D&I update: Coca-Cola stalls diversity plan and more...

WIPR brings you all the latest diversity and inclusion (D&I) news affecting the IP world, including Coca-Cola’s backtracking on its ambitious diversity plan.

Coca-Cola pauses ambitious diversity plan after Gayton resigns

Coca-Cola has halted its controversial diversity plan that penalised external firms if they failed to meet racial diversity quotas, following the resignation of its general counsel, Bradley Gayton.

In January, Gayton announced that Coca-Cola would withhold a nonrefundable 30% of fees from law firms that fail to meet its new diversity requirements, as he criticised the legal sector for not viewing diversity and inclusion (D&I) as a business imperative.

Gayton outlined the measures in a letter to law firms, telling US law firms he was mandating the unprecedented move for the legal sector with “a heavy heart”.

During a meeting with Coca-Cola’s global legal team last week, Monica Douglas, the company’s new general counsel, said the company was “taking a pause for now” but would retain some aspects of the diversity plan.

Critics of Gayton’s proposals had suggested that such policies may contravene Title VII of the Civil Rights Act of 1964, which holds that employers can’t treat people differently based on their race.

Last month, the Project on Fair Representation sent a letter to Douglas, urging the company to rescind the policy.

Edward Blum, president of the Project on Fair Representation, said, "It is obvious to all observers that Coca-Cola's recently enacted law firm contracting policies are illegal. The company should publicly withdraw these racial quota requirements immediately."

According to his agreement, Gayton received a $4 million sign-on bonus to serve a consultant to Coca-Cola CEO James Quincey and will earn additional monthly payments totalling $8 million over the next year.

Law firms still struggling on gender equality: US study

Only 20% of equity partners are women, according to, according to the latest Yale Law Women’s annual gender equity and family friendliness report.

The study revealed that even though women comprise around 45% of associates, they make up only 30% of non-equity partners and only a fifth of equity partners.

According to the report, only a little more than a third of firms surveyed have fully eliminated mandatory arbitration clauses and non-disclosure agreements covering sexual harassment claims and other disputes.

The report also underscored the disproportionate impact of the COVID-19 pandemic on women in the workplace. Yale Law Women said: “Female lawyers specifically face unique challenges during the Covid-19 pandemic because telework (remote working) has made it more difficult to establish relationships with mentors and sponsors.”

The report also included awards for firms achieving success in their D&I programmes, with Morgan Lewis named as the best for hiring practices, Morrison & Foerster for the most diverse leadership, and Jenner & Block for both training and mentorship and part-time working options.

Mansfield rule leads to D&I success, study reveals

Law firms that adopt the Diversity Lab's Mansfield Rule outpace the D&I progress of non-adopters by more than 30 times, according to new research.

The rule was introduced in 2017 and is designed to grow the racial and ethnic diversity of firms’ management committees so that at least 30% of candidates are from underrepresented groups.

In its analysis of the data of firms that have completed the first two Mansfield Rule certification cycles, Diversity Lab showed that growth in underrepresented racial and ethnic lawyers outpaced non-Mansfield Rule firms by more than 30 times between 2017 and 2019.

Lisa Kirby, Diversity Lab’s chief business intelligence and knowledge sharing officer, said: “These firms have operationalised the Mansfield Rule’s principles so that their achievements are part of a movement rather than a moment. As a result, these gains are not vulnerable to the shifting winds of the marketplace.”

Mansfield Rule firms are also improving the racial diversity of partnerships at a faster rate than before their commitment to the rule. According to Diversity Labs, Mansfield firms saw the percentage of their partners considered racially diverse increase to more than 10% by 2019 compared to 9% for non-Mansfield firms.

Diversity Lab added that women lawyers from early-adopter firms are also progressing into leadership roles at a higher rate than they were pre-Mansfield.

Since the Mansfield Rule was first introduced, almost 120 firms have now signed up, with the rule being expanded to include goals to boost the number of LGBTQ+ lawyers and lawyers with disabilities.

UK firms making D&I progress

Nine UK law firms have earned nine spots in this year’s ‘ Top 50 Employers for Women’ list, after all were found to have partnerships comprising more than 20% women.

The City law firms recognised for their work in achieving gender-equal workplaces are, in alphabetical order are Addleshaw Goddard, Allen & Overy, Burges Salmon,  CMS, DWF, Eversheds Sutherland, Linklaters, Norton Rose Fulbright and Pinsent Masons.

Compiled by charity Business in the Community (BITC) and featured in The Times on Thursday, April 29, the list includes employers from the worlds of banking, consultancy, insurance, and law.

Elsewhere, in the UK, Hogan Lovells announced on Wednesday, May 4, that it is piloting a new development programme for black and ethnic minority trainees in its London office.

The firm’s “Included” programme will be offered to second seat trainees on a voluntary basis, and deliver monthly, two-hour group mentoring sessions for six months by an external provider.

In addition, Slaughter and May and Linklaters have launched programmes to improve social mobility and racial diversity in the profession.

Slaughters is launching a £270,000 ($375,000) UK  scholarship scheme to help fund the studies of undergraduates from less advantaged backgrounds interested in a career in law, while Linklaters has unveiled a programme designed to improve access to a career in law to A-Level students.

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