Fifth Annual Forum on Business Ethics and Corporate Social Responsibility in a Global Economy Corporate Social Responsibility: the role of Private-Public Partnership Giovanna Bottani I-CSR Foundation Senior Researcher Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 1 The Foundation Founded by Financial act in 2005 - Art.1, paragraph 160 The Italian Centre for Social Responsibility (I-CSR) is an independent think tank established by the Italian Government with the following promoting founders: Ministry of Labour and Social Affairs; INAIL (Italian Workers' Compensation Authority); Unioncamere (Italian Union of Chambers of Commerce); Bocconi University. I-CSR aims at: Promoting the diffusion of social responsibility in the relationships with the different stakeholders; Developing basic and applied research on social responsibility to support Italy's contributions to the national and international scientific communities working on this theme; Fostering the dialogue between public and private institutions, businesses, universities and various stakeholders interested in social responsibility. Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 2 The research and its major targets To study the trend of research “ the new social partnership”, that is spreading throughout Europe and more recently across Italy ; To verify and compare partnerships’ processes in Italy; To contribute to the spread of the new social partnership as a possible tool for the implementation of CSR. Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 3 Methodology The methodology is composed of three steps Documental Analysis Focus on the PPP phenomenon in Europe and in Italy. Definition of: “ the new social partnership” The “new social partnership” of Simon Zadek as role model. Facts’ Analysis Selection of the Italian companies that communicated through Sustainable Development Reports their engagement in partnerships with public administrations and civil society in the last two years ( 58 SD Reports out of 115 were regarded as useful ) On line form to the 22 companies supporting the research Direct interviews with MNEs operating in Italy On line form to the local authorities of the 106 Italian provinces and of the 15 metropolis Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 4 What is a Partnership: our definition Multisector formal agreement that combines synergically resources and skills in order to reach a social common goal whose benefits fall back on the partners and their Stakeholders. For multisector agreement we mean an agreement among the Public Sector, Companies and Civil Society. For synergic combination of resources and skills we mean the union of partners' abilities and tools that are merged together in order to reach a common goal. Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 5 Interviewed companies • Allianz • Edison • ABB • Eni • Banca Credito Cooperativo del Garda • Gruppo Hera • Intesa San Paolo Banca Credito Cooperativo Ravennate e Imolese • Italcementi • Microsoft Banca Credito Cooperativo di Roma • Monte dei Paschi di Siena • Snamretegas • Telecom • • • Banca Etica • Banca Popolare di Milano Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 6 Details of interviewed companies Large Scale Retail trade 5% CSR Manager 55% Utility Industry 21% 16% Services 5% Insurance 5% Other 22% HR Manager 6% Corporate Communication 17% Banks 48% Who answered the on-line survey Economic Sector Dimension Location Above 250 Employees 84% North 68% Up to 50 Employees 0% From 50 to 250 Employees 16% South 0% Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) Centre 32% 7 Reasons why companies start a partnership Strategic choice more than answers to particular requests Negative externalities 16% CSR Strategy 100% Socio-economic critical states Internal Stakeholders External Stakeholders 84% 35% 59% Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 8 Stakeholders involved in the process … The shareholders too… External Universities 11% Others 7% Internal Civil Society 25% 25% Shareholders 27% Clients 4% Public Administration 28% Non Profit 25% Employees 15% Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) Management 58% 9 Why the Public sector? Know-how and better understanding of local issues New Skills Network To respond to stakeholders' expectations Multisectorial approach 32% 58% 58% 63% Better local efficacy Credibility Better understanding of local criticalities Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 84% 84% 89% 10 Why the Third Sector ? Stakeholder Expectations + Know-how and better understanding of local issues 42% New Skills 53% Network To respond to stakeholders' expectations Multisectorial approach 84% 58% 79% Better local efficacy Credibility 63% Better understanding of local criticalities Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 79% 11 Who is the driver ? Diffused balance among the partners Company 36% Third Sector 32% Public sector 32% Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 12 Partnership’s process Planning Resources Economic Know How IMPLEM Follow-up Infrastructure Partners' contributions Infrastructures Know How Economic Resources Monitoring Implementation Planning 0% 20% 40% P.A. Company 60% 80% 100% Third Sector Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 13 Problems and solutions Recurrent problems: Differences of approach Political issues Difficult social and economic context Unsuited economic resources Planning's problems 32% 5% 16% 16% 21% 53% Organizational problems Lack of Communication 32% The cited solutions are: Planning, dialogue, knowledge’s improvement, pilot projects and medium-long term relations (68%). Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 14 Results: Internal Stakeholders Better work atmosphere among the company staff, employees retention, access to more complete pieces of information. 89% Brand improvement 53% Access to others' knowledge Better access to economic resources 11% Organizational improvement 47% Human capital's improvement 47% Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 15 External stakeholders Economic, social and cultural development, accompanied by a general improvement in the quality of business products and services Other 5% 47% Promotion in research and development 68% Cultural promotion 74% Improvement in the social dialogue 42% Improvement in the environmental quality 95% Improvement in the quality of life 58% Improvement in the educational offers 32% Improvements in medical services 63% Improvements in companies' services Improvement in the infrastructural supply Improvement in job offers 21% 53% Local economic development Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 84% 16 The process Better social awareness: partnerships seem to catch up with the goals but they do not go further Stronger social awareness 79% 63% Better effectiveness Better efficiency 42% Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 17 The public partner Difficulties and obstacles to a full comprehension of the issue : Indifference toward the CSR theme (7 answers out of the 605 council departments we contacted ) Difficulties of communication : words such as public, or private some times are not clear and do not have the same meaning for every subject Internal Communication: there is no dialogue among the different council departments and information sharing. Lack in coordination There is not a common negotiating table ! Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 18 Conclusions: “The keys of success” Understand contexts: Detailed analysis, map of the key issues determining the roles of the different constituencies. Common purpose: The individual goals should be turned into a common scope toward which all the partners devote their resources Synergy among partners: Individual skills and capacities should become tools to meet partnerships’ scope Governance: Based on the evaluation of the context + bidirectional communication + common language; Duties and rights based on the different roles Qualitative and quantitative measurement and evaluation of the results Fondazione per la Diffusione della Responsabilità Sociale delle Imprese (I-CSR) 19