IBA research highlights lack of diversity in global arbitration panels but its importance remains pivotal
The International Bar Association (IBA) Arbitration Committee has published the first global empirical study focussing solely on ethnic diversity in international arbitration. The research reveals that a high level of respondents in the legal profession believe that diversity is ‘lacking’ in arbitration tribunals, and that although gender diversity has seen some progress, ethnic diversity has been insufficiently explored and addressed around the world.
The Study on Ethnic Diversity in International Arbitration (‘the Report’) highlights the importance of ethnic diversity. The Report shows that any gap undermines true representation in a system that is designed to reflect a global user base of arbitration services with fairness and cultural sensitivity at its core as an important element in overall decision-making.
There are 76 nationalities represented in the research that was led by Ula Cartwright-Finch, Managing Director of Cortex Capital, who combined her expertise in international arbitration and cognitive neuroscience. The IBA Special Projects Fund provided financial support, affirming the IBA’s commitment to diversity.
Chiann Bao, Co-Chair of the IBA Arbitration Committee and partner at ArbBoutique said, ‘We are grateful to the IBA for supporting this project through its generous grant. Well aligned with the IBA’s mission and our mandate within the Arbitration Committee, this project fosters a platform to tackle core issues within our community. After all, dialogue alone is not enough – but it is where progress begins.’
Key takeaways from the research respondents:
- 68 per cent said ethnic diversity on tribunals was ‘somewhat lacking’ or ‘very lacking’;
- 49 per cent said ethnic diversity was ‘very important’;
- 89 per cent said that having some level of ethnic diversity on arbitration panels supports the perceived legitimacy of the panel; with
- only two per cent having stated arbitration panels were ‘very diverse.’
Patricia Saiz, Vice Chair and former Diversity & Inclusion Officer on the IBA Arbitration Committee, a lecturer in investment and commercial arbitration at ESADE Law School and partner at SAIZ Arbitration said, ‘This Report contributes to ongoing conversations around diversity in international arbitration. By capturing perceptions across the arbitral community, we hope it encourages sustained dialogue and supports greater institutional awareness and accountability.’
Three key actions for the legal profession to undertake to redress any imbalance are suggested by the conclusions of the research. They are:
- to continue global discussions, initiating roundtables and working groups to explore ethnic diversity challenges and potential solutions;
- to encourage arbitration institutions to track, report on and actively promote ethnic diversity when making tribunal appointments; and
- to consider cultural sensitivities, the multifaceted nature, complexities and nuance attached to ethnic diversity.
The Report also contains a case study on the Jay-Z Case where Iconix Brand Group acquired certain rights to the rappers Rocawear brand in 2007. A dispute later arose over the use of a logo and arbitration was commenced. Jay-Z and his company Marcy Media obtained a stay of the proceedings after challenging the lack of African-American arbitrators on the American Arbitration Association® (AAA) roster. The AAA later expanded the pool, but the case ultimately settled before arbitration resumed.
ENDS
Contact: IBApressoffice@int-bar.org
Notes to the reader:
- Click here to download a copy of the IBA Arbitration Committee Study on Ethnic Diversity in International Arbitration.
- Related material:
- The IBA Arbitration Committee focuses on laws, practice and procedures relating to the arbitration of transnational disputes. Through its conferences, publications and projects, the Committee seeks to share information about international arbitration, promote its use and improve its effectiveness.
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