The state of DEI: A Q&A with Crystal Cooke

These are troubling times for supporters of diversity, equity, and inclusion (DEI) initiatives. DEI programs and related legislation have suffered a series of setbacks this year in the private and public sectors.

Here are a few examples:

• DEI roles have been lost at a higher rate than non-DEI roles since 2021, according to research by Revelio Labs, a U.S. company that analyzes labor market and workforce data. The trend accelerated among 600 large companies that reported layoffs last year — the study found an attrition rate of 33% for DEI positions in 2022, compared to 21% for non-DEI roles.
• Florida Gov. Ron DeSantis in May signed into law a bill prohibiting the state’s public universities and colleges from spending any money on DEI programs.
• The U.S. Supreme Court in June published a ruling that eliminates race-based affirmative action in college admissions.

For Crystal Cooke, director of Diversity and Inclusion at AICPA & CIMA, together as the Association of International Certified Professional Accountants, the string of bad DEI news has been saddening and the rise of anti-DEI legislation worrying. The JofA conducted a written Q&A with Cooke to get her thoughts on DEI trends in the news and on the state of DEI initiatives and attitudes in the accounting profession.

Some companies have announced they were eliminating their DEI departments/roles recently. Have any accounting firms followed suit?

Crystal Cooke: I haven’t spoken to any accounting firm that is planning to eliminate their DEI focus. In fact, the discussions are more about coming together to find a way to work around this unfortunate approach that some states are taking. A diverse workforce is critical for any organization to thrive. Diversity of thought is important, now more than ever.

If you look at the latest U.S. Census report, the demographics have shifted in the past decade. The United States is moving toward a more diverse population. Studies show that by 2045, minorities will become the majority. I know there are DEI actions being argued, but regardless of what we call them, efforts to support a diverse workplace cannot cease or it will be detrimental to an organization’s growth.

What is DEI fatigue and how are we seeing it played out in accounting and in the business world in general?

Cooke: DEI fatigue is when people experience exhaustion from discussions around diversity, equity, and inclusion. It is a genuine issue at many workplaces. DEI fatigue typically sets in when an organization’s efforts around diversity have no clear leader, aren’t empowered by leadership, or aren’t given the resources to effect any real change. When people don’t see positive change, they feel discouraged, disheartened, or disillusioned about whether progress is possible, so they give up trying to make any.

As organizations work to get DEI initiatives and strategic plans implemented in a thoughtful way, there are several strategies that help avoid DEI fatigue:

• Set realistic expectations around your DEI work.
• Establish accountability. Accountability — giving leaders 360-degree evaluations on their inclusivity, adding DEI metrics into firm and individual goals, etc. — is key so that the work does not fall off. Failing to act on established goals sends a signal to your team that this effort isn’t being taken seriously.
• Set small-win goals that are clearly defined and measurable.
• Communicate your efforts throughout the entire organization regularly.
• Empower staff to take action.
• Don’t dodge the uncomfortable, and address “isms” and systems of oppression head-on.

Can DEI help firms address staffing shortages and the profession address the pipeline challenges?

Cooke: There is certainly a DEI piece of the pipeline challenge that needs to improve and expand, and although incorporating more diversity in the pipeline will only help make the profession better and bigger, our profession’s staffing shortage is best resolved by expanding the entire pipeline of people coming in. And to me that takes us to getting back into high schools, especially more diversely populated ones.

Our research shows that people who study accounting do so because of people they know or a class they took in high school. If neither of those methods crosses your path, accounting would never reach your radar. And young people these days get all their career advice from YouTube or TikTok, so even going to those platforms might be necessary. Getting back into high schools and educating about the career, what the career really is and the various pathways that you can follow, including entrepreneurship, is necessary. Especially if you are a diverse accountant. Share your story and your journey. Everyone needs to be able to see themselves in this profession to really believe that they can thrive here.

Also, while we’re talking about students, we need to help diverse students overcome hurdles (whatever they may be) into the profession. Many students with amazing potential don’t pursue the career simply because they lack opportunity to do so, not because they can’t keep up. Diversity does not mean less than, diversity does not lower the bar. Give opportunities based on potential, not GPA or experience, and learn about the student’s journey and help shape/ mentor/guide them.

Looking ahead, what excites you with DEI in accounting and what worries you?

Cooke: The impending anti-DEI legislation worries me. The fact that it’s even a discussion saddens me. It is heartbreaking to see discrimination, hate, and inequity. It feels like a setback and those who didn’t really value DEI to begin with will use it as an excuse to cut programs and support. My goal is to help people understand that DEI is more important now than ever and to not be discouraged. If our parents and their parents gave up, we wouldn’t be where are now, which is better than we have been in history and better than many other countries. We must keep our foot on the gas as everyone just wants to be valued and included regardless of what they believe, identify as, or look like.

I aim to encourage empathy for those that are different than you. Understand what they bring and where they come from. We can all believe different things and look different and, at the end of the day, we are all people, and no one is above anyone else. Everyone deserves the same level of respect. Those basic fundamentals most of us can agree on. And when I talk with the many people in the profession who share that value and are committed to working together to move the profession in a direction that welcomes everyone, that excites me. The progress may seem slow and may even feel like we’re going backward a little, but there are many people who are still fighting for this important work every day. They are not giving up and that excites and empowers me.

I also find it extremely rewarding when I talk to students from diverse backgrounds who don’t know about accounting and see them react to the many pathways and benefits that a career in accounting can bring them. This career is a viable option for them, and it could change their lives in ways that they could never imagine, just like it did for me. These students almost missed out on this great career path just because they lacked awareness of it. It excites me knowing that I can play a role in changing that dynamic and the diversification of the entire profession.

What are the most important things accounting firms or finance departments can do to create a DEI culture that produces tangible benefits?

Cooke: The things that immediately come to mind are creating a culture where everyone feels that they belong and are valued. That includes creating a physically and psychologically safe environment where people can trust each other, welcome differences, and feel comfortable to have hard conversations and be vulnerable so that we can all grow together.

We need to train our leaders to be more equitable and inclusive. We cannot treat everyone the same. Everyone is different, everyone has different needs, and we all come from different places and backgrounds. Also, the opportunities afforded to some are different than others and it’s important to understand that.

Stand and be a voice for others. Give credit when credit is due. Be an ally when the person isn’t in the room.

We also need to see more diverse leadership at the top of organizations. Seeing is believing. People don’t want to work where they don’t feel represented or seen.

About the author

Jeff Drew is editor-in-chief of the Journal of Accountancy. To comment on this article or to suggest an idea for another article, contact Jeff Drew at Jeff.Drew@aicpa-cima.com.

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