Mediation Losing Its Effectiveness: Lack of Diverse Mediators

Diversity happens when it has a positive impact on therelationship with Shell. Once again Shell has come to
bottom line. This was the overall consensus ofthe forefront by introducing supplier diversity to the
representative corporations and law firms this pastADR profession and announced that Shell will extend
year at an ABA Dispute Resolution Section Diversitybusiness opportunities to certified minority and women
Forum. Mediation is losing its effectiveness becauseADR neutrals. These efforts, coined as "second tier"
mediation panels are not diverse and do not reflect theallow Shell to influence prime or majority ADR firms,
gender and race of their employees.with whom they do business, to also contract with
The corporate panel, who was represented byminority and women owned ADR firms within the
corporate counsel from Cingular Wireless and T-Mobilebusiness community. Shell's message is driven by
and employee internal dispute resolution directors fromcontract language and sharing information on benefits
Coca Cola Enterprises and Shell, agreed thatof engaging a more representative group of suppliers.
awareness needs to be raised and that the professionIn the upcoming months Shell will be targeting prime
needs to become more diverse. The lack of diversityfirms that provide ADR services to participate in
is problematic in the employment arena. Corporationssecond tier efforts. Shell astutely recognizes that by
are finding that mediation is losing its effectiveness andembracing the concept of inclusion, the company will
they are losing their credibility with employees whenrise to a higher level, reflecting its belief that it "will
they can only offer a homogenous group of neutralsbenefit from diversity through better relationships with
to resolve workplace disputes. Corporations have ancustomers, suppliers, partners, employees, government
immediate need for Diverse ADR neutrals and theand other stakeholders, with positive impact on the
national ADR providers they use are not delivering abottom line."
diverse panel.Law firms agreed that law firm Diversity initiatives did
Shell, which has an employee internal dispute resolutionnot gain any momentum until corporations made
program 'RESOLVE', is not comfortable with justdemands that law firms commit to diversity or they
raising awareness. Shell is taking affirmative steps towould lose the corporation as a client. Diversity in the
make sure that it can choose neutrals from a diverseADR profession needs to take place, but that it is the
ADR panel. Shell is committed to the economiceconomic motivation that will move Diversity forward
development of minority and women owned suppliersin the ADR profession. If corporations make demands
and actively engages in efforts to provide for inclusionthat law firms use ADR providers that are diverse in
by partnering with certified firms. Several years ago,mediating or arbitrating their cases, or risk losing
Shell Oil Company was one of the first corporations tobusiness, they will use diverse ADR panels. Unless it
carry the torch and ask its majority law firms toaffects the bottom line, entities will not be motivated to
demonstrate a commitment to diversity. Many firmsmove forward and embrace diversity in ADR. Shell Oil
can attest to the fact that a failure to demonstrate ahas taken the step to carry the bottom line torch
commitment to diversity would jeopardize theirwhich will ignite the Diversity fire in the ADR profession.