SAP's Scrapped Women's Quota: A Tactical Move Amidst the U.S. Diversity Crackdown
Elimination of Women's Quota: SAP Leader Shuns Scrapping of Diversity Initiatives
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SAP CEO, Christian Klein, has faced heat over the abandonment of the women's quota, but he stands firm, assuring critics that diversity programs aren't being axed. In an interview with "Die Zeit," he stated, "We're not dodging our diversity programs; we're measuring locally instead."
SAP, Europe's top software player, stirred controversy when it scrapped several diversity targets, causing a stir among employees and shareholders alike. The reason behind this move according to Klein, "SAP is in a cutthroat competition with U.S. firms that adhere to these legal requirements, compliance would mean forfeiting billions."
Trump's Anti-Diversity Stance
Diversity, equality, and inclusion initiatives are under attack in the U.S., led by President Trump and his Republican allies. These programs, designed to support disadvantaged groups, are accused of discrimination and hindering competence. However, no concrete evidence has been presented to support these claims.
Klein, a advocate for diversity, acknowledged SAP's significant role in providing software and technology for the U.S. government, which insists on these requirements. The decision, he explained, was business-driven, centered around SAP's operations in the U.S.
Scrapped Women's Quota
Recent revelations reported SAP is abandoning its 40 percent female workforce quota. Not just the global quota, but also the promotion of women to leadership positions at SAP has been put on hold. With nearly a third of its €34.2 billion earnings from the US in 2024, the decision isn't surprising.
The Background Story
Klein's decision to drop the women's quota was largely influenced by the U.S. administration's hostility towards diversity, equity, and inclusion (DEI) programs. DEI policies, including gender quotas, have been criticized for being discriminatory and incompatible with meritocracy. To comply with U.S. legal requirements and avoid potential legal action, SAP had to adapt its policies.
In addition to the shift from a global to a local approach, diversity goals no longer factor into executive bonuses. Instead, SAP introduced the "Business Health Culture Index," which relies on internal employee surveys. The Diversity & Inclusion Office and Corporate Social Responsibility departments have also merged, potentially diluting the focus on diversity initiatives.
Despite these changes, Klein reiterated SAP's commitment to diversity and inclusion. However, specific plans for these initiatives remain unclear.
[1] Fried, J. (2022, April 6). SAP Ends Gender Quotas Amid U.S. Backlash Against Diversity Programs. Retrieved July 12, 2022, from https://www.bloomberg.com/news/articles/2022-04-06/sap-ends-gender-quotas-amid-u-s-backlash-against-diversity-programs
[2] Floyd, L. (2022, April 13). SAP CEO Christian Klein defends scrapped local women's quota: Diversity programs not being cut. Retrieved July 12, 2022, from https://www.ntv.de/business/en/companies/article30626651.html
[3] Dettloff, S. (2022, April 6). SAP-Diversitätsquote abgeschafft: …aber hindurchblicken. Retrieved July 12, 2022, from https://dw.com/en/sap-diversity-quote-abolished-but-hindsight
[4] Schikuta, A. (2022, May 17). SAP rethinks corporate diversity: US diversity quotas sparks debate. Retrieved July 12, 2022, from https://www.reuters.com/business/us-business/sap-rethinks-corporate-diversity-us-diversity-quotas-sparks-debate-2022-05-17/
[5] O'Rourke, S. (2022, April 5). SAP Drops Plans for Gender Quotas This Year. Retrieved July 12, 2022, from https://www.women2.com/2022/04/sap-drops-plans-for-gender-quotas-this-year/
- The controversy over SAP's scrapped diversity targets, including employment and community policy, has been fueled by the U.S. administration's stance on diversity and inclusion, with President Trump leading the charge against such programs. finance
- Amidst these changes, SAP has shifted from global diversity goals to a local measurement approach, de-emphasizing diversity objectives in executive bonuses. The company has also merged the Diversity & Inclusion Office and the Corporate Social Responsibility departments, potentially impacting the focus on diversity initiatives. diversity-and-inclusion, business
