Why Are Accounting Firms Quietly Dropping DEI?

Accounting firms are making drastic changes to their DEI programs, and not in the way you might think. KPMG has officially ended its "Accelerate 2025" program, following similar moves from Deloitte and others. Meanwhile, governing bodies like AICPA, CIMA, and ACCA are doubling down on DEI’s importance. So, what’s really happening? In this episode, Rob Brown breaks down:

✅ Why KPMG, Deloitte, and others are scaling back DEI

✅ The legal and political forces driving this shift

✅ How these changes impact recruitment and retention

✅ What firms risk by pulling back on DEI initiatives

✅ The burnout crisis hitting DEI professionals in firms

✅ What governing bodies like AICPA & ACCA say about DEI

✅ How accounting leaders should navigate this challenge

💬 "Accounting firms are ditching DEI – is it a smart move or a disaster?"

💬 "Less than half of firms are even tracking DEI progress."

💬 "DEI officers burn out fast—most last just 3 years!"

💬 "The next generation of accountants cares about DEI—ignore it at your own risk."

💬 "If firms aren’t diverse, how will they attract diverse clients and talent?"

💬 "The legal landscape is shifting—but is pulling back the answer?"

💬 "Talent is already scarce. Does ignoring DEI make firms even less attractive?"

You can check out the video version of this with visuals and graphics here on YouTube:

https://youtu.be/ZMdh01NB_C0

The Accounting Influencers Podcast, hosted by Rob Brown, is one of the world's leading shows for accounting leaders, professionals, finance specialists, software vendors, tech providers and influencers.

Thanks to our sponsors:

ADVANCETRACK OUTSOURCING. Transform your accounting firm with AdvanceTrack. Our top-tier offshoring solutions free your team from mundane tasks, allowing you to focus on growth and client engagement. Experience seamless scalability and expert support. Visit advancetrack.com and elevate your practice today. https://www.advancetrack.com

If you'd like to sponsor the show and elevate your brand with our audience, reach out to show host Rob Brown on LinkedIn and his team will reach out to fix up a chat to explore.

https://www.linkedin.com/in/therobbrown

You can also check out all shows on the Accounting Influencers YouTube Channel:

https://bit.ly/AI-youtube

In this episode of the Accounting Influencer podcast, Rob Brown discusses KPMG's groundbreaking move to become the first major accounting firm in the US to own a law firm, following new laws in Arizona that allow non-lawyers to own law firms. This shift is driven by client demand for integrated services, advancements in technology, and the lucrative nature of legal services. Brown emphasizes the implications for accounting professionals, including the need for multidisciplinary skills, tech literacy, and ethical considerations. He encourages listeners to stay informed, expand their expertise, and build their influence to remain relevant in a rapidly changing landscape.

Takeaways

• KPMG is pioneering a significant shift in the accounting profession by owning a law firm.
• The relaxation of laws in Arizona is a game changer for legal services.
• Client demand for integrated solutions is a major driver of this change.
• Technology and process expertise are essential for modern accounting firms.
• Legal services are lucrative, presenting a growth opportunity for accounting firms.
• Multidisciplinary teams are becoming the norm in professional services.
• Tech skills are crucial for accountants to stay competitive.
• Ethical scrutiny will increase with the blending of accounting and legal services.
• Staying informed about industry trends is vital for accounting professionals.
• Building influence and expanding expertise will help accountants navigate future changes.

You can check out the video version of this with visuals and graphics here on YouTube:

https://youtu.be/vdufliwlx2o

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The Accounting Influencers Podcast, hosted by Rob Brown, is one of the world's leading shows for accounting leaders, professionals, finance specialists, software vendors, tech providers and influencers.

Thanks to our sponsors:

ADVANCETRACK OUTSOURCING. Transform your accounting firm with AdvanceTrack. Our top-tier offshoring solutions free your team from mundane tasks, allowing you to focus on growth and client engagement. Experience seamless scalability and expert support. Visit advancetrack.com and elevate your practice today. https://www.advancetrack.com

If you'd like to sponsor the show and elevate your brand with our audience, reach out to show host Rob Brown on LinkedIn and his team will reach out to fix up a chat to explore.

https://www.linkedin.com/in/therobbrown

You can also check out all shows on the Accounting Influencers YouTube Channel:

https://bit.ly/AI-youtube

Keywords

Deloitte, DEI, diversity, equity, inclusion, accounting, recruitment, talent acquisition, corporate culture, meritocracy

Summary

In this episode of the Accounting Influencers podcast, Rob Brown discusses the significant shift in diversity, equity, and inclusion (DEI) initiatives at Deloitte, where the US branch has decided to shut down its DEI program while the UK branch continues its commitment. This split reflects a broader trend among major corporations retreating from DEI commitments, influenced by political changes and government contracts. Brown emphasizes the implications for talent acquisition and retention in the accounting profession, which has historically struggled with diversity. He outlines three potential approaches for firms moving forward and provides actionable insights for accounting leaders to navigate this evolving landscape.

Takeaways:

-Deloitte has announced the shutdown of its DEI program.

-The split between Deloitte US and UK highlights a significant corporate divide.

-Political influences are driving major companies to retreat from DEI commitments.

-Accounting firms face a recruitment crisis, exacerbated by a lack of diversity.

-Meritocracy and diversity can coexist, but it's a complex balance.

-Firms must assess their talent pipeline and recruitment strategies.

-Global implications of DEI stances must be considered by international firms.

-Client expectations regarding DEI can impact revenue.

-Clear communication strategies are essential for any policy changes.

-The DEI debate is evolving and will shape the future of accounting.

https://youtu.be/6uO6LdI1Ltk