The Trump Effect: SAP Eliminates Women's Quota

The German software company SAP is abandoning key diversity goals – out of consideration for the political environment in the USA . An internal email obtained by the German Press Agency (dpa) states that the company will no longer pursue its target of 40 percent female representation in its workforce. It will also backtrack on its efforts to promote women in leadership positions.

According to a report in the "Handelsblatt," theDAX -listed company assured its employees that a "diverse workforce and inclusive leadership" are crucial for a high-performing organization. However, it is necessary to respond to "current legal developments" and adapt its own diversity and inclusion initiatives to comply with applicable law.

Influence from Washington

The background to this is the political course of the US government under President Donald Trump , who has waged a fierce campaign against so-called DEI (Diversity, Equity, Inclusion) programs since taking office. The government argues that such measures favor certain groups and thereby disadvantage others – however, there is no solid evidence to support this claim.

Shortly after beginning his second term, Trump issued an executive order prohibiting U.S. federal agencies from supporting diversity and equality programs. The effects are now also being felt at international companies like SAP.

Not the first withdrawal

In addition to withdrawing its gender quota, SAP is also changing its corporate structure. The previously independent "Diversity & Inclusion Office" will be merged with the "Corporate Social Responsibility" department. This will result in the Diversity Office losing its organizational autonomy.

SAP isn't the only company bowing to political pressure from Washington. At the beginning of April, T-Mobile US, a subsidiary of Deutsche Telekom , announced it would largely discontinue DEI initiatives. In a letter to the U.S. Federal Communications Commission (FCC), the company stated that specific targets should be abandoned. The day after the letter, the agency approved T-Mobile US's proposed acquisition of the cable network operator Lumos.

pgr/wa (dpa, afp)