Why DEI Still Matters: What Law Firms Can Learn from Brand Leaders like Costco and Microsoft

NEW YORK – A recent legal commentary argues that law firms can strengthen their reputations and build client loyalty by adopting the authentic Diversity, Equity, and Inclusion (DEI) strategies that have boosted major brands.

The commentary, published in Reuters, points to a May 29 Axios/Harris Poll that found companies like Patagonia, Costco, and Microsoft saw their reputations surge due to clear and genuine DEI policies. Drawing a parallel, the Reuters analysis contends that a sincere commitment to DEI is becoming a key differentiator for law firms in a competitive market, even amid a turbulent political climate.

This approach contrasts with "performative" actions, which the commentary described as less effective.

Corporate clients increasingly expect their outside counsel to reflect their own values. As evidence, the analysis highlighted a January 23 Associated Press report on a Costco shareholder meeting where a proposal to scale back diversity policies was overwhelmingly defeated. The Costco board had argued that diversity fosters the "creativity and innovation" that benefits its customers.

For DEI initiatives to succeed within a law firm, the commentary stresses that leadership buy-in is essential. It argues that DEI must be championed by managing partners and integrated into core business strategies rather than being isolated in human resources.

The analysis also notes that employee engagement is a powerful driver of reputation, observing that some associates are leaving firms that have backed away from their DEI commitments. This talent exodus benefits firms that have remained steadfast, as their employees become credible advocates for the firm's culture and values.

Ultimately, the commentary concludes that law firms treating DEI as a long-term strategic imperative are better positioned for future success.