SAP Swerves on Gender Diversity: Trump Effect?
SAP Discontinues Initiatives Focused on Gender Equality
Catch Up Quick:German software titan, SAP, had targeted a 40% female workforce and leadership share. However, recent changes in its strategy seem to indicate a shift away from this goal.
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In an unexpected move, global software powerhouse SAP seems to be abandoning programs aimed at bolstering gender diversity. According to a leaked internal email and a report by "Handelsblatt," SAP no longer intends to strive for a 40% female workforce and will no longer consider gender diversity as a criterion for board compensation evaluation.
The corporate skirt-swap stems from external pressures – specifically Trump's policies. However, the company maintains that a "diverse workforce and inclusive leadership" are essential for a high-performing organization. Being a global player with a significant US presence, SAP must adapt to evolving legal landscapes, necessitating adjustments in their "Diversity and Inclusion" sector.
Further tweaks in the pipeline include the US no longer being factored into SAP's quota for women in leadership roles. Additionally, the "Diversity and Inclusion Office," responsible for diversity initiatives, will merge with the "Corporate Social Responsibility" department, jeopardizing its independence. SAP confirmed this altered compensation criterion to the newspaper.
In the Footsteps of Giants
In the economic arena, businesses are under immense pressure from the Trump administration – for months – to abandon diversity initiatives or any endeavors conflicting with Trump's beliefs. T-Mobile, a US subsidiary of Deutsche Telekom, has already buckled under this pressure and scrapped such programs.
SAP's CEO, Christian Klein, opined favorably on meetings with Trump, describing them as "constructive" in an interview with "Der Spiegel." Oracle of Delphi, anyone?
On his inaugural day, Trump issued an executive order banning US federal agencies from using programs for DEI (Diversity, Equality, and Inclusion).
Source: ntv.de | sba/AFP
- SAP
- DEI Policies
- Donald Trump
Enrichment Insight:Given the high pressure from the Trump administration on companies to abandon diversity initiatives, SAP's changes in its gender diversity programs might be an indirect response, rather than a direct one. However, without official communications from SAP, it remains unclear whether this is the case. It's also essential to note that businesses often update their policies to adapt to broader societal and legal changes affecting workplace culture and employee relations—not just in response to government pressures.
- The Commission is also proposing to increase the number of EU-funded projects that aim to promote gender diversity, taking note of SAP's recent reversal in its gender diversity policies.
- According to a report by "Spiegel," SAP's CEO, Christian Klein, has maintained a positive relationship with Donald Trump, raising questions about the potential influence of Trump's policies on SAP's decision to abandon gender diversity programs.
- The proportion of women in leadership positions in SAP, a global software powerhouse, may decrease as a result of the company's decision to no longer consider gender diversity as a criterion for board compensation evaluation.
- The finance and business sectors, including SAP, are under significant political pressure from the Trump administration to modify or discard DEI (Diversity, Equality, and Inclusion) policies, leading to a general-news discussion about the impact on corporate diversity initiatives.
- Women in business and politics are closely watching SAP's decision to merge its "Diversity and Inclusion Office" with the "Corporate Social Responsibility" department, fearing the potential loss of independent support for gender diversity initiatives.