Canadian Lawyer

64 www.canadianlawyermag.com OPINION BACK PAGE The business case for inclusion With political pressures mounting, law firms must pivot from symbolic DEI efforts to data-driven, business-aligned inclusion strategies Lorin MacDonald is a Toronto-based human rights lawyer, advocate for disability and accessibility, and educator. Recognized as one of Canadian Lawyers' Top 25 Most Influential Lawyers in 2021, she serves on the editorial board that selects this year's Top 25. tive advantage comes from cultures where differences become strategic assets in client service and matter management. Law firm leaders must model inclu- sive behaviours, implement fair evaluation systems in partnership decisions, create psychological safety in practice groups, and build client-development teams incorpo- rating diverse perspectives. Law firms navigating the current polit- ical environment while maintaining inclu- sion commitments should consider three key approaches. First, frame inclusion as talent optimiza- tion and business performance rather than using political or social justice language. The goal isn't retreat but strategic communica- tion resonating with diverse stakeholders, including corporate clients who increasingly demand diverse legal representation. Second, inclusion should be integrated into core business functions rather than treated as a separate initiative. When DEI principles become embedded in associate development, business development, and client-service delivery, they become fundamental to firm operations rather than optional programs. Third, equip partners and practice-group leaders with skills to build inclusive teams, including recognizing bias in work alloca- tion, facilitating inclusive client meetings, and supporting equitable career development. Political winds shift, but the busi- ness case for inclusive legal organizations remains constant. Firms viewing diver- sity through a narrow political lens risk missing significant strategic advantages in talent recruitment, client development, and competitive differentiation. The most resilient legal practices neither abandon inclusion under pressure nor maintain superficial gestures. Instead, they deepen their commitment to environments where diverse talent thrives, legal innovation flourishes, and client service excels. DIVERSITY, EQUITY, and inclusion initiatives expanded significantly after George Floyd's death in 2020, with organizations – including global law firms like Baker McKenzie, DLA Piper, and Dentons – implementing mandatory training, establishing affinity groups, and setting ambitious hiring targets. However, these programs now face mounting challenges from multiple directions. The current backlash stems from several factors: political pressure from conservative politicians, legal challenges following the Supreme Court's 2023 ruling in Students for Fair Admissions v. Harvard University that ended race-based affirmative action, and concerns about perceived "reverse discrim- ination." The US attorney general recently directed the Justice Department to inves- tigate "illegal DEI preferences" at institu- tions receiving federal funding, creating uncertainty for law firms with government contracts and clients in regulated industries. Despite this pressure, several major companies and law firms have held firm. The Legal Diversity & Inclusion Alliance, representing over 50 multinational firms, reaffirmed their commitment to inclu- sive practices despite political headwinds. Similarly, Costco shareholders overwhelm- ingly rejected a proposal to review the poten- tial risks of their DEI policies, while Apple, Microsoft, Cisco, Coca-Cola, and others continue defending their inclusion programs. Research consistently shows that diverse teams make better decisions. McKinsey and Harvard Business Review studies demon- strate that organizations with diverse lead- ership outperform less diverse counterparts in profitability and innovation – particularly relevant for global law firms competing for sophisticated multinational clients. Legal practices retreating from inclu- sion efforts risk losing access to critical talent pools and client relationships. Forbes reports that by 2025, millennials and Gen Zs – generations prioritizing inclusive work- places – will comprise over 75 percent of the legal workforce. Law firms perceived as unwelcoming to diverse talent will struggle with recruitment and retention, particularly for top-tier law school graduates and lateral partners with significant client portfolios. Rather than abandoning DEI amid polit- ical pressure, law firms should refine their approach to emphasize measurable business outcomes. This means moving beyond demo- graphic representation toward deeper indi- cators of inclusion that directly affect firm performance: evaluate retention rates across demographic groups to identify advancement inequities in partner promotions, measure client satisfaction and matter outcomes from diverse versus homogeneous legal teams, track associate engagement as an indicator of belonging and psychological safety, and assess diversity among outside counsel and other professional service providers. By connecting inclusion efforts to concrete business objectives like practice-area growth, client retention, or lateral recruitment, firms ensure these initiatives remain priorities regardless of the political climate. The most successful inclusion strategies recognize that diversity without inclusion is insufficient. Leading firms understand that bringing diverse legal talent into unwel- coming environments leads to turnover and unrealized potential. True competi-

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