C ORPORATE S OCIAL R ESPONSABILITY IN ITALY

1. CORPORATE SOCIAL RESPONSABILITY IN ITALY state of the art and fundingperspectivesfor the thirdsectorMeeting SOPOT 24 – 25TH MAY 2012

2. Csr origins and convergence in Europe

3. CAUSE RELATED MARKETING profit and no profit enterprises make a partnership to obtain common or mutual benefits

4. CSR background The general framework for corporate social responsibility (CSR) behavior and strategies consists of the Green Paper presented by the European Commission in July 2001.

5. CSR background The level of CSR increases depending on the impacts on the environment in which the firm operates (on labour, market, pollution, social issues).

6. In 2000 the 44% of Italian enterprises has realised social oriented initiatives (Experian, 2001) in 2001 this percentage increased to 93% (Avanzi, 2002).

7. Italian entrepreneurial structure influences strongly CSR initiatives Italian system has an average of 3.9 employees per company compared to an average of 6 overall for the 15 EU member states. In industrial spheres, enterprises with over 250 employees account for 19.7% of the total in Italy whereas 34% of the total for the EU. Another important feature is that the Italian industrial system which is characterized geographically in that its activity is concentrated in industrial districts in Northern and Central Italy, along the Adriatic coast and in a few areas of the South (Becattini, 1987; Goodman, Bamford & Saynor, 1989). In some traditional and engineering industries, these districts have a leadership position in the global market and overall account for over two-thirds of total national exports.

8. CSR modes in Italian enterprises According to Experian research, in 2000, the most common mode of intervention was direct economic contribution to support projects (73%). Besides this there is a trend in realizing “social” projects by building branded products (12%) and giving creative contributions in realising projects (10%). In 2002 on the total number of involved firms, the 65,5% made donations, 42% contributed by firm volunteering, 53,6% promoted social marketing initiatives (sponsorships in cultural events and social advertising), and 22% made solidal buys (Censis, 2003).

9. Italian formulation of CSR development. CSR–relevant initiatives According to a study by Bocconi University with Confindustria for the Italian Ministry of Labour, on a sample of about 400 companies, the more widespread initiatives include: -Training activities (89%) -Safeguarding employees’ health (82%) -Benefits for the local communities (72%) -Support of cultural activities (70%) -Control of product safety and environmental impact (62%)

10. Italian formulation of CSR development. CSR–relevant initiatives The same companies were not engaged on the following activities: -On site child care facilities (2%) -Participation in fair trade (13%) -Programs for protected categories (15%) -Programs for disadvantaged people (27%) -Control of ethical and social implication of manufacturing and distributing their products (17%)

11. Social balance • Is the most used CSR tool • it leads new behaviors in CSR in the firms

12. CSR in banks Sector in which CSR is having a strong increase

13. SMEs commitment The predominance of SMEs poses important challenges for the diffusion and implementation of CSR. SMEs are generally independent, multitasking, cash-limited and based on personal relationships and informality, as well as actively managed by the owners, highly personalized, largely local in their area of operation and largely dependent on internal sources to finance growth

14. SMEs commitment The success of local networks is based on informal and tacit relationships and in general more on the accumulation of social capital.

15. SMEs commitment lack of researches and studies (as opposed to the big firms)

16. THE MAIN WEAKNESS IS ON COMMUNICATION OF THE EXISITNG EXPERIENCES Italian SMEs are an integral part of the local community and their success is often related to their capability to acquire legitimacy and consensus from local stakeholders such as employees, public authorities, financial organizations, banks, suppliers and citizens. These local networks are based on informal and tacit relationships, whose results are often not communicated or simply not measured.

17. THIRD SECTORand CSR in Italy In Italy CSR is still a critical issue for the Third Sector: only the well known organizations, the bigger ones and those with a wider structure and communication/marketing capacity have the power to get the firms support.

18. THIRD SECTORand CSR in Italy Only the biggest and well known enterprises have the need (or, in most cases, the cultural resources) to include CSR in their commitment. Social Marketing is still commonly seen as a business opportunity rather than an ethical issue related to citizenship and sustainable development

19. Actors operating in CSR are characterized by: • Recent proliferation • Lack of awareness and clearness in entrepreneurial sector

20. PERSPECTIVES Government could play a very relevant role to help companies in recognizing the benefits and limitations of the relationship within their stakeholder network

21. PERSPECTIVES The third sector needs to find a way to connect social issues to Cause Related Marketing in the profit sector, in order to involve SMEs in cooperating towards reaching mutual benefits.

22. PERSPECTIVES The way could be: starting from sharing experiences and communicating the results of CSR based campaigns in big firms, in order to make clear to SMEs the scope of benefits coming from CSR and impacting on the whole context

23. Examples of Italian Corporate Social Responsibility

24. EXAMPLES OF: 1 - Best Western Italy consapevoli.bestwestern.it 2 – BARILLA group http://barillagroup.com/corporate/en/home/responsabilita/bilancio-multimediale.html

25. BEST WESTERN ITALY • Respect, • transparency towards her clients, • employees professional growing, hotelier's awareness of his own role inside the cooperative Are concrete commitments shared and endorsed by each person working in the company That • have an important impact on the work environment • contribute to create a positive climate • maintain a high degree of professionalism

26. BEST WESTERN ITALY AREAS OF COMMITMENT: SOCIAL Active cooperation with non-profit organizations: • World vision (fundraising inviting Fidelity Club members (Best Western Rewards) to redeem their points in money to be donated to Haiti people, • CEFA (European Committee for Education and Agriculture) (sustained projects of distance adoptions supported by their own employees.), • Soleterre, TelefonoAzzurro and AIMS, - Ai.Bi (the holders of “Children’s Friends Membership” are granted 10% discount on Best Western Italy hotels’ best rates).

27. AREAS OF COMMITMENT: PEOPLE: - Best Western Italy reached position 22° in the Great Place to Work ranking, gaining ground with respect at the 2010 classification. - First hotel and tourist business company in Italy, in the 35 top companies ranking. • Itis a research and management consulting company that every year releases the best environment work places ranking. • The company climate work has been central during 2010, by creating a commission called “BeWe”, in charge of taking care of organizing initiatives for all the employees monitoring the company’s climate.

28. AREAS OF COMMITMENT: GREEN: • The attention to the environmental impact is essential for Best Western Italy. • Opening of a new course in cooperation with Lifegate. • The first green friendly Best Western Italy members convention was organized in May 2010: emissions produced during three days of convention were compensated with the creation of new green areas in Italy and worldwide. • July 2010: participation in announcement promoted by UnioncamereLombardia to collect the best practices in topics of Market, Workplace, Community and Environment.

29. AREAS OF COMMITMENT: • September 2010: exhibition "Salonedal Dire al Fare"(From Saying to Doing) – 2010: during the seminary "Corporate Social Responsibility: company good practices in Lombardia", Best Western Italy received a certification for the commitment towards the Corporate Social Responsibility carried out in 2010. (All the best practices, including the Best Western ones, will be collected and published on the institutional website of Chamber of Commerce of Milan.)

30. BARILLA group PATH TOWARDS SUSTAINABILITY: 2009 COMMITMENT focuses on seven AREAS: Nutrition Supply Chain Environment Human Resources People Community Stakeholders

31. BARILLA group 2009 PATH TOWARDS SUSTAINABILITY: NUTRITION • Dramatic changes in lifestyles have led to new nutritional requirements around the world; • Barilla offer Mediterranean Diet products that meet new consumer expectations of taste, nutrition, safety and convenience: a balanced diet of cereals (bakery and pasta), fruit and vegetables, and offering ready-made sauces and drinks prepared following traditional Italian recipes. BARILLA HAS AN ACTIVE COMMITMENT IN GOOD HEALTH PROGRAMMES: • supporting numerous initiatives advocating increased awareness of correct eating habits and nutrition; • providing complete product information in packages of products to contribute to people’s daily well-being (products’ characteristics, ingredients and nutritional information: portion sizes, recipes, when and how they should be eaten, in order to support healthy eating habits; • supporting educational initiatives aimed at school children regarding the balance between healthy eating and physical exercise.

32. 2009 PATH TOWARDS SUSTAINABILITY: SUPPLY CHAIN • BARILLA integrated supply chain differs from the classic linear structure (members linked to each other in a straight chain), based on a closed loop circular approach, model designed to involve all the players along the entire production chain of Italian key raw materials, such as durum wheat, in a common project by creating supplier partnerships. • Examples of projects about supply chain are: the SIGRAD (SocietàInterprofessionaleGranoDuro) project and the High Quality Durum Wheat project in Emilia Romagna, with the purpose of investigating the food safety issues, improving the sustainability of the supply chain and reducing the environmental impact of raw materials transport.

33. 2009 PATH TOWARDS SUSTAINABILITY: ENVIRONMENT • In order to reduce our Ecological Footprint, BARILLA has decided to measure the impacts of all processes in the supply chain by adopting the Life Cycle Assessment (LCA) method to calculate three indicators – the Carbon Footprint, Ecological Footprint and Water Footprint – and the EPD-Environmental Product Declaration, in order to certify and communicate the environmental impact of Barilla’s products.

34. 2009 PATH TOWARDS SUSTAINABILITY: HUMAN RESOURCES • BARILLA employed more than 9,100 people in 2009 • TALENT SCOUTING COMMITMENT, to identify and attract people with leadership qualities and who are willing to lead the change towards the future strategic objectives of the organization. Relationships with the best national and international universities and business schools are established; • TRAINING COMMITMENT: LAB (Barilla Laboratory for Food Culture) design project focused on transforming Barilla into a knowledge based company and into an organization aimed to continuous learning with a shared perfective at Group level. Expenditure on training activities amounted to Euro 2.1 million in Italy and US$ 434,244 in America, equal to 0.07% and 1% of revenue respectively.

35. 2009 PATH TOWARDS SUSTAINABILITY: PEOPLE • Committed to managing every potential risk linked to the raw material and packaging procurement process, and product manufacturing and distribution. • Food Safety Supply Chain project has enabled improvements in the safety level of supplies (raw materials and packaging materials). • FINISHED PRODUCT CONTROLS, consisting on a series of organoleptic (including tasting), microbiological and chemical-physical controls in order to check quality before being distributed for consumption. • TRACEABILITY AND RETRACEABILITY System, whichallows identification of the customer to whom each finished product batch was delivered. • CONSUMER AND CLIENT CONTACT continued in 2009 through the consumer service units.

36. 2009 PATH TOWARDS SUSTAINABILITY: COMMUNITY • BARILLA Group’s activities do not only have a direct impact on people’s diet but also on the areas in which his production plants, mills and distribution activities are located. • Product donations to support organizations and initiatives is one of the most effective methods of helping local communities (Banco Alimentare in Italy and Feeding America in the United States). • 2009 Barilla offered assistance to the earthquake hit communities of the Abruzzo region, by signing an agreement with the council of San Demetrio ne’ Vestini: areas of intervention were identified together with local institutions and the heads of Civil Protection, by recognizing the need to act immediately in order to construct a school complex to allow the children of L’Aquila to return to school as quickly as possible.

37. 2009 PATH TOWARDS SUSTAINABILITY: STAKEHOLDERS • Sustainability Model applied by BARILLA, aimed to involve itsemployees to a greater degree in the path towards sustainability. • Information was spread to managers within the organization using internal communication tools across the various locations. • To provide professional support to group managers, Sustainability Operating Group organized 15 training sessions with the managers of all business areas, the first one 2009 29th May, attended by university lecturers, managers from large industrial enterprises, environmental and social voluntary associations who shared their experience in the field of sustainability.

38. 2009 PATH TOWARDS SUSTAINABILITY: STAKEHOLDERS • INTERNATIONAL DIALOGUE to present this model, with many initiatives both in Italy and abroad: • World Pasta Day conference in New York, • “Euro-American meetings on citizenship” in the City University of New York and the Boston College, • Consumer Forum in Rome, • Indagine Forum Solidarietà (Solidarity Investigation Forum) on strategies for profit - nonprofit collaborations. • 2009main event in Italy involving stakeholders was the first edition of the “Barilla Center for Food & Nutrition International Forum” (BCFN) in Rome, where representatives of Italian and international institutions, NGO’s, leading experts in the fields of health, economy, society and the environment, discussed and listened to current and emerging needs relating to pressing issues affecting the world of food and nutrition.

39. THANK YOU FOR YOUR ATTENTION