BASF declares global program
BASF declares global program
The initiative follows a similar one in North America which has resulted in a doubled number of diverse partners
The German multinational chemical company BASF has introduced new diversity requirements for the outside counsel with whom it works around the world.
In 2016, the GC Matt Lepore and previous deputy GC for North America, Sneha Desai launched a diversity, equity and inclusion (DEI) scheme. It aimed at boosting the number of women lawyers and lawyers with diverse backgrounds that the company engages. Consequently, the number of diverse partners on BASF matters has more than doubled and the number of diverse lawyers holding leadership positions at BASF panel firms has also increased by 9percent.
Bendita Cynthia Malakia, global head of diversity and inclusion at Hogan Lovells, a BASF panel firm, said: "The benefit of the BASF program is that it provides concrete and measurable action items based on the firm's data. This is significant for fostering innovation and facilitating meaningful conversations across our regions in order to further DEI within each jurisdiction.
As part of its new global initiative, BASF expects its 25 panel firms throughout North America, Europe, Latin America and Asia Pacific to complete the BASF Global Diversity Inclusion Survey once a year, commit to retaining and promoting diverse lawyers and partner with BASF to train and mentor diverse lawyers so they gain exposure to clients.
The data generated from the survey is then transformed into an index which identifies regional and global scores in order to compare firms. A company's regular check-ins and meetings regarding overall performance and relationships include the scoring.
In the words of Benjamin Parameswaran, managing partner of DLA Piper's German operation. As a result of the positive changes BASF is implementing within its own organization, coupled with a direct and collaborative approach to DEI with law firms, the company has demonstrated its commitment to changing the status quo."
Other internal teams have demanded greater diversity commitments from their panel firms. In 2020, Novartis intends to withhold fees from legal advisors who fail to meet diversity targets. The then-general manager of Coca-Cola, Bradley Gayton, announced a similar plan at the start of last year, but he stepped down three months later and the plan was never implemented.
GCs at 27 major US companies have pledged to participate in a law firm DEI scorecard to measure the effectiveness of their diversity program.
The diversity of in-house teams is also increasing. As of last year, the gender balance of general counsel appointments at Fortune 500 companies almost reached parity, with women making up 49 percent of new GCs, compared to 42 percent in 2020, according to the annual Fortune 500 General Counsel Report published earlier this month. According to the study, ethnic diversity among GCs has also increased, increasing to 34percent last year from 24percent in 2019 and 2020.
