is Filipino-Canadian, mentioned as his role model Superior Court Justice Steve Coroza, believed to be the first Filipino-Canadian appointed to a superior court.

“Once you see someone advance in that position, you start hoping that one day you can achieve even a modicum of that success,” Saguil said.

Major recommendations — most of which the working group envisions would be implemented over the next three years — include requiring legal workplaces of at least 10 licensees (which include lawyers and paralegals) to develop and implement a human rights/diversity policy, “addressing at the very least fair recruitment, retention and advancement.”

A representative of each of those workplaces would also have to complete an equality, diversity and inclusion self-assessment of their office every two years, according to one proposal.

Another recommendation proposes “progressive compliance measures” for workplaces that don’t implement a human rights/diversity policy, and/or workplaces “that are identified as having systemic barriers to diversity and inclusion.”

The 15-member working group, made up of benchers, proposes a “gradation of responses,” from meeting with representatives of legal workplaces to discuss concerns, “to disciplinary approaches if there is deliberate non-compliance with requirements, despite multiple warnings, or no efforts are made to address systemic barriers.”

Observers say change is needed now more than ever, as the number of racialized lawyers in Ontario has doubled — from 9 per cent of the profession in 2001, to 18 per cent in 2014. According to the 2011 census, 26 per cent of Ontarians identified as racialized.

“The overall goal is to change the culture of the legal profession,” said lawyer Raj Anand, co-chair of the working group.

“We had a very important issue that has not been addressed — certainly not to this extent by any law society in Canada . . . I don’t think there’s any law society that has gone to the point of mandatory measures in order to effect culture change.”

Anand said he hopes other law societies can use his working group’s report as a model to change the culture in other provinces.

“The issues are still serious ones, and enough time has passed. It’s time to put in place some base minimums. These are not radical recommendations.”

Progress would be measured by annually providing legal workplaces of 25 licensees or more with the self-identification data of their firm’s lawyers and paralegals. That information, compiled by the Law Society, would then allow the firm to compare its numbers with the profession as a whole.

Licensees would also be asked to answer questions about inclusion at their workplace every four years, and a summary would be given to the workplace.

The Law Society would also be required to publish an “inclusion index” every four years that would contain the legal workplace’s self-assessment information, demographic data and information collected from the inclusion questions.

The group also recommends mandatory training for every licensee on equality and inclusion, to be taken once every three years, as well as improvements for mentoring.

Source: Law Society report proposes changes to combat systemic racism | Toronto Star

It’s 2016, but women – even in elite professions – still earn less

Having data helps sharpen the conversation:

In the legal field, a 2016 survey of compensation paid to in-house counsel found that female lawyers who work as corporate counsel earn 15 per cent less than their male in-house counterparts.

“This wage gap cannot be fully explained away by the assertion that ’men have been in the workplace longer,’ as men have fewer average years as both legal counsel and senior counsel and [yet] still earn a higher base salary,” according to a report by the Canadian Corporate Counsel Association and The Counsel Network, a national legal recruitment firm. “For in-house counsel, the gender wage gap is real and it is not shrinking… In all sectors, except government, where woman have wage parity, men earn a higher salary than women.”

(The average annual salary for all in-house counsel surveyed is $165,000.)

A 2015 survey conducted by Chartered Professional Accountants Canada uncovered similar results: “At the total level, female members have a median total compensation of $99,000 versus $120,000 among their male counterparts.”

Some – but not all – of this is explained by the preponderance of men in more highly paid executive roles, said the CPA, which also provided a compensation breakdown by role and gender, based on 2014 pay stubs.

Examples: median annual compensation for male accountants in chief financial officer roles was $180,000, compared with $140,000 for females; $125,00 for male treasurers, compared with $98,000 for females; $133,000 for male professors, compared with $109,000 for females; $250,000 for male partners in accounting practices compared with $190,000 for females.

“It’s a fairly recent thing that we have looked at the data and gone on the record with it. That’s obviously good, because just recognizing that there is a problem can lead to change,” Robin Taub, volunteer chair of the CPA Canada’s women’s leadership council, said in an interview.

The most recent in-house counsel compensation survey – the fourth such survey conducted since 2009 – “was shocking” in that the gender pay gap has not narrowed “and it’s 2016,” said Dal Bhathal, Toronto-based managing partner of The Counsel Network.

This time, however, perhaps because it is 2016, “I can tell you that, absolutely, in the in-house counsel community, it has definitely received attention,” Ms. Bhathal said.

At a time when the federal government has its first-ever gender-balanced cabinet and securities regulators now require publicly traded companies to disclose the percentage of women on their boards of directors and in executive positions, the issue of gender equity is not only on the corporate radar, it’s on the agenda.

Source: It’s 2016, but women – even in elite professions – still earn less – The Globe and Mail

Discrimination a daily reality for visible minority lawyers in Ontario, report says

Not surprising that the legal profession is not immune from discrimination issues:

The blunt Law Society of Upper Canada report, titled “Challenges Faced by Racialized Licensees,” contains some disquieting findings.

“Overt discrimination and bias are a feature of daily life,” the paper concludes. “Racialization is a constant and persistent factor.”

Ontario’s legal profession has seen an increase of visible minority lawyers in recent decades. Latest figures indicate about 17 per cent of lawyers — and 28 per cent of paralegals — are not white, up from about 9.2 per cent in 2001.

In 2012, the law society set up a working group to study the issue of racism and discrimination in its ranks.

Despite the dramatic increase in minority numbers, professional acceptance is still hard to come by, according to the study.

Alienation, lack of entry and promotion opportunities and disrespect are among the problems “racialized” lawyers say they face.

“The challenges faced by racialized licensees have an impact on the reputation of the legal professions, access to justice, and the quality of services provided,” the report states.

Minority participants in the study complained that colleagues, judges and clients commonly assumed they were incompetent or ineffective. They talked about being shut out from professional opportunities or excluded from workplace social gatherings.

Last year, for example, Ontario’s top court found that two black lawyers had been racially profiled in 2008 when an administrator at a lawyers-only lounge at a courthouse in Brampton asked them — and only them — to identify themselves.

Discrimination a daily reality for visible minority lawyers in Ontario, report says | Toronto Star.

Cultural competence: An essential skill in an increasingly diverse world – Slaw

Short article on cultural competence with respect to lawyers. Starts with awareness:

Instead of trying to be “culture-blind” a common strategy of minimization, a culturally competent lawyer should strive to build a working knowledge of behavioural predictors: cultural dimensions of behaviour that are shared by the majority of individuals within a cultural identity. Unlike stereotypes, behavioural predictors are grounded in science for example, anthropology or sociology and allow the user to assess a person’s behaviour against cultural generalizations.

Cultural competence: An essential skill in an increasingly diverse world – Slaw.

Companies see diversity pay off

An example of diversity leadership in legal practice, Denton’s Canada (highlighting their Calgary office):

“From a cultural perspective, we’ve had zero pushback from senior leadership on embracing (diversity and inclusion) programs,” says Ghitters. “Diversity isn’t a fad. We’re in it for the long term.”

Having been recognized recently as one of Canada’s Best Diversity Employers by Mediacorp Canada Inc., Ghitters said diversity has to be built into the culture of a company with buy-in from the top down.

In the past six to eight months, the company has done everything from host several events supporting the LGBT community, had inspirational speakers, and ongoing support from the firm’s regional diversity committees for its array of programs.

It’s all part of an effort to instil a sense of support for diversity in every aspect of the company’s operations.

It appears to be working. “Any good workplace culture has some fun to it and this is a good way to celebrate diversity,” said Jordan Deering, partner and co-lead of the diversity committee in Calgary with Ghitters.

They use the simple method of reflecting the naturally diverse nature of the clients they serve and the cities they operate in across Canada.

“It also assists us in approaching legal issues from different perspectives and ways of thinking,” says Deering. “It helps us look at things from all angles.”

Companies see diversity pay off.