DRIVING DIVERSITY IN ARBITRATION

Historically, there has been limited diversity among arbitrators, with accusations that the industry has been ‘pale, male and stale’ for too long. A 2021 report from the American Association for Justice found that within the US, 88 percent of all arbitrators were white and 77 percent were male. Furthermore, arbitrators were overwhelmingly older than the general population. Seventy-five percent of arbitrators were aged 65 years or older, with 44 percent aged 75 years or older. Lack of arbitrator diversity in the US is exacerbated by the fact that people of colour and women are more likely to be subject to forced arbitration than men or white, non-Hispanic workers.

However, efforts have been made to enact change across the dispute resolution space. Over the last decade, promoting diversity in international arbitration has become a key consideration as the industry seeks to enhance the quality, legitimacy and relevancy of the process by incorporating varied perspectives.

Diverse tribunals are believed to promote better decision making and reflect the diversity of the parties involved, thus improving the overall fairness of arbitration and related awards. This is especially true where a dispute raises issues of broader public interest, such as in investor-state arbitration.

Diversity is a multifaceted concept. Gender is an important part of the discussion, but not the only issue. Age, experience, identity, disability, culture and nationality, among other factors, also count. The aim is to create an inclusive, level playing field for career advancement across the dispute resolution industry.

Diversity in international arbitration is essential to the longevity and legitimacy of the process. The introduction of new and diverse practitioners, including those whom institutions can appoint from a sustainable pool of talent, will enhance proceedings. Different perspectives and broader expertise in a tribunal lead to better decision making. Diversity offers a broader range of understandings and promotes critical thinking. In this way, the quality of an award could lead to better outcomes.

Apr-Jun 2025 issue

Richard Summerfield