Desur Regional Dissemination Meeting Province of Bologna
September 25th, 2013
Italy and Emilia-Romagna’s CSR framework
Italy socio-economic frame
National and international occurences
Economic, environmental, social and financial crisis
Globalization processes
Population’s growing old
Emigrants and immigrants flows
Italy socio-economic frame
Tourism
Machinery
Iron and Steel
Chemicals
Food processing
Textiles
Motor Vehicles
Clothing
Footwear
Ceramics
GDP 2012: industrial sector 26.7% agriculture 2% service industry 71.3%
Industrial sector is mostly concerned with:
Italy socio-economic frame
Smaller number of global corporations than other economies of comparable size
Productive processes are commonly fragmented and clustered in several industrial districts
The country was the world's 8th largest exporter in 2011
Italian economic fabric consists mainly of SMEs (99,7% of active
industrial enterprises has less than 250 employers)
SMEs employ more than 81% of actively working people, particularly in
the service industry (approximately 49%).
SMEs are quite often family-run
Among SMEs, 81,7% are micro enterprises
Italy CSR frameworkAcademic insight
The Italian Academy treated the subject as early as 1968 in an essay "Structures integrated into the Italian distribution system," in which the italian economist Giancarlo Pallavicini, stated that:
“Business activity, while aiming to profit, should take explicitly into account a number of internal and external instances, including socio-economic”
Italy CSR framework Forerunning Entrepreneurs and Managers
Adriano Olivetti (1901–1960) Italian engineer, politician and industrialist whose entrepreneurial activity thrived on
the idea thatprofit should be reinvested for the
benefits of the whole society
Enrico Mattei (1906 – 1962) was concerned with a
highly socially responsible public management
Italy CSR framework evolution
CSR ranges from philantropy
to Corporate citizenship
Italy CSR framework Laws and regulamentations
Art. 41 of Italian Constitution :
“Private economic initiative is free. There shall not be conflict with social utility or in a way that could damage safety, liberty, and human dignity. Law determines appropriate programms and controls so that public and private economy may be directed and coordinated towards social ends.”
Italy CSR frameworkLaws and regulamentations
Legislative Decree n.460 (12-4-1997) “Reorganisation of the tax regulations for non- commercial and non-profit organizations of social utility”
Law n.342 /11-21/2000) “Fiscal measures” Joint return Italy-UK (4-29-2003) on CSR Memorandum of understanding between Unioncamere and Ministry of Labour
and Social Welfare (11-27-2003) Memorandum of understanding between ANCL (national association labour
consultant) and Ministry of Labour and Social Welfare (11-27-2003) Memorandum of understanding between Assolombarda and Ministry of Labour
and Social Welfare (6-9-2004) Memorandum of understanding between Confapi and Ministry of Labour and
Social Welfare (6-9-2004) Memorandum of understanding between FederAmbiente and Ministry of Labour
and Social Welfare (3-23-2005) Regional legislation and rules (aknowledge of EU requests on CSR)
EU CSR policy Green Paper (July 2001)’Promoting a European framework for Corporate
Social Responsibility’
CSR is defined as “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis”
Communication from the Commission concerning Corporate Social Responsibility, (July 2002)
‘Corporate Social Responsibility: ‘A business contribution to Sustainable Development’
Communication from the Commission concerning Corporate Social Responsibility, (March 2006)
‘Implementing the partnership for growth and jobs: making europe a pole of excellence on corporate social responsibility’
In October 2011 the European Commission published a new policy on CSR (A renewed EU strategy 2011-14 for CSR)
CSR is ‘The responsibility of enterprises for their impacts on society’
International CSR standard most implemented in Italy
SA 8000 Social Accountability International Sustainability Report Guidelines (GRI)AA1000 AccountAbility 1000ISO 26000ISO 14001EMAS Social AuditSocial labelISO 9000OHSAS 18001
Italy CSR framework Public initiatives
CSR – SC (Corporate Social Responsibility-Social Commitment) project (Ministry of Welfare 2002)
Based on voluntary CSR approach and the promotion of CSR across national socio-economic system
Third European Conference on CSR (Ministry of Welfare - Venice, 14 November 2003), Italian multi-stakeholder Forum for Corporate Social Responsibility
Initiative aimed to encourage the dissemination of CSR between businesses and Italian organizations
Italy CSR frameworkPrivate-Public initiatives
Q-RES project – Quality of the ethic-social responsibility
Supported and promoted by Centre for Ethics, Law and Economics - LIUC University of Castellanza (1999)
CSR award
Province of Modena and Chamber of commerce in partnership with Università of Modena and Reggio Emilia, Banca Etica, FocusLab
ORSADATA CSR Observatory
Sodalitas (in collaboration with ISVI and Impronta Etica)
Sodalitas Social Award
“Dal dire al fare” CSR exhibitionMilano Metropoli Development agency, BIC la Fucina, Koinetica
Social Value AwardMani Tese, Action Aid, Arci, AI Italia, Fondazione Banca Etica, Ucodep, Movimento Consumatori
Italy CSR frameworkPrivate-Public initiatives
Q-RES project – Quality of the ethic-social responsibility
Supported and promoted by Centre for Ethics, Law and Economics - LIUC University of Castellanza (1999)
CSR award
Province of Modena and Chamber of commerce in partnership with Università of Modena and Reggio Emilia, Banca Etica, FocusLab
ORSADATA CSR Observatory
Sodalitas (in collaboration with ISVI and Impronta Etica)
Sodalitas Social Award
“Dal dire al fare” CSR exhibitionMilano Metropoli Development agency, BIC la Fucina, Koinetica
Social Value AwardMani Tese, Action Aid, Arci, AI Italia, Fondazione Banca Etica, Ucodep, Movimento Consumatori
Italy CSR operators
Research and training centers (ISVI Istituto per i valori d’impresa, Centro Studi Enel, Officina Etica, Osservatorio FinEtica)
Academic research center: ALTIS, Alta Scuola Impresa e Società,CesCocom (Study Center on Consumption and Communication) EconomEtica (academic center for ethical economy and CSR
CSR awards (Sodalitas Social Award - Company’s Social Quality Awards Provincia di Parma, Sustainable innovation Awards Confindustria Giovani Reggio Emilia)
Consultant team (FocusLab, Bilanciarsi, Sinopsis Lab)
Non profit organizations (Impronta Etica – Fondazione Sodalitas – Club Modena CSR - GBS Study Group for Social report)
Public bodies (Chambers of commerce – UnionCamere – CISE - Ministry of Development – Ministry of Welfare)
Enterprises….
Managers……
International laws
National laws
International Standard
Regional laws
LegislationCSR playersFoundations
Unions
Public Administrations
Business associations
Enterprises
SMEs
Big corporations
Banks
Non profit organizations
International occurences
Rising environmental awareness
Globalization
Financial market trend
Human and workers rights
Consumers expectations
Companies scandals and breakdown
CSR playersEthical investors Research and training bodies
Rating companiesCertification authorities
National standard promoters
CSR awards organizers
Consultant team Auditing business
Italian CSR “engine”
Source: First report on CSR in Italy – by Prof. Mario Molteni – Università cattolica del Sacro Cuore - Milan
CSR bodies
Italy CSR culture
Increasing number of consumers aware of sustainability issues.
In particular 44% of consumers in 2013, compared to 38% in 2012, are willing to pay more for product/services made by companies that reinforced CSR programmes
In UE such percentage is on average around 36%
Survey by Nielsen Global survey on CSR carried out in may 2013 on a sample of 29.000 interviewed online in 58 countries
SMEs and CSR in Italy: what’s going on?
Companies socially involved: diminishing in number, raised invested funds
Why companies invest in CSR: ethical purposes and corporate image Funded initiatives: rising attention to the employers SMEs and CSR: for 67% of them CSR makes relationship with
employers stronger Ethical code: over 50% of the companies have adopted it Internal stakeholders: focus on workplace quality and safety External stakeholders (local community): sponsorships and charity Environmental committment: alternative energy sources
Source: SMEs CSR workshop 2010 – Faculty of Economics – University ‘Carlo Bo’ - Urbino
5° national report SWG for Socialis Observatory “Corporate Social engagement in Italy“ - 2012
CSR effectiveness measurement: it’s still little common
Internal communication: 27% of companies invest on it but don’t get employers involved
Most used medium for CSR activities: Internet
Dissemination of CSR principles among employers:
Intranet + Social report
SMEs weakeness factors: Scarce economic resources Instinctive management lack of incentives
SMEs and CSR in Italy: what’s going on?
Source: SMEs CSR workshop 2010 – Faculty of Economics – University ‘Carlo Bo’ - Urbino
5° national report SWG for Socialis Observatory “Corporate Social engagement in Italy“ - 2012
Emilia-Romagna socio-demographic features
Emilia-Romagna is one of the 20 italian regions and It’s located north-eastern It has nearly 4.5 million inhabitants (7% of the national
population), of which about 12% are foreigners The population in Emilia-Romagna region has been growing again, after the stagnation of the previous two decades, essentially due to foreign immigration
rising average age of the populationitalian lowest mortality rate region is characterized by an effective and efficient education system
Emilia-Romagna is the most important junction trading of the country
The port of Ravenna is the largest in the Adriatic Sea.
Significant increase in the car use (from 58.4%, regional average in 2001, to 67.2% in 2008, 7.4% of cycle-pedestrian modality, slight decline of 0.4% in the use of public transport in 2012)
Moderately fast growth in the use of web technologies (still remains a part of territory affected by a partial digital divide.)
E-R infrastructural system
Land consumption in the last thirty years have grown by 74% Urban sprawl and loss of urban systems efficiency Loss of competitiveness of urban systems due mainly to the flows of goods
and people handling, firms, workers and residents location The processes of production and energy conversion account for a
significant amount of polluting emissions. Energy efficiency improvement, however insufficient to meet the targets
set by the EU Growing development of recycling and waste recovery systems Industrial sector accounts for about 10% of water withdrawals
E-R settlement system and environmental quality
Emilia-Romagna socio-economic features
According to the Regional Innovation Scoreboard in 2009 Emilia- Romagna got an innovation performance score medium-high.Emilia-Romagna
Emilia-Romagna has one of the highest european GDP: 30.493 eur (ISTAT 2009) exceeding 27% of the EU average
In 2013 unemployment rate raised up to 9.4%, compared to 7.1% of 2012
Less than 30 aged unemployment rate 17.4% (2013)
Enterprises operating in the region are approximately 400.000, mostly SMEs (99,1% - less than 20 employers 97%)
Emilia-Romagna is a region where social capital is widespread, witnessed by a research carried out by sociologist R.Putnam, who defined it as "The
trust, rules which regulate coexistence, networks of civic associations, elements that improve the efficiency of social organization by promoting initiatives taken by mutual agreement“
Such level of social capital is confirmed by prof. R.Cartocci who analyzed it over the four-years period 1999-2002 in the 103 italian provinces by
means of 4 indicators
E-R social capital
Daily press circulation
Electoral participation level
Sport associations diffusion
Blood donors Social Capital Index
Maximum score
Trieste 225Bolzano 210Parma 208Genova 202Piacenza 201
Bologna 127Reggio E. 126Modena 125Ferrara 124Ravenna 121
Aosta 172Cuneo 169Pisa 164Livorno 162Pistoia 162
Ravenna 208Ragusa 191Siena 169Mantova 166Parma 165
Parma 151Mantova 144Piacenza 142Trieste 142Bologna 140
Productive system is mainly arranged in local production systems and (differently from national trend) networked industrial districts, based on the region-spread presence of small companies (mostly family-run) and cooperative system
Production pattern is characterized by a high quality manufacturing attitude and strong industrial vocation: Parma (Barilla and Parmalat), Reggio Emilia, Modena and Bologna (Ducati, Ferrari, Italjet, Moto Morini, Maserati, Lamborghini)
Industrial sectors widely ranged (chemicals in Ravenna, mechanic in central Emilia, textiles, electronics, ceramic districts in Modena surroundings, logistics in Piacenza)
Well developed, also, sea tourism and tourism in art cities, especially from abroad
E-R economic framework
Regional law n.21/2005 about Workplace conditions Norms for promotion and development of mutual cooperation in E-R (L.R.
6/2006) New Productive Activities Programme 2013-2015 meant to support CSRCSR resolution issued by Regional Committee on july 7° 2011
by which Region committes itself in leading a nation-wide innovative CSR policy through an ever more public-private partnershipMemorandum of Understanding between Region of E-R and Ministry of Economic Develpment to promote economic growth and SMEs sustainable competitiveness
E-R public initiatives to support CSR
Regional law n.21/2005 about Work conditions Norms for promotion and development of mutual cooperation in E-R (L.R. 6/2006) New Productive Activities Programme 2013-2015 meant to support CSRCSR resolution issued by Regional Committee on july 7° 2011Memorandum of Understanding between Region of Emilia-Romagna and Ministry of Economic Develpment on the matter of CSR training according to OECD guidelines Memorandum of Understanding between Region of Emilia-Romagna andMinistry of Economic Develpment to promote economic growth and sustainable competitiveness of SMEs
E-R public initiatives to support CSR
E-R public initiatives to support CSROngoing and planned initiatives fostered by Region of Emilia-Romagna are:Participation to CSR Transnational Interegional Project along with other
regions Planning of regional CSR workshop network by means of the involvement
of local CSR initiativesA thematic website concerned with CSROrganization of regional Forum on CSR issues plus periodic meeting aimed
at a comparison and assessement of CSR promotional initiatives
E-R CSR public-private initiatives
Public-private partnership to promote and support CSR
CSR Award Province of Modena (by Province of Modena and Chamber of Commerce)
CSR in the industrial districts - Surveys 2004, 2008 (by Focus Lab and Province of Modena)
Impronta Etica initiatives
Ugo Project (by Cise – Chamber of commerce)
According what emerged from Desur surveyKnowledge and the approach to CSR by SMEs is generally weak, mostly intuitive and unefficiently organizedDissemination can be considered still insufficientCSR is often meant as an additional cost and not as an opportunityInsufficient development of an entrepreneurial culture of CSRSMEs hardly understand the competitive surplus that might result from activation of a sustainability strategy. Frequently, SMEs in this area are included in an industry production chain where competitive criteria is represented by the priceCSR activities are often ‘unaware’ Insufficient attention paid to external stakeholdersTop management and/or the owner/entrepreneur play a key role in the implementation of CSR strategy
CSR culture regional framework
Main CSR focus among those internationally recognized, are: Work quality/Human resources Local project and connections Social accounting Environmental innovation Work safety
However, to be mentioned also several experiences in new CSR area of interest, such as:
supply chain involvement stakeholder engagement techniques work-life balance activities co-planning in collaboration with non-profit’s home-work sustainable mobility social entrepreneurship support
CSR culture regional framework
CSR culture regional framework It’s still widely understood that CSR is a philantropic activity
Among management tools, companies are being focused on Social Accounting SA8000 Standard Ethical Code Values Chart
International CSR standard reference are OECD guidelines UN Millenium Goals UN Global Compact GRI international guidelines
Source: Region of Emilia-Romagna Triennal productive activities programme 2012-2014 Report on CSR
Most implemented initiatives are focused on:Cultural awareness raising event (courses, seminars, conferences, etc.) Quantitative research (survey)Reward (awards, best practices observatory)
Most considered CSR issues regarding such initiatives:Work safety and qualityConciliation daily time and jobEnvironmentLocally relationships
CSR culture regional framework
Source: Region of Emilia-Romagna Triennal productive activities programme 2012-2014 Report on CSR
Thank you for your attention
Umberto Mezzacapo - CesCoCom Studies Center on Consumption and Communication
Department of Sociology and Business LawUniversity of Bologna
www.desur.eu