The second report on corporate welfare by Censis-Eudaimon takes an up-to-date snapshot of the situation and indicates what is still missing

Working and thriving in a company. An achievable goal, even though the path to get there can be impassable. It is an essential matter of corporate culture. Understanding the steps involved is crucial, and so is knowing about individual experiences, and having the quantitative indication of the evolution of the situation is important. Investigating the entire second Censis-Eudaimon Report on corporate welfare is a good read.

The research considers several issues surrounding employment and welfare: the “quantity” of work as such, the “examples” of work, the “remuneration” of the work, the “welfare” of the work. It has become clear that Italy continues to create fewer jobs than other countries, that the percentage of young employed people has dropped over twenty years and that their distribution has changed. But also that the level of remuneration has diminished and changed in the comparison between various professionals, while the “quantity” of work of employees has grown and become more complex. Then there’s welfare. If, the research states, the welfare of workers has decreased from the point of view of classic job parameters, the response of the production system has been to create a larger and varied corporate welfare. One that seems to be providing good results, as can also be seen in a range of diversified assessments depending on the type of service offered. For each element, Censis provides a qualitative and a quantitative value. What emerges is an indication: despite everything, Italy has a good corporate welfare, and it can still grow. But resources are needed, of course, as well as continuous care of that corporate culture that cares about the people as well as the budget numbers which, on the other hand, are deeply rooted in Italy.

The second Censis-Eudaimon Report is a good knowledge and action tool, to raise awareness as to what is necessary today to improve the conditions of production in all respects.

2nd Censis-Eudaimon Report on corporate welfare

et.al.

Censis, 2019

A careful reading of the changes taking place in Italy and throughout the world clarifies what and how it is moving

 The awareness of the location of one’s business continues to be one of the best elements for the creation and management of a good business. Luigi Einaudi’s statement still applies today, decades later, i.e. you need to know in order to decide, and therefore manage well, expertly lead, cautiously predict a complex world that becomes increasingly diverse day after day. Knowledge therefore as a wise and important instrument of corporate culture.

Hence the importance also of carefully reading “Il mondo cambia pelle?” (Is the world changing skin?), in other words the XXIII Report on the global economy and Italy that the Einaudi centre in Turin has just published. Coordinated by Mario Deaglio  (Emeritus Professor of International Economics at the University of Turin) the book – also the result of contributions from Chiara Agostini, Giorgio Arfaras, Francesco Beraldi, Gabriele Guggiola, Paul Migliavacca, Giuseppe Russo and Giorgio Vernoni – continues the series of volumes that each year attempts to focus on the position of our country within the framework of movements in the rest of the world and which, for this edition, is identified as an entity “undergoing change, especially the West to which we belong.”

The analysis is therefore conducted on the basis of certain great landmarks: the rift that runs along the Atlantic, between Europe with its nearing election day and Donald Trump’s America that defies international trade; the difficult equation between occupation and capital ten years after the Lehman Brothers bankruptcy; Moscow at the crossroads between Washington and an increasingly Chinese Asia. This is in fact the context in which Italy finds itself in pursuit of a way through the end of ideologies and new paradigms of sustainability – not only environmental but also political, financial and social.

The book therefore starts with an analysis of growth (weakened), and then moves on to an investigation into the ties between occupation and capital (both of which require redefinition that is no easy task). The book then focuses on the current geopolitical situation and then provides an in-depth analysis of the Italian situation. The conclusions then investigate the concept of sustainability, updating it in the light of the latest developments that lead to what is referred to as a “circular economy.”

Reading the Report is not always easy, but it is certainly useful, specifically to build that awareness that was mentioned at the start.

Il mondo cambia pelle? (Is the world changing skin?)  XXIII Report on the global economy and Italy

Mario Deaglio (edited by)

Guerini e Associati, 2019

One billion euros a day, for every working day. That is the value of the merchandise which, every day, leaves the gates of Italian factories on its way to European markets. 250 billion euros a year, more or less. Over half the entire exports of our country. A billion euros a day, or just above, of mechanical and mechatronic products, pharmaceuticals, chemicals and plastics, above all, but also furnishings, garments, food and agricultural produce, which make their way towards Germany and France primarily, and then to other countries within the EU. An extraordinary amount of riches, much greater than the cost of goods which we import, net of energy. 16% of our GDP. The driving force of an economy whose best businesses, those which are most open and innovative, are the key players. Precisely those businesses which the “yellow-green” government insists on handicapping, which it fails to listen to, and for which it is creating difficulties with inefficient laws and minimal investment in infrastructure.

A billion euros a day. That is an astonishing statistic, of which unfortunately a major portion of public opinion is quite unaware. Because, if people were truly conscious of it, they would also appreciate the obvious risk of poverty that hangs over us all as a result of every political and governmental choice which seeks to oppose Italy to the EU, which plays at erecting walls and barriers between ourselves and others, which insists on considering Germany and France as adversaries and antagonists rather than partners in a competition and, at the same time, in a collaborative venture which is attempting to give Europe an increasingly important role on a world stage suffering from the difficulties of global trade exchanges.

The calculation has been made, intelligently, by Andrea Montanino, head of the Confindustria Research Centre (La Stampa newspaper, 22nd January). He underlines, extremely clearly, the interdependence of the principal European economies (the success and the strength of the German automobile industry – BMW, Audi and Mercedes – depends a great deal upon the extraordinary contribution of Italian component-makers, one of the most sophisticated and innovative sectors of our manufacturing industry). And he points out how necessary it is, for mutual growth, to reinforce EU markets, rather than weakening them with anachronistic protectionist measures. It is indispensable, if anything, to make further progress in three markets where European integration is deficient: those of energy, the digital world and capital markets. More Europe, in fact, rather than less Europe.

Indeed, a confirmation of this can be seen in the tensions which are accompanying the wretched political choice of Brexit: businesses which are closing down and preparing to transfer their sites elsewhere (Nissan, in respect of its car production facilities, is merely the latest example), services linked to manufacturing which are choosing to relocate to Paris, to Frankfurt, to Amsterdam or to Milan, growing concerns regarding provisions of foodstuffs and of medicinal products, to such an extent that there is a fear of repercussions for public order. The economy of the United Kingdom will contract by 8% over the 15 years following Brexit, according to the calculations of the Bank of England, whilst the pound sterling will lose up to a quarter of its value. With all the consequences for jobs, incomes, social services, and general well-being. A poorer and more fragile country, in fact.

As we steadily get closer to May’s vote for the renewal of the European Parliament, it is actually these questions which come to the fore and which should be the subject of debate within the public opinions of the various countries, over and above nationalist and populist propaganda. Economic statistics, questions related to social and civil development, values.

Within a Europe to be reformed and strengthened, in addition to the bureaucratic bottlenecks and the ideological orthodoxies of formal austerity, it is worthwhile starting to use analyses thoroughly based on competencies, on responsible critical reflections (well informed, therefore, and not the hysterical reactions to fake news and shoddy propaganda supported by those who, in Moscow and Washington, see the values and interests of Europe as obstacles to be torn down), on a memory of and interest in the “great future” of greater and better integration and not a “little future” of timidity, introspection and narrow-minded nationalism.

Wealth, well-being and values, indeed. Reclaiming the good things which have been constructed up until now, reforming institutions and market instruments, improving EU institutions and organisations. The objective: Europe, despite everything.

A piece of information of which we should take particular note comes to us from one of the greatest contemporary European philosophers, Bernard-Henri Lévy, who at the end of January made an announcement in Milan, actually, from the Parenti Theatre, that he would be making a tour of Europe, in twenty venues, from 5th March until 20th May (the final venue in Paris), to talk about Europe, lead discussions, gather common opinions against populism and nationalism and arouse new hope for those who believe in a better Europe (La Stampa newspaper and the La Lettura (the reading) section of the Corriere della Sera newspaper have already devoted copious space to the initiative, which immediately secured several dozen signatures of support from a number of the leading proponents of European culture).

Henri Lévy explains: “I am going to go round to explain why Europe is a great idea, and why it is the last possible utopia for our young people and the only solution for our countries. A Europe threatened from abroad, by the attacks of Trump and Putin, and from within by those who do not believe in its values, free thinking, humanism, and representative democracy. It is threatened above all by our laziness”. The philosopher insists: “For fifty years we have assumed that Europe would have built itself on its own, but this is not the case. In France, but in Italy also, too many people are convinced that the game has already been lost. They think that Marine Le Pen is a fascist but sooner or later will win anyway. But that is not true”.

In the words of Henri Lévy, there is a warning that people need to commit themselves, and not to assume that both liberal democracy and citizen’s rights have been fully achieved, but to work with ideas and initiatives towards a complex but indispensable operation for the defence of Europe and at the same time its reform and re-launch. The question very closely concerns Italy itself, at a difficult time of recession and growing fragility for the economy and the country’s social fabric. And it is worth thinking about which European tools are best to use for living and growing. Jobs and freedom, current well-being, plans for the future. A European perspective, indeed.

An intervention by the Deputy Manager of the Bank of Italy clarifies the links between finance and economics

Credit and and development. Where the former pays attention to the needs of the latter. It is a question of rules and conduct, and hence of culture and awareness of the need for a balance that needs to be built and preserved. It is around these themes that Fabio Panetta (Deputy General Manager of the Bank of Italy) reasoned – and then wrote – in a recent intervention.

“Credit and development: constraints and opportunities for the Italian economy”, is a lucid analysis of the mutual links between two elements that influence each other and whose dynamics should be fully understood. What Panetta has written is an especially useful tool in this regard.

Panett a explains: the underlying problem is the potential conflict between financial aid and development processes, including, in other words, economic development and financial stability. This is a delicate issue, which the author examines first by retracing the main steps of recent history, then by investigating the crucial aspects of the latest credit reforms and, finally, “the measures capable of extending the offering of financial resources for companies” and thus opportunities for investment and growth.

Panetta’s conclusions are clear. “The financial system must be able to provide the resources for investment and innovation, which are the engines of development”, writes the Deputy Manager of the Italian central bank, who then adds: “Even more than in the past, we need a more articulated financial system, where markets and non-bank operators take on a growing role. It is essential that companies reinforce their capital base and demonstrate their full willingness to open up to external scrutiny and increase their operational dimensions “.In this context, technological innovation can play a crucial role, as Panetta writes: “It represents a formidable economic and social development tool. The adoption of new technologies enables financial professionals and businesses to reduce costs and improve the quality of the goods and services they offer; it can foster social and financial inclusion. We may be able to boost the growth of our economy if we were able to seize these opportunities, governing their risks. It is a commitment that concerns everyone. “And it is from this last statement that all the financial and cultural meaning of Panetta’s intervention derives, as he certainly explores a complex topic, but also manages to provide important elements to understand reality.

Credit and development: constraints and opportunities for the Italian economy

Fabio Panetta

Intervention U.C.I.D. – Unione Cristiana Imprenditori Dirigenti (Christian Union of Entrepreneurs and Executives) Emilia Romagna Group

Banca d’Italia, 2019

The latest book by Fabrizio Saccomanni explains the global economic developments of the past few years

Global risks. The concept has now become part of the everyday lexicon of entrepreneurs and  managers  but also that of ordinary people. However, it must be used appropriately and above all, its true mean and the various methods of its manifestation must be understood.

This is where reading the latest book by Fabrizio Saccomanni – “Crepe nel sistema” (Cracks in the system) – comes in.  The book has just been published and it is the result of the author’s experience with the Bank of Italy and also as Minister for the Economy and Finance and before that in institutions such as the International Monetary Fund, the European Bank for reconstruction and development, the Bank for International Settlements, the European Central Bank.

Saccomanni starts his reasoning with an observation: “The crisis was a real earthquake for the world economy and has left behind a “swarm” of political, social, economic and financial tremors, which are still under way. The structure of international cooperation, with its institutions and its rules, has been seriously compromised. Deep cracks threaten the stability of the international cooperation system. But the crisis was not a “scourge of God” due to bad luck. It was the result of errors of judgement and response on the part of the authorities in charge of economic and financial policies and politics  tout  court  “.

In other words, the legacy of the 2008 crisis has resulted in inadequate growth, unemployment, inequalities in income distribution, the collapse of public investment. The countermeasures taken by governments have been ineffective overall. The implosion of the financial system was averted, but both the structural nature of the crisis and the serious social and political consequences that it would cause were underestimated. Late, partial responses have been given, which are not coordinated at an international level, while opening the way for the commercial and financial protectionism, undermining the role and functions of the multilateral cooperation institutions. The consequence of all this, for Saccomanni, is summed up in the risk of seeing the castle of international cooperation collapse and thus see the corresponding risk of global economic system fragmentation heightened. With all the necessary consequences.

Saccomanni, painstakingly explains all this, yet with a plain and understandable language, dividing the book up into two distinct parts. “In the first – the author explains -, the consequences of the crisis management strategies” are analysed; in the second, “certain specific issues are covered”: the role of currency, that of the European Economic Union, the aspects linked to what is referred to as  fintech,  the European financial regulation affair.

The topics tackled by Fabrizio Saccomanni are not easy and are often made even more difficult (and incomprehensible) by a language that does everything possible to alienate the reader from the true understanding of what he or she is reading. Saccomanni instead succeeds in explaining the crucial steps for all of us in a clear, understandable and accurate way. Mixing economics and history, news and personal experience, the author takes the reader by the hand and leads him or her to see up close what has happened in the world in recent years. A good read for good culture (also business).

Crepe nel sistema (Cracks in the system)

Fabrizio Saccomanni

Il Mulino, 2018

Milan the seat of the European Patent Court. Its candidacy, launched some time ago by the Order of Milanese Lawyers and immediately backed by the mayor, Beppe Sala, and by the Governor of the Lombardy Region, Attilio Fontana, has obtained the official support of the Government, with an explicit undertaking by the Ministry for Foreign Affairs led by Enzo Moavero Milanesi. An important form of support, given that the decisions about the European Court depend upon the agreement of the 26 European countries which have signed up to the convention on intellectual property and on the “single patent”. This Court has a central head office, in Paris, and two specialised subsidiary head offices, in Munich (for mechanical engineering) and London (for chemicals and pharmaceuticals): it is precisely this latter one which Milan is aiming for, following the English choice of Brexit. The building which might host it is also ready: furnished premises in Via San Barnaba, next to the Palace of Justice.

The Italian claim is an authoritative one: ours is one of the largest European economies and the fourth-ranking country in the EU for the number of patents lodged. The arrival of the Court, as well as stimulating services to a major industry which are worth several hundred million Euros a year (conferences, conventions, legal assessments, scientific laboratories, local offices for international businesses keen to monitor closely the practices linked to patents), would have an obvious technical impact, in the form of a new stimulus for innovation for businesses, universities and research organisations, but would also have a strong symbolic value, by way of recognition of the role of Milan as an attractive and competitive high-tech city specifically in the world of life sciences, and as a boost to the expectations for international economic development. And it would remedy, even if only partially, the disappointment about the failure of the city to secure the head office of the EMA, the European Medicines Agency: notwithstanding a brilliant and solid dossier, Milan was beaten in a lottery by a poorly-prepared Amsterdam, paying the cost for a lack of well-directed political and governmental support. If we look at things carefully, however, particularly from a political perspective, this could be a weakness for the candidacy of Milan: the present “yellow/green” Government has certainly not spared any occasion to enter into an open argument especially with France and Germany, the two largest EU countries, and is paying the price of a degree of isolation in respect of the institutions of Brussels.

There is a widespread hope now, however, that the match for the Patent Court will be played out with intelligence and balance, in the interests of the whole of the country’s economic system.

There was an obvious echo of this match during last Saturday’s ceremony for the inauguration of the Judicial Year in Milan. Not simply, as would be natural, in the speech by the Chair of the Order of Lawyers, Remo Danovi, but in the actual report from the First Chair of the Court of Appeal, Marina Tavassi.

A report, once again, duly documented and focused on the essential questions of the efficiency and effectiveness of justice and on the fundamental relationship between the functioning of the judicial machinery and the economic and civil development of the country (a subject which, in the course of recent years, has been close to the hearts of the assiduous relationship between the Palace of Justice and the Assolombarda industrial association, on the questions of legality as a fundamental asset for competitiveness).

“Milan could be the ideal head office for the Central Court for the Single Patent”, declared Chair Tavassi, reminding everyone that the city is already the head office of a local division of the Court and that “Lombardy holds the prize for innovation in Italy and is situated in 11th position for investment in research and development, the leading Italian Region”. A prize worth underlining: “This is where 33% of national patents have been registered and where 27% of Italian scientific research, mainly quoted at a global level, is carried out, compared with a national proportion, in terms of population, which is more restricted (16.5%). The Region boasts the highest percentage of businesses which invest in research and development (49.8%). It is the same for knowledge-intensive start-ups, where there is a high level of average growth over the mid-term (6.9%, the same as Baden Wurttenberg). In this context, Milan is enjoying a period of significant buzz”.

It is indeed justice, within the positive dynamics of economic growth, which has a key role of incentivisation to play.

The rapid resolution of disputes, the dissemination of timely and efficient tools for conciliation and arbitration (the Arbitration Chamber of the Milan Chamber of Commerce is an example of increasing efficiency and a point of reference for all the Italian Arbitration Chambers), and the quality of the decisions of the Business Tribunal are all elements which have an impact on the attractiveness of Milan for international investment and for the development plans of the best businesses.

The actual timeframes for justice in Milan are quicker than elsewhere. The report by Chair Tavassi quotes data from a survey by the ministry for Justice about the performances of judicial officials in relation to civil cases, from which there emerges an average duration for an appeals procedure of 1,061 days (equivalent to two years and eleven months), double the international benchmark, whereas in Milan the average duration is 545 days, equivalent to one year and six months, even lower than the 631-day international average. Milan, a large and complex judicial district, is thus an exemplary case.

These positive results have been achieved despite a serious staffing crisis, which has been deplored once again both by the Chair of the Court of Appeal Tavassi and by the Attorney General, Roberto D’Alfonso (who also strongly denounced the risks of a growing presence of Mafia-related criminality):  we have 674 magistrates, against 773 in Rome and 693 in Naples, 2 members of administrative personnel (clerks, employees, secretaries) for each magistrate compared with the national average of 3.3 and the presence of 4 support staff per magistrate in certain judicial centres (Rome, Naples, Reggio Calabria, Palermo).

The comment by Chair Tavassi is extremely critical: “It is legitimate to ask oneself what the reasons might be for this constant lack of interest for a judicial centre which has demonstrated a maximum of commitment, which has achieved significant results, which carries out its activities in a region which is strategic for the image of the country and a driving force for its economy. Is there perhaps an intent to minimise the achievements of Milan and to reduce it to the same level of congestion and delays that are those of other judicial centres?”.

The minister, in fact, “is unaware of the urgent requirements of Milan”. The point of view is clear and explicit. The onus is now on the minister of Justice to formulate a suitable response, in terms of choices, investment and focus. The report from Chair Tavassi concludes as follows: “We know that the complexity of the judicial system and the duration of trials constitute a significant disadvantage for our country in the international context. How justice functions is actually one of the primary evaluation factors in assessing the degree of civility of a country, with important repercussions, be they for encouraging national investment, or for attracting investment from abroad”.

In the match about justice, then, matters once again go beyond the scope of the court buildings. It directly affects the world of businesses and jobs, university, the scientific community, the local administrative powers. In the justice-economy relationship too we are playing for the future of Milan, the city of innovation.

The latest book by Ignazio Visco recounts Italy’s recent past and provides an outlook for the future 

Having reliable knowledge of the progress made and what remains to be done is good for everyone, even for companies and for those who governs them. And so is thinking not only about individual paths but collective ones as well.The latest book by Ignazio Visco is a good aid in this direction.

In his latest literary effort, Visco studies those which the title itself identifies as being “difficult years”, the “hardest” – according to the author – that the country has gone through in its economic history during peace time, years marked by a double recession, the first one caused by the global financial crisis and the second by the sovereign debt of the euro zone.

Then Visco – on the basis of his being an economist and governor of the Italian central bank -, explores the causes of this long critical period, focusing on the heavy legacy weighing on public accounts, bank balances, the labour market, the structure of the production system, and he then focuses on on the challenges to face in order to make our economy more dynamic and resilient.

All the while focusing not just on the situation “at home” but also and above all “away from home”. The context in which the analysis is conducted, in fact, is the one that sees the phenomena to govern on a global scale: the increasing integration of markets, rapid technological progress, immigration, finance- these cannot be managed within the narrow national boundaries.

So there is an important indication on the whole: there can be no development in isolation.

And also an indication of the actions that can be taken: the general removal of obstacles to business activities, to innovation, to the proper allocation of resources.

Visco’s book has the great advantage of speaking clearly and precisely and above all of containing a positive outlook, which is illustrated in particular in the last pages with the analysis of the bonds between knowledge and development, between culture and progress (also economic but not just economic).”In a world that changes so unpredictably, where randomness and lack of linearity play a crucial role, which which are not, for the most part, independent of the same human decisions (…), in which knowledge is it a good idea to invest?” Visco asks, and continues: “In Italy there is certainly the need to overcome once and for all the barrier that has long separated what is referred to as the “humanistic” culture, to be valued, from the “technical-scientific” one, in which to invest. A barrier that continues to weigh in discussions on youth training”. So Visco emphasises: “Along with traditional knowledge, we now need to cultivate a new set of skills, which also serve to cope with unprecedented situations, such as exercising critical thought, the problem-solving skills, the ability to communicate.”  Technical and humanistic culture together, then, as a the right combination to overcome the economic crisis. Also a critical culture (Visco quotes wonderfully Federico Caffè who loved to recall the importance of cultivating doubt), but still global and not constrained by artificial constraints. That very culture which Ignazio Visco’s “Difficult Years” is an example of, to be read attentively.

Anni difficili (Difficult years). Dalla crisi finanziaria alle nuove sfide per l’economia (From the financial crisis to the new challenges for the economy)

Ignazio Visco

Il Mulino, 2019

Good business culture, also with a special focus on inclusion. The issue is a delicate but important one. It applies to every production site and at every level. Thinking about this would do everyone good. Reading “Il  Disability manager  e le competenze di  tutoring a sostegno dell’inclusione lavorativa” (The disability manager and the tutoring skills to support working inclusion) co-written by Valeria Friso and Silvia Scollo (University of Bologna) may be a good way to investigate a difficult topic yet topical issue.

The research, published recently in Rivista Formazione Lavoro Persona (Personal Occupation Training Magazine), examines the role and status within the business organisation of the  disability managers, i.e. those figures who have the task of facilitating the occupational inclusion of disabled people.

The analysis, however, starts with the examination of the legislation in force and then quickly moves on to the role of the  disability manager  and his/her role as  business tutor  for the resolution of problematic situations.

The following is stated at the beginning of the book: “Having always been linked to productivity, the business world can wonder about the forms and methods of supporting the inclusion processes. Globally there is a school of thought placed within the broader context of  Diversity  Management , which came about during the Eighties in the United States, and referred to as  Disability  Management . It aims to manage the diversities that exist in both public and private organisations in order to develop an environment that is conducive to productivity among all workers. ” Perhaps this is a complex goal to achieve but in fact it is well within the reach of all production organisations provided they review “a company  governance  set-up that not only concerns changing some individual behaviours, through training activities for learning different practices or different languages, but which should involve the company’s culture, which underpins the evolutionary lines of the business structure”.

The article by Friso and Scollo therefore studies the figure of the  disability manager  as that particular figure who is capable of matching disabilities with business productivity needs, all in a context that manages to comply with both situations.

These issues are also and above all about production and organisational culture, which somehow need to be reviewed and revised. So the two authors concentrate on these very aspects, pointing towards the need to educate and inform, to ensure there is an understanding of what the most appropriate paths to take are. And it is at this point that light is shed on the role as  company  tutor of  disability manager,  meant as a “designer of inclusive and training programs, as well as a facilitator whose task it to mediate between the characteristics of the individual and the company’s requirements.”

The research by Valeria Friso and Silvia Scollo brings to the fore a complex picture, but also a promising one with regard to the relationships within production organisations, where, nevertheless, the role of better and more advanced business culture plays a decisive role.

Il Disabilty manager e le competenze di tutoring a sostegno dell’inclusione lavorativa (The disability manager and the tutoring skills to support working inclusion)

Valeria Friso, Silvia Scollo

Rivista Formazione Lavoro Persona (Personal Occupation Training Magazine), Year VIII, no. 25.