Involve stakeholders as far as possible in company practices, by establishing a dialectical relationship that produces maximum value both for them and for Barilla.
Barilla is aware that continued growth and its economic sustainability depend on the strong
link between the company’s interests and those of society. This awareness has been at the
basis of the attention and collaboration that the company has always dedicated to the local
communities, the academic world, consumer associations, trade unions, other enterprises etc.
This tendency pushed Barilla towards a further commitment: to consolidate stakeholder
relations practices that will foresee their involvement in defining the company’s courses of
action, opportunities to enter into dialogue and the provision of transparent information.
This new approach could not be adopted without identifying those parties where a relationship of mutual influence exists between them and the company, which led us to begin mapping our stakeholders.
THE MAP
In order to create a map that was not the usual list of 7 or 8 general categories but a tool to define, evaluate and continuously improve stakeholder relations, all areas of management and corporate functions were asked to contribute to this process. They were asked to identify small, like groups of stakeholders that have direct contact with the company in order to avoid the identification of such generic categories that they would then prove to be useless.
To prepare a map that facilitated the definition of a detailed relationship strategy for these groups, the heads of the various corporate functions were asked to group the stakeholders by type of relationship: very important and continuous, important and frequent, important but infrequent. The outcome of this process was a map that identifies 116 specific stakeholder categories classified according to the relevance of their relationship with the company. This stakeholder map is illustrated in the pages above.
INVOLVEMENT
As already mentioned, the mapping process involved the entire organization area by area. This was a time consuming exercise that was impossible to complete prior to commencing the reporting process. In order to involve the stakeholders from the very first steps in the reporting process, representatives of the key stakeholder groups were invited to attend two forums and eventually a representative panel will be set up based on the final outcome of the mapping analysis.
The first forum was held at the factory in Pedrignano (Parma) in July 2008. The participants (representing consumers, the scientific community, associations, suppliers and employees) were asked to assess the areas that define Barilla’s scope of responsibility and say how this model meets their priorities.
The second forum took place in the factory in Castiglione delle Stiviere (Mantova) in November 2008. On this occasion the participants also included representatives from trade unions, distribution, media, trade associations and the local community. The objective this time was to validate the challenges identified for each area of responsibility and contribute to defining the required commitments.
We adopt a strategic approach to dealing with these spokespeople but also implement
practices that allow us to deal with demands and expectations that impact the business.
Collaborating with the Customer (Distribution) tends to increase the efficiency of the
supply chain and the service provided to families and individuals.
We aim to increase their involvement in all of those initiatives in which they are fundamental players in the process, to pursue together an ever increasing degree of sustainability; to this end, it is imperative that a specific, continuous communication channel be created (Stakeholder Forum) that is always open to them.
Dialogue will also take place through traditional channels. Our Customer service team will
promote the assessment and development of discussion areas on the subject of sustainability.
We consider the Scientific Community to be a reference point in the planning, development and control of all of our products and processes. We have established strong relationships over the years with numerous research centers working on wide-ranging projects across all fields of knowledge. We are firm believers that scientific knowledge is an effective vehicle to promote changes in and the sustainable development of the agro-food sector, which is one of the factors that led to the foundation of the Barilla Center for Food & Nutrition.
With regard to its Suppliers, Barilla pursues a policy of creating an integrated system that
links all of the partners in the supply chain.
In future we intend to consolidate controls over the agricultural raw material supply chain
focusing on key critical factors: arable land, water requirements and carbon footprint. This will also be achieved through focusing genetic improvement programs and cultivation activities on specific improvement objectives in terms of environmental impact the outcome of which will be measured using the relevant ecological footprint.
Overseeing the surrounding territory however will not simply involve raw material planning
and procurement or the management of production cycles. Thanks to our extensive knowledge of the areas in which we operate, we will intensify Community relations, fostering constant dialogue with the various representatives in order to create and exploit synergies in resources and intellectual skills and provide exhaustive solutions to current needs and anticipate future and potential ones.
Barilla recognizes the importance of working with entities involved in the development of
civil society in order to participate in community development programs and pursue its own
sustainability agenda. Barilla will continue to implement projects aimed at contributing to
society’s well-being, forming partnerships with NGO’s and Associations that will work
alongside us in pursuing these aims.
DIALOGUE AND INFORMATION
A number of events were organized in 2008, although not part of our strategic plan, which allowed us to enter into direct discussions with our stakeholders. Following implementation of new European regulations on good manufacturing practices, we organized training and discussion sessions with our packaging suppliers at our offices in Pedrignano (Parma) between 6 and 20 June; also in Pedrignano, on occasion of the annual event that wraps up the Emilia Romagna agricultural campaign, on 10 October we gathered all of our partners (wheat suppliers, seed suppliers and the Emilia Romagna Region) to discuss the agronomic and commercial data of the recently concluded campaign and estimate those for the following year; the annual meeting with finished products suppliers was held in December; we welcomed a group of consumers who won the competition organized by the weekly magazine Oggi to Pedrignano between 20-21 May.
On this occasion the winners were given the opportunity to visit the factory and pose questions to Paolo Barilla, the company Deputy Chairman. We contributed to the organization of and attended discussion forums such as the International Durum Wheat Symposium that took place in Bologna between 30 June and 3 July; Expo Senior (6 to 7 November 2008), a forum dedicated to the health of over 50’s at which our experts gave talks on nutrition related topics; the International Conference of Mediterranean Produce held in Parma on 14 and 15 November.
Finally, we attended two events in the United States in order to exchange opinions with the international scientific community: the American Dietetic Association Food & Nutrition Conference Expo, held in Chicago from 26 to 28 October, and the International Conference on the Mediterranean Diet that took place in Boston between 16 and 18 November. It has become common practice to offer groups the chance to visit our factories in order to provide them with as much information as possible regarding the safety of the production processes adopted by us. The table below illustrates the number of visits to our factories in 2008.
In the course of 2008, activities aimed at managing stakeholder relationships involved 66%
of the total groups identified in the map. More specifically, 25% were involved in defining
corporate plans and activities, 32% took part in discussion sessions and 65% received direct
information regarding the business.
On 25 February 2009, the Italian Competition Commission fined the
Italian Union of Pasta Makers and 26 of the major pasta manufacturers,
including Barilla, accusing them of forming a cartel in respect of pasta prices.
The total fine amounted to Euro 12,496,333 allocated according to the degree of responsibility assigned to the various entities by the Antitrust authority. We have declared our absolute noninvolvement aimed at inflating pasta prices.
Our commercial policy has been determined, as always, in full autonomy. The pasta market has always been competitive and remained so during the period in which the probe was carried out. The price increases implemented by pasta makers were fully justified and allowed the pasta industry to recover only a part of the cost increases linked to rising costs in the key elements of production, starting with raw materials.
In order to inform our stakeholders of our stance on the Authority’s decision, statements were issued to our suppliers, the press, distributors and all employees were updated through internal communications. Barilla is currently contesting the fine issued by the Authority and at present the appeal is in the second stage.