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Labor Day Reflection: A Fair Day’s Pay for Lawyers and Consultants

By Steve | September 05, 2006

Last week the Wall Street Journal ran a story about a Chicago lawyer named Matthew Farmer, who quit the prestigious law firm of Holland and Knight because he believed a senior partner inflated his billable hours on client invoices. (“Lawyer's Charge Opens Window On Bill Padding, August 30, 2006).

Not surprisingly, the facts of the case are disputed. But the 42 year old Mr. Farmer says he uncovered over 450 hours of overcharges in a one year period and “quit probing” after uncovering 60 incidents. Then he did the right thing, going to a partner charged with ethics oversight. After nothing happened for months, Farmer left for another, less prominent firm. The case is now under investigation by the Illinois Attorney Registration & Disciplinary Commission.

I hate reading stories like this. It is always troubling when employees who believe they are doing the right thing walk out the door when they believe justice has not been done. What a loss for the organization and the individual.

Just as troubling to me on this Labor Day, however, is how this story reinforces the reputation that many lawyers and, alas, some consultants have in the eyes of clients. In a ten year old survey by William Ross, a professor at Samford University's Cumberland School of Law, two-thirds of the attorneys (and three-fourths of the clients) reported knowledge of bill padding. Somehow I doubt that perceptions have improved markedly since.

At Ethical Leadership Group, much of our work is done based on hourly billing arrangements, and the rest is fee or project based. Neither method is perfect. Hourly billing arrangements do not provide a direct incentive for high efficiency; project based fees do not provide a direct incentive for quality assurance and attention to the details. While bill padding of the type alleged by Mr. Farmer is inconceivable to me, we recognize that we must be driven by integrity and client service to give clients the quality and value they deserve. No matter the billing method, clients deserve great work at an honest price. Anything else and we jeopardize our clients’ trust.

And that’s why stories like this are so aggravating. Without trust, we all lose.

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ELG was founded in 1993 and has since done work in more than 40 countries with over 25% of the Fortune 200

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This blog contains personal reflections and commentary on corporate responsibility by the consultants of Ethical Leadership Group. It is intended to communicate short, timely items of interest to our clients and colleagues. We look forward to your comments. Please visit our Ethics and Compliance Blog for more general ethics and compliance issues.

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Published Writings by ELG consultants

Climate Change: Tilting at Windmills - the rush on renewables
from Ethical Corporation Magazine

Hewlett-Packard and ‘pretexting’ - A rose by any other name
from the website of Ethical Corporation Magazine

Starting to ‘Get’ Responsibility
from Ethical Corporation Magazine

Invite Your Lawyers to the Corporate Responsibility Dance
from Ethical Corporation Magazine

The Anti-CSR Lobby: House of Straw
from Ethical Corporation Magazine

Making the Business Case for the Business Case
from Ethical Corporation Magazine

Ethical Reporting and the Law
from Ethical Corporation Magazine

Ethical Sourcing – Good News for Industry-wide Initiatives
from the website of Ethical Corporation Magazine

When Mars meets Venus
from Ethical Corporation Magazine

Reputation Roulette
from the website of Ethical Corporation Magazine

TXU Takeover – How Capitalism is really Turning Green
from Ethical Corporation Magazine

Published Writings quoting ELG consultants

Corporate America's Hidden Risks
by Mark Gunther, from Fortune Magazine

Win or Lose in Court
by Bill Baue, from Business Ethics magazine

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