Friday Forward - Standing Ground (#488)

Standing by your values comes with a cost, but delivers eventual rewards

Occasionally there are industrywide challenges that test whether leaders live by the values they claim to hold, or whether they suppress or abandon those values under pressure. This spring, one of those trials arrived in the legal field.

A series of controversial executive orders from the Trump administration targeted law firms that had represented clients critical of the administration’s policies. These orders threatened to blacklist the targeted firms from future federal contracts and crucial security access, not because of any wrongdoing, but because of who the firms chose to represent.

The vast majority of legal scholars agreed the executive orders were an unconstitutional abuse of power. Eventually, a conservative judge concurred, striking down the orders and declaring them an unconstitutional retaliation in a scathing rebuke. But before those crucial rulings came, law firms had to choose how to respond, without knowing whether the justice system would support them.

Several well-known firms quickly capitulated and negotiated with the administration. These firms agreed to do pro bono work for the administration, avoid future work that might conflict with White House priorities and other concessions. The firms that made these deals asserted they were simply protecting their clients, many of which were federal contractors who get virtually all their revenue from the government. In these law firm leaders’ view, they owed it to their clients to preserve access to the government regardless of what principles it cost.

For many, it was jarring to witness how swiftly some of the nation’s most prestigious law firms—filled with the brightest legal minds—chose to surrender, rather than confront what was widely seen as an unconstitutional assault on the foundation of legal advocacy. While the leadership at these firms were placed in a very challenging position, it is fair to ask: if the top lawyers in the country won’t stand up for the rule of law, who will?

However, not all firms followed that path. Some, including WilmerHale, Jenner & Block, Perkins Coie, and Susman Godfrey, stood their ground. They challenged the orders directly, accepting the risk of client backlash or the loss of revenue to defend the foundational belief that legal representation should never be punished in a free society.

That decision is being rewarded.

At a recent luncheon in Manhattan, Citadel’s head of litigation, Brooke Cucinella, spoke to a group of elite law firm leaders. Without naming names, she made it clear that Citadel—one of the world’s most valuable hedge funds that spends tens of millions of dollars on legal services each year—values firms that don’t back down from a fight. Since then, several prominent companies have begun reallocating legal work away from the firms that settled with the Trump administration and toward those that stood firm. Some general counsels have even said their choices are intended as statements of solidarity: not political decisions, but values-based ones.

Meanwhile many of the firms that caved to the administration have suffered both internal and external damage. Trust has eroded. Senior partners have walked out. Promising associates have chosen to leave and been vocal about why. Recruiting has been affected, with top candidates looking elsewhere. This backlash has not been headline news, but it has been significant nonetheless.

This moment is a powerful reminder that leaders’ reputations are built or broken when the pressure is on. Leadership is not defined in times of comfort; it is revealed when doing the right thing and following your values comes with a cost.

Every organization faces moments when values collide with risk and standing by principles becomes inconvenient. Principled decisions in the face of immense pressure can often look foolish, especially in the short term when everyone else is capitulating. Sometimes, standing firm in your values can cost you money, headlines, or talent.

Real values have to cost something. If they don’t, they’re just marketing.

When leaders make values-based decisions under pressure, they aren’t always proven right immediately. These choices are judged more like wine: by how they age. So the question is often whether you want to go for the quick win or the sustainable win?

The next generation is paying attention. So are your clients, your employees, and your future leaders.

When your values are tested, what will they remember?

Quote of The Week

“Courage is not the absence of fear, but the triumph over it.” – Nelson Mandela

Have a great weekend!

-Bob
robertglazer.com

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