How accountancy can advance equity, inclusion and diversity – and why

The need for more diverse, equitable and inclusive accountancy firms is not new news. Industry bodies have been highlighting the importance of more inclusivity in the industry for decades, with a noticeable shift in focus in line with the early days of the Covid-19 pandemic. 

I remember specific conversations as far back as the early Noughties during my time at a then mid-sized firm; and dedicated initiatives and events at both a major industry body and Big Four firm in the early 2010s, including groups to champion senior women and people with disabilities in the organisation and wider industry.

Why so slow?

Lack of diversity, equity and inclusion is still a very real issue across the entire professional services sector, but a cursory glance at headlines and research undertaken in recent years comes up with the common themes of accountancy needing to catch up, or that there is “still work to be done”. 

There is always more to be done, but a study from iResearch Services towards the end of 2022 found that accountancy firms are visibly lagging behind their law firm counterparts when it comes to running diversity, equity and inclusion (DEI) initiatives in the professional services sphere. The report, A Fairer Future: Equality and Inclusion in Professional Services, canvassed opinions across 570 professional services leaders across the UK and USA, made up of 31% of accountancy firms, 30% in consultancy, 22% in law and 17% across architecture.

So why does progress continue to be so slow? The iResearch Services study found that law firms may have a natural advantage in terms of their measurement methods and reporting required by law, but in an industry that is responsible for advising on regulatory compliance and strategic approaches to tackle the ever-changing reporting landscape, accountancy would, you might think, be well-placed.

Lagging behind legal

Findings showed that 73% of accountancy firms surveyed have run a specific DEI initiative across their company in the past six months, but this compares to 86% of legal firms. 

Another area where accountancy appears to be struggling is in measuring the success of their DEI programmes, with 73% of accountancy firms measuring initiatives compared to 84% in the legal sector. This may come as a surprise for an industry geared up around numbers, data, sustainable business strategies and advice. 

The report found that accountancy firms remain more proactive at running initiatives and measuring their programmes than other sectors in professional services, however, including architecture firms and consultancies. The fact that initiatives are ongoing and being measured demonstrates progress, but this continues to be at a slower pace than the industry itself wants and needs.

Partnerships and collaboration are key

Industry bodies such as the Institute of Chartered Accountants in England and Wales (ICAEW) and ACCA are still striving to make a difference. A good example of this is regularly updated guidance provided by the ICAEW and their programme to collect diversity data from probate firms, with ambitions to extend this to all accountancy firms. 

Opportunities abound to work with forward-thinking membership and trade bodies to effect change as a collective industry, rather than a focus on purely firm-wide progress. 

The report found, across the professional services sector as a whole, that while 73% of firms have a formal DEI policy in place, 8% still have nothing at all. In 2022 – this is a worrying statistic. Even more so for an industry sector that provides trusted advice to all areas of a business and companies of all shapes and sizes – including regulatory requirements and corporate governance.

Formalising a route forward

A framework of formal policies and initiatives, measuring actions rather than words, appears imperative and the best route forward to a fairer future. Maximising the opportunities for partnerships with like-minded forms and industry organisations furthers everyone’s chances of success – inclusivity in action, one might say.