Corporate social responsibility has always been at the heart of the entrepreneurial choices of the Conterno family, making the transformation of LATI into a Benefit Corporation a natural step. This virtuous and innovative legal form integrates profit objectives with the commitment to have a positive impact on society and the environment.
What it Means to be a Benefit Corporation
Today, businesses in Italy are called to meet the needs of their shareholders, which traditionally means maximizing the economic results of the company’s actions.
The most virtuous companies also strive to meet the needs and interests of stakeholders and society in general.
The socio-cultural context in which we live is rapidly evolving: awareness of the limits of the capitalist development model, the levels of pollution generated, and the lack of a “Plan B” for the planet is growing. New generations are demanding and determined to develop a “sustainable” economic model and expect companies to do their part.
How to commit to doing business more ethically?
Through Benefit Corporations! According to Italian law, Benefit Corporations are powerfully innovative enterprises because, as stated in paragraph 376, “in conducting an economic activity, in addition to the purpose of distributing profits, they pursue one or more common benefit objectives and operate responsibly, sustainably, and transparently towards people, communities, territories and the environment, cultural and social goods and activities, entities and associations, and other stakeholders“.
The concept of Common Benefit is thus introduced into the statute: the company will be required to report to its shareholders on its performance in terms of returns and to its stakeholders on the results of the common benefit objective, which may consist of “one or more positive effects, or the reduction of negative effects” towards “people, communities, territories and the environment, cultural and social goods and activities, entities and associations, and other stakeholders (stakeholders)” such as workers, customers, suppliers, financiers, creditors, public administration, and civil society.
Thus, the focal point on which the company is based in terms of sustainability changes: from “corporate social responsibility” CSR to “Creating Shared Value” CSV. CSR programs mainly focus on reputation and have only a limited connection with the business, making them difficult to justify and maintain in the long term. In contrast, CSV is functional to the company’s profitability and competitive position as it leverages the company’s specific resources and expertise to create economic value through the creation of social value.
The Natural Transition of LATI to a Benefit Corporation
The transformation into a Benefit Corporation for LATI was the natural evolution of the commitment made on issues such as sustainability, attention to people and the territory, since its founding in 1945 in Vedano Olona when it began its activity of recycling war residues.
“A goal pursued with determination and conviction, because it completes and represents that process of quality and sustainability that our entrepreneurial history has always pursued, since its founding in 1945, continuing to invest and evolve following the dynamics of society and the market”, states Michela Conterno, CEO of the company.
Initially, LATI approached sustainability from a formal perspective, to learn how to report its processes through the Sustainability Report, using sustainability KPIs: GRI and SDGs. This system was established in 2021, and in 2022 LATI certified its sustainability report with the Limited Assurance issued by PwC, and in July 2022 amended its corporate purpose by introducing the themes on which it acts and will act:
- Product sustainability
- Well-being of people inside and outside the organization
- Development of the territory and the reference ecosystem
Finally, also in July 2022, LATI appointed the impact manager.
The impact manager is the figure who must report and account for the results in fulfilling the specific objectives consistent with the common benefit purposes, namely:
- ensure the involvement of all company functions in implementing the plan to achieve these purposes, as well as its improvement;
- support the administrators by providing information and data regarding the internal and external context in which the company operates;
- promote the transparency of impact results by ensuring their publication on the website and through appropriate channels.
“Quality and Sustainability are the two souls that drive LATI and also mine – from its origins in its products, processes, people, and the territory in which it is located. A winning business model that has allowed it over time to face difficulties, challenges, changes, and seize new opportunities. So why not formalize this soul?! Thus, LATI has chosen to become a Benefit Corporation: a natural transition that shifts LATI’s focus from “Corporate Social Responsibility” to “Creating Shared Value”, from voluntariness to structured commitment towards the common benefit.” states Gabriele Ciovati, CSR & Quality System Specialist and Impact Manager at LATI.
Thus, a journey that began 77 years ago and continues today, made of challenges, satisfactions, and achievements. Follow us to discover the next developments!
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