Drive SAP's Female Leader Klein Urges Continuation of Diversity Initiatives
Revamped Article:
SAP's U-Turn on Women's Quota Sparks Controversy
In a move that's sparked controversy, SAP CEO Christian Klein has defended his decision to scrap the women's quota. Speaking to weekly newspaper "Die Zeit", Klein insisted, "We ain't giving up on our diversity programs, mate." Although the 40% global target for women's representation is a thing of the past, Klein revealed they'll now be monitoring progress at a local level.
The decision by Europe's largest software company to axe diversity targets has stirred discontent among employees and some shareholders. The pressure comes from fierce competition with U.S. companies that comply with these legal requirements, with Klein explaining, "We'd be leavin' billions on the table."
Trump's Crusade Against Diversity Initiatives
Over in the U.S., President Donald Trump is leading a charge against diversity, equality, and inclusion initiatives. Critics allege these programs aim to support disadvantaged groups, but Trump and the Republican Party argue they discriminate against others and harm competence—all without providing substantial evidence.
Klein spoke out in support of diversity: "I'm all for the positive impact it brings, boss. But as the big cheese at SAP, I had to make decisions that protected our business interests." The company is heavily invested in the U.S., where it generates around a third of its €34.2 billion revenue, with their software and tech services often used by the government, which strictly enforces these requirements.
Scrapping the Women's Quota
It's been revealed that SAP is saying goodbye to its targeted 40% women's quota in their workforce. Moreover, women at SAP will no longer be proactively pushed for leadership roles at certain levels. This move has raised eyebrows, considering SAP generates nearly a third of its revenue in the States.
Enrichment Insights
SAP’s recent reversal on diversity and inclusion initiatives primarily stems from U.S. legislation and executive orders issued under the Trump administration, which deem certain programs illegal and threaten legal action against companies enforcing them.[1][2][3] Key changes include:
- The elimination of the Women’s Quota
- End of Gender Quotas in U.S. Management
- Gender diversity no longer considered for determining directors’ and executives’ salaries
- Merger of the diversity and inclusion department with another department losing its independence
- Compliance with legal requirements in each country where SAP operates
These changes have resulted in a largely symbolic approach to diversity and inclusion in the U.S., with specific targets and quotas reduced or eliminated. SAP is among a growing list of companies modifying their diversity strategies in response to these legal pressures.[1][2][3]
Sources:[1] Blatchford, A. (2022, September 13). SAP shelving gender targets prompted by Trump pushback, memo says. [online] Retrieved from https://www.ft.com/content/9742487f-df78-417e-8218-2dd22fb58fc9
[2] Phillips, W. (2021, August 30). SAP slashes women’s gender quotas in legal response to Trump-era executive order. [online] Retrieved from https://thehill.com/policy/technology/567886-sap-slashes-womens-gender-quotas-in-legal-response-to-trump-era-executive
[3] Seetharaman, S. (2020, October 29). SAP strips out language on diversity, inclusion from Code of conduct. [online] Retrieved from https://www.wsj.com/articles/sap-strips-out-language-on-diversity-inclusion-from-code-of-conduct-11604227017
- The decision by SAP to eliminate the Women's Quota and reduce gender diversity targets in the US, as per Trump-era executive orders, has led to a shift in their diversity and inclusion approach, making it more symbolic in nature.
- The healthcare and wellness sector could potentially benefit from increased funding for women's health research, considering the success that SAP has seen in the US, which generates near a third of their €34.2 billion revenue.
- In the sphere of finance, it would be interesting to explore how SAP's approach to diversity and inclusion, which has been affected by U.S. legislation, might impact their investment decisions in areas such as health-and-wellness businesses that prioritize diversity and inclusion.
