Diversity in Estonian enterprises and Estonian Diversity Charter

Diversity	in	Estonian	enterprises	
and	Estonian	Diversity	Charter
Kelly	Grossthal,	Estonian	Human	Rights	Center,	Estonia
Presentation	given	within	workshop	“Segregation	at	Estonian	labour	market	
– challenges	and	opportunities”
International	conference „Integration Challenges in	a	Radicalizing World“
29	– 30	November	2016,	Tallinn,	Estonia
DIVERSITY	IN	ESTONIAN	
ENTERPRISES
&
ESTONIAN	DIVERSITY CHARTER
Kelly	Grossthal
Estonian	Human	Rights	Centre
Estonian Diversity Charter
November	29,	2016
Study:	
Diversity in Estonian companies
• Various	studies	have	shown	that	considering	diversity	
and	conscious	management (diversity management)	of	it	
have	positive	impact	on	corporate	performance. Google,	
Facebook,	ISS	Denmark	have studied	the field a	lot.	
• The	Estonian	study	was carried	out	by	PRAXIS	and	
financied by	Erinevus rikastab	project.
• The	diversity	was	never	before	examined	among Estonian	
companies.	describes	the	diversity	in	the	management	
boards	in	Estonian	companies	and	evaluates	the	links	
between	diversity	and	economic	performance.
Diversity in Estonian companies
(Praxis,	2015)
• The	boards	of	Estonian	companies	are	rather	
homogeneous;	diversity	exists	only	in	a	
limited	number	of	companies.	45%	of	
Estonian	enterprises	have	both	man	and	
woman	in	their	boards.	There	are	less	than	a	
third	of	companies	where	board	members	
differ	due	to	health	features	and	23%	of	the	
companies	have	board	members	who	differ	
due	to	religious	beliefs.
How	does	the	management	board	in	
Estonia	looks	like?
• The	analysis	included	all	Estonian	businesses	and	
their	management	boards	which	have	two	or	
more	members	in	the	board.	In	total,	information	
of	approximately	25,000	company’s	management	
was	analysed.	The	members	of	the	boards	of	
Estonian	companies	were	characterized	by	using	
various	features	like	gender,	age,	nationality,	
religious	beliefs	and	existence	of	health	problems	
that	barrier	coping	with	everyday	activities.
How	does	the	management	board	in	
Estonia	looks	like?
• 91%	of	the	companies	have	the	board	of	only	Estonians	
or	only	of	the	people	of	other	nationalities,	so	only	9%	
of	companies	have	Estonians	working	with	other	
nationalities	on	the	board.
• There	is	usually	a	connection	between	the	size	and	the	
diversity	of	the	company,	where	larger	businesses	have	
more	diversity	on	their	board.	The	opposite	can	be	
seen	only	in	gender	diversity	– there	are	fewer	women	
on	the	boards	of	larger	companies.
Conclusion
• In Estonia	- the	diversity	in	management	board	does	not	
immediately	cause	higher	turnovers	or	profits.
• Meaningful diversity management and	skills are	needed.
• It	has	been	found	that	corporate	strategy	and	culture	can	
influence	the	impact	of	the	diversity.	Flexible	working	
hours,	non-discriminatory	promoting	and	remuneration	
systems	are	just	a	few	examples	of	things	which	are	
increasing	positive	and	decreasing	negative	effects	of	
diversity.
• Conscious	diversity	management,	training	for	accepting	the	
diversity	and	avoiding	stereotypes	are	also	important.
One practical solution –
Diversity Charter
• The	Estonian	Diversity	Charter	is	a	voluntary	and	written	commitment	
that	can	be	signed	by	any	company	or	public	institution	that	values	a	
discrimination-free	work	environment	and	makes	a	decision	to	work	
toward	fostering	diversity.	The	ten	articles	of	the	Diversity	Charter	
emphasize	diversity,	inclusion,	and	equal	treatment	as	the	central	values	
of	each	charter	member.
• More than 70	companies and	organizations have signed it:	Swedbank,	
Ministryof	Culture,	Kaubamaja,	Manpower,	Ericsson	Estonia,	Network	of	
Estonian	Nonprofit	Organizations.
• The	Charter	is	also	a	platform	for	members	to	learn	from	experts	and	
from	one	another,	share	best	practices,	and	promote	the	topic	of	
diversity	and	inclusion	in	Estonian	society.
• Similar charters exist across the EU,	we are	members of	EU-level
exchange platform
One practical solution –
Diversity Charter
• A	seminar	on	diversity	at	workplace	takes	place	at	Viru Hotel	
conference	centre on	6	December	2016,	where	diversity	
management	researcher	Lotte Holck from	Denmark	will	give	a	
presentation.
• During	the	second	half	of	the	seminar	new	members	of	
Estonian	Diversity	Charter	are	welcomed.
• More informationat	www.erinevusrikastab.ee
For	more	conference	materials	and	presentations
please	visit www.misakonverents.ee
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