The Axios article, “DEI reputations surge for Patagonia, Costco, Microsoft” (May 29, 2025), reveals that despite public and political backlash, companies with clear, authentic commitments to Diversity, Equity, and Inclusion (DEI) — like Patagonia, Costco, and Microsoft — are actually gaining reputational strength. Their DEI efforts are resonating with employees and customers, becoming a differentiating factor in corporate trust and brand loyalty.
Here’s how this study equates to law firms and their DEI challenges in 2025:
Study insight: The top-ranked companies aren’t just paying lip service to DEI — they’re embedding it authentically into culture and operations.
Law firm parallel: Despite the administration pressure, some top law firms are moving forward with diversity, equity, and inclusion hiring and programs, even as their rivals are abandoning these efforts. Although the titles and program names may change, law firms that value authenticity are continuing their internal programs. In some cases, they’re even strengthening and expanding them in ways that are lasting and legally compliant.
Anecdotal data gathered from our daily interactions across the industry indicates that the divisive atmosphere around DEI is partly a result of past performative efforts such as issuing statements and hosting events. We agree that these types of efforts are rarely a good investment of time or resources, and without sustained internal accountability, meaningful change is unlikely.
Law firms that genuinely integrate DEI into hiring, promotion, client teams, and leadership will differentiate themselves. By demonstrating authenticity and accountability, law firms will be perceived as trusted partners that align with clients who share these values.
Study insight: DEI leaders enjoy a reputational surge, showing DEI as a value-add, not a risk.
Law firm parallel: Law firms that treat DEI as an authentic core value and focus on skills-over-subjectivity throughout their hiring processes and human resources programs mitigate risk and gain a reputational advantage. This is particularly true for corporate clients demanding diverse legal teams and inclusive business practices.
Corporations know that diverse teams make better decisions, improve business performance, and drive profit — why wouldn’t they want the same from their outside law firm? A study published by Cloverpop found that the most diverse teams made better business decisions 87% of the time.
On Jan. 23, 2025, Costco shareholders voted down an anti-diversity proposal, with more than 98% of shares voting against the proposal. Before the shareholder meeting, Costco’s board of directors unanimously requested that investors reject the motion. AP reported that Costco’s directors’ message to shareholders shows the company believes diverse employees and suppliers have fostered “creativity and innovation in the merchandise and services that we offer” leading to customer satisfaction among Costco members. “Costco successfully defends its diversity policies as other US companies scale theirs back, AP, Jan. 23, 2025.
It’s that same creativity, innovation, and diversity of background and thought that companies are looking to partner with. Look no further than the wave of very large companies leaving their current attorneys for those who fight for their values. Diversity is not about checking boxes; it is about the bottom line.
Study insight: Companies that stayed committed to DEI despite the backlash were rewarded for consistency.
Law firm parallel: Firms that stand firm on DEI amid political, social, or economic pushback may be better positioned for long-term success. Consistency sends a message of stability, integrity, trust, and quality. You don’t have to believe us! Take it from McKinsey and Bruce Springsteen, A McKinsey article, “The three C’s of customer satisfaction: consistency, consistency, consistency,” from March 1, 2024, quotes Springsteen as once saying: “(s)ustaining an audience is hard. It demands a consistency of thought, of purpose, and of action over a long period of time.”
Law firms are also building and sustaining an audience — to wit: talent, stakeholders, employees, the judiciary, and clients. All these constituencies have opinions and make decisions about law firms every day. Law firms known for their consistency and steadfastness have more favorable brand recognition and higher brand value for integrity and trust, which are essential in legal services.
One only needs a cursory read of the many judicial opinions on the administration’s executive orders regarding law firms to see that the judiciary has also taken note. Law firms that backpedaled on DEI appear fickle and weak to their audience, showing an inconsistency that damages the trust they may have built over time.
Study insight: The top companies sustaining their DEI practices are known for strong, values-driven leadership.
Law firm parallel: DEI cannot sit siloed in HR or committee purgatory. It must be championed at the managing partner and executive committee levels. Leading firms in 2025 have woven DEI into business development, compensation, succession planning, and firm governance — with a renewed commitment to amending, not ending, their DEI programs.
It bears repeating that the administration’s executive orders were not the first salvo against DEI. Several court decisions paved the way for change, including Muldrow v. City of St. Louis, Snyder v. US, and Ames v Ohio Department of Youth Services.
These rulings will influence how companies and law firms structure and sustain their DEI programs. Strong, values-driven leaders are needed to ensure that these programs continue to provide vital benefits to candidates and employees while remaining compliant and aligned with court precedent.
Study insight: Employees are key drivers of DEI reputation — through testimonials, reviews, and loyalty.
Law firm parallel: Of all the voices that led the charge against Big Law capitulating to the administration, law firm associates are standing out. These attorneys are choosing to leave their firms rather than stay with an employer that violated their trust and values. They see that their employers are on the wrong side of history and want no part of it.
Initial departures are just the beginning of what we expect to be an exodus of law students and professionals fleeing Big Law — to the great benefit of other firms who share their values and welcome these attorneys and legal business professionals with open arms.
If associates, staff, and partners see and feel real progress toward diversity and inclusion, they’ll advocate for the firm. They will share their stories of amazing work and impressive culture, providing the kind of self-referential bona fides that cannot be purchased. The opposite is also true. Bad news spreads fast. Decisions made today will have a lasting impact on lateral recruiting, retention, and rankings (see e.g., AmLaw, Chambers, Vault) — for years to come. Personal stories and testimonials from disgruntled Big Law associates are damaging, and in the internet age, they remain visible and impactful indefinitely.
Bron: https://www.reuters.com/legal/legalindustry/what-law-firms-can-learn-big-brands-dei-why-reputation-is-stake-2025-06-25/?
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