It's quite simple really. I means shameful (there's no I in team) and E means honorable.

LII is not friendly so they get the scarlet I.

ILI believes in Heaven instead of the Earth so they merit it too.

ILE is successful so they get the E.

LIE knows how to seek recognition so they get the E as well.

IEI ∪ EII is not normal so they get the I.

IEE ∪ EIE always receives honor as an unspoken rule.

Nobody likes punishment so LSI ∪ SLI get the I

LSE ∪ SLE is agreeable so they merit honor as well.