What Is DEI? Demystifying Diversity, Equity, And Inclusion In Policy And Practice

Medically reviewed by Nikki Ciletti, M.Ed, LPC
Updated February 7th, 2025 by BetterHelp Editorial Team

In the first days of his second term in 2025, President Donald Trump issued an executive order ending DEI programs within the federal government. Such programs, designed to promote workforce diversity and address inequities based on race, ethnicity, gender, sexual orientation, and other factors, have drawn both support and scrutiny—advocates argue they foster inclusion and equal opportunity, while critics claim they prioritize identity over merit and enforce ideological conformity. 

Below, explore the role of diversity, equity, and inclusion programs, including the history of these initiatives, the benefits of a diverse workforce, how they’re implemented, and their effects on the organizations that implement them. With a well-rounded perspective on DEI efforts, you may feel better equipped to engage in nuanced discussions about this complex topic.

Getty/Luis Alvarez
Inclusive mental health support is available

What is DEI? Breaking down Diversity, Equity, & Inclusion

Diversity, Equity, and Inclusion (DEI) is a framework designed to foster fairness, representation, and belonging in workplaces, schools, and other organizations. While often discussed together, each component—diversity, equity, and inclusion—plays a distinct role in ensuring equal opportunity and representation: 

  • Diversity refers to the presence of people from a wide range of demographic, socioeconomic, and cultural backgrounds.
  • Equity ensures fair access to opportunities and resources, addressing systemic barriers that may prevent full participation.
  • Inclusion focuses on creating environments where everyone is valued, respected, and empowered to contribute.

DEI initiatives have become commonplace across workplaces and educational institutions in recent years. These programs address historical imbalances in representation, access, and treatment, ensuring that opportunities are more fairly distributed across all groups. DEI initiatives can include equitable hiring and promotion policies, leadership development programs, and employee training focused on bias awareness and cultural competency.

A historical perspective on diversity, equity, and inclusion efforts

Diversity, equity, and inclusion programs first began during the Civil Rights Movement in the early 1960s. Prior to this, systemic discrimination was deeply embedded in American society, with segregation, unequal access to education and employment, and limited legal protections for marginalized groups. Many workplaces, schools, and public institutions openly excluded people based on race, gender, and other factors.

In 1961, President John F. Kennedy issued an executive order requiring federal contractors to “take affirmative action to ensure that applicants are employed, and employees are treated [fairly] during employment, without regard to their race, creed, color, or national origin." The Civil Rights Act of 1964 expanded this by prohibiting employment, education, and public accommodations discrimination. It also established the Equal Employment Opportunity Commission (EEOC) to enforce workplace anti-discrimination laws and promote fair hiring practices.

In the decades since, DEI efforts have expanded beyond legal adherence to actively promote representation and inclusivity in the workplace. Cultural shifts towards social justice and institutional accountability in the mid-2010s led to an increase in DEI programs within both organizations. However, in 2025, the Trump Administration ended federal DEI programs, issuing an executive order calling for the end of “illegal and immoral discrimination programs] and prohibiting organizations from using state or federal funds for such programs.

How DEI shapes policies in schools and workplaces

DEI practices in schools and workplaces aim to promote fair opportunities, representation, and inclusion. Without such policies, proponents argue, institutions would remain dominated by certain populations, potentially resulting in a lack of varied perspectives and fewer opportunities for underprivileged groups.

Many colleges and universities use DEI frameworks in recruitment, hiring, and admissions to reduce systemic barriers to access. For instance, they may offer scholarships to students from disadvantaged school districts or develop partnerships with community organizations to expand access to higher education. Faculty may also consider different backgrounds and experiences when developing curricula to help ensure course content is inclusive, accurate, and culturally responsive.

DEI policies help create equitable workplace hiring practices, foster inclusive work environments, and support career advancement for underrepresented employees. Companies may implement structured hiring processes, employee training, and employee resource groups to promote diversity and ensure fair treatment. DEI initiatives often include pay equity audits, mentorship programs, and inclusive leadership training to address potential biases or inequities.

Examining the effects of DEI initiatives

Research indicates that DEI policies can have a positive impact on organizations that thoughtfully implement them. Many businesses report that DEI efforts increase agility, innovation, and competition, while colleges and universities benefit from the perspectives of students and faculty they may not otherwise attract.

A woman in a tan blazer smiles as she stands in front of machinery in a warehouse and speaks to two men beside her.
Getty/Westend61

Business performance

A 2023 survey of more than 2,000 companies found that those with mature DEI programs—those with well-integrated, long-term DEI strategies, leadership accountability, and measurable outcomes—experience significant improvements in revenue growth, agility, innovation, and brand perception. 

Another recent study found that DEI is associated with stronger financial performance, including higher earnings growth, better-than-expected financial results, and higher company valuations. However, while DEI initiatives contribute to long-term business success, they do not directly correlate with future stock market performance.

Employee recruitment and retention

Enterprise Strategy Group’s 2023 survey found that companies with mature DEI programs are twice as likely to attract and retain top talent compared to those with less-developed initiatives. Employee recruitment and retention are widely considered key factors in long-term business success, helping companies maintain stability, reduce hiring costs, and foster a more engaged workforce.

Workplace morale

Employees in organizations with strong DEI initiatives are more likely to feel valued, included, and motivated. Research shows that individuals working in companies with well-developed DEI programs are significantly more likely to feel inspired to give their best at work, with 73% strongly agreeing, compared to just 33% in organizations with less-developed DEI efforts.

Why are DEI programs controversial?

While DEI efforts may effectively address specific disparities, these initiatives have also faced backlash. Critics argue that DEI programs prioritize identity over merit, enforce ideological conformity, or fail to produce meaningful, long-term change. Additionally, concerns have been raised about whether DEI policies create measurable improvements or serve as symbolic gestures.

Limited research suggests that diversity initiatives can backfire by making individuals from underrepresented groups question whether they were selected based on their qualifications or due to their identity. This effect, previously linked to stereotype threat, may also stem from causal inference—the idea that people interpret selection criteria based on the context in which they were chosen. 

Other studies indicate that DEI training programs may be ineffective or counterproductive in some circumstances. For example, mandatory diversity training can lead to defensiveness, while one-time sessions may fail to create a lasting impact. Additionally, poorly designed programs could unintentionally highlight differences in a way that deepens divisions. As a result, organizations continue to refine DEI approaches, balancing efforts to promote equity with the need for transparency, evidence-based strategies, and broader stakeholder buy-in.

Two men wearing glasses sit next to each other at desks in front of desktop computers. They look at each other, smile, and fist bump.
Getty/scyther5
Inclusive mental health support is available

How to access inclusive mental health support

For many people, divisive rhetoric and political uncertainty can contribute to increased stress and anxiety, making mental health support a vital consideration. Research suggests that therapy can be an effective way to address stress and anxiety, offering individuals coping strategies and emotional support for navigating difficult moments and maintaining well-being.

With an online platform like BetterHelp, you can connect with a therapist whose background and experiences align with your own, potentially ensuring a more personalized and affirming approach to care. Many studies have found that therapy may be equally effective, whether delivered online or in-person, making online therapy an effective option for those seeking a convenient and affordable alternative to face-to-face sessions.

In addition to weekly sessions with a licensed mental health professional, online therapy may include tools and features designed to help you get the most out of each session, including guided journaling, digital therapy worksheets, educational webinars, and daily messaging with your therapist. 

Takeaway

Diversity, equity, and inclusion (DEI) initiatives aim to create fair opportunities and inclusive environments in schools, workplaces, and beyond. While research shows that well-implemented DEI programs can enhance organizational performance and morale, they have also faced criticism and debate. The effectiveness of these initiatives depends on thoughtful implementation, ongoing evaluation, and a commitment to meaningful change. Consider seeking a therapist online or in your area for inclusive mental health care. 

Find support with life challenges
The information on this page is not intended to be a substitution for diagnosis, treatment, or informed professional advice. You should not take any action or avoid taking any action without consulting with a qualified mental health professional. For more information, please read our terms of use.
Get the support you need from one of our therapistsGet started