UK Law Firm Simmons & Simmons’ Expansion and Ethical Dilemmas
Following the announcement of “transformative” plans to open a new business in Riyadh last month, Simmons & Simmons may be celebrating another accomplishment in its Middle East growth.
However, the 128-year-old company has been battling internal reaction after employees allegedly questioned whether receiving benefits in a nation where homosexuality is illegal and punishable by death is consistent with its commitments to LGBT rights.
Simmons & Simmons, which the LGBT charity Stonewall has consistently named as a top employer, isn’t the only law firm to be struggling with this moral conundrum.
After new permitting rules overhauled a program that for decades allowed them to work solely through associations with local lawyers, City law firms have been applying in droves to start their own offices in Saudi Arabia over the past year.
The modifications are part of the “MBS” reform package, which Saudi Arabia’s de facto ruler Mohammed bin Salman introduced to improve the legal profession and promote business dealings.
Numerous UK and US firms followed suit after Magic Circle law firms Clifford Chance and Linklaters, which Stonewall also lists as best organisations, were among the first to obtain the Kingdom’s approvals.
Each has come to the Gulf state with the same objective: to take advantage of MBS’s efforts to expand Saudi Arabia from crude oil through multi-billion dollar system and giga-projects in real estate.
However, many staff members of law firms may find it difficult to look past Saudi Arabia’s history of human rights abuses, as they view the country as a land of opportunity.
Transgender Saudis live in fear of having to go through detransition counseling, while members of Saudi Arabia’s lesbian community have faced prison time or punishments of up to 500 lashes for their sexuality.
According to Dana Ahmed, a researcher at Amnesty International, gay people are frequently left stranded in harsh situations at home or at work because there are no independent organizations in Saudi Arabia that can provide them with financial or logistical support to leave the country and find safety.
Simmons & Simmons, which already has headquarters in Dubai and Qatar, has vehemently defended the plans, arguing that clients require the company’s reputation in Riyadh.
“We must be truly international if we are to be a reputable international firm, but that does not mean we agree with all the customs or laws in the nations in which we operate,” according to an internal FAQ sheet that was distributed to employees and posted on the legitimate website Rollon Friday.
The law firm, which was established in 1896 by the twin brothers Percy and Edward Simmons, echoed remarks made by Greenberg Traurig’s executive president Richard Rosenbaum following its launch in Riyadh next year.
He claimed that the New York-based law firm, which has a Shard building office in London, does not evaluate the regional traditions, religious beliefs, or values of any jurisdiction or culture it conducts business in.
Mr. Rosenbaum told the Financial Times, “[It] is not our position to be critical in that way.”
Their defenses highlight the harsh reality that American businesses may be left with very few options if they cut themselves off from all nations with competing values.
Law firms could also be criticized for past and present relations in China and Russia, where LGBT individuals also face severe prejudice, if they were labeled as hypocrites for opening in ultra-conservative states in the Middle East.
In the end, the Saudi backlash emphasizes the risks of business activists falling victim to their own diversity and inclusion policies.
Companies are under pressure to renege on post-pandemic ESG (environmental, social, and governance) commitments and give investor returns and client value new priority.
Aman Zanoon, the campaigns representative for the Middle Eastern women’s charity Mewso, contends that American businesses may use their clout to promote LGBT rights there.
She claims that “Saudi adheres to the idea of wealth deals.” “They are more than willing to do that, in my opinion, when you have a sizable investment and you’re just asking for some legal changes to make it easier for you to find an investment-friendly culture.”
Mohammed bin Salman, the crown prince of Saudi Arabia, wants to extend the nation’s business away from oil.This includes efforts empowering Saudi women professionals to assume business management roles as part of efforts to encourage more women into the workforce.
Joza AlRasheed, the head of the Riyadh firm Herbert Smith Freehills, became Saudi Arabia’s first-ever female managing partner last year, more than ten years after women were given permission to represent female clients in courtrooms.
Following dramatic reforms that eliminated gender discrimination in restaurants and lifted restrictions on women driving and visiting foreign countries without the consent of a male guardian, Saudi women’s part is changing.
The Crown Prince may be able to lift Saudi Arabia’s seven-decade ban on alcohol due to its plans to sell beer to non-Muslim officials in a store in Riyadh.
According to the country’s tourism site, it explicitly invites LGBT guests and states that “everyone is welcome to visit Saudi Arabia” as long as they respect its culture, traditions, and laws.
Despite MBS’s liberal reforms, Saudi Arabia still treats queer people and foreigners the same way, according to Amnesty International.
One Middle Eastern City attorney questioned how far influence Saudi policymakers actually have over protecting LGBT rights.
He compares it to your gardener telling you to paint your house. “Economic or political pressure brought at a level that was important would be the only real things that would probably have any impact upon them.”
He asserts that any foreign law firm that challenges the Kingdom’s ban on homosexuality may immediately be replaced by a long line of discreet rivals.
There is a great deal of national pride among Saudis, the City attorney continues. It makes sense because it’s their nation. Criticism of those kinds of things would not be well received, especially not by lawyers who work in the legal profession. “We are really just well-dressed servants, that’s all.”
International law firms that are willing to ignore Saudi Arabia’s atrocities shouldn’t be surprised if they find it difficult to hire LGBT people in the future, though.
According to Jason Connolly, chief executive and founder of headhunter JMC Legal Recruitment, Gen Z lawyers are “more sensitive” and will avoid employers who don’t reflect their personal values.
“Jumping on Pride quarter, flying rainbow colors all over the office, and claiming that we’re diverse are all well and good,” he says. “However, I don’t think that sits well if you’re earning money from a business or clients who have an unfavorable human rights record.”
Simmons & Simmons has strict procedures in place to make sure that every mandate we accept is consistent with our principles, and these procedures will be used here, according to a spokesperson for Simmons.
“Our objective is to promote positive change and advance a more diverse and inclusive legal profession.”
