Global Compact: Pirelli's Model
"Sustainability is a fundamental choice for Pirelli, it is fully integrated into the Group's Vision and Strategies for growth, in all business areas and in all management decisions, everywhere in the world."Marco Tronchetti Provera - Chairman and CEO
The Pirelli Sustainability Model is inspired by the United Nations Global Compact, of which Pirelli has been an active member since 2004, by the Stakeholder Engagement Principles set out in AA1000 and by the recently issued ISO 26000 guidelines. The compliance of the Pirelli Sustainability System with ISO 26000 Guidelines has been verified by third party.
The UN Global Compact is a purely voluntary initiative and it seeks, through the power of collective action, to promote a responsible corporate citizenship. The initiative is based on a network, the centre of which is the proactive action of both the Global Compact Office and the UN agencies.
More in detail the Global Compact requires companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, environment and anti-corruption. These principles are universally shared in that they derive from the"Universal Declaration of Human Rights", the "International Labour Organization's Declaration on Fundamental Principles and Rights at Work,", the "Rio Declaration on Environment and Development" and the "United Nations Convention Against Corruption.".
In October 2004, by means of a Letter addressed to the United Nation Secretary-General Kofi Annan, the Pirelli Group has formalized its adhesion to the Global Compact, as well as its commitment to respect and support the "Ten Principles".
Traditionally sensitive to environmental and human rights issues, Pirelli has formalized this commitment with the publication of the Group Sustainability documents:
The adopted Model embraces the entire value chain to preserve and develop Group assets. As shown by the following image, the evolution of the famous diagram of Porter's value creation, the Government of Pirelli is based on the awareness of indivisibility of economic, social and environmental dimensions that permeate the company's activities, especially in case of a listed and multinational company active in the global economy.
With regard to three dimensions, each management area is in constant dialogue with other functions and with stakeholders, implementing the strategic guidelines of the Group. At the base of this type of management there are clear rules and a top-down mechanism to transfer its principles. The elements that permeate this culture are the inside and outside dialogue, the attitude to innovation, which is no longer related to the only product but also to the qualitative and constructive approach with stakeholders, including Community, Environment, trying to balance their satisfaction, and the inspiration to best-practice of sustainable Government also outside of Pirelli's sector.
The responsible management at Pirelli flows through the entire value chain. The adopted approach makes it possible to create sustainable value over time, from which the company benefits from a tangible and intangible return on value.