Baker Donelson – Memphis Flyer

Memphis Pride Fest

The Human Rights Campaign’s (HRC) annual Corporate Equality Index included four of Memphis’ biggest companies and a law firm. Two of the corporations scored towards the top, with one scoring in the middle and another toward the bottom.

The HRC claims it is “the nation’s largest LGBTQ civil rights organization.” Its report reviewed 1,059 companies and law firms this year. That included 25 Tennessee-based businesses. In Memphis, five companies were deemed large enough for review by the Human Rights Campaign.

Of those here, the law firm of Baker, Donelson, Bearman, Caldwell & Berkowitz PC scored the highest with 90 out of 100 points possible. FedEx Corp. scored high, too, with an overall equality score of 85. First Horizon National Corp. also scored near the top with 75 total points.

AutoZone Inc. scored near the middle with 40 total points. International Paper had the lowest Memphis score on the report with 30 total points.

All of these points were awarded to companies based on four broad criteria:

• Non-discrimination policies

• Employment benefits

• Supporting an inclusive culture and corporate social responsibility including public commitment to LGBTQ equality

• Responsible citizenship

”These companies know that protecting their LGBTQ employees and customers from discrimination is not just the right thing to do — it is also the best business decision,” HRC president Alphonso David said in a statement. “In addition, many of these leaders are also advocating for the LGBTQ community and equality under the law in the public square.”
[pullquote-1] HRC began its report in 2002, done largely through a survey of Fortune magazine’s 500 largest publicly traded businesses, American Lawyer magazine’s top 200 revenue-grossing law firms and hundreds of publicly and privately held mid- to large-sized businesses.

In its first year, HRC named 13 top-rated companies. This year, the group named 686 such businesses that had a perfect 100 score ”under the most stringent criteria to date.”

This year, 13 to the Fortune 500’s top 20 companies earned perfect HRC scores.

Human Rights Campaign

Here are some more insights gleaned in this year’s Corporate Equality Index (CEI):

• The more than 680 companies that earned a 100 on the CEI represent 12.4 million employees nationally, 11.9 million globally, and earn a combined estimate of $12.9 trillion in revenue.

• Eighty-three companies participated in the CEI for the first time in 2020, with 36 debuting at a score of 100, including Etsy Inc., Peloton Interactive Inc., Stop & Shop, and Warner Music Group.

• Of all Fortune 500 companies, 93 percent have sexual orientation in their U.S. non-discrimination policy, and 91 percent have gender identity.

• The average CEI score for all Fortune 500 companies increased from 67 to 71 in the past year — with actively participating Fortune 500 companies having an average score of 90, up from 88 last year.

• Tennessee companies averaged a score of 70 in this year’s CEI.

• This year 89 percent of companies participating in the CEI offer at least one health-care policy that is inclusive of their transgender workers.

Read the full report here:
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McMullen

Two days ahead of the municipal election here, a Memphis City Council member raised concerns about a conflict of interest between the city and its Chief Legal Officer (CLO).

Councilman Martavious Jones said Tuesday that because Bruce McMullen, the city’s CLO, is a shareholder at the Baker Donelson law firm, which is contracted by the city, there could be an unfair benefit for McMullen.

Jones said that since McMullen was appointed in 2016 by Memphis Mayor Jim Strickland, Baker Donelson has received a 427 percent increase in revenue.

Jones said that Baker Donelson’s revenues from the city have been steadily increasing, going from about $330,500 in 2016 to $452,000 so far in 2019. He said the firm earned just under $1 million for its work on the federal police surveillance trial last year.

Jones gave all of these figures during a council committee hearing Tuesday. It was unclear where Jones got the information.

Jones noted that per city ordinance, an officer of the city is not allowed to receive benefits from increased contracts with the city.

“The transparency required for a public entity is different than the private section,” Jones said.

McMullen said that there are procedures in place to prevent conflicts of interest from occurring. McMullen said that he does not participate in referring cases to Baker Donelson. Instead, that’s done by the city’s deputy attorney Mike Fletcher and approved by the mayor.

McMullen also said that he personally does not receive any financial benefits for the cases the city contracts Baker Donelson to try.

Fletcher added that the earnings Baker Donelson made between 2008 and 2011 for contracting with the city is “comprable, if not more,” than the amounts between 2016 and now.

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Strickland released a statement shortly after the discussion, saying that “there is no conflict of interest or ethical violation on the part of the Chief Legal Officer.”

“In addition, some of our best CLOs in the past have served in a part-time capacity, including Cliff Pierce and Robert Spence,” Strickland said. “Chief McMullen serves us well in his part-time capacity and has represented the city with integrity.”

Strickland continues, saying that Baker Donelson is one of the “most pre-eminent firms in the country,” and it has represented the city for more than 40 years.

“As mayor, I will not deny the city access to this firm simply because our Chief Legal Officer is a member,” Strickland said. “I made that clear when Bruce was appointed, and I stand by that decision.”

To avoid this type of potential conflict of interest in the future, “whether perceived or real” Jones is working on a city ordinance that would require all city officers and directors appointed by the mayor to work full-time. Currently, McMullen works part-time for the city.

Requiring all officers and division directors to be full-time would ensure they are “dedicated primarily to the duties of their office and needs of the city,” a draft of the ordinance reads.

The ordinance also would require officers and directors to be residents of the city. Doug MGowen, the city’s chief operating officer, said the city charter would have to be amended to put that requirement in place. The charter can only be amended by referendum, he said.

Jones plans to bring an amended version of the ordinance back at the council’s next meeting in two weeks for further discussion.