| The Evolution of CSR in Italy
In the months running up to July 1, Corporate Social
Responsibility (CSR) was placed firmly on the agenda of the Italian
presidency of the European Union scheduled for the second half of
2003.
At a conference in December 2002, the Italian government's Ministry
of Welfare submitted its draft on CSR, confirming it as an important
challenge for Italian enterprises in the near future.
Italy's Minister of Welfare, Roberto Maroni, said: "CSR is among
the priorities of the Italian presidency period of the European
Union." And Antonio D'Amato, President of Confindustria, added:
"It represents the new challenge after total quality."
Following on from the European Commission's Green Paper on CSR in
July 2001, the Italian government is suggesting a scientific certification
system. It intends to define a simple, modular, socially responsible
behaviour standard for businesses to adopt on a voluntary basis.
One objective, for instance, is to identify a series of tax incentives
for certified and up-to-date companies.
There is currently no internationally accepted document that defines
satisfactorily whether and to what extent an enterprise is ethical.
Only consumer behaviour is certain - in Europe, seven out of ten
consumers are willing to pay more for the products of socially responsible
companies.
In contemporary society, where brand value and reputation are increasingly
seen as a company's most valuable assets, CSR can build the loyalty
and trust that ensure a sustainable future. In a complex and shrinking
world, organisations are more open and visible and are judged on
their behaviour as well as their results.
Governments, investors, consumers, the media and the public increasingly
expect companies to be ethically, socially and environmentally responsible,
and reputation is based on these standards. Stakeholders look at
not only the economic results, but also the way they have been reached,
and reward those organisations that perform better.
Communications in general and public relations in particular play
a significant role in setting up trustworthy relations and communicating
the socially responsible activities of an organisation. It is an
important opportunity for those in corporate communications, since
a return in the form of visibility is the main motivator for an
Italian company to commit to social responsibility.
In Italy, this is a very recent phenomenon. It started after September
11 and accelerated after the earthquake in southern Italy when five
million citizens helped those affected by the environmental disaster.
From then on, many private and public companies wanted to communicate
their brand by identifying with social commitment, and so launched
cause-related marketing campaigns.
CSR does need a definition, and this needs to be backed with education,
not only of businesses but also their stakeholders, including employees,
customers, suppliers and the community. The media play an important
role in spreading this kind of information and education, but if
companies focus solely on media relations, they are missing the
point.
There are a number of initiatives in Italy that recognise CSR, including
the Sodalitas Social Award, and the Great Place to Work award. Financial
ethics is experiencing particular development, with the Italian
Bankers Association (ABI) preparing reports on CSR issues relating
to the banking sector, and rating companies with reference to CSR
and socially responsible investing.
Factors such as the social budget, ethical codes, micro credit,
ethical finance and social marketing also come under the spotlight
in the area of financial ethics.
Italian companies really need to be clear on their priorities. Shareholders
may be top of the list, but unless businesses are honest and look
after the interests of their other stakeholders they will never
create profitability for their shareholders.
PR could play a central role in fostering a better relationship
between companies and not-for-profit organisations. Besides suggesting
socially ethical and environmentally responsible behaviour, PR can
help companies participate in the solution to social problems. This
must be done with the right motives on both sides, however, not
purely to increase company profits or for organisations to attract
financial support.
In Italy, companies have identified the following benefits of CSR:
creation and maintenance of a high profile; a guarantee of a stronger
relationship with stakeholders; a better, safer and more stimulating
work environment; enhanced brand value and reputation; improved
business management efficiency; long-term sustainability for the
company and society; better risk and crisis management; increased
commitment from workers; and good relations with government and
communities.
It's also interesting to see which social campaigns consumers are
drawn to. According to Doxa, the main market research society in
Italy, almost four out of ten Italians have allocated money totalling
1.1 billion euros to social causes in the past 12 months. Medical
research represents 60 per cent of all allocations; the fight against
starvation draws 20 per cent; aid in favour of populations in war-torn
regions ten per cent; and distant adoption six per cent. Just three
per cent has been allocated in favour of environmental protection
and one per cent in favour of Italy's artistic and cultural heritage.
So a company's choice of CSR commitment will depend on the publics
they want to address. For example, women and young people are particularly
interested in helping developing countries, while a wider audience
is interested in research. Finally, a word of warning - CSR is a
great opportunity for companies, but can also be a risk if it is
not handled properly. Badly managed CSR can generate serious damage
to a company's reputation, and consumers can and do act against
companies that do not show genuine socially respectful behaviour.
By Pietro Cobor, director of Weber Shandwick's corporate practice
in Milan.
This article is featured with the kind permission
of the editor of Frontline, the quarterly magazine published by
IPRA.
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