Why Canadian Law Firms Must Not Retreat on Diversity

As managing partner of a Canadian law firm, I observe with growing concern the retreat from diversity, equity, and inclusion (DEI) initiatives taking place in the United States within the legal sector.

McKinsey & Company’s Women in the Workplace 2024: The 10th-anniversary report, the most comprehensive study of its kind, offers a stark warning: progress on gender and racial equity is not only fragile, but at risk of being undone if we allow complacency or political pressure to dictate priorities.

For Canadian law firms, the lesson is clear. Set out in this article are insights from the report that prove now is the time to double down on our commitment to equity, not to waver.

The Fragility of Progress and the Perils of Complacency

Over the past decade, women have made significant gains in corporate North America, including in law. Women now hold 29 per cent of C-suite roles, up from 17 per cent in 2015. Yet, these gains are precarious. The pipeline remains deeply flawed, especially for women of colour, who hold just seven per cent of C-suite positions compared to 22 per cent for white women. The “broken rung” at the first step up to manager persists: for every 100 men promoted, only 81 women make the leap, with even lower rates for Black women and Latinas. At the current rate, true parity for women of colour in senior leadership is nearly 50 years away; for white women, it is more than two decades away.

This is not simply a matter of fairness or optics. The evidence is clear: firms with more women in leadership benefit from greater innovation, healthier cultures, and stronger performance. In a profession that prides itself on analytical rigour and applying precedent, we cannot ignore the data — diversity is not a luxury, but a strategic imperative.

A Worrying Pullback South of the Border

Most alarming in the Women in the Workplace 2024 report is the documented decline in corporate commitment to diversity. Only 69 per cent of companies said gender diversity is a high priority, down from 88 per cent in 2017. The legal industry in the U.S. is not immune to this trend. As some firms bow to political pressure and quietly roll back DEI programs, they risk not only stalling progress, but actively reversing it. The data show that when organizations lose focus, the pipeline for women and other marginalized groups quickly dries up. Clearly, complacency is not neutral; it is regressive.

The Illusion of Progress and the Reality of Workplace Culture

Despite more women in leadership and the focus on DEI policies, the day-to-day experience for women — especially women of colour, LGBTQ+ women, and women with disabilities — has not improved. Bias, microaggressions, and a lack of support from managers remain the norm. Sexual harassment is as prevalent as it was six years ago, and women are less confident than men that their organizations will handle complaints effectively. Workplace culture, in many ways, is stuck in neutral. The report makes it painfully clear that representation alone is not enough; without a genuine shift in workplace culture, the promise of equity remains unfulfilled.

Flexibility and Benefits: A Model for Retention and Advancement

Areas where progress is tangible include the expansion of remote and hybrid work options, as well as benefits for parents, caregivers, and those facing health challenges. These supports are especially important for women, who remain more likely to shoulder caregiving responsibilities. Firms that embrace flexibility and provide robust benefits see higher retention and engagement among women. In Canada, where our social fabric is often more attuned to equity and inclusion, we have an opportunity — and I believe a responsibility — to lead by example; not to follow the retreat.

Why Canadian Law Firms Cannot Afford to Capitulate

The legal profession is built on precedent, but it should not be shackled by it. The data is unequivocal: rolling back DEI efforts is not just a moral failure, it is a strategic blunder. Law firms that retreat from diversity risk losing out on talent, innovation, and the trust of clients who increasingly demand inclusive teams. Capitulation to political pressure is not just a step backward for women, it is a step backward for the profession as a whole.

I believe the managing partners of Canadian law firms must reaffirm the commitment to gender and racial diversity as a strategic priority, especially as broader corporate commitment wanes south of the border. We must focus on equitable promotion practices as the first step to management roles, using clear criteria and diverse candidate slates. We must restore and expand mentorship, sponsorship, and career development programs, with special attention to women of colour and other marginalized groups. We must align manager evaluations and rewards with people-management goals, not just billable hours or business outcomes. And we must move beyond just training to create a culture where allyship is practised daily and microaggressions are actively addressed.

The Stakes for the Next Decade

Clients are watching. The next generation of lawyers is watching. The Women in the Workplace 2024 report is a clarion call: Canadian law firms must resist the urge to pull back and, instead, lead the way in building a more equitable, innovative, and resilient future. The choice is ours. The data is in. The time to act is now.