SAP cuts women's quota: When German companies backtrack

Germany's most valuable company is abandoning its female quota. The software giant SAP will no longer pursue its goal of achieving a 40 percent female workforce. It is also adjusting its executive board compensation criteria: The "women in senior leadership positions" metric will be replaced by a "Business Health Culture Index." A company spokesperson confirmed this to the RedaktionsNetzwerk Deutschland (RND). The Handelsblatt newspaper had previously reported on the matter.

According to the business newspaper, SAP also stated in an email that it would no longer include the US in its quota for female managers. While a "diverse workforce and inclusive leadership" are crucial for a high-performing operation, it stated that as a global company with a strong presence in the US, it must respond to "external changes, such as current legal developments."

A decisive external change took place in the White House at the beginning of the year. Since Donald Trump returned to power, numerous companies have changed their minds and abandoned goals they had proclaimed in the name of sustainability, diversity, or equality.

A prominent example is Mark Zuckerberg's meta-corporation, which scrapped its diversity programs. The US government is particularly concerned about the three letters "DEI" – a collective term for diversity, equality, and inclusion programs. However, due to the vague term, what exactly this entails is not always clear.

Anyone doing business in the US must consider this. Deutsche Telekom, for example, generates around 65 percent of its corporate revenue in the United States. The current political situation is complex, a company spokesperson told RND.

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"As Telekom, we are trying to find the right path here. It's not an easy task – especially when legal requirements are changing, conflicting with each other, or a dilemma needs to be resolved," she admits. "But we face up to this responsibility. We discuss, we question, and decide – and we remain true to our values." However, due to the changed framework conditions in the USA, the subsidiary T-Mobile US is now making "minor adjustments, for example, in the supplier selection process."

While this doesn't exist in Europe in this form, Michael Bernecker, Managing Director of the German Institute for Marketing, is observing a shift here as well. "There seems to be another cultural shift taking place," he says. In Germany, this is evident in the way people address people. "Companies are backtracking on gender," the expert explains, citing Audi as an example. The car manufacturer had announced that it would no longer use special characters for gender.

With regard to the US, there is currently uncertainty about how much pressure will continue under Trump, says Bernecker. However, Siemens – the US is the DAX-listed company's largest market – currently sees "no need to change our efforts to create diverse teams and an inclusive work environment due to current developments," as a company spokesperson told RND. "What continues to guide us is a clear focus on diverse teams, equal opportunities, and an inclusive workplace – because they support our performance and our long-term success."

Brand expert Christopher Spall identifies three groups of companies and brands that are addressing current developments. The first group has firmly anchored issues such as sustainability and diversity in their identity. "They generate their sales and growth precisely because they position themselves sustainably," he says, citing outdoor brands as an example.

"Then there are companies that are pursuing a long-term approach and thinking beyond Trump," says the founder and managing director of the identity consultancy Spall Brand Identity Consultants. Deutsche Telekom and BMW, for example, have announced they will continue to adhere to their climate protection goals.

And then there's a third group. "These companies are now reacting in the short term and adapting without bias," he says. "There, issues like sustainability or diversity are treated more opportunistically or viewed as part of a marketing campaign," says Spall. Now, they are prioritizing short-term economic interests over long-term ethical considerations.

However, he considers SAP a special case, as the quota for women was already highly controversial before Trump's presidency. However, if companies change course now, it could also have disadvantages, the brand expert estimates. "Young employees of Generation Z, in particular, value working for an employer who upholds a moral compass and doesn't change like a weather vane," he says. Investors also value an entrepreneurial attitude that goes beyond the American congressional elections.