Canadian Lawyer InHouse

MARCH 2017 6 INHOUSE News Roundup Survey shows law firm leadership largely still male and Caucasian D espite much talk over the last de- cade around boosting diversity and inclusion in law fi rms, women and racialized lawyers continue to be under- represented in the Canadian legal profession with Caucasian men continuing to far out- number those two groups in senior leader- ship roles, according to a study from the Ca- nadian Centre for Diversity and Inclusion. 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 re- spondents 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 contrib- uting to the perpetuation of these numbers include "infl exible working conditions, rig- id fi rm culture, high client expectations and overall economics of the profession." While some might point to a tough econ- omy since 2008, Deanna Matzanke, director, measurement and analytics at the CCDI, says the economy is a "signifi cant red herring" and what the report shows is "a compelling validation" that the current law fi rm model makes it diffi cult 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 fi rms do not support or foster a diverse and inclusive environment." The report goes on to say that women fi nd themselves in a diffi cult position when faced with trying to balance family needs with law fi rm demands. Also, " . . . lawyers from minority groups do not have the same social and cultural capital to network and fi nd mentors who relate to them, because the pool is very small." That means many leave the law fi rm cul- ture for more fl exible and accommodating environments elsewhere, such as in-house roles or solo practice. Matzanke, a lawyer herself, says the re- sults 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 po- tential lawyers in law school has increased in diversity and at the associate level at law fi rms shows fairly high diversity. The majority of racialized respondents in the legal profession are Asian, while all oth- er groups show very small representation. A total of 11 fi rms 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 fi rms, 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." Chan argues the economy has played a factor as he says "many law fi rms" have gone through rounds of layoffs and that would impact the ability of people to get into partnership roles as well. In-house lawyers and their powerful role in the market is also a big factor. With law fi rms under regular scrutiny by corporate clients on use of the billable hour, the ability to maintain revenue streams has been a challenge. "My anecdotal observation is that, of course, when there is less work there is less billable hours and less billings that would translate into the numbers admitted to partnership," he says. "One of the com- mon responses from clients to reduce their legal costs is to hire in-house lawyers and fi nd internal resources to do due diligence or review contracts, so that is driving that change on the in-house side, too." There are also more attractive roles for in-house lawyers seeking something differ- ent from the usual private practice path. Chan says from what he has seen, those lawyers leaving big law fi rms are women and other minorities being drawn to in- LEVEL CHAN

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