Corporate Law
Companies pause DEI objectives when hiring lawyers
U.S. companies are backing down from demanding that law firms that they work with meet certain objectives, acquiescing to objections mandated by President Donald Trump regarding diversity, equity and inclusion in the legal profession. (Image from Shutterstock)
U.S. companies are backing down from demanding that law firms that they work with meet certain objectives, acquiescing to objections mandated by President Donald Trump regarding diversity, equity and inclusion in the legal profession.
According to firm leaders who spoke to Bloomberg Law on the condition of anonymity, companies still inquire about a firm’s demographic data; however, most have backed away from making decisions about payment or retaining counsel based on specific metrics. The Trump administration has prioritized punishing companies with DEI initiatives across the board, as well as in the legal space.
“There are law firms that mouthed a commitment to diversity and inclusion because they knew that would make them more palatable to companies,” Paula Boggs, the former general counsel for Starbucks, told Bloomberg Law.
According to the National Association for Law Placement, the share of Black summer associates at firms declined for the third consecutive year in 2025, decreasing to about 8.5%. The overall proportion of summer associates of color declined to about 38%—the lowest since 2020.
Microsoft’s diversity programs for outside lawyers date back to 2008 and attached certain bonuses for firms to diversity metrics, such as race, sex and sexual orientation, including efforts to increase diversity among partners and in leadership roles.
“We do not offer incentives or bonuses tied to the workforce composition of our outside counsel or suppliers,” a Microsoft spokesperson told Bloomberg Law.
There was no comment on when the change was made.
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