For those of us working to build more equitable and inclusive workplaces and communities, this rhetoric can feel like a direct attack. But more importantly, it underscores how much misunderstanding surrounds DEI.
In this blog, we’ll break down the misconceptions embedded in these claims, one by one. We’ll unpack the rhetoric, challenge the narrative, and offer a clear understanding of what DEI really stands for.
Read our expert analysis of what the new administration’s latest executive orders mean for DEI here.
DEI Is Not “Illegal Discrimination”
The argument often goes like this: People are supposedly being hired, promoted, or admitted to schools based solely on their race, gender, or other identity markers—not their qualifications or abilities. In fact, Trump’s executive order directly calls for “restoring merit-based opportunity.” But this framing fundamentally reflects a misunderstanding of what DEI is about.
DEI isn’t about lowering standards or filling quotas. It’s about acknowledging that merit isn’t always visible in the same way for everyone—and that opportunity hasn’t been distributed equally. Someone born without access to privilege, networks, or resources simply may not have been given a fair chance to thrive.
Take supplier diversity—a key tenant of corporate DEI work—as an example. Large corporations don’t engage with small, diverse businesses out of charity or at the expense of quality. They partner with them because these businesses often provide innovative, high-quality products or services that improve outcomes for both the company and its customers. Supplier diversity programs are designed to give these businesses—many of which lack the same networks or opportunities as larger firms—a chance to compete. They level the playing field, allowing merit to shine. And when they succeed, it benefits everyone: the small business, the corporation, and the community.
Their success isn’t solely the result of individual merit but also of the opportunities consistently available to them.
The same principles apply to the workforce. Consider the current Fortune 500 CEOs: They are undoubtedly skilled and hardworking. However, their success isn’t solely the result of individual merit but also of the opportunities consistently available to them. If success were purely based on merit, the demographics of leadership would more closely align with the talent pool. Instead, just 10.4 percent are women, despite women making up nearly half the workforce. These figures don’t reflect a lack of merit among women professionals; they reflect systemic barriers and biases that have limited their opportunities to advance.
Ultimately, DEI isn’t about displacing one group to elevate another; it’s about building opportunity and creating structures where everyone, regardless of their background, has a fair shot to succeed. It’s about opening doors that have been historically closed, not to take away, but to add, expanding the pool of leadership talent and enriching our collective potential.
DEI Is Not “Wasteful Spending”
It’s easy to label DEI programs as “cost centers,” especially when their most visible initiatives focus on employee support or engagement. But this view misses the tangible business value DEI delivers.
Take recruitment and retention, for example. In today’s values-driven workforce, employees expect their employers to align with principles of equity and inclusion. In fact, 76 percent of candidates and workers say a diverse workforce is a key factor when evaluating job offers. On the flip side, nearly 40 percent of employees have said they would quit their jobs if their organization took a political stance they disagreed with—a costly outcome when replacing an employee can cost up to 150 percent of their annual salary.
We saw this dynamic play out at The Washington Post, where the decision to not endorse Vice President Kamala Harris’s presidential bid led to the resignation of many employees, even celebrated journalists. This wasn’t just a blow to the paper’s reputation; more than a quarter-million subscribers canceled their accounts, delivering a significant financial hit to an industry already struggling with declining readership.
That’s because consumers expect the brands they support to reflect their values too: Seventy-five percent of shoppers say a brand’s diversity reputation influences their purchasing decisions. Last year, the Human Rights Campaign Foundation examined this phenomenon in the automotive industry, finding that Ford and Toyota could lose over $2 billion in sales from LGBTQ+ consumers alone due to DEI rollbacks. The message is clear: Neglecting DEI risks alienating entire markets, directly impacting a company’s bottom line.
The Miami Heat saw the upside of getting this right. After discovering that their merchandise failed to offer inclusive sizing, they launched the women-led “Court Culture” line, featuring stylish, size-inclusive apparel that gave all fans the chance to represent their team proudly. Fans who had long felt excluded connected more deeply with the franchise, and the results were immediate: a stronger fan base and measurable revenue growth.
Smart companies are already capitalizing on these benefits. Despite the pushback, Costco has doubled down on DEI, pointing to how its culture and values reflect the needs of its customers. JPMorgan Chase’s CEO, Jamie Dimon, has echoed this sentiment, stating that diversity initiatives “have been good for the bank’s bottom line.” These companies understand that DEI isn’t a philanthropic gesture—it’s a competitive edge.
And with demographic shifts accelerating, that edge is only growing. By 2045, the United States will be minority White, and multiracial populations are expected to surge by 200 percent by 2060, according to the U.S. Census Bureau. DEI isn’t wasteful spending—it’s how companies future-proof their business.
DEI Is Not “Immoral Race- and Sex-Based Preferences”
Labeling DEI as “race- and sex-based preferences” ignores the vast scope of what DEI actually encompasses. Every day, organizations implement DEI initiatives that support a wide range of employees: veterans receiving specialized training programs, people with disabilities accessing workplace accommodations, working parents utilizing flexible schedules, older workers benefiting from age-inclusive hiring practices—the list goes on. Nearly everyone in today’s workforce either benefits directly from these initiatives or works alongside someone who does.
This reality highlights a crucial truth: DEI isn’t about creating preferences based on identity; it’s about recognizing and responding to the diverse needs that exist in any workplace.
This reality highlights a crucial truth: DEI isn’t about creating preferences based on identity; it’s about recognizing and responding to the diverse needs that exist in any workplace.
When a military spouse receives relocation support, when an employee with ADHD gets noise-canceling headphones, or when a working parent adjusts their schedule for childcare, these aren’t “preferences”; they’re accommodations that enable talented individuals to contribute fully to their organizations.
Even more importantly, these initiatives often create ripple effects that improve the workplace for everyone. This is best illustrated by what’s known as the “curb-cut effect.” Originally, curb cuts in sidewalks were designed specifically for wheelchair users. Yet today, these simple modifications benefit everyone: parents with strollers, delivery workers, travelers with luggage, cyclists, etc. The same principle applies to workplace DEI initiatives.
Consider closed-captioning technology. What began as an accommodation for the deaf and hard-of-hearing community has evolved into a widely used tool that benefits countless others: employees working in noisy environments, international teams navigating language differences, and anyone who processes information better through reading than listening.
Removing DEI initiatives wouldn’t just impact certain demographics; it would eliminate many workplace advancements that have become essential to modern, effective organizations. That’s why labeling DEI as “immoral” reflects a profound misunderstanding of its true impact. Far from being discriminatory, DEI initiatives have consistently shown how making the workplace more accessible and supportive for some ends up creating better environments for all.
The Bottom Line
The recent executive orders and political rhetoric surrounding DEI are certainly unnerving. Yet, even as these challenges mount, the evidence remains clear: Well-designed DEI initiatives are not discriminatory or wasteful; they strengthen organizations, drive innovation, and create better workplaces for everyone.
Despite the political headwinds, support for DEI remains strong. According to Seramount research, 76 percent of employees are committed to helping their companies combat racism and injustice, and 78 percent believe inclusivity is vital to their workplace. This widespread commitment provides a solid foundation for organizations to continue advancing DEI, even in uncertain times.
As political pressures shift, the private sector must take the lead in fostering inclusive workplaces that drive business success. At Seramount, we remain dedicated to helping organizations navigate these challenges—providing cutting-edge research, real-time insights, and opportunities for companies to share best practices. Contact us to see how we can work together.
Kayla Haskins is an Associate Director, Product Marketing at Seramount. In this role, she supports DEI Practitioners and Talent Leaders in creating more inclusive workplaces by providing valuable insights and resources through webinars, blog posts, guides, infographics, and more.
With nearly a decade of experience in the technology and non-profit sectors,
Kayla Haskins is an Associate Director, Product Marketing at Seramount. In this role, she supports DEI Practitioners and Talent Leaders in creating more inclusive workplaces by providing valuable insights and resources through webinars, blog posts, guides, infographics, and more.
With nearly a decade of experience in the technology and non-profit sectors, Kayla excels in translating complex ideas into clear, actionable concepts. She is passionate about storytelling and is dedicated to addressing today’s most pressing workplace issues to drive meaningful impact.
Kayla holds a degree in English and Creative Writing from Dickinson College. She lives in Silver Spring, MD with her partner, Nick, and their dog, Zero. In her free time, she enjoys hiking, reading, and spending time with family and friends.
