Three Guiding Principles in DEI Strategy

Consumers and aligned social movements have demanded change in the organizations they support; In response, businesses across sectors responded and recalibrated to prioritize diversity, equity and inclusion (DEI).

Accounting, including the CPA profession, continues to have a disparity in diversity. A minority—defined as a distinct group that coexists, but is often subordinate to, a more dominant group—includes racial and ethnic groups, the LGBTQ+ community and people with disabilities. According to the American Institute of Certified Public Accountants, these groups only represent 14% of CPAs.

“Accounting is a profession that not many minorities think is right for them,” Ken Udenze, a managing partner at Deloitte LLP, explained. “We have seen a seismic shift in corporate America: a shift where people are willing to talk about [DEI].”

It may be that negative stereotypes dissuade people entering the workforce or changing careers from entering the profession. They may lack a personal connection to the idea of the job, a connection others may have through a friend or family member in accounting. Additionally, becoming a CPA has a fifth-year education requirement. After earning a degree in accounting, pursuing the designation requires additional resources, including funding, that may not be available.

Deloitte is one firm that has made this challenge a priority. In the last year, the organization released its first transparency report, detailing the data behind the workforce in an effort to inform future decisions and create accountability. As part of this reaffirmed commitment to DEI through a $75 million investment, the firm announced Making Accounting Diverse and Equitable (MADE) program in summer 2020 to support bridging the gap in accounting around the fifth-year requirement. This pledge includes MADE, which provides scholarships to minority students pursuing the CPA designation.

“You tackle one layer of education, and [the CPA designation] becomes an obstacle,” Udenze continued. “MADE says don’t worry about the fifth year.”

While diversity and inclusion have been in the corporate spotlight for some time, equity is a new addition to the movement that seeks to recognize individual experiences within a profession. Udenze views this as a new wave of DEI.

“Equality means not locking anyone out, but welcoming everyone in,” Udenze explained. “You let everybody into the restaurant, but some of them are vegetarians. Some of them have dietary needs. I assume you want everyone to have a good meal and a good experience. That’s equity. Let’s make sure everyone has a good experience.”

There are several benefits to creating a more inclusive workforce. Different backgrounds and perspectives spark important conversations and new ideas. Likewise, your workforce is stronger when your employees reflect your customers and stakeholders.

“You have to be representative of your customers,” Udenze said. “And it’s not that you have to be; companies and stakeholders are demanding diverse teams.”

     1. Hold yourself and your organization accountable.

Deloitte’s diversity, equity and inclusion transparency report detailed metrics exploring the firm’s workforce representation including a breakdown of race, ethnicity, gender and age. Going a step further, it analyzed representation by job role, leadership level and promotion status to showcase the progress and aspirations for diversity at every level of the organization.

Take a critical look at your business’s demographics, and decide if more information is needed. Based on that data, determine goals where you aspire to take the organization’s workforce. For example, Deloitte stated a goal to increase the number of Black and Hispanic/Latinx professionals in its overall United States workforce by 50% by 2025.

“One of the most effective ways to deal with information is to hold yourself accountable,” Udenze said. “For example, if you have a goal you’d like to achieve four years from today, use that information to establish and write down your objectives. Four years from now, people are going to look at your document and they’ll be able to see the changes you’ve made.”

Determining and delivering upon goals will require ongoing check-ins to see your progress. Udenze advises to keep your DEI hat on throughout your professional experiences.

“We now monitor just about everything, including how we try to encourage and increase the representation amongst various teams,” Udenze elaborated. “All of these actions are consciously being done. You don’t just check the box … You’re constantly looking from the perspective of a representative of DEI.”

     2. Create equitable opportunities to seek out and foster diversity in your workforce.

“You can sit and complain, ‘I don’t see enough qualified minorities,’ or you can say, ‘I’m going to make it happen,’” Udenze said.

Outside of setting goals, the local Deloitte practice has created new opportunities to share the perks of accounting with students in underrepresented groups. The Arizona Latino Mentorship Program allows University of Arizona and Arizona State University students to see broader perspectives around careers in business. Additionally, Deloitte continues to build upon existing relationships with historically Black universities and Hispanic-serving institutions to fund curriculum development for accounting students. Both initiatives create roots not only within the local community, but also within underrepresented groups.

Consider the ways your organization can connect with minority communities and share why you enjoy your profession. Anecdotes from your experiences as a CPA can be foundational as a first step to creating new diversity in your hiring pool.
“The mentality of, ‘If I see them, I’ll hire them,’ doesn’t work,” Udenze added. “DEI is a full contact sport. You need to go in there, get your hands dirty and go on with it.”

     3. Retain diverse talent through inclusive culture.

Recruiting and hiring talent with diverse backgrounds and perspectives is not the end of implementing DEI within your organization. Conversations and education continue.

“What am I doing to maintain that? You cannot bring on the underrepresented minorities into your organization, and then say ‘I’m done,’” Udenze explained. “Your talent organization brought them in, but it’s your operations organization’s job to make them feel welcome, and to ensure that they have a good experience. If not, they’re cycled back out.”

Udenze advised that you continue to keep your DEI hat on, no matter what part of your organization you represent.

“Be aware of who’s in the room and ensure you create an inclusive environment,” he explained. “Underrepresented minorities tend to feel isolated.”

Trainings and conversations are one way to develop an understanding of fundamental concepts that support a respectful workplace, including anti-racism and allyship. Additionally, open dialogue and creating room for growth are essential.

As Deloitte stated in its transparency report, “Data cannot, and will not, be the only basis for determining our course of action. Behind each number, there’s a unique human experience that we all can learn from.”

Incorporating diversity, equity and inclusion is an ongoing process, and its development will look different based on the size and scope of your organization. Setting goals and taking action, even in small steps, is progress.

“The simplest way to achieve equity is ensuring that you have that DEI hat on all the time,” Udenze reiterated. “When you have it on, you can see things differently. All of us bear that responsibility.”

Thank you to Deloitte for its generous contribution of $5,000 to the ASCPA’s diversity, equity and inclusion programs. Deloitte is committed to generating more advisory, auditing and tax career opportunities and leadership pathways for the next generation of certified public accountants (CPAs) through Making Accounting Diverse and Equitable (MADE). MADE represents a bold vision for the accounting profession, both in terms of increasing racial and ethnic diversity, and helping students of color see and realize their future in business through the prism and possibilities of accounting.