30.6.2021

Pride Reminds Us of the Need to Promote Equality for Rainbow Minorities

The Finnish Bar Association is visibly supporting Pride this year and is driving change in the culture of the field. While Pride week is an important opportunity to talk about diversity and equality, it is more important to promote the position of sexual and gender minorities throughout the year.

Laws Change, Working Life Lags Behind

Equality is a statutory right in Finland, but the customs and culture of working life are slower to change. The European Union Agency for Fundamental Rights conducted an LGBTI survey two years ago. According to the survey, as many as 92% of Finnish LGBTI people are in the closet at the workplace to some extent with respect to their sexual or gender identity.

Lawyers Aren’t an Exception as a Work Community

Based on the survey, Finland is not a model student when it comes to equality. Though we have no research data on our industry, we think it is safe to say that the legal community is no model student either. It is worrying to hear that a large number of young LGBTI people return to the closet after their studies when moving into working life in our field. It is sad that this is the case in 2021.

Though there is no industry-wide research data, we have examined the situation in our own firm. In our work satisfaction survey conducted in 2020, 96% of our personnel said that they could be themselves at the workplace. This is not a bad place to start. However, the picture looked different when we asked how people felt the workplace supported them in bringing out a minority identity.

In an equality survey that we carried out in 2021, 76% of respondents somewhat or fully agreed that our work community is supportive of employees expressing their membership in various minorities if they wish. Correspondingly, a quarter of respondents felt that this is not the case. One quarter is a significant number of people in a 260-person community that values sustainability, a good working atmosphere and the wellbeing of personnel. The comments indicated that, though people felt there was no obstacle to expressing a minority identity at the workplace, the general heteronormativity of the field in general does not encourage such expression.

What are we doing about it? We have launched a diversity project in which we discuss and educate ourselves as a community, because we want to better understand minorities and work to mitigate heteronormativity in our workplace. We consult outside experts in this work.

We are happy to work with the Bar Association and other law firms to improve the situation. Role models and encouragement to be oneself are also needed.  When we ask our personnel the same questions in our equality survey next year, we hope the answer will show that we have succeeded in making things better.

Improving our Culture is an Investment in Wellbeing and Business

It is up to each individual to decide how much they want to open up about their private lives at the workplace. However, in a tolerant and open workplace, employees should be able to share their personal news without hiding the name of their partner, for example, and also be able to look like themselves.

Many LGBTI athletes and artists have talked about how their performance improved significantly after coming out. A person can unlock their full potential when they no longer have to use energy to hide their identity. Genuine equality is important on a human level and can even indirectly benefit business. In our demanding field, we need the best talents and courageous individuals.

Latest references

We advised A. Ahlström in establishing a corporate sustainability due diligence process plan which incorporates best practices and tailored solutions based on our expertise within relevant business sectors. Our comprehensive ESG offering also included tailored training for members of the investment team and management team and the board of directors of several portfolio companies. ‘The ESG team at Castrén & Snellman provided us with legal and practical advice around the ESG regulatory tsunami that we need to incorporate in our ESG work,’ comments Camilla Sågbom, Director, Sustainability and Communications, at A. Ahlström Oy. A. Ahlström is a family-owned industrial company, developing leading global specialist positions in Forest & Fiber and Environmental technology sectors.
Case published 5.9.2024
We represented Vapaus Bikes Finland Oy, a company offering employee benefit bikes, in its international EUR 10 million Series A funding round. The investors behind the funding are private equity investors Shift4Good and Superhero Capital Ltd as well as Tesi together with the European Guarantee Fund of the European Investment Bank. The equity-based funding will support the company’s international expansion, software development, platform automation, and the growth of its concept for the second-hand market of bikes. Vapaus Bikes Finland is at the forefront of sustainable mobility services and has been a pioneer in the Employee Benefit Bikes sector since late 2020. It has been ranked among Finland’s fastest growing companies. Shift4Good is an impact venture capital fund focused on the decarbonisation of the transportation sector. Tesi (officially Finnish Industry Investment Ltd) is a state-owned, market-driven investment company that invests in venture capital and private equity funds and directly in Finnish startups and growth companies.
Case published 21.8.2024
We successfully acted for the City of Rovaniemi in a matter concerning offence in public office and damages claims in relation to a significant investment decision made by the city. The defendants were the city’s former municipal corporate officer, who was in an employment relationship, and a city treasurer, who was in a public-service employment relationship and acted as the supervisor of the municipal corporate officer. The criminal matter related to the City Board’s decision to invest EUR 2 million of the city’s funds in bonds offered by a newly established investment company in accordance with a decision prepared by the defendants. A significant part of the company’s operations involved quick loan business. The main legal question in the matter was whether the investment of public funds constitutes an exercise of public authority and whether regulation on offences in public office therefore becomes applicable even to a person in an employment relationship. The municipal corporate officer in an employment relationship was charged with aggravated abuse of public office based on her negligence in the preparation and presentation of the investment decision as well as based on a conflict of interest due to the fact that she had invested her own money in a company that received funding from the investment target presented to the City Board. The charges of an offence in public office against the city treasurer concerned his position as the supervisor and reporter of the city’s investment activities. He was also involved in the preparation and presentation of the City Board’s decision. The processing of the matter started in the District Court of Lapland in June 2022. In its judgment given in August 2022, the District Court stated, based among other things on our argumentation, that the investment of public funds constitutes an exercise of public authority and that regulation on offences in public office can therefore be applied to the municipal corporate officer. The District Court deemed that the conduct of the former municipal corporate officer fulfils the characteristics of abuse of public office and that the conduct of the former city treasurer fulfils the characteristics of violation of official duty with respect to the preparation of the investment decision, but the right to bring charges had become time-barred. Punishments could therefore not be imposed on the defendants, but the defendants were ordered to jointly and severally pay the city approximately EUR 114,000 in damages plus interest for late payment. The city treasurer’s share of the amount was 10%. The prosecutor accepted the judgment but the other parties appealed it to the Court of Appeal. Acting for the city, we pursued claims for both punishment and damages in the Court of Appeal. The Rovaniemi Court of Appeal processed the matter in November and December 2023. In its judgment given in June 2024, the Court of Appeal upheld the District Court’s judgment with respect to the abuse of public office and violation of official duty. The Court of Appeal deemed that the municipal corporate officer had failed in her duty to declare the conflict of interest. In addition, she had failed in her duty to ensure that the prepared decision was in compliance with the city’s investment guidelines and that it had been properly put out to tender. The Court of Appeal also found that the text of the investment proposal was insufficient and misleading and that the municipal corporate officer’s conduct was intentional. As regards the city treasurer, the Court of Appeal held that he had failed in his duty to ensure that the investment proposal to the City Board complied with the investment guidelines, that the presentation was not misleading and that risks were taken into account as required by the investment guidelines. With the judgement, the Court of Appeal took a clear position that abuse in public offices and when exercising public authority is not acceptable. The judgment is also significant as it declares that investing public funds constitutes an exercise of public authority and that the liability for acts in office therefore becomes applicable even to persons in employment relationships. In addition, a key question for the Court of Appeal to assess was defining the amount of economic damage in a matter related to investment activities. The Court of Appeal held based on our arguments that the conduct of the municipal corporate officer and the city treasurer had caused damage to the city. The Court of Appeal increased the amount of damages to EUR 210,000 with the city treasurer’s share limited to 10%. The amount was increased because the Court of Appeal deemed that the city had suffered damage not only in terms of the loss of capital but also in terms of the loss of estimated return on investment. The judgement is not final.
Case published 21.8.2024
We advised Tesi (Finnish Industry Investment Ltd) in its investment in the heavy duty vehicles company Oy Sisu Auto Ab. With this investment, Tesi became an owner in the company with a share of 24.4 per cent. Sisu Auto is a pioneer in the Nordic market in the development of heavy duty vehicles. Sisu’s core competences are in the product development and production of trucks and military vehicles. Tesi is a state-owned, market-driven investment company that invests in venture capital and private equity funds and directly in Finnish startups and growth companies. The investments managed by Tesi total 2.1 billion euros.
Case published 19.8.2024