Social Responsibility in the Italian gold industry. Ethics and Sustainability in the Supply Chain

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1 Social Responsibility in the Italian gold industry Ethics and Sustainability in the Supply Chain Federica Cembali D.G.P.I.C.

2 Ethics and Business: yesterday, today and tomorrow Today/Tomorrow Today Yesterday/ today Ethical Issues ousted Cost Efficiency themes Ethics as a means to increase Cost Efficiency Ethics as a competitiveness requirement 2

3 Why is it necessary to be behave responsibly? TRANSPARENCY Globalization and Market Changes TRACEABILITY AT THE ORIGIN Information spread by mass media and press Gold Supply Chain Sustainability New consumer sensibility MADE IN ITALY National and International activities for the Gold Industry sustainability QUALITY & ETHICS 3

4 Issues to be addressed Traceability Forced labor, constrained labor and child labor Freedom of association and collective bargaining Safety Remuneration Bribery and Corruption Discrimination Environment, biodiversity and protection of local ecosystems Indigenous people rights 4

5 The Project carried out by the Italian Ministry of the Economic Development ACTIVITIES CARRIED OUT OBJECTIVES Awareness raising seminars addressed to actors in the golden industry and training schools Raise awareness among Italian gold companies on Corporate Social Responsibility Propel the implementation and management of responsible policies for corporate operations Research on the level of knowledge and implementation of CSR within the sector, and interviews to virtuous companies in order to codify the best practices Set of indicators to monitor and disclose responsible behaviors to different stakeholders Handbook aimed at managing non financial risks of SMEs in the gold industry, with reference to the RJC Principles HANDBOOK SET OF INDICATOR S SEMINARS RESEARCH 5

6 Content of the Seminars Brief overview of the industry figures Introduction to CSR concepts Analysis of the main ethical risks Description of the main mining areas in the world presenting a high ethical risk Main ethical themes to be addressed Factors leading to a responsible approach CSR opportunities for companies in the gold sector Main international standards and initiatives Analysis of the best practices in the sector 6

7 The Research in the gold sector Objectives of the Research Investigate the degree of knowledge of CSR and the OECD Guidelines in the gold industry Monitor the degree of spreading and implementation of CSR with reference to the OECD principles. Assess the impact of CSR on companies competitiveness in terms of stakeholder engagement and internationalization activities. Methodology Sample analysis implemented through the compilation of an online questionnaire by the selected Italian gold companies sample. Sample composition The sample was constructed starting from the Italian golden companies in the Aida data bank, based on the Ateco codification, and included 100 companies randomly selected (random technique). 30% response rate. 7

8 Main results: knowledge of CSR themes CSR Knowledge Good level of medium total and partial knowledge of CSR themes (76% of the sample). OECD Guidelines Knowledge Less incisive, but still good, knowledge (67%) of the OECD Guidelies, in comparison to CSR themes. 8

9 CSR implementation: responsibility in practice All the respondents to the questionnaire declared their companytobeactiveinat least one aspect of CSR Focus on actions concerned with environmental protection (63%) Good perception of the importance of transparency towards stakeholders (47%) Main Areas of CSR actions Divulgazioni di informazioni sulle attività aziendali agli stakeholder 70% 60% 47% Lotta alla corruzione, 50% Promozione e tutela dei all istigazione alla corruzione 40% dirittiumani e alla concussione 30% 20% 17% 10% 10% 0% Tutela dell ambiente e del 37% 63% Relazioni coi dipendenti territorio Informazioni trasparenti ai clienti/consumatori sulle politiche di approvvigionamento e sulla sua RSI 33% 37% Gestione dei rischi etici e ambientali nella catena di fornitura 9

10 Benefits from the application of CSR practices More than half of the interviewees declared they saw relevant benefits (56%) Main benefts: human resources: increased team spirit and engagement/productivity suppliers: increased negotiations fairness, better qualification of the supply chain clients/customers: t increased satisfaction in the company s products environment: shared values with the employees and strengthened corporate image and The reason why a percentage of the responders didn t reputation notice benefits is because they didn t have in corruption fight: increased place/improve p measurement tools for non financial corporate image and reputation performance or because such initiatives are still too recent to assess the benefits (more than 38%) 10

11 CSR and internationalization Competitive advantages from CSR 60% of companies declared they achieved advantages from the development of CSR initiatives in the foreign markets improved corporate image (77,8%) increased penetration power in the foreign market (55,5%) 40% of companies didn t CSR as a notice advantages: differentiation and promotion Lack of measuring tools strategy for the for benefits not immediately Made in Italy? linked to the financial profile (50%) 11

12 The indicators set: OBJECTIVE: Help companies in the MONITOR MEASURE gold industry in monitoring, measuring and manage their non financial i performance MANAGE 12

13 Handbook for SMEs in the gold industry: 5 steps to manage risk OBJECTVE: Help companies in the gold industry to recognize, manage, measure and minimize etichal, social and environmental risks within the supply chain 13

14 Measure and disclose responsible beheviors: link to the RJC Standard OBJECTIVE: Help companies in the gold industry to monitor and improve the fundamental actions required to achieve the RJC certification Scope and principles of the RJC Standard Indicators to measure the RJC core principles Etica aziendale 1.1 Corruzione e Tangenti 1.2 Riciclaggio di denaro e Finanziamento di Attività Terroristiche Performance in ambito Diritti Umani e Sociale 2.1 Diritti Umani 2.2 Minori e Lavoro Minorile 1.3 Kimberley Process 2.3 Lavoro Forzato 1.4 Sicurezza del Prodotto e dei Materiali 1.5 Integrità del Prodotto 1.6 Iniziativa per la Trasparenza dei Settori Estratt ttiv i KPI 2.4 Libertà di Associazione e Contrattazione Collettiva Performance Ambientale 3.1 Protezione dell Ambiente 3.2 So stanze Pericolose 3.3 Rifiuti ed Emissioni 3.4 Uso di Energia e Risorse Naturali 2.5 Discriminazione 3.5 Biodiversità 2.6 Salute e Sicurezza 2.7 Procedure Disciplinari e di Reclamo KPI Sistem i Gestionali 4.1 Conform ità legale 4.2 Politica 4.3 Collaboratori Aziendali Appaltatori, Clienti, Fornitori e Partner 4.4 Valutazione dell Impatto 4.5 Piano di Chiusura della Miniera 4.6 Report su lla Sostenibilità 2.8 Orario Lavorativo KPI 2.9 Ret rib uzio ne 2.10 Condizioni G enerali per l Impiego 2.11 Sviluppo della Comunità 2.12 Utilizzo del Personale di Sicurezza KPI 14

15 Thank you Social Responsibility in the Italian gold industry D.G.P.I.C.

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