Diversity Task Force Meeting June 22, 2009 Stradley Ronon Stevens and Young LLP Philadelphia, PA Attending In Person: CARLA HERRON – CO-CHAIR Shell Group CHARLES MORGAN – CO-CHAIR FTI Consulting CARLOS CONCEPCION Concepcion Sexton Martinez HON. NELSON DIAZ Cozen O’Connor LAURA KASTER LAUREL PYKE MALSON Crowell & Moring LLP BEN PICKER Stradley Ronon Stevens & Young LLP Via Phone: DYE ANNE GRAHAM Upchurch Watson White & Max DEAN JOANNE EPPS Temple University DAVID HARRIS Lowenstein Sandler PC FRANCES GAUTHIER Stradley Ronon Stevens & Young, LLP JIM HURD Shook, Hardy & Bacon LLP CASSANDRA GEORGES Above & Beyond Dispute Resolution JOIA JOHNSON Hanesbrands, Inc. FRAN GRIESING Greenberg Traurig CHERYL LOTT Buchalter Nemer SUSAN GUERETTE Fisher & Phillips NANCY VANDERLIP ITT Corporation WILBUR HICKS International Monetary Fund PD VILLARREAL Schering-Plough Corporation MARVIN JOHNSON JAMS Inc. LINDA WILLETT Sedgwick, Detert, Moran & Arnold LLP From CPR: KATHY BRYAN President and CEO RICHARD ARCE Intern HILARY KROMNICK Membership and Committee Administrator Kathy Bryan began by thanking Ben Picker and Stradley Ronon for hosting the meeting, and congratulated the firm for winning the 2007 CPR ADR Award. This year’s ADR Awardee will be announced at the 2010 Annual Meeting in New York City. Ms. Bryan also spoke about recent events at CPR, and discussed how the organization responds to both the need for vetted neutrals and for specialty panelists. Co-Chair Carla Herron delivered the lunch address to ITA (Institute for Transnational Arbitration) last week in Dallas, Texas. In preparation, Ms. Herron looked at the gender of the persons named in Who’s Who Legal in International Commercial Arbitration. It was less than 10% of the total. At the ITA conference, the numbers looked more or less similar to those in Who’s Who with few females and persons of color. This prompted her to have renewed vigor for this diversity initiative. Ms. Herron presented to the Task Force the idea of “mini” arbitration proceedings as a utilizing vehicle for new arbitrators to get their foot in the door and expand the amount of arbitration utilized in large corporations. The committee should look at expanding the nature of the work, and utilize CPR’s protocols to further this aim and help increase diversity in the field. Co-Chair Charles Morgan asked that everyone mark their calendars for the 2009 Corporate Leadership Award Dinner, to be held November 3, 2009 in New York City. The honorees will be Amy Schulman and fellow Diversity Task Force Co-Chair Tom Sager. Mr. Morgan also thanked David Burt for his excellent presentation to CPR’s Executive Committee regarding the Task Force. Ben Picker then introduced Dean JoAnne Epps, the guest speaker for the meeting. A brief description of her remarks is attached. Jim Rosenstein, President of the Association of Conflict Resolution, then spoke about his organization. Since its founding, the ACR has had diversity and equity as core value. The organization looks at diversity in socio-economic status, origin and cultural background, not just in terms of race/gender. ACR, as well as the entire field of conflict resolution, becomes stronger due to the varied life experiences and viewpoints brought to the table in a diverse setting. Our ability to help people in conflict depends on our ability to understand their viewpoints and interests – the more “different” the other person is, the harder this is to do. Which person is selected to be a neutral in a particular situation is not as much based on personal bias but rather on an unstated internal need to identify someone who will empathize with what we are all about. In a commercial context, choosing someone who is known and who we have previously worked with is important, as is the need to identify someone who will empathize with your point of view. It is best to have as many people as possible to choose from when finding a neutral for your conflict. Equity is also used as a tool for the ACR Diversity and Equity Committee to be an internal accountability “police force.” This committee is a mechanism to ensure that the organization is (and remains) diverse, and that the diversity translates into meaningful roles internally. Ideally, the leadership of ACR reflects the membership of the organization, and the Committee monitors staff and hiring practices. A piece critical to furthering diversity is mentoring – we need to figure out as a profession how to find someone higher up on the ladder to bring along younger people, different people, and help with established mentor’s resources. Without an effective mentoring system, we will struggle for a long time to diversify. Ms. Bryan introduced Richard Arce, recipient of the New York State Bar Association’s Diversity Internship Program and summer intern at CPR. Mr. Arce thanked the Task Force for their support. Ms. Herron proposed creating low-cost arbitration services for smaller matters ($2 million or less). The parties would agree to streamlined, one-day, no discovery processes (single arbitrator or panel of arbitrators), with low risk and high value. These “entry-level” cases would open the door for those who have less experience but high quality. Dockets see similar cases over and over again in the 2nd tier of cost ($2-$10 million). The cases would require a small amount of discovery and/or motion practice, but would still be a quicker and lower-cost approach. Given the usual length of time for litigation and full-blown arbitration, many corporations could be quite interested in this idea. This service would help further diversity by getting people in the door on a lower-cost/risk case. Once they are known to a corporation, it is more likely they will be used as a neutral. As there is not very much work in the “sweet spot” of high-value cases, this would serve to make the pie larger, and broaden the field of workable cases. The potential tendency to keep diverse lawyers at a lower level of work and not allow them to ascend to the larger cases was discussed as a concern. The committee agreed that once a few diverse lawyers “break through” the barriers to corporate ADR, it would become much easier for minority mediators and neutrals to obtain work. If the neutral does good work on a particular case, they will be asked to mediate again regardless of the size of the previous case. Laura Kaster, Laurel Malson, Frances Gauthier and Linda Willett expressed interest in becoming part of the subcommittee for this effort. Ms. Bryan suggested that the Task Force set up a scholarship to help defray travel and registration costs to the ICC Moot Court competition for predominantly diverse teams. Many schools currently do not sponsor a team to this competition because their potential team members would not be able to afford to attend. As there is already a program in place to sponsor mostly female teams (through the Arbitral Women Group) the focus of this effort will be on teams with people of color, possibly from historically minority-driven schools (i.e. Howard University, Temple University). Cassandra Georges suggested that the Task Force coordinate its efforts with minority fraternities, sororities and bar associations. Fran Griesing suggested tapping into deferred associates who are looking for substantive work during their “off” year and asking them to coach teams. The Task Force then turned to the issue of mentoring. What is the most effective way to mentor? What should CPR take on as its next mentoring project? Frances Gauthier mentioned that the ABA encourages all sections of the bar to bring diverse people to meetings. The ABA Section of Business Law has a scholarship program (Ambassadors Program, a fellows program for younger attorneys) wherein they select five attorneys who have been involved with a minority organization, and pay for these people to attend all ABA meetings for two years (travel, meals, hotel). These attorneys are then paired with a mentor in substantive committee. The hope is that after two years they will continue to attend under their own power. The ABA also makes sure that there is at least one minority panelist for their CLE credit events. Cassandra Georges spoke about GAVEL, her mentoring program (through National Bar Association). Participants must make face to face contact to “pass the gavel” between mentor and mentee. This brings people together who may not have met under other circumstances. This has facilitated a good degree of mentoring follow-up, with at least one clerkship being offered as a direct result of the program. Ben Picker suggested that CPR ask each CPR panelist to reach out as mentor to at least one person per year, as part of the privilege of being a CPR panelist. Cheryl Lott mentioned a mentoring program run through UCLA in which mentors give undergraduate students planning help and advice to determine whether they want to go to law school. In return, the mentored undergrad must go to a high school with low UC admissions rates and help mentor a student. At the firm level, partners mentor associates and associates mentor law students. The program helps people who would not otherwise have exposure to these worlds get to where they want to go. Ms. Bryan proposed a subcommittee to research and adapt elements of the mentioned programs into a CPR mentoring program. Richard Ormond, Cheryl Lotts and Frances Gauthier volunteered to be part of the subcommittee. Several Task Force members recommended that the group collaborate with diversity groups at other organizations, and that the CPR Task Force form a subcommittee to further communication with other groups already distantly connected to Task Force members. A Liaison Subcommittee will be formed to connect with the members and leaders of diversity groups at other organizations, with Carlos Concepcion as its chair. Charles Morgan mentioned that he is in discussions with President Obama regarding the Lawyers for America initiative originally formed by President Clinton in the 1990s. This initiative could help increase the demand for arbitration and for diversity in arbitration in general. Those interested in helping should contact Mr. Morgan for more information. The issue of a Diversity Panel was raised. While CPR cannot offer an official panel of diverse neutrals due to issues of legal discrimination, there is an unofficial list of diverse neutrals available for those who ask for it. In summation, four new subcommittees will be formed: Low Cost Arbitration Subcommittee (Ms. Herron will chair), ICC Moot (Lorraine Brennan of CPR will be the contact person), Diversity Mentoring Concept (Ms. Gauthier will chair) and Liaison Subcommittee (Mr. Concepcion will chair). The next Diversity Task Force meeting will take place in conjunction with the 2009 Corporate Leadership Award Dinner, on November 3, 2009 in New York City.