Corporate Social Responsibility: Focus On Employees, Italian Cases

This article addresses the impact of the organization’s corporate social responsibility (CSR) activities internally on employee engagement. This article is focused on analyzing the corporate social responsibility (CSR) and its influence on employees considering the fact that employees are primary stakeholders who directly contribute the success of the company. The qualitative research method, with the help of statistical data, clearly indicates that committing to CSR boost the morale and commitment of workers in a positive way, satisfied employees present more commitment, engagement and productivity. To be clearer, the purposes of this study is to understand how CSR contribute to the success of the company, identifying the motivations which lie behind the development of CSR initiatives, and examining the impact of the CSR practices adopted by companies, on employee companies’ engagement.

The author of this article also presents a study by Collier and Esteban from 2007, that says the relationship between companies and stakeholders and the conditions under which this relationship can evolve. They stated that unless the companies manage to gain employees’ willingness to collaborate towards a social responsible business profile, they will be unable to achieve their goals. This is where CSR can do its job to motivate the employees themselves, given a study by Donaldson and Preston in 1995, then preceded by Freeman in 1984. A further study by Bryman and Bell also conducted in 2007, it defined the relationship between CSR and employee engagement is like a set of techniques which takes people’s experiences and their verbal expression seriously, while checking their value, meaningfulness and applicability. In the same year, which is 2007 a study by Greenwood followed by Jamali in 2008 underline the employee engagement imperative and they also recognize the strategic value of relationships with external stakeholders, such as local nonprofit community organizations, as a means of securing competitive success. CSR initiatives, cross-sector alliances in particular, may provide an innovate approach for supporting business success as they can be used to simultaneously address employee engagement challenges as well as address the collective voice of varied external stakeholders. For a better understanding on how CSR influence the employees in the company, the study presents the analysis of three Italian companies where CSR is particularly consequential for employees.

The first company is Luxottica, it produces and distributes sun glasses and prescription eyewear of high technical and stylistic quality to improve the well-being and satisfaction of its customers and at the same time create value for employees and the communities in which the group operates. The contribution of CSR contributed to the success of the Luxottica Group is it makes the company committed to sustainable development of the business. It has shown a great interest in people and this interest has declined in a vast corporate welfare program, characterized by a strong attachment to the land and the desire for involvement of workers and union representatives. All of the human aspects affect the daily operation of the company performance and the market performance. Luxottica on the basis of CSR also listens to the needs of its staff and distributed goods and services not only to the most deserving but to everyone in the company. The actions made by Luxottica give the employees courage to involve in the operation of the company wholeheartedly. The motivation lies behind the development of CSR initiatives of Luxottica is clearly the desire of workers improvement on every aspect, the other reason is definitely the workers themselves. Luxottica also want to make every workers have the feeling that they are part of the company like belonging to a large family in which the contribution of the individual is precious for the good of all. Luxottica also believes, each one could help retrieve some values that had been lost, by paying attention to CSR.

The impacts examined from the CSR practice adopted by companies, on employee companies’ engagement are started with the concept of quality that joined welfare to create the quality of life, which is something the workers will get if they feel like a part of a family, workers will definitely work better and more stimulated. The quality of process, because process is made by people. Then CSR also shows the result from employee on the reduction of absenteeism and the orientation to quality work that increases.

The second company is Brunello Cucinelli: the humanistic factory. Brunello Cucinelli is a President and Managing Director of Brunello Cucinelli SpA, a famous company over the world for its production of cashmere apparel, which are exported throughout Europe and to the United States, Japan, Russia, and the Far East. The contribution of CSR to the success of the Brunello Cucinelli makes the brand now standing at the top of the luxury pyramid for the cashmere of Italian quality. It also encourages the creativity of each worker and simultaneously develops within them a sense of profound participation in the group’s success and goals. Furthermore, it creates a strategic competitive advantage through nurturing a human advantage.

Preserving the extremely loyal outside contractors and clients around the globe and everyone who trusts the company is one of the motivations behind the development of CSR initiatives. The other reason is the beliefs of the importance of humanity by Brunello Cucinelli which says, “Quality of life is essential. Work becomes more humane if man is placed at its center. ” Brunello Cucinelli also has a motivation to treats employees as precious as the things they create.

A very positive impact on the CSR practice adopted by Brunello Cucinelli is that there is no traditional hierarchy and no distinction between management and non-management. Employees also earn higher wages than the average. This CSR approach has paid off beautifully in the market terms, since the company has managed to grow during the crisis.

The last company is Ferrero, the Italian chocolate and confectionery manufacturer, managed and founded by Ferrero family which has acknowledged social responsibility and put it into real practice since the business started. The CSR value contribution in Ferrero success is inherited and cultured from the ancestors and it has been progressively formed.

Identified motivation from this article on developing CSR initiatives begins with the company’s aims at the well-being of its employees. There are two things guiding this process, they are the constant objectives of company growth and the desire to further the development of its employees.

The CSR practice adopted by the company has some impacts. In Ferrero company, CSR vision sharing values to create value has been deeply embedded in their mindset, and it implemented into every aspect of the entire business operation.

In conclusion, the article has given how CSR relates to employees and how CSR changes the employees’ point of view of the companies. The three Italian companies given in the article are running the CSR values in their companies with some satisfying results from the contributions. The motivations given are mostly based on employees themselves in order to make every workers humanized, living at the happiest, helping their life become more easier, organized and welfare. The impact of the CSR practice is more directed into the company welfare. Companies themselves are the connoisseur of the impacts presents in the article after employees. Employees become comfortable on working at their workplaces and it make companies gain more from all of the thing that are profitable.