SAP Drops Women's Quota Target Amid US Pressure: CEO Speaks Out
Elimination of women's quota: SAP leadership affirms continued commitment to diversity initiatives
In the face of criticism, SAP CEO Christian Klein defended the scrapping of the women's quota, stating, "We ain't axing our diversity programs, mate. We're just measuring on a local level, see."
Europe's IT powerhouse has been embroiled in controversy after scrapping several diversity targets, causing discontent among employees and shareholders alike. Klein clarified the move: "SAP's going head-to-head with a slew of American Big Tech firms that play by these legal rules. We'd be losing billions if we didn't."
The Trump Effect on Diversity Programs
In the States, Prez Donald Trump is crusading against initiatives promoting diversity, equality, and inclusion. Accusing these programs of leaning against others and hampering competence, Trump and his posse claim there's no hard evidence to back these arguments.
Klein, however, backs the benefits of diversity. Yet, as SAP's CEO, he had to act in SAP's best interests: "We're slinging a chunk of the software and tech for the Yanks' government, and they demand these legal standards." It's all about SAP's biz in the US.
Bye-bye Women's Quota
It's been disclosed that SAP's waving farewell to its 40% women workforce target. Along with the death of the global women's quota, women will no longer be earmarked for leadership positions at SAP. SAP banked nearly one-third of its €34.2 billion 2020 revenue in the US.
The Impact of Shifting Tides
- Reorganization: To comply with legal requirements while staying devoted to inclusivity, SAP is merging its diversity and inclusion department with the corporate social responsibility department to form a unified "Social Responsibility, Inclusion, and Communities" team.
- New Incentives: SAP is dumping the 'women in executive roles' KPI for the Business Health Culture Index (BHCI), offering a broader scope of employee experience, including engagement, health, equality, and long-term employability. This shift emphasizes a cultural approach over gender-specific targets.
- Flexible Policies: While SAP's global commitment to diversity remains, the company is adapting its strategies to suit local legal environments, hinting at a more adaptable approach to inclusivity that varies by nation.
Overall, SAP's decision demonstrates the difficulties faced by multi-national companies balancing diverse legal landscapes and upholding their commitment to diversity and inclusion.
[1] ntv.de
[2] dpa
[3] The Information
- The reorganization of SAP's diversity and inclusion department is part of a new community policy, merging with the corporate social responsibility department to form the "Social Responsibility, Inclusion, and Communities" team, reflecting a broader approach to inclusivity.
- Finances play a significant role in SAP's employment policy changes, as the company has shifted from a 'women in executive roles' KPI to the Business Health Culture Index (BHCI), focusing on a broader scope of employee experience to maintain competitiveness in the business landscape.
- Politics and technology also influence SAP's employment policy, as the company adjusts its strategies to suit local legal environments, thereby adopting a flexible approach to inclusivity that varies by nation, demonstrating the challenges faced by multinational companies striking a balance between diverse legal landscapes and their commitment to diversity and inclusion.
