Reinforcing DEI accountability

Sustainability of the accounting profession is a shared responsibility among key stakeholders within a unique ecosystem including, but not limited to, the AICPA; the Center for Audit Quality; state CPA societies; NASBA; accounting firms of all sizes; business and industry; professional associations like ALPFA, Ascend, NABA Inc., NCPACA, etc.; and educational institutions. Current discourse on licensure requirements is a critical and timely example of how this ecosystem engages in addressing perceived hurdles to pursuing accounting careers and certification.

Another area of importance continues to be diversity. According to the 2023 AICPA Trends Report, despite a decline in bachelor’s and master’s degree completions, the number of Hispanic/Latino graduates have increased, and women outpace men in new accounting degree completions. This creates both a promising yet challenging scenario that the AICPA National Commission on Diversity & Inclusion (NCDI) accepts as its mission.

DEI has been in a state of vulnerability following the Supreme Court’s decision to overturn affirmative action, specifically race-based college admissions practices, leading to varying responses among higher education institutions, corporations and industry organizations. NCDI immediate past chair Kimberly Ellison-Taylor, CPA/CITP, CGMA, shared that, “In an ever-changing and dynamic world, diversity is needed now more than ever to ensure the relevancy and competitive advantage of the accounting profession and the business community.” In a profession that relies on intellectual capital, the insights and experiences of diverse talent are an important success factor. Accounting organizations have a shared mission to attract and retain a diverse group of practitioners.

Embedding DEI into all aspects of the business is foundational and must be incorporated into the vision and strategy. Intentionally making the profession accessible and attractive to diverse talent will need to be mission driven. “Now is the time to be bolder,” said Calvin Harris Jr., CPA, CEO of the New York State Society of CPAs.

 Here are four ways to ensure a more robust future pipeline to drive enhanced business outcomes:

• Commit to investing in a diverse talent supply chain. Early career initiatives increase the ability to navigate and manage expectations within high performance cultures. Examples of these initiatives include internships and the Experience Learn and Earn (ELE) program launched by the AICPA and NASBA to provide an integrated education and experience-based pathway to CPA licensure. Firms should also inform schools of emerging skills, like prompt writing for generative artificial intelligence, that best prepare those entering the profession to be successful contributors. Howard University professor and director of the Center for Accounting Education James Hodge, CPA, CFE, recommends that “firms collaborate on developing interventions for the knowledge deserts that exist in communities that serve diverse students.” In addition, focus should be maintained on the diversity of experienced hires and senior talent with an emphasis on preparedness for effectively managing teams, client expectations, hybrid work environments, and supporting talent throughout all career stages — with the goal of sustaining a robust pipeline into and within the partnership.

• Emphasize the intrinsic value of diversity in fostering an inclusive culture. Current and prospective employees are increasingly focusing on purpose-driven organizations that prioritize equity and inclusion, which are essential to having a positive organizational environment. Clients also seek to understand the commitment to DEI and ethical standards of their service providers. The experience of working in or with a firm or finance function that promotes inclusion can have broad organizational benefits, including increased innovation, improved decision-making, stronger employee engagement, and enhanced reputational standing. Rachael Gibson, chief diversity, equity, and inclusion officer and principal at Crowe LLP, recommends that “more leaders recognize that DEI significantly affects all stakeholder groups — client, talent, and beyond. Connecting DEI to markets brings in new candidates, new suppliers, and new customers.” By integrating DEI into the core values of the organization, firms and finance can create more meaningful relationships and long-lasting connections with their stakeholders.

• Use disaggregated data to influence prioritization. Marrying quantitative and qualitative insights can be compelling, bringing additional depth and context to the career moments that matter for individuals from historically underrepresented groups in the profession. A headwinds and tailwinds assessment is a productive way of evaluating consistency of experiences. For example, according to a study by NCDI members, Black professionals often face unique challenges in the work environment, including access to credentialing assignments, social networks, and mentoring. In a May 2021 AICPA & CIMA forum led by the NCDI, “The New Partnership, Diversity, Equity and Inclusion is Everyone’s Responsibility,” it was determined that these challenges were also widely felt by those from other ethnically diverse backgrounds, including Hispanic/Latino and Asian individuals. These barriers also reflect the complex, lived experiences of ethnically diverse professionals navigating their careers in the profession. “Accountability in DEI is not just about setting goals but embedding these principles into the very fabric of our organizational culture,” said Anoop Mehta, CPA, CGMA, NCDI chair and immediate past chair of the AICPA and the Association of International Certified Professional Accountants. “It’s about creating a space where every voice is heard and valued.”

• Incorporate DEI at every level for business sustainability. Taking a holistic approach to equitable access to opportunities and a diverse workforce necessitates embedding DEI within all aspects of the business including client service, talent strategies (e.g., performance management, leadership competencies), procurement, learning and development, accessibility, onboarding and integration, etc. Engage with business leaders who inform or make enterprise decisions. “A truly sustainable business is one that recognizes DEI as integral to its DNA. By embedding DEI principles into every aspect of operations, organizations not only foster innovation and resilience but also create environments where everyone has an equitable chance to thrive. This is the foundation for long-term success,” said Ken Bouyer, EY’s DEI recruiting leader.

With a multigenerational workforce projected by the U.S. Census Bureau to increase significantly in terms of diverse demographics by 2030, DEI is intrinsically linked to the future of the accounting profession. Any access hurdles must be addressed to attract the most diverse professionals. Equally important are retention strategies such as intentional development through on the job experiences including stretch assignments, training and rotations, effective coaching to optimize performance, mentoring and sponsorship that promote advocacy, opportunities to build and engage in community, and acknowledgement of career aspirations to support upward mobility. “The accounting and finance profession has struggled with how to attract, retain, and advance all aspects of diversity,” said Daniel O’Brien, Culture of Inclusion leader at RSM. “The time to change is now. We can’t afford to regress.”

To bring these recommendations to life, the NCDI is planning to host a podcast on each of the four topics in bold above. More details will be shared in coming months.