An IFAC Content Series
To achieve a more just balance in the proportion of men and women, especially in higher ranks within the accountancy profession, and stimulate diversity and inclusion, the Royal NBA (Netherlands Institute of Chartered Accountants) pursues an ambitious diversity and inclusion program. An important part of this program is a covenant on inclusion and diversity that accounting firms are invited to sign. It is a pledge that comes with a requirement to give a yearly account of the progress that is made in diversity and inclusion efforts.
For all of us NBA, seeking diversity and inclusion is a no brainer. It is not only just, but also necessary, logical, and smart. Just, because it allows everyone’s talent to be recognized and given an equal opportunity to develop. Necessary, because a diverse team and firm enhances the quality of the profession. Logical, because the society we are part of is also diverse. And it’s smart, as it increases the influx and advancement of accountants. Still, achieving diversity within companies is no small feat. This requires persistence. Many small steps lead to progress.
Not only accounting firms and businesses benefit from inclusion and diversity. This also applies to the NBA itself. Therefore, the institute strives for a more even balance of women and men - at least thirty percent male or female - on its board, committees, management and working groups . In the board and member group boards and management this goal is largely achieved with an equal part of the members being women. In committees and working groups, the percentage of women is 34 percent.
Make the message stick
Statements on inclusion and diversity are easily made, but what has the NBA done to make the message stick? For starters: the NBA launched the "More Diversity" project in 2019. One of the first notable achievements was naming its foyer after Brenda Westra, an inspiring rebel accountant and keen observer who regularly sparked debate about the profession with her critical insights. This was a significant break from tradition, as all rooms in the headquarters had previously been named after famous male accountants.
Statements on inclusion and diversity are easily made, but what has the NBA done to make the message stick? For starters: the NBA launched the "More Diversity" project in 2019. One of the first notable achievements was naming its foyer after Brenda Westra, an inspiring rebel accountant and keen observer who regularly sparked debate about the profession with her critical insights. This was a significant break from tradition, as all rooms in the headquarters had previously been named after famous male accountants.
The Women Leadership community, as it is called, is facilitated by the NBA and focuses its attention on the question: what blocks the advancement of women to the top? The aim of the community was not to identify the problem again but to deepen their understanding of the problem. To explore this, the Women Leadership community engaged with board members of four accounting firms that distinguish themselves in their policies, leading to new insights and best practices.
Showcase the progress
In 2022, the NBA invited firms to sign a diversity and inclusion covenant, committing them to strive for a diversity at all levels. The NBA wants to stimulate accounting firms to provide insight into the gender distribution among their top layers and to report on cultural diversity. The goal of the covenant is also to showcase the progress being made.
“In the past, the focus on diversity was mainly about the question: why is it important?” said Stephanie Hottenhuis, CEO of the Dutch branch of KPMG in a recent interview for the NBA website. “Now, the emphasis is much more on: how do we achieve this? I also see it as a matter of fairness. Every colleague should have the opportunity to grow. If people cannot develop due to others’ prejudices, it destroys human capital.”
for accounting firms (on the bottom right: Robert Mul)
Data submitted for the first monitor reveals that the accounting population (including trainees) within the firms consists of 28 percent women. Only four out of the 26 firms have a somewhat equal male/female distribution among accountants. Female accountants are more likely to leave and their percentage falls from the sub-top to the top. Clearly, there is work to be done. The number of firms that has signed the covenant has since last year grown to 41, including all big four firms. Except for a few firms, all signatories of the covenant have successfully submitted data on inclusion and diversity for the associated monitor.
In addition to statistics on the male-female ratios, firms were also asked if they have insights into cultural diversity. Several large firms have established a system for this or obtain information through an anonymous questionnaire. In smaller firms, the intrinsic motivation to engage with this theme stands out. Inclusion is also measured in various ways, often through employee satisfaction surveys or development discussions.
Not in a competition
To gain momentum and support, the NBA facilitates networking events with the communities on Inclusion and Diversity and Women Leadership and shares the experiences from firms that are making progress in this area. These early adaptors make a compelling argument for diversity.
Insight and transparency are important. However, the NBA’s goal is not to establish a ranking with the monitor. There are frontrunners, but rather than a competition, our goal is to increase the number of accounting firms that sign the covenant. This way, outsiders can see how much progress an organization is making in their way forward to more divers teams.
