Dusseldorf It is only the second time that the Beyond Gender Agenda initiative has analyzed the diversity strategies of the 40 Dax companies. But unlike at the start last year, the organization of entrepreneur Victoria Wagner received a lot of encouragement this time. “The issue of diversity moves corporations. The vast majority has recognized that it is worth investing in various management structures in the best sense of the word,” says the founder and managing director.
The frontrunners this year include the insurer Allianz, the technology group SAP and Deutsche Telekom. “They convince with broad and targeted commitment,” says Wagner.
Allianz has a specific diversity unit with its own budget. Telekom, with its diverse management team, is above the statutory women’s quota of 30 percent. And SAP is the only company that measures and tracks the impact of diversity on corporate success.
The ranking evaluates the diversity commitment of the 40 Dax companies documented in annual and sustainability reports for the past year. In addition, all groups were able to submit additional information and evidence. 16 companies took advantage of this opportunity this year to explain themselves and their commitment in more detail.
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The evaluation was carried out under the scientific direction of Susanne Schmidt, Professor of International Management at the University of Göttingen, and was based on four main categories. First, it was determined how diverse the management bodies are and to what extent it is tracked whether diversity correlates with economic success.
Secondly, it was checked whether diversity is a matter for the bosses and whether it is also linked to bonuses. Third, the resources available for diversity management were assessed, and fourth, the extent to which the working environment is inclusive.
In addition to the top three, other companies are also showing more commitment. Deutsche Bank and Deutsche Post were also able to achieve the full number of points in the actual quotas. Their workforce exceeds the critical mass of 30 percent women, and they also employ more than 5 percent people with disabilities.
CEOs of Puma, Adidas and Merck personally take care of diversity
The insurance group Allianz and the sporting goods group Puma score with their diversity strategies. At each of them, one board member is personally responsible for the topic: At Allianz, the HR manager is Renate Wagner and at Puma, the CEO is Björn Gulden. In both cases, the bonuses of the board members are linked to diversity goals.
Diversity has also been declared a board matter at other companies: At Bayer, Sarena Lin is responsible for transformation and human resources, at Adidas CEO Kasper Rorsted and HR manager Amanda Rajkumar. At Merck, Belen Garijo is also the CEO, at Siemens and Continental it is the HR managers Judith Wiese and Ariane Reinhart.
Like the Alliance for Diversity, Puma, Adidas, Telekom, Zalando and Delivery Hero have their own organizational units. Each has a specific budget. “Compared to last year, this is a clearly positive development,” explains Wagner. According to the survey, Allianz, Bayer and the engine manufacturer MTU all focus on an inclusive working environment. “They offer all the measures we asked about to promote an inclusive work environment,” says Wagner.
With her initiative Beyond Gender Agenda, the founder captures the state of diversity in German corporations.
(Photo: Anne Wirtz/Alternativlos)
Klaus Hansen, partner at the HR consultancy Odgers Berndtson, confirms the positive trend among the DAX companies: “The social pressure from the quota system and critical stakeholders works.” In many places, however, there is still a lack of a deeper conviction that diversity also pays off economically. Action is taken because you have to, not because you want to. Another critical point is that diversity is often reduced to the female factor.
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Anahita Thoms, a partner at Baker McKenzie who specializes in sustainability consulting, also observes that the demand for diversity strategies is increasing. “This is due to legal developments on the one hand and social pressure on the other,” says Thoms.
Companies are increasingly understanding that their future economic success depends, among other things, on how effectively they succeed in implementing their sustainability goals. Rankings like that of Beyond Gender Agenda are important to create transparency and to bring the topic into public discourse. “This can motivate other companies to promote their commitment in this area,” says Thoms.
Higher competitiveness due to diversity
Studies show that diverse companies are more successful and competitive. The Boston Consulting Group’s “Gender Diversity Index” shows that various companies achieve nine percent higher profit margins on average and are more innovative. They generate 19 percentage points higher innovation revenues.
Investors now also see and demand that diversity is a competitive factor. As early as 2020, the financial investors Blackstone and State Street announced that they would no longer relieve overly homogeneous management bodies at general meetings.
In March 2020, Deutsche Börse introduced the “Dax 50 ESG” index, in which corporations are bundled that have standards for the environment (Environmental), social (Social) and responsible corporate management (Governance) in general, as well as for sustainability and diversity have set in particular.
The chief legal officers of around 100 corporations have meanwhile sent a clear signal with the “General Counsel for Diversity & Inclusion Statement” – and thus increased the pressure internally and externally. Those in charge of German corporations such as Bayer, BASF, Telekom, Merck and Siemens are among the signatories to the declaration and voluntary commitment.
More: It doesn’t work without a women’s quota