According to a study conducted a few years ago, domestic abuse costs the European Union more than €360 billion annually. In Estonia, the annual cost is estimated at approximately €1.1 billion, of which around half a billion euros is linked to violence occurring in intimate partner relationships.
“This amounts to roughly 1.5% of GDP. Let us recall that until recently our goal was to keep defence spending at 2% of GDP. When we talk about domestic abuse, we are therefore dealing with a very significant economic impact,” noted Madis Müller, Governor of Eesti Pank (the Bank of Estonia), at a discussion organised by the President Kaljulaid Foundation.
Müller acknowledged that the economic dimension of domestic abuse has not been analysed in depth at Eesti Pank. “Based on the European Institute for Gender Equality’s 2021 study, the estimated economic damage caused by domestic abuse in Estonia amounted to €519 million in 2019. Sadly, statistics show that women in Estonia fall victim to physical violence in domestic settings significantly more often than women in Europe on average,” Müller stated.
He emphasised that the economic impact associated with domestic abuse is extensive and multifaceted in our society, manifesting itself through both physical and psychological suffering that affects women’s employment, as well as through the need to provide a wide range of public services, from healthcare to the legal system.
“It is therefore critically important to first recognise the wide-ranging impact of domestic abuse, including its economic impact. Of course, economic considerations are not the primary motivation when combating violence. However, assessing the economic impact of domestic abuse may help convey the true scale of the problem more clearly to all people in Estonia, including policymakers.”
Employers bear half of the economic costs of domestic abuse
Previous analyses have shown that approximately half of the economic losses caused by domestic abuse are borne by employers, as what happens at home inevitably spills over into working life. Both Tarmo Ulla, Head of Private Banking at Swedbank, and Lauri Karp, CEO of Enefit Industry, noted during the discussion that the workplace is the right place to notice domestic abuse and to provide support.
“People spend eight hours a day within our perimeter. It is the responsibility of leaders to create a safe environment also for those who experience at home, before or after the workday, something that most of us do not encounter in our daily lives,” said Karp.
Tarmo Ulla echoed this sentiment, emphasising that people spend a large part of their day with colleagues. “The question is what kind of work environment awaits me there: is it safe, are there people who genuinely care about me and pay attention, and is it an environment where I dare to talk about my problems as well.”
The impact of businesses on society
Both Enefit and Swedbank have been training their managers and employees on the topic of domestic abuse for some time now. According to Ulla, it has even been somewhat surprising how openly people speak during these training sessions. The same experience has been reported at Enefit. “People are willing to share their experiences in the workplace when a safe atmosphere has been created,” said Karp.
As an example, he referred to a domestic abuse awareness training held in Auvere in the autumn for miners as well as oil shale and electricity production workers, attended predominantly by men. “It was a real sensation. I have never before seen such open listening and discussion,” Karp described.
With nearly 5,000 employees, Enefit is one of the first Estonian companies to join the initiative Employers Against Domestic Abuse, which aims to create aware and safe working environments where domestic abuse is recognised and those in need of help are supported. According to Enefit Industry CEO Lauri Karp, addressing this issue is primarily a matter of values for them.
“Values are like an invisible blanket that holds our organisation together. And although we do not approach the topic of domestic abuse from an economic perspective, it is clear that if the blanket does not hold together, it will have an economic impact on both our group and Estonia as a whole,” Karp said.
Swedbank joined the initiative for similar reasons. “Business is of course important, but as Estonia’s largest bank we represent a very large part of society. What we do has an impact. If we can do this together – through leadership culture, helping all of us grow – then that is where change begins,” Ulla explained.
The leader as a beacon
According to both Ulla and Karp, creating a safe working environment and culture starts with leadership. A leader’s role is not limited to business results but also includes shaping organisational culture and having the courage to raise issues that may not be directly related to day-to-day business activities, yet are crucial for people’s wellbeing.
At the same time, both stress that a leader’s role in the context of domestic abuse is not to provide ready-made solutions. “The biggest mistake a leader can make is to immediately start offering solutions. Domestic abuse is a specific and sensitive issue, and leaders do not have the competence to resolve it themselves. A leader’s task is to create a safe environment where a person dares to speak and, if necessary, to direct them to professional help,” Karp explained.
Madis Müller, Governor of Eesti Pank, added that ultimately everything that happens in people’s homes also affects organisations and the economy more broadly. “This impact cannot be separated from working life, and it must be possible to talk about it,” he emphasised.