SAP's Shift on Women's Quota: Not Abandoning Diversity, Just Changing Tactics
Elimination of female quota: SAP leader opts against annulling diversity initiatives.
Street Talk 🗣️SAP CEO Christian Klein has defended the scrapping of the local women's quota, claiming, "We're still committed to diversity, we're just focusing on local measurement now."
In the wake of controversy surrounding SAP dropping several diversity targets, Klein clarified the company's stance to the weekly newspaper "Die Zeit". The move was made to keep pace with U.S. competitors who are bound by these legal requirements and avoid potential losses of billions.
Trump's Crusade Against Diversity
In the US, President Donald Trump is driving an agenda against diversity, equality, and inclusion initiatives. Accusations that these programs discriminate against certain groups and hinder competence have been hurled by Trump and the Republicans, without substantial evidence.
Klein shared his take, stating, "I'm a firm believer in the benefits of diversity. But as CEO, I had to prioritize SAP's interests: our operations in the US are subject to these requirements."
Bidding Adieu to the Women's Quota
Recent reports have confirmed that SAP will abandon its 40% women's quota target in its workforce. The move extends to women no longer being specifically promoted to leadership roles in specific departments. With nearly a third of its €34.2 billion revenue in 2024 coming from the United States, it's clear why SAP is willing to bend to American regulations.
Sources: ntv.de, dpa
(Enrichment Insight: SAP has chosen to align its diversity targets with regulatory changes in the US. In response, the company plans to shift its focus to a broader approach to employee experience and inclusion, such as the Business Health Culture Index (BHCI). Furthermore, SAP intends to combine its Diversity & Inclusion department with its Corporate Social Responsibility team, forming a unified unit called "Social Responsibility, Inclusion and Communities".)
SAP is modifying its tactics for promoting diversity within the company, focusing on local measurement instead of specific quotas, as stated by CEO Christian Klein. The adjustments are being made to comply with U.S. regulations, while maintaining a commitment to diversity, employment policy, and business. The company's financial interest is significant, with nearly a third of its revenue projected to come from the United States. Meanwhile, SAP is also considering merging its Diversity & Inclusion department with its Corporate Social Responsibility team, forming a unified unit called "Social Responsibility, Inclusion and Communities."
