DOCSLIB.ORG

Net Negative Bias Hits One-In-Five

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Net Negative Bias Hits One-In-Five Sector Roundup Asia-Pacific: Net Negative Bias Hits One-In-Five Oct 6. 2020 Primary Credit Analysts Key Takeaways Terry E Chan, CFA Melbourne − Overall: Our net negative outlook bias has worsened, emphasizing the potential significant number of downgrades still to come. + 61-3-9631-2174 [email protected] − Assumptions and risks: While a general recovery is now underway, we project it will take one to three years for most sectors to normalize. Christopher Yip Hong Kong − What to look for: Recurring waves of COVID-19 infections, which could lead to the re-imposition of government restrictions on travel and people movement. An uneven trajectory of business and [email protected] consumer demand could weigh on credit conditions. +852-2533-3593 Senior Analyst Sushant Desai The net rating outlook bias has slightly worsened to negative 19% (one out of five issuers) as of August 2020, from negative 17% in May 2020. S&P Global Ratings took a slew of negative rating actions on Asia-Pacific Research Analyst issuers, including outlook revisions and CreditWatch placements, over the past six months. More than one in Michelle Hsiung three corporate and sovereign issuers saw such actions from March to end-August 2020 (see charts 1 and 2). The nonfinancial corporate sector was the hardest hit with a net outlook bias of negative 25% (see table 1). Corporates are struggling with a slump in demand and continued uncertainty over business conditions. Financial institutions are facing a second-order effect with a negative rating bias of 17%. We calculate the net rating bias by deducting the percentage of negative outlooks and CreditWatch listings against the percentage of positive outlooks and CreditWatch listings. A minus figure indicates that the percentage of negative outlooks and CreditWatch listings exceeds the percentage of positive outlooks and CreditWatch listings; and a positive figure, vice versa. Chart 1 Asia-Pacific Issuers As Shaken As Europe’s Regional breakdown of actions on corporate and sovereign issuers due to COVID-19 and oil prices Percentage with rating actions Percentage no actions North America Latin America EMEA APAC 0% 20% 40% 60% 80% 100% The colors are based on percent impacted compared to total issuer population with the lighter blue indicating the most rating actions. Data as of Sept. 28, 2020. Source: S&P Global Ratings Research. spglobal.com/ratingsdirect Oct. 6, 2020 1 Asia-Pacific Sector Roundup Chart 2 Issuers Hit By COVID-19 And Oil Prices Rating actions by sector and region Data as of Sept. 28, 2020. The colors are based on percent impacted compared to total issuer population with the darker pink and purple indicating the most rating actions. Source: S&P Global Ratings' COVID-19- And Oil Price-Related Public Rating Actions On Corporations, Sovereigns, And Project Finance To Date, published Sept. 29, 2020 S&P Global Ratings acknowledges a high degree of uncertainty about the evolution of the coronavirus pandemic. The current consensus among health experts is that COVID-19 will remain a threat until a vaccine or effective treatment becomes widely available, which could be around mid-2021. We are using this assumption in assessing the economic and credit implications associated with the pandemic (see our research here: www.spglobal.com/ratings). As the situation evolves, we will update our assumptions and estimates accordingly. spglobal.com/ratingsdirect Oct. 6, 2020 2 Asia-Pacific Sector Roundup Table 1 Net Rating Bias Of Asia-Pacific Issuers By Sector, Aug. 31, 2020 Aug. Oct. Feb. May, Aug. No. of Notional 2019 2019 2020 2020 2020 entities average rating Auto OEM and suppliers -18% -17% -23% -71% -67% 36 BBB- Building materials 12% -6% 0% -13% -20% 15 BBB- Business services -23% -15% -8% -25% -36% 11 BB+ Capital goods -15% -15% -7% -15% -15% 39 BBB Chemicals -2% -18% -20% -30% -46% 35 BBB- Consumer products -18% -19% -20% -24% -21% 34 BBB- Diversified 7% 6% 13% -7% -13% 15 A- Hotels, gaming and leisure -25% -31% -25% -78% -67% 18 BB+ Media and entertainment -17% -29% -29% -22% -22% 9 BBB- Healthcare 0% -11% -38% -38% -38% 8 BB Investment company 0% 0% 0% 0% 0% 10 BBB+ Metals and mining -2% 2% -7% -24% -22% 55 BB+ Oil and gas -3% -9% -14% -34% -39% 28 BBB Project finance 0% 0% 0% 0% 0% 0 -- Real estate development -8% -12% -8% -11% -11% 82 BB- Real estate investment trusts 2% 2% -6% -25% -22% 51 A- Retail -5% 0% 0% -31% -38% 16 BBB- Technology -12% -19% -9% -17% -20% 41 BBB- Telecommunications -29% -30% -32% -26% -26% 27 BBB+ Transportation cyclical -14% -19% -10% -55% -40% 20 BB+ Transportation infrastructure -3% -2% -3% -37% -31% 62 BBB+ Utilities -2% -2% 3% -5% -6% 97 BBB+ Total corporates -7% -10% -9% -25% -25% 709 BBB- Financial institutions 12% 9% 8% -14% -17% 379 BBB+ Insurance 10% 11% 15% 1% -4% 180 A Public finance 17% 16% 17% 2% -10% 93 A+ Sovereign 9% 9% 12% 4% -10% 21 BBB Total issuers 2% 0% 1% -17% -19% 1,382 BBB+ Light blue colored cells indicate improvement from prior period, dark blue deterioration. Net ratings bias includes confidential ratings for all sectors with the exception of insurance and sovereign. Corporate. The sectors with the most negative net rating bias remain hotels, gaming and leisure; auto; chemicals; transportation cyclical; and oil & gas (see table 1). Most of these sectors are exposed to the consumer-led slump in demand arising from government-imposed restrictions (e.g. lockdown) and self- imposed reductions in economic activity. We expect very weak global car sales in 2020, with the prospect of recovery highly uncertain. Gaming activity bottomed in the second and the pace of recovery depends on travel restrictions, and consumer behavior. In the chemicals sector, spreads remain below mid-cycle levels as subdued demand persists. In transportation cyclical, COVID-19 disruptions to people flows and supply chains have caused a slump in demand in Asia-Pacific. Airlines remain the most exposed segment. For oil and gas, production cuts and an economic recovery, albeit uneven, are boosting oil prices but recent increases in new COVID-19 cases pose a threat to demand. spglobal.com/ratingsdirect Oct. 6, 2020 3 Asia-Pacific Sector Roundup Financial institutions. Our net rating bias is negative 17% as of August 2020. We have taken significantly high numbers of negative rating actions on banks and finance companies in Asia-Pacific in Q2 2020, reflecting our view that COVID-19 will hit lenders hard. We now expect many economies in the region to suffer deeper fallout than we previously estimated. Governments in many countries have struggled to control the outbreak and a vaccine is yet to be found. Consequently, we predict that credit losses will surge and earnings will fall across all banks in the region. In our view, most banking systems in the region won't stage a full recovery until 2023. Downside risks include a more severe or prolonged hit to the economies which could happen if the U.S.-China strategic confrontation intensifies or if COVID-19 threatens greater economic spillover than we assume now. High private sector indebtedness and still-high valuations could trigger a disorderly correction in asset prices, which would heighten and prolong the asset quality problems. Chart 3 Net Outlook Bias Distribution Of Asia-Pacific Issuers By Sector, Aug. 31, 2020 WATCHNEG NEGATIVE OTHER STABLE POSITIVE WATCHPOS Gaming, hotels and leisure Auto Healthcare Transportation cyclical Chemicals Retail Oil and gas Business services Media and Entertainment Transportation infrastructure Technology Telecoms REITs Consumer products Capital goods Public Finance Metals and mining Building materials Financial Institution Real estate development Sovereigns Diversified Insurance Utilities 0% 20% 40% 60% 80% 100% REITS--Real estate investment trusts. Source: S&P Global Ratings. spglobal.com/ratingsdirect Oct. 6, 2020 4 Asia-Pacific Sector Roundup Insurance. The net rating bias is negative 4% as of August 2020. This reflects volatile investment markets on weakening capitalization. Slower macroeconomic conditions present headwinds to growth. Rates were already in "lower for longer" mode; now it's "lower for even longer." This and volatile capital markets may prompt insurers to hike risk appetite in their hunt for yield. Foreign exchange (forex) volatility may affect Taiwan, Japan, and Korea players with big overseas investments. In addition, we anticipate insurers will review their actuarial pricing. Recurring waves of COVID-19 will prolong social distancing. This in turn displaces traditional insurance distribution channels (tied agency and bancassurance) as sales activities shifts online. Key risks include a flattening yield curve and revenue headwinds. International public finance. The net rating bias is negative 10% as of August 2020. The slow recovery continues to threaten economic growth and undermine fiscal positions of local and regional governments (LRGs). Australian and Japanese LRGs have higher budgetary flexibility to respond to spending challenges. China and India, in comparison, remain dependent on central government actions to revive the economy. Setbacks in containment could lead to further cuts to GDP forecasts for Asia-Pacific. Contagion fears will prevent travel and consumption, dragging down revenue for most LRGs, and some pandemic-sensitive public finance segments such as Australian universities. Sovereign. The net rating bias is negative 10% as of August 2020. Geopolitical tensions add to complications amid a sluggish recovery from COVID-19. Debt is materially higher for most sovereigns due to policies to support growth and employment. Prolonged low interest rates should ease countries’ financing burden in the absence of risk events. A sharp deterioration in investor sentiment in emerging markets could see swift reversals of capital flows out of these economies. The risk in abrupt reversals of capital flows is larger where, in response to lower global interest rates, governments ease domestic funding conditions to increase leverage in the public or private sector.
Load more

Recommended publications
  • Gender Bias in Sexual Assault Response And
    End Violence Against Women International (EVAWI) Gender Bias in Sexual Assault Response and Investigation Part 1: Implicit Gender Bias Heather Huhtanen Contributions by Kimberly A. Lonsway, PhD Sergeant Joanne Archambault (Ret.) November 2017 Updated October 2020 . This project is supported by Grant No. 2016-TA-AX-K010 awarded by the Office on Violence Against Women, US Department of Justice. The opinions, findings, conclusions, and recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of the Department of Justice, Office on Violence Against Women. Gender Bias in Sexual Assault Response and Investigation October Part 1: Implicit Gender Bias Huhtanen 2020 Public Domain Notice Unless something is excerpted directly from a copyrighted source, all the material in this document is in the public domain and may be reproduced or copied without specifically requesting permission from End Violence Against Women International (EVAWI) or the authors. Any direct quotes or excerpts should be properly cited, however. No one may reproduce or distribute this material for a fee without the specific, written authorization of End Violence Against Women International (EVAWI). Electronic Access The publication may be downloaded from End Violence Against Women International’s Resource Library. Recommended Citation Huhtanen, H. (2020). Gender Bias in Sexual Assault Response and Investigation. Part 1: Implicit Gender Bias. End Violence Against Women International. End Violence Against Women International 2 www.evawintl.org Gender Bias in Sexual Assault Response and Investigation October Part 1: Implicit Gender Bias Huhtanen 2020 Authors Heather Huhtanen is currently based in Geneva, Switzerland where she works to promote gender equality in the context of international development, security and justice reform and peace and transition processes.
    [Show full text]
  • •Understanding Bias: a Resource Guide
    Community Relations Services Toolkit for Policing Understanding Bias: A Resource Guide Bias Policing Overview and Resource Guide The Community Relations Service (CRS) is the U.S. Justice Department’s “peacemaker” agency, whose mission is to help resolve tensions in communities across the nation, arising from differences of race, color, national origin, gender, gender identity, sexual orientation, religion, and disability. CRS may be called to help a city or town resolve tensions that stem from community perceptions of bias or a lack of cultural competency among police officers. Bias and a lack of cultural competency are often cited interchangeably as challenges in police- community relationships. While bias and a lack of cultural competency may both be present in a given situation, these challenges and the strategies for addressing them differ appreciably. This resource guide will assist readers in understanding and addressing both of these issues. What is bias, and how is it different from cultural competency? The Science of Bias Bias is a human trait resulting from our tendency and need to classify individuals into categories as we strive to quickly process information and make sense of the world.1 To a large extent, these processes occur below the level of consciousness. This “unconscious” classification of people occurs through schemas, or “mental maps,” developed from life experiences to aid in “automatic processing.”2 Automatic processing occurs with tasks that are very well practiced; very few mental resources and little conscious thought are involved during automatic processing, allowing numerous tasks to be carried out simultaneously.3 These schemas become templates that we use when we are faced with 1.
    [Show full text]
  • Sexism at Work: How Can We Stop It? Handbook for the EU Institutions and Agencies Acknowledgements
    Sexism at work: how can we stop it? Handbook for the EU institutions and agencies Acknowledgements This handbook was developed by the European The personal stories were collected in person Institute for Gender Equality (EIGE). It was or in writing during the drafting of the hand- adapted from JUMP’s handbook Libérez votre book. They include experiences from the EU entreprise du sexisme* by Dorothy Dalton, who institutions and agencies, as well as from bod- was contracted as an External Expert. EIGE co- ies that work closely with these organisations. ordinated the work and provided quality assur- Stories were collected by the External Expert ance (Veronica Collins, Valentina Canepa, Vasiliki during workshops and coaching sessions, as Saini). well as through conversations. All stories are On 20 September 2019, EIGE held an expert real, though some names have been changed meeting in Vilnius, Lithuania, to receive com- to protect identities. EIGE would like to thank ments on a draft of the handbook. The meeting the Directorate-General (DG) for Justice and was attended by EU institutions and agencies, Consumers and DG Human Resources and non-governmental organisations and the pri- Security of the European Commission for their vate sector. The final version of this handbook valuable input, as well as Dr Sonja Robnik, mem- reflects the input of these organisations. ber of EIGE’s Expert Forum. The European Institute for Gender Equality The European Institute for Gender Equality Email: [email protected] (EIGE) is an autonomous body of the European Union established to strengthen gender Tel. +370 52157444 equality across the EU.
    [Show full text]
  • Bias, Employment Discrimination, and Black Women's Hair: Another Way Forward
    BYU Law Review Volume 2018 Issue 4 Article 7 Winter 2-28-2019 Bias, Employment Discrimination, and Black Women's Hair: Another Way Forward Crystal Powell Follow this and additional works at: https://digitalcommons.law.byu.edu/lawreview Part of the Civil Rights and Discrimination Commons, and the Labor and Employment Law Commons Recommended Citation Crystal Powell, Bias, Employment Discrimination, and Black Women's Hair: Another Way Forward, 2018 BYU L. Rev. 933 (2019). Available at: https://digitalcommons.law.byu.edu/lawreview/vol2018/iss4/7 This Comment is brought to you for free and open access by the Brigham Young University Law Review at BYU Law Digital Commons. It has been accepted for inclusion in BYU Law Review by an authorized editor of BYU Law Digital Commons. For more information, please contact [email protected]. 004.POWELL_FIN2_NOHEADERS.DOCX (DO DELETE) 2/17/19 8:33 PM Bias, Employment Discrimination, and Black Women’s Hair: Another Way Forward CONTENTS I. INTRODUCTION .......................................................................................... 933 II. HISTORY OF BLACK HAIR, IMPLICIT BIAS, AND WORKPLACE GROOMING STANDARDS ..................................................................... 937 A. History of Black Hair Texture and Hairstyle: Centuries of Stereotyping ...................................................................................... 938 B. Clean, Neat, and Kept Versus Extreme, Eye-Catching, and Unprofessional: Workplace Grooming Policies Reflect Racial Stereotypes ............................................................................
    [Show full text]
  • Implicit Racial Bias
    December 2018 Implicit Racial Bias Bailey Maryfield, M.S. Introduction sciously reject racism or other bias may unwittingly act in ways that result in discrimination because of implicit Implicit racial bias and its potential effects on criminal bias” (Police Executive Research Forum, 2016). justice decision making have become highly visible issues in recent years. Driven by a myriad of factors, The following gives a brief overview of implicit racial including the well-documented disparity in criminal bias as it relates to the various stages of the criminal justice involvement across racial groups and several justice system. Various mechanisms used to address high-profile events that have exposed rifts in the re- implicit racial bias are also briefly discussed along with lationships between local police and the communities what is known about their effectiveness. they serve, both discourse and research on the topic of implicit bias arguably has become more prominent What is Implicit Racial Bias than ever before. This fact sheet is intended to raise awareness about the concept of implicit racial bias, the It is important to distinguish implicit racial bias effect of implicit racial bias in the criminal justice sys- from racism or discrimination. Implicit biases are tem, and how the issue is being addressed to enhance associations made by individuals in the uncon- the fair and equitable administration of justice. scious state of mind. This means that the individ- ual is likely not aware of the biased association. Although implicit bias can manifest itself in many different forms, such as gender, racial or religious bias, Implicit racial bias can cause individuals to un- this fact sheet is focused specifically on implicit racial knowingly act in discriminatory ways.
    [Show full text]
  • Unconscious Bias
    Conscious and Unconscious Gender Bias Response to DACOWITS RFI 4 Prepared for the December 2018 DACOWITS Quarterly Business Meeting Authors Rachel Gaddes Zoe Jacobson Sidra Montgomery Courtney Moore Submitted to Submitted by DACOWITS Insight Policy Research, Inc. 4800 Mark Center Drive 1901 North Moore Street Suite 04J25-01 Suite 1100 Alexandria, VA 22350-9000 Arlington, VA 22209 Project Officer Project Director DACOWITS Executive Staff Rachel Gaddes Contents Introduction .................................................................................................................................................. 1 Chapter 1. Definitions of Bias ....................................................................................................................... 2 A. Defining Bias and Gender Bias ......................................................................................................... 3 B. Defining Conscious and Unconscious Bias ....................................................................................... 3 C. Conscious and Unconscious Gender Bias in the Workplace ............................................................ 4 D. Definitions of Gender-Neutral and Gender-Inclusive Wording ....................................................... 5 Chapter 2. Recent Media Coverage of Gender Bias ..................................................................................... 6 A. Recent News Articles ......................................................................................................................
    [Show full text]
  • Dehumanization: Understanding the Paradox of Human Interaction Debra Keenahan University of Wollongong
    University of Wollongong Research Online University of Wollongong Thesis Collection University of Wollongong Thesis Collections 1990 Dehumanization: understanding the paradox of human interaction Debra Keenahan University of Wollongong Recommended Citation Keenahan, Debra, Dehumanization: understanding the paradox of human interaction, Doctor of Philosophy thesis, Department of Psychology, University of Wollongong, 1990. http://ro.uow.edu.au/theses/1656 Research Online is the open access institutional repository for the University of Wollongong. For further information contact the UOW Library: [email protected] DEHUMANIZATION UNDERSTANDING THE PARADOX OF HUMAN INTERACTION A thesis submitted in fulfillment of the requirements for the award of the degree Doctor of Philosophy from the University of Wollongong by Debra Keenahan, BA (Hons) Department of Psychology 1990 University of Wollongong Candidate's Certificate i certify that the thesis entitled Dehumanization: Understanding the Paradox of Human Interaction, and submitted for the degree of Doctor of Philosophy, is the result of my own research, except where otherwise acknowledged, and that this thesis (or any part of the same) has not been submitted for a higher degree to any other university or institution. Signed : Date : ./2:..<3.:..?9, TABLE OF CONTENTS Acknowledgements v i i i Dedication x Abstract x i INTRODUCTION 1 PART 1 : THE DYNAMICS OF DEHUMANIZATION CHAPTER ONE: DEFINING DEHUMANIZATION 8 What Does It Mean To Be A Human Being? 9 Limitations of Human Agency 1 0 People
    [Show full text]
  • Not Yet Human: Implicit Knowledge, Historical Dehumanization, and Contemporary Consequences
    Journal of Personality and Social Psychology Copyright 2008 by the American Psychological Association 2008, Vol. 94, No. 2, 292–306 0022-3514/08/$12.00 DOI: 10.1037/0022-3514.94.2.292 Not Yet Human: Implicit Knowledge, Historical Dehumanization, and Contemporary Consequences Phillip Atiba Goff Jennifer L. Eberhardt The Pennsylvania State University Stanford University Melissa J. Williams Matthew Christian Jackson University of California, Berkeley The Pennsylvania State University Historical representations explicitly depicting Blacks as apelike have largely disappeared in the United States, yet a mental association between Blacks and apes remains. Here, the authors demonstrate that U.S. broadly. citizens implicitly associate Blacks and apes. In a series of laboratory studies, the authors reveal how this association influences study participants’ basic cognitive processes and significantly alters their judg- publishers. ments in criminal justice contexts. Specifically, this Black–ape association alters visual perception and attention, and it increases endorsement of violence against Black suspects. In an archival study of actual allied disseminated criminal cases, the authors show that news articles written about Blacks who are convicted of capital its be crimes are more likely to contain ape-relevant language than news articles written about White convicts. of to Moreover, those who are implicitly portrayed as more apelike in these articles are more likely to be one not executed by the state than those who are not. The authors argue that examining the subtle persistence of or is specific historical representations such as these may not only enhance contemporary research on dehumanization, stereotyping, and implicit processes but also highlight common forms of discrimination and that previously have gone unrecognized.
    [Show full text]
  • Hate & Bias-Motivated Crimes
    Hate & bias-motivated crimes Sexual violence & individuals who identify as lgbtq © National Sexual Violence Resource Center and Pennsylvania Coalition Against Rape 2012. All rights reserved. This document was supported by Cooperative Agreement # 5VF1CE001751-03 from the Centers for Disease Control and Prevention (CDC). Its contents are solely the responsibility of the authors and do not necessarily represent the official views of the CDC. This project is supported by Grant No. 2010-SW-AX-0019 awarded by the Office on Violence Against Women, U.S. Department of Justice. The opinions, findings, conclusions, and recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of the Department of Justice, Office on Violence Against Women. The content of this publication may be reprinted with the following acknowledgement: This material was reprinted, with permission, from the National Sexual Violence Resource Center’s publication entitled Hate & bias-motivated crimes: Sexual violence & individuals who identify as LGBTQ. This guide is available by visiting www.nsvrc.org or use your smartphone to scan the QR Code (at left) for more information online. Hate & bias-motivated crimes Sexual violence & individuals who identify as lgbtq eople often commit violence against individuals they perceive to be challenging traditional sexual P and gender norms. In a study of 162 men who identified as gay, and 111 women who identified as lesbian, 52% of the participants reported at least one incident of sexual assault/coercion (Waldner-Haugrud & Gratch, 1997). In this same study, men who identified as gay reported 1.6 incidents per person on average and women who identify as lesbians reported 1.2 incidents per person.
    [Show full text]
  • Examination of the Role of Dehumanization As a Potential Mechanism Underlying the Racial Disparities in School Disciplinary Measures
    Virginia Commonwealth University VCU Scholars Compass Theses and Dissertations Graduate School 2018 Examination of the Role of Dehumanization as a Potential Mechanism Underlying the Racial Disparities in School Disciplinary Measures. Ebony A. Lambert Virginia Commonwealth University Follow this and additional works at: https://scholarscompass.vcu.edu/etd Part of the Other Education Commons, and the Social Psychology Commons © The Author Downloaded from https://scholarscompass.vcu.edu/etd/5656 This Thesis is brought to you for free and open access by the Graduate School at VCU Scholars Compass. It has been accepted for inclusion in Theses and Dissertations by an authorized administrator of VCU Scholars Compass. For more information, please contact [email protected]. EXAMINATION OF THE ROLE OF DEHUMANIZATION AS A POTENTIAL MECHANISM UNDERLYING THE RACIAL DISPARITIES IN SCHOOL DISCIPLINARY MEASURES A thesis submitted in partial fulfillment of the requirements for the degree of Master of Science at Virginia Commonwealth University By: Ebony A. Lambert B.A., College of William & Mary, May 2016 Director: Nao Hagiwara, Ph.D. Associate Professor of Psychology Department of Psychology Virginia Commonwealth University Richmond, Virginia November 2018 © Ebony A. Lambert 2018 All Rights Reserved Acknowledgments Thank you to my committee members, Drs. Zewelanji Serpell and Jacqueline McDonnough, for their insight and expertise. I would also like to extend a special note of gratitude to my advisor, Dr. Nao Hagiwara, for her support and guidance. I am grateful also to Kayla Sanon, Randl Dent, and Zoe Smith for their grace and encouragement during the course of my graduate career. My deepest gratitude to my parents, Kathy and Clifford Lambert Sr., for their unconditional support and care throughout my life and academic career.
    [Show full text]
  • Implicit Bias and Prejudice in Mediation
    SMU Law Review Volume 70 Issue 3 ADR Symposium, Part 1 of 2 Article 5 2017 Implicit Bias and Prejudice in Mediation Carol Izumi University of California Hastings College of Law, [email protected] Follow this and additional works at: https://scholar.smu.edu/smulr Part of the Dispute Resolution and Arbitration Commons Recommended Citation Carol Izumi, Implicit Bias and Prejudice in Mediation, 70 SMU L. REV. 681 (2017) https://scholar.smu.edu/smulr/vol70/iss3/5 This Article is brought to you for free and open access by the Law Journals at SMU Scholar. It has been accepted for inclusion in SMU Law Review by an authorized administrator of SMU Scholar. For more information, please visit http://digitalrepository.smu.edu. IMPLICIT BIAS AND PREJUDICE IN MEDIATION Carol Izumi* ABSTRACT Mediators aspire and endeavor to meet their ethical duty of “neutrality” in mediation. Yet their ability to actually conduct mediations without bias, prejudice, or favoritism toward any party is extraordinarily difficult, if not impossible. Research shows that unconscious mental processes involving stereotypes and attitudes affect our judgments, perceptions, and behavior toward others. Implicit bias, the automatic association of stereotypes and attitudes with social groups, may produce discriminatory responses toward parties despite a mediator’s best efforts at creating an outwardly even- handed process. Even the most well-intentioned and egalitarian mediators must actively engage in bias reduction strategies to mitigate prejudice in mediation. I. INTRODUCTION ........................................ 681 II. MEDIATOR NEUTRALITY ............................. 683 III. IMPLICIT BIAS IN MEDIATION ....................... 685 IV. BIAS REDUCTION STRATEGIES ...................... 690 I. INTRODUCTION1 IRST, I want to thank Michael Green, Richard Delgado, the sym- posium organizers, the SMU Dedman School of Law community, Fand other panelists.
    [Show full text]
  • Unconscious Bias
    Unconscious bias Adapted by Professor Uta Frith DBE FBA FMedSci FRS from guidance issued to recruitment panels by the Scottish Government Introduction All panels and committees for selection and appointments The Royal Society provides research funding to at The Royal Society should be carried out objectively individuals to support high quality scientific research, and professionally. with the expectation that these individuals are able to reach their full potential. The Royal Society therefore The Society is committed to making funding or award expects all organisations hosting Royal Society Research decisions purely on the basis of the quality of the Fellows and Research Professorships to provide supportive proposed science and merit of the individual. No funding workplace structures to ensure equality and diversity applicant or nominee for awards, Fellowship, Foreign within the scientific workforce. Evidence of a commitment Membership, election to a post or appointment to a to improving the culture in this area, such as Athena Swan committee should receive less favourable treatment on accreditation, may be taken into account in making awards. the grounds of: gender, marital status, sexual orientation, gender re-assignment, race, colour, nationality, ethnicity This short briefing is meant to alert you to potential or national origins, religion or similar philosophical belief, difficulties around unconscious bias and prompt you spent criminal conviction, age or disability. to consciously revisit them before making a decision. Think of them as the safety instructions that you are Equally, all proposals or nominations must be assessed given every time you are on an airplane. You may think on equal terms, regardless of the sex, age and/or ethnicity you know them already, but it is good to rehearse them of the applicant.
    [Show full text]