Lawyers may be bound by a strict professional code, but their wider observance of ethical practices leaves room for improvement. Tor Goldfield calls for a broader understanding of ethics in the legal profession

"The UK's legal profession is one of the finest in the world. The expertise, the professionalism, the dedication to delivering justice is unrivalled. But as venerable and well-respected as the legal profession is, we have to accept that the profession cannot be immune to change. The way solicitors and barristers do their job, the manner, the style, the environment has changed significantly over the last decade. And so we have to consider how best we can still give effect to the values which underpin the profession, but in a way which enables it to meet the demands of the markets in which the profession operates."

This bold call to arms came from the Right Honourable Jack Straw MP, Lord Chancellor and Secretary of State for Justice speaking on legal services reform, diversity and legal aid at the launch of the Law Society's campaign on 'markets, justice and legal ethics' in March this year.

Ethics is a term with which, one would hope, all legal professionals are familiar. As an industry bound by a strict code governing the client-lawyer relationship, many no doubt feel that they are fulfilling their obligations in this area. However, while it is certainly true that the industry has evolved in recent years to become more socially responsible, the legal profession still attracts a certain level of derision and scepticism concerning some of its modes of behaviour. There are good reasons for this response; the legal sector is highly competitive and cut-throat practices continue to exist in many firms which only further this reputation for self interest.

As society becomes increasingly aware of the concept of corporate responsibility and more discerning in its choices as a result, the legal profession may find that a broader definition of ethics is required to maintain a competitive position. It is no longer enough for a firm to allocate a portion of its profits to charitable causes in order to create a positive impression. Fundamental change is needed at every level to ensure the firm operates in a way that is consistent, fair, and trustworthy and, above all, has a positive influence on its internal and external stakeholders. Running an ethical firm is about considering the impact of all business functions on anyone who comes into contact with that organisation, not just key clients or selected charities.

There are several areas to consider if this cultural shift is to be achieved, from recruitment practices to levels of collaboration within the sector.

Nowadays it is generally recognised that any law firm worth its salt will offer flexible working hours and relevant, ongoing training to retain talented people. Even back in 2006, PricewaterhouseCoopers revealed that every top 25 law firm and 80% of smaller firms offered employees the chance to work a shorter day. With a growing number of high quality regional players highlighting their work-life balance as an attractive and viable reason to leave the City, there is a real battle to achieve the most skilled workforce both in London and across the country. But should this situation justify some of the unethical practices used to lure people away from their current role?

As in any niche industry, there will always be a high level of flux as people change employer to fast track their development, but there are ways and means to manage this process ethically. Actively headhunting a key contact may be the accepted practice, but this really is a case of 'buyer beware'. Anyone who is prepared to leave their current employer at a moment's notice will very likely do the same further down the line, and surely loyalty should be rewarded more highly than self-serving career progression? Taking time to develop skills internally is a far more rewarding and ethical way to develop a firm's talent pool than making potentially powerful enemies through less honest methods.

This leads neatly to the next point which concerns growing levels of collaboration across a number of sectors; law being no exception. Given the current turbulence in the financial markets, there is much debate about how this will affect the legal sector long term. Legal Week reported in May that a group of legal and business thought leaders have conducted a study to identify the key trends and uncertainties likely to impact the legal profession over the next decade. The Legal Transformation Study: Your 2020 Vision of the Future presented four strategic planning scenarios for how legal services may be delivered in 2020, one of which was defined as 'Expertopia'.

In this scenario, the increasing complexity of the law and challenges of corporations operating in multiple environments worldwide places a premium on specialisation and expert-driven cultures. As such, specialisation dominates the industry with larger firms challenged by smaller, more concentrated operations. In this situation, competitive advantage is achieved through collaboration of teams and expertise.

While this may be an extreme and largely theoretical scenario, the benefits of collaboration are already clear. One example of an excellent initiative in this area is The Legal Excellence and Innovation Forum (LEIF) developed by Knowledge West – the consortium formed to further economic growth in the west of England – which brings together law firms and higher education institutions (HEIs).

The southwest and Bristol have one of the highest concentrations of respected law firms in the country, outside London. Following the Clementi Regulatory Review of Legal Services, Knowledge West identified an opportunity to establish a major initiative by initiating a collaborative approach with HEIs and legal industry partners. The aim is to facilitate change by leading research, best practice and benchmarking for the region's legal sector. By bringing together law practitioners, academics and HEIs, the LEIF is also helping to prepare graduates for the 'new' legal services world.

It is worth referring to the previous point at this stage because it is hard to collaborate with a firm from whom talented employees have previously been poached.

Another area in which law firms could make positive, ethical changes is with their diversity policies. When the age discrimination legislation came into force in October 2006, the legal sector was extremely vocal in advising clients on how to avoid prosecution for transgressions in this area. Why then haven't more law firms led the way by signing up to the Government's Age Positive campaign, which promotes the benefits of employing a mixed-age workforce that includes older and younger people?

To date only two law firms have gone down this route: Thomas Eggar and Morgan Cole. After a lengthy consultation process, the latter now has a comprehensive equality and diversity policy that complies with legislation and the requirements of the Law Society in all areas with regard to recruitment, appointment and promotion. Morgan Cole actively recruits over-60s based on their skills, experience and ability to do specific roles, and the firm frequently employs mature law graduates who are embarking on their second career, as well as those at the other end of the age spectrum. Team members can also request to work past the official retirement age of 65 if they wish.

The firm has done so well in this area that it was awarded a Special Contribution Award by the Department for Work and Pensions for its efforts in implementing age positive policies. This includes launching a two-year campaign to support human resources professionals and their organisations in the lead up to the 2006 legislation on age discrimination. A genuine understanding and appreciation of the skills delivered by employees of varying ages is a key element of running an ethical business and one that many, as yet, have yet to genuinely embrace.

While some may choose to bury their heads in the sand and continue operating as they have always done, it is in the legal profession's best interest to take these ethical practices to heart and make positive changes before they are forced to do by increasing public scrutiny and social pressure.

Tor Goldfield is director at Blue Rocket.