Critics Slam the Allocation of SAP Stock to Women
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In a move that has sparked controversy and raised questions, SAP, the German multinational software corporation, has announced changes to its diversity and inclusion programs.
The changes come amidst ongoing debates surrounding diversity policies in the United States, with President Trump, his ministers, and tech billionaire Elon Musk waging a campaign against diversity programs in the US.
Critics, including Christiane Hölz, CEO of the German Shareholder Association, have accused SAP of opportunism in its policy change. Hölz emphasized that diversity is a competitive advantage and criticized the company's decision at SAP's annual general meeting. Markus Dufner, a prominent figure, has also called on SAP's management to rethink its handling of diversity criteria.
Contrary to some claims, SAP's CEO, Christian Klein, has stated that the company's diversity programs will continue and be further developed. However, SAP has halted the promotion of women's representation in the company and has replaced its specific key performance indicator (KPI) focused on "Women in Executive Roles" with a broader metric called the Business Health Culture Index (BHCI) as of 2025.
This change signals a shift in how SAP measures gender diversity and inclusion goals, aiming to capture a wider range of cultural and business health factors rather than focusing solely on women’s representation in executive roles. While the explicit KPI for women in executive roles has been discontinued, SAP remains engaged in diversity and inclusion but now under a broader index.
The reasoning likely reflects an effort to embed gender equity goals within a comprehensive cultural and business performance measure rather than having standalone gender-specific KPIs. It is important to note that there is no clear statement that SAP has formally dropped the 40% women workforce target; rather, it appears to be evolving how progress towards diversity, including gender representation, is tracked and reported.
Moreover, SAP generates approximately one-third of its 2024 revenue in the United States, and Hölz stated that SAP's policy change minimizes short-term risks for its important business in the US.
It is worth noting that there is no evidence to support the claims against diversity programs, and SAP has adapted its diversity activities to comply with current legal developments in the US.
The controversy surrounding SAP's policy change highlights the complexities of balancing business interests with social responsibility, particularly in the context of evolving political landscapes. As the debate continues, it is essential to consider the potential long-term implications of such decisions for companies, their employees, and the broader society.
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- Municipalities could consider adopting science-based health-and-wellness initiatives as part of their diversity and inclusion programs, bolstering women's health by integrating technology into community health services.
- The controversy surrounding SAP's policy change serves as a reminder to tech industries, including those focusing on science and technology, to uphold commitments to gender equity and women's health, ensuring long-term benefits for both the company and the greater society.
