Accounting
Building the business case for DEI in accounting firms
There’s a quiet unraveling happening. Diversity, equity and inclusion — once integral parts of modern accounting firm growth and sustainability — are being shoved aside to appease political pressure and legal uncertainty. Some firms are hesitating, dialing back or even abandoning these initiatives entirely. Such moves are not only short-sighted but a surefire way to weaken resilience, profitability, and relevance.
A diverse team isn’t about filling seats or meeting quotas; it’s about breaking free from the hive mind. It’s about assembling a group of thinkers and doers who expose blind spots and spark the kind of creativity that drives real innovation.
The numbers don’t lie — organizations that embrace DEI aren’t just making better decisions; they’re raking in higher profits and establishing long-term growth.
Meritocracy? Only if it’s real
Here’s the irony: opponents of DEI love to champion merit-based promotions as if supporters are somehow against it. Spoiler alert: they’re not. The catch is real merit isn’t always what’s being measured. The playing field is rarely level, and here’s why:
- Legacy hires: Those with the ‘right’ family connections or alma maters are often given preference, regardless of qualifications.
- Lookalike leadership: Candidates who resemble the majority of the leadership team in race, gender and background tend to get preference, consciously or not.
- The “good fit” myth: This is often used when a hiring manager wants to justify hiring someone who “feels” like they belong over someone with better credentials and performance. I heard it firsthand when I was laid off from a marketing leadership role at a major accounting firm. “You’re not a good fit.” Translation: You don’t look or act like the status quo we’re comfortable with. Everyone who hears it recognizes the excuse for what it is — it doesn’t hide bias, it amplifies it.
DEI isn’t about giving unqualified people an advantage — it’s about removing barriers that keep qualified candidates from making it to the starting line. If we’re serious about merit, that means ensuring equal access to mentorship, career development, and advancement opportunities. A system that isn’t fair to start with can’t call itself merit based.
The “lowering standards” myth
Another favorite talking point of DEI critics is that hiring or promoting underrepresented groups means lowering standards — as if every woman, person of color or veteran who gets a leadership role must have been handed the job. It’s nonsense.
In reality, most underrepresented professionals often must jump through hoops and outperform their peers to get a fraction of the recognition. Studies have shown that women and most members of underrepresented groups:
- Receive less informal mentorship and sponsorship than their majority group counterparts, limiting access to career advancement opportunities (
Lean In ). - Are less likely to be promoted based on potential and instead must prove themselves over and over again (
McKinsey Women in the Workplace Report ). - Face harsher performance evaluations than white men for the same work, and are often described as “not leadership material” due to bias (
Harvard Business Review ).
Meanwhile, plenty of underqualified members of majority groups have been promoted into leadership roles simply because they “fit the mold.” That’s not meritocracy; it is preferential treatment — and a real threat to high standards.
Employee retention and satisfaction
Creating an inclusive workplace isn’t just good PR, it’s essential for retaining top talent. Want proof? Organizations with strong DEI initiatives experience 22% lower turnover and 27% higher employee engagement, according to
Employees want respect and the chance to thrive. And in an industry like accounting, already grappling with a significant talent shortage, ignoring DEI isn’t neutral; it’s self-sabotage.
Firms that fail to create and sustain environments of belonging won’t just lose great people, they’ll lose clients, momentum and their competitive edge.
U.S. growing more diverse
The U.S. isn’t getting more diverse; it already is. Younger generations have crossed into majority-minority territory, and the rest of the population isn’t far behind (
Clients prefer to work with firms that get them, culturally and professionally. They want advisors who understand their challenges, not just their balance sheets. At the same time, the next wave of talent isn’t looking to adapt to outdated norms; they want to be a part of something better. Firms that cling to the past or the comfortable will bleed business and watch their best prospects join the competition or start their own thing instead. Diversity isn’t a box to check; it is the inevitable result of good policy.
Client relationships and reputation
Clients are paying attention to the diversity of the firms they work with as well. Studies show that companies with diverse teams:
- Have higher client satisfaction scores;
- Are more apt to attract a wider array of clients from diverse markets; and
- Build reputations that magnetize high-value partnerships.
If your firm’s reputation and growth matter, maintaining a commitment to DEI should be non-negotiable.
Continuing DEI efforts without legal backlash
Some firms are hitting the brakes on DEI initiatives, worried about lawsuits or political heat. While the business case for DEI is stronger than ever, firms must navigate these waters strategically and within the law. While I am not a lawyer and urge you to get legal counsel when needed, here are some practical ways to stay committed to DEI and mitigate risks:
- Frame DEI as anti-discrimination and equal opportunity: Instead of presenting DEI as a preferential program (which it isn’t), position it as an extension of existing anti-discrimination law (which it is). The goal is to remove barriers, not create them, which is a message that aligns with legal protections already in place.
- Open all programs to everyone: Employee resource groups, mentorship programs and leadership development should be accessible to all employees. Instead of exclusive DEI-specific initiatives, embed inclusion into company-wide programs to reinforce fairness and avoid any hint of exclusivity.
- Concentrate on the business case: Focus on how diversity improves business outcomes, rather than on moral imperatives. Emphasize that DEI helps attract top talent, drives profitability and improves decision-making. This keeps everyone focused on the business benefits, not ideology.
- Evaluate hiring and promotion practices: Make sure your firm’s hiring and advancement processes genuinely reward merit. Standardized job descriptions, structured interview processes, and blind resume reviews can help ensure fair, bias-free evaluations — which, ironically, is what DEI critics claim to want.
- Drop quotas, build pipelines: Forget rigid quotas. Focus on expanding access through outreach, education and mentorship programs. Invest in long-term pipeline development that creates equitable opportunities without reducing hiring to a numbers game.
- Stay compliant with anti-discrimination laws: Regularly review your policies with legal counsel to ensure compliance with
Title VII of the Civil Rights Act and other employment laws. A well-structured DEI program should never prioritize one group over another; it should ensure a level playing field for all.
The bottom line: Be smart, not scared
With the right strategies and structures in place, accounting firms can continue building inclusive, high-performing teams without unnecessary legal risks. The key is fairness, transparency and a business-driven approach. At the end of the day, DEI isn’t about preference; it’s about bold, measurable progress for individuals, firms and the profession as a whole.
Retail entrepreneur Christine Hunsicker has resigned from her position as chief executive officer of CaaStle after the fashion-technology startup’s board of directors alleged she misrepresented the company’s performance to investors, according to a March 29 letter to shareholders seen by Bloomberg News.
CaaStle faces “a severe and immediate liquidity problem,” and the board is considering options including a possible wind down, liquidation or strategic transaction, according to the letter. The company is planning a two-week-long furlough for its employees. Law enforcement authorities are also investigating the matter and the company is cooperating, the letter said.
Hunsicker didn’t respond to calls and emails seeking comment.
“The performance to date has not matched what Christine claimed — we have learned that Christine provided certain investors with misstated financial statements and falsified audit opinions, as well as capitalization information that understated the number of company shares outstanding,” the letter said.
“The board is deeply disappointed by the conduct that has led to this moment,” a representative for CaaStle said in a separate statement to Bloomberg. “Our immediate focus is on addressing the company’s challenges, supporting our employees, and preserving the value of our technology and business operations.”
The board has appointed George Goldenberg, the firm’s chief operating officer and board member as interim CEO, according to the letter, details of which were first reported by Axios.
Rental services
CaaStle, based in New York, began as Gwynnie Bee Inc. in 2011 and changed its legal name in 2018, according to an auditor’s report attached to the letter. It provides rental subscription services for owned and third-party retailers. The company has retained ICR for restructuring and strategic communications advice, according to a person familiar with the matter, who asked not to be named discussing confidential information.
Hunsicker also co-founded P180 with Brendan Hoffman, which aims to invest in or acquire brands and retailers to use CaaStle technology, according to a 2024 press release. In January, P180 announced that it had
President Donald Trump will announce his
White House Press Secretary Karoline Leavitt said Monday the announcement would feature “country-based” tariffs. She said the president is also “committed to implementing” sectoral duties, but that they were not the focus of the April 2 event and deferred to Trump about the timing of those. Members of Trump’s Cabinet would attend the announcement, Leavitt said.
“The president will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off our country for decades,” Leavitt told reporters at the White House. “It’s time for reciprocity and it’s time for a president to take historic change to do what’s right for the American people.”
Treasury Secretary Scott Bessent said in a Fox News interview Monday that the tariff announcement would be at 3 p.m. Washington time.
Leavitt declined to provide details when asked about the rate of the reciprocal tariffs and which countries would be hit. She said there are “no exemptions at this time” when asked whether lower duties would be applied to products used by American farmers.
Trump told reporters Sunday that he plans to launch reciprocal tariffs with “all countries,” countering speculation he could
But when asked Monday if he was planning a universal tariff or levies on individual countries, Trump demurred, saying “you’re going to see in two days, which is maybe tomorrow night or probably Wednesday.”
“They’re reciprocal. So whatever they charge us, we charge them, but we’re being nicer than they were,” he said. “They took advantage of us, and we are going to be very nice by comparison to what they were. The numbers will be lower than what they’ve been charging us, and in some cases may be substantially lower.”pported.
Earlier Monday, Trump’s spokeswoman pointed to examples of tariff rates from the European Union, Japan, India and Canada while speaking to reporters, signaling those entities are likely among the targets of the president’s new levies.
“This makes it virtually impossible for American products to be imported into these markets, and it has put a lot of Americans out of business and out of work over the past several decades,” Leavitt said.
Trump has billed April 2 as the launch of sweeping duties that are the centerpiece of his plan to rebalance global trade, boost U.S. manufacturing and inject tariff revenue into government coffers to fund domestic priorities, including a major tax cut.
The president has preceded Wednesday’s tariff announcement with levies on Canada, Mexico and China — the US’s three largest trading partners — as well as automobiles, steel and aluminum. Import taxes on copper could come
Uncertainty surrounding his plans, which have often changed and been subject to last-minute carveouts, have triggered fears they could blow up supply chains and
“Wall Street will work out just fine in this administration, just like they did in the first term,” Leavitt said.
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