Mediation Losing Its Effectiveness: Lack of Diverse Mediators

Diversity happens when it has a positive impact on thebusiness opportunities to certified minority and women
bottom line. This was the overall consensus ofADR neutrals. These efforts, coined as "second tier"
representative corporations and law firms this pastallow Shell to influence prime or majority ADR firms,
year at an ABA Dispute Resolution Section Diversitywith whom they do business, to also contract with
Forum. Mediation is losing its effectiveness becauseminority and women owned ADR firms within the
mediation panels are not diverse and do not reflect thebusiness community. Shell's message is driven by
gender and race of their employees.The corporatecontract language and sharing information on benefits
panel, who was represented by corporate counselof engaging a more representative group of suppliers.
from Cingular Wireless and T-Mobile and employeeIn the upcoming months Shell will be targeting prime
internal dispute resolution directors from Coca Colafirms that provide ADR services to participate in
Enterprises and Shell, agreed that awareness needs tosecond tier efforts. Shell astutely recognizes that by
be raised and that the profession needs to becomeembracing the concept of inclusion, the company will
more diverse. The lack of diversity is problematic in therise to a higher level, reflecting its belief that it "will
employment arena. Corporations are finding thatbenefit from diversity through better relationships with
mediation is losing its effectiveness and they are losingcustomers, suppliers, partners, employees, government
their credibility with employees when they can onlyand other stakeholders, with positive impact on the
offer a homogenous group of neutrals to resolvebottom line."Law firms agreed that law firm Diversity
workplace disputes. Corporations have an immediateinitiatives did not gain any momentum until corporations
need for Diverse ADR neutrals and the national ADRmade demands that law firms commit to diversity or
providers they use are not delivering a diversethey would lose the corporation as a client. Diversity in
panel.Shell, which has an employee internal disputethe ADR profession needs to take place, but that it is
resolution program 'RESOLVE', is not comfortable withthe economic motivation that will move Diversity
just raising awareness. Shell is taking affirmative stepsforward in the ADR profession. If corporations make
to make sure that it can choose neutrals from ademands that law firms use ADR providers that are
diverse ADR panel. Shell is committed to the economicdiverse in mediating or arbitrating their cases, or risk
development of minority and women owned supplierslosing business, they will use diverse ADR panels.
and actively engages in efforts to provide for inclusionUnless it affects the bottom line, entities will not be
by partnering with certified firms. Several years ago,motivated to move forward and embrace diversity in
Shell Oil Company was one of the first corporations toADR. Shell Oil has taken the step to carry the bottom
carry the torch and ask its majority law firms toline torch which will ignite the Diversity fire in the ADR
demonstrate a commitment to diversity. Many firmsprofession.By Elizabeth A. Moreno, Esq, a Los Angeles
can attest to the fact that a failure to demonstrate aemployment attorney and mediator, who guides small
commitment to diversity would jeopardize theirbusiness through treacherous rivers of employment
relationship with Shell. Once again Shell has come tocompliance and litigation that threaten to sink their
the forefront by introducing supplier diversity to thebusiness.
ADR profession and announced that Shell will extend