Coates, R. (2025).
The Conversation
Few issues in the U.S. today are as controversial as diversity, equity and inclusion – commonly referred to as DEI.
Although the term didn’t come into common usage until the 21st century, DEI is best understood as the latest stage in a long American project. Its egalitarian principles are seen in America’s founding documents, and its roots lie in landmark 20th-century efforts such as the 1964 Civil Rights Act and affirmative action policies, as well as movements for racial justice, gender equity, disability rights, veterans and immigrants.
These movements sought to expand who gets to participate in economic, educational and civic life. DEI programs, in many ways, are their legacy.
Critics argue that DEI is antidemocratic, that it fosters ideological conformity and that it leads to discriminatory initiatives, which they say disadvantage white people and undermine meritocracy. Those defending DEI argue just the opposite: that it encourages critical thinking and promotes democracy − and that attacks on DEI amount to a retreat from long-standing civil rights law.
Yet missing from much of the debate is a crucial question: What are the tangible costs and benefits of DEI? Who benefits, who doesn’t, and what are the broader effects on society and the economy?
As a sociologist, I believe any productive conversation about DEI should be rooted in evidence, not ideology. So let’s look at the research.
The article is linked above.
Here are some thoughts:
Rooted in civil rights efforts and expanded through policies like affirmative action and immigration reform, DEI has helped increase diversity in higher education, business, and innovation. Research cited in the article shows that diverse companies perform better financially, are more innovative, and are better able to attract talent. Consumers also increasingly favor inclusive brands, as seen when Target faced a sales drop after retreating from DEI commitments. Despite these benefits, DEI faces growing political and legal opposition, with critics claiming it undermines meritocracy—though research does not support this view. At the same time, systemic inequalities persist: women earn significantly less than men over their lifetimes, and people of color continue to face barriers to employment and fair wages. The economic cost of systemic racism alone is estimated at $16 trillion since 2000.
While DEI is often framed as a corporate or political issue, it is deeply connected to psychological principles. For psychologists, understanding DEI is essential for addressing bias, identity, and social belonging. It informs work in organizational psychology by highlighting how inclusive environments improve well-being, productivity, and innovation. Psychologists also play a key role in studying the mental health impacts of exclusion, discrimination, and demographic anxiety, especially among groups who perceive DEI as a threat. Moreover, the article underscores how DEI connects to broader issues of equity and justice—areas where psychologists contribute through research, policy, and clinical practice. Ultimately, this article offers valuable insight into the intersection of economics, identity, and inclusion, making it highly relevant for psychologists seeking to promote fairness, reduce disparities, and support healthier, more inclusive communities.