Let's Get Clear: The Real Behind DEI

Most of you know me—but if not, I’m Loren McDaniel. I have a master’s in psychology and over seven years of experience in HR, primarily working with Fortune 500 companies.

Lately, everyone and their mama has something to say about DEI. With so much misinformation out there, it’s easy to get lost in the noise or walk away with the wrong idea. So today, I want to take a moment to break down what DEI is, why it matters, and why it’s so controversial.

Let’s get into it.

What is DEI?

DEI stands for diversity, equity, and inclusion. The goal is simple: to ensure qualified individuals—particularly those from marginalized communities—have fair access to opportunities. This includes:

• Women who were historically denied the same rights and opportunities as men.

• Racial minorities who have faced systemic barriers to wealth and financial stability.

• LGBTQ+ individuals who have been discriminated against due to their identity.

• Disabled individuals who encounter biases and barriers due to their abilities.

• Neurodiverse individuals (people with ADHD, autism, bipolar, etc.) who often face stigma and a lack of accommodations in education and the workplace.

Why Is DEI Necessary?

Because systems like slavery, racism, sexism, and homophobia have kept these groups from accessing education, career advancement, healthcare, and homeownership—all of which are key to financial stability and a better quality of life.... So, when you and your friends talk about “building generational wealth,” if you belong to one of these groups, you’re likely facing systemic barriers that make it harder to get ahead.

DEI is about removing those barriers—not by giving handouts, but by ensuring that opportunities are truly accessible to everyone.

How Companies Use DEI

You’re probably thinking, “This all makes sense, but what does it have to do with big companies like Target and Walmart? What’s their role in DEI, and why are people so upset?”

Don’t worry, I got you.

Here’s the game: Organizations approach DEI in two distinct ways:

1. Internally (Workforce Development) – This means hiring, promoting, and ensuring diverse employees feel valued and supported. It’s about an inclusive culture, fair pay, mentorship, leadership opportunities, and access to the resources needed to grow their careers (and income).
   

2. Externally (Supplier Diversity) – Companies partner with minority-owned small businesses for supplier contracts. For example, a grocery store chain might work with a minority-owned food supplier, or a retailer might source clothing from a minority-owned fashion brand. It’s about giving small business owners a fair shot at competing with major corporations.

   
   

At one point, both internal and external DEI were required for large corporations, especially if they worked with the federal government (and many do). The government’s stance was clear: If we’re doing business with you, you need to create opportunities for minorities—and companies complied.

Over time, though, many companies started adopting DEI voluntarily—not just because it’s the right thing to do, but because it works. Studies show that diverse teams lead to more innovation, stronger decision-making, and better financial performance.

And on top of that, supplier diversity is great PR and helped companies expand their customer base (i.e., selling to more people). If there’s one thing these companies are after, it’s getting to the bag. DEI has helped them do just that. 

So…. What’s All the Fuss About?

Even though DEI has had a positive impact, it’s become heavily politicized, especially after the murder of George Floyd in 2020.

Companies made bold declarations for DEI, committing millions of dollars to underfunded Black colleges and supporting women-owned businesses. However, conservatives began to argue that these programs were discriminatory. They believed that minorities were being given opportunities based on their identity rather than their merit (i.e., being damn good at what they do). This led to Trump’s executive order targeting DEI programs, claiming they were divisive and created unfair advantages.

Ain’t that some ish.

What Don’t They Get It?!

The controversy comes down to two main issues:

• Misunderstanding: Some people view DEI as preferential treatment rather than a way to address systemic inequities like racism, sexism, homophobia, and ableism. This misunderstanding often leads to fear and defensiveness because people can’t support what they don’t fully understand.
  

• Strategy & Messaging Gaps: DEI is still evolving. Practitioners are figuring out the best ways to implement it effectively, measure its impact, and communicate its value, especially to people with different lived experiences. The key here is to get crystal clear on DEI’s purpose and bring everyone along in the process.
  

Of course, there will always be a few bigots who understand it but simply don’t care—and that’s a whole different conversation. The important takeaway is this: there’s work to do on both sides to make DEI effective while addressing concerns from all perspectives.

Alright Lo, I’m All Caught Up

Where do we go from here?!

Now…

It wouldn’t be a DYWork article if I didn’t tie DEI back to “the work” in some way. I define the work as the intentional process of self-reflection, learning, application, and growth. It’s a multifaceted process that needs to happen at the individual, organizational, and institutional levels to create real change.

Let me break that down.

Individual Work. This means using strategies like healing, self-awareness, personal development, and goal setting to improve your life. It’s about owning the hand you’ve been dealt, assuming accountability for your life, and actively working to influence what’s in your sphere of control—despite the barriers that try to hold you back. Because at the end of the day, that’s really all you can do.

Organizational Work. While individuals do their part, companies should be supporting them along the way. This is what it means to do the organizational work. It’s about but making sure:

• People who wouldn’t ordinarily get opportunities actually have a fair shot.

• Employees are paid equitably and set up for success.

• Diverse small business owners can do business with them if they’re qualified.

And this commitment should remain even when it’s risky or unpopular—because at the end of the day, it’s about character and integrity.

As mama Claire always used to tell me, “To whom much is given, much is required”. And lastly…

Institutional Work. If DEI has shown us anything, it’s that companies and policymakers need more science-based knowledge on what it is and how to do it effectively. Somehow, DEI became this political thing—when in reality, it came from psychologists, sociologists and social scientists who’ve been studying these issues for decades.

This is our scope of work.

And if the current political climate tells us anything, it’s that we need to step up—as advisors, as experts, and as the ones who can turn theory into tangible, real-world change.

Do Your Work