SAP CEO Defends Abolishing Women's Quota: Diversity Policies Remain intact
Elimination of Women's Quota: SAP CEO Plans to Maintain Diversity Initiatives Despite Abolishing Gender-Based Representation Measures
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In a recent interview with "Die Zeit," SAP CEO Christian Klein has defended the controversial decision to scrap the women's quota policy. Contrary to popular belief, Klein asserted that SAP isn't abandoning its diversity initiatives entirely. Although the global 40% female representation target is no longer being pursued, measurements will now be taken at a local level.
This sudden change in SAP's policies has stirred controversy among employees and some investors with Europe's largest software company. The move, according to Klein, was necessitated due to the fierce competition with major US tech companies that are bound by such legal requirements. Compliance could amount to billions in lost resources.
America's anti-diversity crusade
U.S. President Donald Trump is leading an aggressive campaign against diversity, equality, and inclusion programs, citing perceived discrimination against others and hindered competence. However, there's no concrete evidence to support these claims.
Klein supports the benefits of diversity, as expressed in the interview. As CEO, he insists that his primary responsibility lies with SAP's welfare. Given that SAP handles considerable parts of the US government's software and technology, it is bound by these regulations. This decision, Klein clarified, is for SAP's US-based operations.
Women's Quota Cancelled
Recent reports indicate that SAP will no longer enforce its 40% targeted women's quota within its workforce. Additionally, the recommendation of women for leadership positions in specific areas has also been discontinued. Notably, the U.S. market generated approximately 30% of SAP's €34.2 billion revenue in 2024.
Trump's administration has declared diversity, equity, and inclusion (DEI) programs to be illegal, a move that precipitated SAP's decision to abandon quotas for women in the U.S.[1][3] In response, SAP plans to merge its diversity and inclusion department with another, and will no longer tie executive compensation to gender diversity.[3]
Additionally, SAP has replaced the 'women in executive roles' KPI with the Business Health Culture Index (BHCI), providing a broader view of employee experience and equal opportunities.[2] This shift underscores SAP's efforts to adapt to regulatory changes while maintaining its commitment to inclusion.
The BHCI encompasses factors such as employee engagement, health, and opportunities, offering a comprehensive perspective. Nevertheless, the specific financial or operational effects on SAP's U.S. business following this decision remain undisclosed.[3]
Sources:[1] ntv.de[2] Fortune[3] dpa
- SAP's decision to discontinue the women's quota policy has been initiated due to the regulatory changes influenced by the anti-diversity stance of US President Donald Trump's administration.
- In response to the controversial move, SAP plans to merge its diversity and inclusion department with another, and will no longer tie executive compensation to gender diversity.
- SAP has replaced the 'women in executive roles' Key Performance Indicator (KPI) with the Business Health Culture Index (BHCI), providing a broader view of employee experience and equal opportunities, as a part of its efforts to adapt to the changes while maintaining its commitment to inclusion.
