The Hidden Compliance Risks of Workplace Cliques in Law Firms

In the legal profession, a culture of integrity, fairness, and trust is essential—not only for effective teamwork and morale but also for compliance. While cliques may appear to be harmless workplace dynamics, in a law firm setting, they pose hidden risks that can affect regulatory compliance, ethical standards, and client service.

Under the Solicitors Regulation Authority (SRA) Code of Conduct in England and Wales, law firms are required to uphold certain principles and duties that are often at odds with the effects of workplace cliques. By allowing cliques to persist, law firms risk breaching several compliance standards, leading to potentially severe repercussions for both the firm’s reputation and its legal standing. In this article, we’ll examine the ways cliques can impact compliance and how law firms can address this issue proactively.

Understanding Cliques and Their Impact on Law Firms

In a professional context, a clique refers to a tight-knit group of employees who socialize together and often act as a cohesive unit. This group may form naturally due to shared interests or backgrounds, but cliques can have the unintended consequence of creating an “in” versus “out” dynamic within the workplace. This can lead to exclusion, favouritism, and communication barriers that affect team members outside of the group.

In a law firm, where collaborative casework, equal access to information, and shared responsibility for client care are essential, the presence of cliques can become a liability. Let’s explore the compliance risks associated with cliques and how they relate to key principles of the SRA Code of Conduct.

1. Upholding Public Trust and Confidence in the Legal Profession (Principle 2)

The SRA Code of Conduct states that solicitors must act in a way that upholds public trust and confidence in the profession. A law firm’s reputation is built on the ethical and fair treatment of clients, but it is also sustained by how it treats its own employees.

When cliques are permitted to influence workplace dynamics, it can lead to decisions and behaviours that undermine the firm’s integrity. For example:

• Perception of Bias: If clients or colleagues observe favouritism—such as certain team members consistently receiving high-profile cases—this could be viewed as a lack of impartiality within the firm.
• Erosion of Credibility: Employees who feel excluded are less likely to be fully engaged and committed, potentially affecting the quality of their work. Over time, this can harm the firm’s overall credibility and trustworthiness, both internally and externally.

By discouraging cliques and encouraging a more inclusive workplace, law firms can better ensure that every team member feels valued and committed to upholding the firm’s reputation.

2. Acting with Integrity (Principle 5)

The SRA Code mandates that solicitors act with integrity in all aspects of their practice. This principle is foundational to every legal professional’s duty to the law, clients, and colleagues. However, integrity can be compromised when favouritism, motivated by personal relationships, becomes a factor in work assignments or career advancement.

Examples of how cliques can threaten integrity include:

• Bias in Case Allocation: If work is distributed based on membership in certain groups rather than on skill or expertise, it undermines fair practice and reflects poorly on the firm’s integrity. It can create resentment among solicitors who feel overlooked.
• Performance Appraisals: When supervisors are part of a clique, there is a risk that performance evaluations become biased, favouring individuals within the group rather than being based on objective criteria. Such practices are not only unethical but may also constitute a breach of regulatory standards.

An inclusive and transparent environment ensures that work and recognition are allocated based on merit, supporting the integrity of the firm and helping to avoid potential compliance pitfalls.

3. Encouraging Equality, Diversity, and Inclusion (Principle 6)

The legal profession is committed to promoting equality, diversity, and inclusion (EDI), and firms are increasingly expected to uphold these principles as part of their compliance obligations. While cliques may form naturally, they can create exclusive environments that counteract the firm’s diversity goals.

The risks cliques pose to EDI objectives include:

• Marginalization of Diverse Voices: Exclusionary groups can lead certain employees—often those from minority or underrepresented backgrounds—to feel side-lined. When individuals feel marginalized, the firm loses out on diverse perspectives that can enhance client solutions and team innovation.
• Inhibiting a Culture of Inclusion: If employees feel that a firm tolerates or fosters cliques, they may be discouraged from participating fully in the workplace. This can lead to a lack of representation and a skewed work environment that hinders progress on EDI goals.

Building a culture where all team members feel equally valued and included isn’t just ethical—it’s a compliance necessity. Firms that actively discourage cliques are more likely to foster a work environment where diversity is celebrated and supported.

4. Maintaining Client Care Standards (SRA Code of Conduct, Section 8)

Client care is paramount in legal practice. The SRA Code requires solicitors to maintain high standards in client communication, service, and transparency. However, cliques can lead to inconsistencies in how these standards are applied across teams.

Compliance risks to client care posed by cliques include:

• Inconsistent Communication: Cliques can create information silos, where only certain team members are privy to important updates or strategies related to a client’s case. This can result in critical information being missed or delayed, impacting client service and outcomes.
• Unequal Support: When certain solicitors receive more support due to their relationships rather than their needs, it can affect the quality of representation provided to clients. This inequity risks violating client care standards and may even expose the firm to complaints or investigations.

Ensuring that all solicitors have access to the same information, resources, and support strengthens client care standards and compliance. A firm-wide commitment to open communication is essential for avoiding the pitfalls of exclusionary practices.

5. Ensuring Proper Supervision and Ethical Compliance

Supervision and ethical oversight are crucial components of a law firm’s regulatory obligations. However, the presence of cliques can lead to failures in both areas, as supervision may become biased or inconsistent.

Potential issues include:

• Ineffective Supervision: If supervisors are part of a clique, they may overlook or downplay the actions of certain team members, leading to lapses in oversight. This could allow for ethical breaches that go unchecked, exposing the firm to regulatory sanctions.
• Conflicts of Interest: Favouritism in allocating high-profile cases or promotions based on clique membership could be perceived as a conflict of interest, which is a violation of both ethical standards and regulatory rules.

By prioritizing fairness in supervision and oversight, law firms can help avoid these risks. A commitment to unbiased supervision ensures that all solicitors are held to the same ethical standards, reducing the risk of compliance violations.

Addressing Workplace Cliques: Practical Steps for Law Firms

To protect compliance and foster a culture of integrity, fairness, and inclusion, law firms must take proactive steps to mitigate the impact of cliques. Here are some effective strategies:

1. Set Clear Values and Expectations: Make it clear that inclusion, fairness, and transparency are core values of the firm. Regularly reinforce these expectations through training and firm-wide communications.
2. Encourage Cross-Team Collaboration: Promote projects that require cross-functional teamwork, helping employees build relationships outside of their usual social circles. This approach can break down cliques and foster a more inclusive culture.
3. Implement Transparent Supervision and Feedback Mechanisms: Ensure that performance reviews, case allocation, and promotions are based on merit, and hold managers accountable for objective supervision. Regular audits of these processes can help identify and address favouritism or bias.
4. Provide EDI Training: Equip team members with tools to recognize and counteract exclusionary behaviours. Diversity and inclusion training can be valuable for promoting a respectful, collaborative workplace.
5. Establish Open Communication Channels: Encourage an environment where all employees feel comfortable sharing ideas, voicing concerns, and asking questions. Open communication helps prevent information silos and ensures everyone is informed.

Conclusion

While cliques may seem like a minor workplace issue, in the context of a law firm, they pose significant compliance risks. By fostering exclusion, favouritism, and bias, cliques can lead to breaches of the SRA Code of Conduct, undermine client service, and damage the firm’s reputation.

Law firms that take proactive steps to prevent the formation of cliques not only protect their compliance standing but also build a stronger, more inclusive culture where every solicitor has the opportunity to thrive. In the end, the goal is to create a workplace that lives up to the highest standards of fairness, integrity, and trust—principles that lie at the heart of the legal profession.