**Remarks of**

**Michael K. Powell**

**Chairman, Federal Communications Commission**

**At the**

**American Bar Association Summit**

**"Diversity in the Legal Profession: Opening the Pipeline"**

**Washington, D.C.**

**October 23, 2003**

I'd like to thank Robert Grey for his gracious introduction. Mr. Grey's
achievements and commitment to diversity in the legal profession has
been long-standing, and it is an honor to be introduced by him.

>  

I'd also like to recognize Mr. Charles Morgan, Chair of the ABA's
Council on Racial and Ethnic Justice, and Executive Vice President and
General Counsel BellSouth Corporation, who has tirelessly promoted
diversity initiatives both at BellSouth and throughout the legal
community.

 

  Thank you very much for inviting me to speak at this Conference aptly
titled "Diversity in the Legal Profession:  Opening the Pipeline." 
Increasing diversity in the legal profession is of critical importance
to the Country, the Justice system, American business, and to me
personally.  I am grateful for this opportunity to share my thoughts
with you.

**Commitment**

I would like at the outset to emphasize one important principle:
diversity begins with commitment**.** 

In this regard, I commend the ABA on its leadership in this area and on
its record of commitment in a variety of areas.* *

I applaud the ABA and the American Law Institute for the creation of the
ALI-ABA Strategic Outreach Initiative.  Promoting diversity in
professional outreach and legal education is the first step to achieving
diversity in the legal profession.

I'd also like to acknowledge the ABA Commission on Women in the
Profession, and the Commission on Racial & Ethnic Diversity in the
Profession, for their efforts in the promotion of diversity initiatives.
These groups have made significant strides in supporting the growth of
underrepresented groups in the legal profession, and I congratulate
their accomplishments.

Accomplishment is key. While commitment to the ideal is important, what
really matters are actual results. We must always be encouraged by good
intentions, but we should only celebrate results. 

This is an important point that is often missed. We all know that
achieving diversity in America has been a difficult and tense exercise. 
We are all nearly unanimous in not wanting quotas and the Supreme Court
has rightly forbidden them in public institutions. 

But, I fear the abhorrence of quotas has led us to back away from
[committing to results]{.underline}.  Like any mission critical task,
achievement must be real and demonstrable---diversity should be
something more than aspirational.

Right now, for instance, the picture reflected by the numbers for the
legal profession is not good. Although minorities represent
approximately 25 percent of the population, they represent only about 10
percent of the legal profession.  Moreover, while women hold
approximately 42 percent of associate or staff attorney jobs in law
firms, the make up only about 16 percent of the partners.  We are right
to seek ways to improve -- ways to achieve results.

**The Business Imperative**

One way to focus on that task is to understand another very important
principle: diversity can and should be a business imperative, not just a
public policy or moral imperative.

I applaud people who are good of heart, and who from a moral, policy and
charitable perspective, support principles of diversity. But I question
whether there are enough of these good people in the boardrooms of power
to achieve diversity, and I fear that just because it is the right thing
to do, does not mean we will get it done.

But there is a growing realization among forward thinking business
leaders that a real commitment to diversity can be an important asset to
the business of business.

Just look at the latest statistics on minority populations and their
buying power.

Data from the Selig Center for Economic Growth at the University of
Georgia estimated that for 2003, total buying power in the US was \$8.2
trillion and is expected to reach \$10.6 trillion by 2008. But there are
significant break-downs within those figures:

\- African-American buying power, \$688 billion in 2003, is expected to
reach \$921 billion in 2008. By 2008, African Americans are expected to
account for 8.7 percent of the nation\'s buying power, up from 7.4
percent in 1990.

\- Latinos are expected to account for 9.6 percent of the nation\'s
buying power, up from 5.2 percent in 1990.

\- Asian-American buying power, \$344 billion in 2003, is expected to
reach \$526 billion in 2008. In 2003, Asian Americans accounted for 4.2
percent of the nation\'s buying power, up from 2.8 percent in 1990.

This is what I mean by the phrase, the "business imperative." These are
not figures that any rational business or service industry -- including
the legal profession - can afford to ignore. 

Nor can we ignore the fact that the United States is growing even more
multiracial.

Among Americans aged 70 and older, there are 5.3 white people for every
person of color \-- a ratio of roughly 5-to-1. For Americans below the
age 40, the ratio is 2-to-1. For children under 10, the ratio is
1.5-to-1.  You can see where this trend is going.

Think about what this means in marketing terms \-- Americans age 40 and
older may be affected by marketing campaigns aimed at specific racial or
ethnic groups.

But younger Americans view their world as more multiethnic and
multicultural and they will demand that the businesses they interact
with reflect that diverse world view.

Diversity must be a mission critical function in one's
organization---just like proper accounting, innovation, and marketing.
Increasingly, to succeed, organizations must build a cultural climate
where diversity is valued, and where personal attitudes reflect a
genuine recognition of diversity as an integral part of the whole.

Clearly, what is going to be critical to doing business in America will
be building a workforce that looks like America

 **The Communications Sector, and the Federal Advisory Committee on
Diversity**

Let me apply these thoughts to my world at the Federal Communications
Commission. I have the privilege of sitting in the front row of one of
the great economic revolutions in global history---the information age.
This country has passed through two great prior economic revolutions,
the agricultural revolution and the industrial revolution, and that it
is now at the precipice of a third: the information revolution.

This revolution presents us with a historical opportunity to define and
advance diversity at the ground floor. And I believe that we must push
and challenge our industries to make it happen.

In order to grow and continue to provide services needed by the American
people, the communications sector needs to tap the strength and vibrancy
that flows from the diversity of the American people.

To make a meaningful contribution to this goal, I recently created the
special advisory body -- the Federal Advisory Committee on Diversity for
Communications in the Digital Age to bring together experts from the
communications, financial, and technology communities who could bring
their personal and collective experience to bear on this issue, and
develop a set of recommendations to identify potential regulatory
actions and education initiatives that can promote and enhance
opportunities for minorities and women. 

It is not only our hope, but indeed our mandate, that this Diversity
Committee not become a ceremonial post, but instead that it be a working
body that helps direct the Commission toward the worthy and worthwhile
goal of diversity in the modern communications workplace.

To this end, there are two significant dimensions to this particular
Advisory Committee that I think will make a big difference in its output
and potential for success.

The first dimension is the make-up of the committee. I believe that to
accomplish meaningful results in any endeavor, it is people more than
programs that really make the difference, and thus I set out to find,
and tap for this committee, the best minds I could find from all walks
of life with proven records of innovative and successful initiatives and
leadership.

We have assembled a group of leaders for this committee who have enjoyed
great personal professional success and have a proven record in
fostering diversity in organizations.  The personal and professional
successes of our Committee members will give them the perspective needed
to understand what works, and what doesn't.  Their experience,
dedication, and creativity can make the difference in this effort.

The Diversity Committee, and the initiatives it will produce, can ensure
that this country will bring the full force of the many talents of its
citizens to bear on the challenges of this new, third revolution in
human society.  Such efforts will help ensure that when our children
look back on this era, it will be more with pride and wonder than with
shame and sadness.

The second dimension is the committee's charge: to identify and model
successes and not dwell on past failures in dealing with diversity
issues. Too many public and private efforts in the past have only looked
at problems. This committee will be looking for and building on examples
of progress, success and accomplishment.

The focus of this particular Advisory Committee -- and indeed the
imperative for all companies involved in the information revolution, is
to look for goals of diversity flow - not just to promote minority
**[employment]{.underline}** in communications companies, but minority
**[advancement]{.underline}** within those companies, and minority
**[ownership]{.underline}** of those companies.  Moreover, this
Committee should look at all of those issues not just for media
companies but for all telecommunications and other companies that the
FCC oversees.

I hope that the efforts of this committee will help to convince American
corporate culture that diversity is a business imperative that will
differentiate marketplace winners from marketplace losers.  Businesses
must know their customers, and in a diverse nation devoted to the
principle of equal opportunity for all, the business justification for
diversity should be clear. 

Bringing this back to my earlier point, what we are looking for from
this committee -- and from all corporate America - is a focused and
sustained effort designed to produce results

I have been a part of several diversity initiatives, and I know that
results are much harder to produce than words of encouragement. Enduring
results can emerge only from careful thought, fervent idealism,
hard-nosed pragmatism, and sustained effort.

Results must also come from creative approaches and problem solving. A
solution that appears obvious and easy may not be a solution that can
withstand a court challenge that will inevitably follow, which is,
perhaps, the most difficult challenge confronting us as we work to
achieve our goals. We cannot keep walking into the same old walls that
have stymied progress in the past, and we must engage in a hard and
rigorous assessment of the constraints. 

**Tax incentive and Congress.**

Finally, as we think about ways to encourage greater diversity in
communications, it is important to reach beyond the FCC and encourage
legislative and private initiatives as well. 

On the legislative front, I support legislative efforts to restore a
program akin to the old tax certificate program.

We know that tax incentives work.  Many view the market-based tax
certificate that existed from 1978-1995 as the single most effective
tool in lowering market entry barriers and diversifying opportunities in
the communications industry. Admittedly, there were some problems with
this program, but those can be effectively addressed.  

I strongly urge Senators and Congressmen from both sides of the aisle to
join together behind tax incentive legislation and let these mechanisms
help expand minority participation in the information revolution.

**Conclusion**

In conclusion, I wish the ABA good luck with your efforts, but exhort
you not to rest on good fortune. 

Seize the cause and drive diversity with the full bearing of your
creativity, your commitment, and your resolve. 

Do not rationalize failure with your good intentions.  Rather, put down
your sword only after the battle is won.

Let's accelerate our commitments, and bring about true and meaningful
results. All participating businesses -- and all of America -- will be
better for it.

\- FCC -