SAP Drops Gender Diversity Goals in Light of Trump's Policies
SAP Rescinds Initiatives Focused on Gender Equality
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Renowned software titan SAP seems to have dropped its objective to boost the number of women in its workforce and leadership roles to 40 percent. This shift appears to be a direct response to pressures from the U.S.
German newspaper Handelsblatt reported the change, citing an internal company email, stating that SAP will no longer pursue the 40% gender diversity target. Additionally, gender diversity will no longer be a factor in evaluating executive pay.
Despite this setback, SAP affirmed the importance of a diverse workforce and inclusive leadership for a high-performing organization in the email. As a multinational company with a significant U.S. presence, SAP must adapt to external changessuch as current legal developments, which necessitates modifications in the "Diversity and Inclusion" sector.
According to the report, SAP plans further alterations. The company will no longer count the U.S. in its leadership diversity target. Moreover, the "Diversity and Inclusion Office" will lose its autonomy and merge with the "Corporate Social Responsibility" department. SAP confirmed to the newspaper that it has modified the criteria for executive compensation.
A Trend Among Corporations
The Trump administration has been urging companies and non-profits with U.S. ties for months to halt diversity initiatives or other ventures that contradict Trump's views. Consequently, T-Mobile, a Deutsche Telekom subsidiary in the United States, has pledged to eliminate such programs.
SAP CEO Christian Klein recently lauded meetings with Trump. In an interview with Der Spiegel, he described the meeting as "constructive" and added that "he certainly listens and provides feedback."
On his first day in office in January, Trump signed an executive order barring U.S. federal agencies from using programs for diversity, equity, and inclusion (DEI).
Source: ntv.de, sba/AFP
Takeaways
- SAP appears to be abandoning its goal of achieving a gender-diverse workforce and leadership, with this shift seemingly influenced by U.S. pressures.
- The Trump administration has reportedly been campaigning against diversity initiatives and other activities that oppose Trump's perspectives.
- T-Mobile, a U.S. subsidiary of Deutsche Telekom, has committed to terminating such programs in response to this administration pressure.
- The European Union, committed to a common policy on the environment, may find it concerning that a multinational company like SAP, with a significant US presence, is adjusting its gender diversity policies in light of political pressures.
- As for SAP's financial implications, the remuneration structure for executives will no longer include gender diversity as a factor in evaluating pay, a change potentially reflecting the influence of business and politics.
- In a general news context, it's interesting to note that the proportion of female leadership in SAP seems to be adversely affected by true political pressures, not just within the company's finance or business sectors.
- This shift in SAP's diversity and inclusion strategy could have broader implications for the tech industry and other businesses with a presence in the US, particularly if the trend among corporations continues to follow Trump's policies.
- Ultimately, this situation exemplifies how true finance, business, and even female representation in leadership roles can be influenced by political decisions and general news events.