Alternative ways to resolve a conflict


Mediation Losing Its Effectiveness: Lack of Diverse Mediators

Diversity happens when it has a positiveagain Shell has come to the forefront by
impact on the bottom line. This wasintroducing supplier diversity to the
the overall consensus of representativeADR profession and announced that Shell
corporations and law firms this pastwill extend business opportunities to
year at an ABA Dispute Resolutioncertified minority and women ADR
Section Diversity Forum. Mediation isneutrals. These efforts, coined as
losing its effectiveness because"second tier" allow Shell to influence
mediation panels are not diverse and doprime or majority ADR firms, with whom
not reflect the gender and race ofthey do business, to also contract with
their employees.minority and women owned ADR firms
The corporate panel, who was representedwithin the business community. Shell's
by corporate counsel from Cingularmessage is driven by contract language
Wireless and T-Mobile and employeeand sharing information on benefits of
internal dispute resolution directorsengaging a more representative group of
from Coca Cola Enterprises and Shell,suppliers. In the upcoming months
agreed that awareness needs to be raisedShell will be targeting prime firms
and that the profession needs to becomethat provide ADR services to participate
more diverse. The lack of diversity isin second tier efforts. Shell astutely
problematic in the employment arena.recognizes that by embracing the concept
Corporations are finding that mediationof inclusion, the company will rise to a
is losing its effectiveness and they arehigher level, reflecting its belief that
losing their credibility with employeesit "will benefit from diversity through
when they can only offer a homogenousbetter relationships with customers,
group of neutrals to resolve workplacesuppliers, partners, employees,
disputes. Corporations have an immediategovernment and other stakeholders, with
need for Diverse ADR neutrals and thepositive impact on the bottom line."
national ADR providers they use are notLaw firms agreed that law firm Diversity
delivering a diverse panel.initiatives did not gain any momentum
Shell, which has an employee internaluntil corporations made demands that law
dispute resolution program 'RESOLVE', isfirms commit to diversity or they would
not comfortable with just raisinglose the corporation as a client.
awareness. Shell is taking affirmativeDiversity in the ADR profession needs to
steps to make sure that it can choosetake place, but that it is the economic
neutrals from a diverse ADR panel.motivation that will move Diversity
Shell is committed to the economicforward in the ADR profession. If
development of minority and women ownedcorporations make demands that law firms
suppliers and actively engages inuse ADR providers that are diverse in
efforts to provide for inclusion bymediating or arbitrating their cases, or
partnering with certified firms.risk losing business, they will use
Several years ago, Shell Oil Company wasdiverse ADR panels. Unless it
one of the first corporations to carryaffects the bottom line, entities will
the torch and ask its majority law firmsnot be motivated to move forward and
to demonstrate a commitment toembrace diversity in ADR. Shell Oil
diversity. Many firms can attest to thehas taken the step to carry the bottom
fact that a failure to demonstrate aline torch which will ignite the
commitment to diversity would jeopardizeDiversity fire in the ADR profession.
their relationship with Shell. Once



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