Accenture has agreed to pay $25 million to the United States to resolve allegations of race and sex discrimination in its employment and hiring practices. The settlement involves Accenture Federal Services (AFS), a significant federal contractor, which the US Department of Justice accused of using race and sex demographic targets to influence hiring and promotions, and restricting access to training programs based on these factors. This action is part of a broader governmental review of diversity and inclusion (DEI) policies within companies that do business with the federal government, emphasizing merit-based employment decisions.

Accenture has agreed to pay $25 million to the United States to resolve allegations of race and sex discrimination in its employment and hiring practices. The settlement involves Accenture Federal Services (AFS), a significant federal contractor, which the US Department of Justice accused of using race and sex demographic targets to influence hiring and promotions, and restricting access to training programs based on these factors. This action is part of a broader governmental review of diversity and inclusion (DEI) policies within companies that do business with the federal government, emphasizing merit-based employment decisions.

Accenture has agreed to pay $25 million to the United States to resolve allegations of race and sex discrimination in its employment and hiring practices. The settlement involves Accenture Federal Services (AFS), a significant federal contractor, which the US Department of Justice accused of using race and sex demographic targets to influence hiring and promotions, and restricting access to training programs based on these factors. This action is part of a broader governmental review of diversity and inclusion (DEI) policies within companies that do business with the federal government, emphasizing merit-based employment decisions.

Accenture has agreed to pay $25 million to the United States to settle allegations against the IT consulting firm for discriminating against employees and job applicants based on race or sex.

An Accenture spokesperson told Reuters, “We have cooperated with the government's review, and we are pleased to put this matter behind us to avoid the costs and resource demands of prolonged litigation.”

The company is one of many which have been modifying diversity policies after US President Donald Trump’s orders. Deloitte agreed to pay $21.5 million, while IBM is to pay $17 million for similar government probes.

DEI practices have been developed to address historic inequalities for marginalised groups such as women, the LGBT community and ethnic minorities. However, the Trump administration has emphasised that DEI programmes are anti-merit and discriminatory against white people and men. 

Accenture Federal Services (AFS), a wholly owned subsidiary of Accenture, and domestic entity Accenture LLP are both major federal contractors, or businesses that provide services directly to the US government. They actively work with every cabinet-level department in the US government and more than 30 of the largest federal organisations. Trump has signed executive orders asking federal contractors to eliminate DEI.

According to the DOJ, a key condition to be a federal contractor includes making employment decisions without considering the candidate’s race or sex. Most federal contracts, or the legal document that binds the government to the company, contain a provision requiring these companies to provide equal opportunities to all employees and applicants. The company must certify that it will take steps to ensure that race or sex plays no role in how employees are treated or accepted in the company.

“A company cannot take taxpayer dollars, certify that it is following that simple principle, and then use race or sex as a factor in deciding who gets an opportunity,”  said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division.

According to PeopleReturn, a data analytics platform, the company’s current workforce demographics in the US consist of 47 per cent White, 25.5 per cent Asian, 12.6 per cent African American, 11.2 per cent Hispanic or Latino, and 3.3 per cent other groups. Based on sex, Accenture’s workforce is 41.9 per cent female and 58.1 per cent male.

The US alleged that business unit leaders within AFS received monthly summaries of the specific percentage of each race and sex within the unit. The figures would be highlighted green, yellow or red to indicate whether the representation exceeded AFS’s goal, was within 5 per cent of AFS’s goal or was below 5 per cent of AFS’s goal, respectively.

The allegations extended to promotion decisions. During managing director promotions, AFS  ensured that candidates who pushed AFS’ race or sex demographic goals met with top leaders responsible for promotion decisions.

Finally, the US claimed that AFS ran training programmes, leadership development courses and mentorship schemes where eligibility was restricted to race or sex.