The live-streamed teaching courses of Pirelli Educational Foundation are fully back online, reaching out to schools across all Italy. The huge participation in the first months of the school year is continuing with more than 70 meetings already booked, with insights into the history of the company, its technologic innovations, the manufacture of tyres, and big-name advertisements.

The last of these subjects is examined in Storia e futuro di un manifesto (The History and Future of a Poster), a course that examines Pirelli’s advertising campaigns, in which students are asked to bring to life and give a new twist to the works of the most important artists who have worked with the company.

In this video clip, you will see a selection of the students’ creations.

To find out more about all our educational courses, to register, and to receive more information, please visit the dedicated section of the site or write to scuole@fondazionepirelli.org

Indeed, “The roaring 20s?” is the title on the cover of the latest issue of The Economist, which contains an editorial piece and an investigation into everything in the world that is heading “towards a new era of innovation”. The question mark that appears after the “roaring Twenties” title speaks volumes about the problems, limitations and uncertainties that we are all faced with, in the midst of a Covid-19 pandemic which continues to claim lives and a recession that is still having a marked impact on the economies of the world, with very few exceptions. It is common knowledge that crises also present opportunities. And indeed The Economist reminds us that “pessimism about technological change is giving way to hope – much of it justified”.

But it is equally true that the technological shifts that are currently underway – as we head towards a digital economy and embrace the decisive role that AI has to play in production processes, the service sector and so many other areas of our lives (from health to schools, and from culture to research) – have many far-reaching social consequences, on work and on incomes, and as such, these changes call for a high-quality political and governmental strategy in order to prevent (or at least diminish) inequalities both old and new, whilst taking full advantage of the opportunities these advancements offer. The outline of this strategy is still not well-defined, particularly here in Italy, during these tumultuous days beset by government crises and unconvincing answers on the issue of recovery, promises aside.

The cover of The Economist refers to another time of dynamic and dramatic social conditions: the 1920s, just a century ago (Paolo Di Paolo has dedicated a fascinating and unsettling book to this comparison, which is both well documented and very well written, entitled “Svegliarsi negli anni Venti” (Waking up in the 1920s), Mondadori, where he recounts the “changes, dreams and fears from one century to another”). Back then, we were just emerging from the Great War, reeling from the devastating effects of the new technologies that had been engaged in military conflict (cars, planes, sophisticated mechanics for weapons, advanced chemistry and physics for poisonous gases and bombs), yet full of hope for radical economic and social change, amidst the euphoria of the Belle Époque era, and the revolutions that were announced and started. However in the absence of forward-thinking policies designed to bring about reform and create a better economic and social balance, the world rapidly plunged into the Great Depression, which began in 1929 after the Wall Street crash and spread across the world, as large parts of Europe fell prey to Fascism, while Soviet Stalinism grew and people floundered in the anguish caused by new imbalances, until the disastrous outbreak of the Second World War (Keynes is worth rereading to gain a really good understanding).

Today, the imbalances and dramatic tensions we face are different, and in order to address the crossover between the pandemic and the recession, we must again look to politics, insisting on clear and effective answers. By choosing Joe Biden as the next President and ending the inauspicious reign of Donald Trump and his extremist nationalism, the USA has done just this (although the economic and social wounds are still gaping, of course, waiting to be patched up). And the EU too, with its Next Generation Recovery Plan for the green and digital economy – or in other words, for the environment and innovation, and with the expansive decisions made by the ECB, has provided key strategic indications. Elsewhere, the positive evolution undergone by public opinion as a whole, as it shows its sensitive, responsible side, is visible in many arenas, from Pope Francis with his appeals regarding the importance of creating a “just economy”, to the young people dedicated to fighting climate change and the increasing focus of the world of economics and finance on stakeholder values (or rather the prioritisation of the interests of people and communities, as opposed to the historic obsession with putting profit first at all costs). How do we move forward, then, so that the “new era of innovation” does not end up being a wasted opportunity for change?

We have entered a new era of greater public spending; the 1.9 trillion USD announced by President Biden as an emergency investment in the US economy serves to confirm this. The same goes for the 750 billion Euros earmarked under the EU Recovery Plan, while China continues to inject public money into the economy, making a decisive contribution to the country’s GDP growth of 2.3% in 2020, with a long, strong bounce-back expected for 2021. We’re getting into debt, for the future. And it’s the right choice to make. Provided we know how to distinguish between “good debt” and “bad debt”, as Mario Draghi urges us to do – “good” debt being that incurred for investments that can stimulate economic growth and bring about structural improvement to our quality of life and work, and “bad” debt being that related to welfarism, subsidies and the unproductive current expenditure.

And this is where the core of the issue lies – an issue that the Italian government has so far proved unable to solve; developing the Recovery Plan properly will enable us to use the 200 billion-plus Euros made available by the EU in a productive manner, along with the financial resources that have been “freed up” by the possibility of increasing our debt whilst enjoying the coverage of the ECB. We have seen financial relief, bonuses and subsidies, all of them more or less effective in coping with the emergency posed by the drop in GDP and incomes. But, at least so far, there is no policy focusing on reform and investment, containing clear measures, effective and detailed plans, deadlines that must be met, and reforms that need to be implemented. And now the feeling of concern is more tangible than ever, even within a public opinion that is frightened, lost, exhausted and undergoing a crisis of confidence.

The government has now promised that it will finally get down to writing a good Recovery Plan, following the indications provided by Europe on investments, the environment, innovation, research, training and radical reforms of the bureaucracy and justice systems, as well as claiming that it will make up for lost time. We shall see. Now it is down to the most responsible political and social forces and to public opinion to ensure that this opportunity is not thrown away, and that we stop wasting time.

The new Pirelli Foundation and Fondazione ISEC training course for teachers is ready to go.

Cinema & History, the free training and refresher course for secondary school teachers, organised by the Pirelli Foundation and Fondazione ISEC, is back again this year, now in its ninth edition. The course, which consists of six online events, focuses on Europe, from its creation to the events of the year that has just come to an end, which have forced us to take a new look at its borders, raising some questions about the role and prerogatives of the European Union.

“Europe is Us: Politics, Economics and Society from the Origins to Globalisation” is the title of the course, which will provide the tools needed for a better understanding of Europe in a variety of diachronic approaches, examining the history of ideas, of political and economic history, and of culture. The meetings will also be an opportunity to think about citizenship in terms of multiple and supranational rights, duties and affiliations.

The first five lectures, which will be held on Mondays from 4 to 6 pm, with the first on 22 February 2021, will include some films presented and commented on by representatives of the Beltrade cinema in Milan. Students will be able to stream the films.

The course will end with a sixth event, a workshop devoted to the use of audio-visual sources for teaching, put on by the Archivio Nazionale Cinematografico della Resistenza in Turin.

Registration for the course is free but required. Please write to didattica@fondazioneisec.it by Friday 19 February 2021. The meetings will be live-streamed on the Microsoft Teams platform. For further information please write to scuole@fondazionepirelli.org.

A thesis discussed at the Politecnico di Torino helps to lend a sense of order to a complex and often opaque theme

Ethics for better business management, and in order to transform a straightforward production organisation into something broader (and more complex). Business culture that succeeds in moving up to the next level. Without forgetting the need to ensure that the accounts are in order, and that production is efficient, of course.  The issue of business ethics is complex, and must be addressed with care. Lorenzo Carucci has done just this with his thesis – as discussed at the DIGEP (Department of Management and Production Engineering) at the Politecnico di Torino – which goes so far as to offer “a universal code of ethics” designed specifically for start-ups.

“La pratica della Business Ethics: codice etico per le startup” (Business Ethics in practice: a code of ethics for start-ups) bases its argument on the idea that “today it is of fundamental importance for companies around the world to standardise and align their ‘ethical’ and sustainable growth goals of organisations with those of the nations in which they operate”. In addition to this, Carucci believes that these companies must “bring their strategies and operations into line with the universal principles regarding human rights, labour, environment and anti-corruption, and to take actions that promote” these goals within companies.

As such, ethics is presented as a business management tool of the same calibre as the standard management principles in companies, and something to be considered alongside corporate social responsibility, which is now seen as an essential element of any business strategy.

After going back over the history and theory of business ethics, Carucci then goes on to offer up a universal code of ethics for new companies, seeking to bring these into line with the United Nations, with a particular emphasis on collaboration and innovation. He then goes further, clarifying that “business ethics is also about creating an ethical working environment within the organisation, as well as modelling ethical behaviour through leadership”.  Without forgetting the need to introduce ethical principles into corporate behaviours that have closer links with finance and business administration.

Lorenzo Carucci’s research has the merit of condensing a controversial subject that can sometimes be tricky to understand into a short text.

La pratica della Business Ethics: codice etico per le startup (Business ethics in practice: a code of ethics for start-ups)
Lorenzo Carucci

Thesis, Politecnico di Torino, DIGEP (Department of Management and Production Engineering), Master’s Degree in Management Engineering, 2020

The story of Engineering, from technology and institutions to strong personalities

Learning about good corporate culture from the stories of others – by no means a new task, but one that is nonetheless important. Because practice rather than theory is the key to grasping the meaning, motivations and the steps that constitute an entrepreneurial and managerial approach that makes a company so much more than an organisation created in order to produce, and to make profit. This is the case of the story of Engineering – Ingegneria Informatica SpA, as recounted in a book by Nicola Melideo.

“40 anni di engineering. La storia di un’impresa italiana e delle persone che l’hanno costruita” (40 years of engineering: the story of an Italian business and the people who built it) is the well-written tale of one of the leading ICT companies of recent decades, and it is a story with two sides: on the one hand, it represents an important account of work and of humanity, while on the other, it is a book that addresses the ability to unite the story of a business to that of an entire sector – IT, in this instance – that has transformed the world and itself over the last 40 years.

The company in question was founded in 1980 as a software house, with a view to taking up the challenge posed by Olivetti – namely that of being an IT company with an Italian head and heart and multinational legs and arms. A journey that, as we have said, began when the computerisation of Italy first started – taking its first timid steps in a sector that immediately proved to be both complex and highly competitive – and which brings us to the present day, in which Engineering is now a “global player” in the sector with 65 offices around the world and more than 12,000 employees. However, the company is very different from the one imagined at the start of everything.

The story the book tells, however, is more complex than it may first appear; in it, the development of the company is intertwined with that of the country, but also with the lives of the strong-minded individuals who have worked within the business over the years. It is a story that is also littered with divisions and defeats, although these are always accompanied by the “sense of being part of an enterprise”, a feeling that makes all the difference. And at a certain point, this feeling almost seems to imbue the company a life of its own, beyond that of the individual personalities working there. The end of the story for Engineering is certainly different to the one we might have imagined at the beginning of the book;

indeed, Melideo’s work is more than the standard (and somewhat predictable) story of a business, but rather something more complex, and thus more useful to read.

40 anni di engineering. La storia di un’impresa italiana e delle persone che l’hanno costruita (40 years of engineering: the story of an Italian business and the people who built it)

Nicola Melideo

Guerini Next, 2020

A book by Branko Milanovic, which has just been published in Italy, summarises the history and future of the current approach to the organisation of production

Understanding the context in order to act in a better, more effective manner: this is one of the fundamental tasks of any shrewd entrepreneur or good manager. It’s certainly nothing new, but it nonetheless always bears repeating, making use of tools that, from time to time, might come in useful. This is the case with “Capitalismo contro capitalismo” (Capitalism, Alone), a book written by Branko Milanovic and recently published in Italy.

The volume covers five chapters, and compares the two types of capitalism in operation in the world today: the “liberal-meritocratic” system seen in the West, and the “political” version of China in particular. A kind of world dominance by these two forms of organisation of production, which the author attributes to a single reason: capitalism works, it produces prosperity and gratifies the human desire for autonomy. Milanovic, however, immediately points out the cost of all this, driving the “pursuit of material success as the only goal”. Not to mention the lack of any form of “guarantee of stability”.

As such, a considerable chunk of Milanovic’s book is devoted to an in-depth examination of the characteristics of the two forms of capitalism, as the author draws upon his twenty years of experience as head economist in the research department of the World Bank.

But Milanovic’s book is more than this. Indeed, he attempts to answer a crucial question: now that capitalism is the only system that governs us, what are the real prospects that can provide humanity with greater fairness and equity and promote the sustainable growth of the planet?  Milanovic’s answers are not necessarily those one might expect, and begin with the irreplaceable role of the choices that the “human system” will be called upon to make. The author then goes on to outline the possibility of achieving a “popular or egalitarian capitalism”.

Milanovic’s book has the enormous merit of having been written and translated in clear, transparent language, despite the fact that it deals with complex and important issues, not only for the production system but also for anyone who wants to gain a better understanding of the world in which they live and work.

Capitalismo contro capitalismo (Capitalism, Alone)
Branko Milanovic
Laterza, 2020

A thesis discussed at the University of Padua clarifies the links between the environmental compatibility of the economy and finance

A corporate culture that is also an environmental culture. “Industrial” products that are manufactured with a focus on the environment, with an awareness of the way in which they impact nature and their consequences that go “beyond profit”. This includes a sensitivity towards nature in entrepreneurs and managers. While still not a daily reality, these issues are taking on ever greater importance. We can gain a sense of what is currently happening by reading the thesis discussed by Pietro Acerbi at the M. Fanno Department of Economics and Business Sciences at the University of Padua.

“Investimenti ESG: la svolta sostenibile del settore finanziario” (ESG investments: the sustainable turnaround of the financial sector), makes its intentions clear right from the title: it is a study of the links between the financial component of the economy and environmental sustainability through investment.

The author explains: “Issues linked to climate change and the environment are playing an increasingly important role in every area of our lives, changing our choices and behaviours. Legislators and leading economic players can no longer ignore the devastating impact that the uncertainty linked to climate change is having on the world economy.” Up to this point, this summarises what any attentive observer already knows. Acerbi, however, builds on this, emphasising the crucial role that the “world of finance” has to play, as a “catalyst” responsible for guiding capital towards economic bodies that pay greater attention to environmental compatibility. The goal of Acerbi’s research, then, is to “investigate the new and growing link between the financial sector and environmental sustainability.” He goes on to say: “The overarching theme will be the decisions taken by various national and international institutions in order to implement the transition to a low-carbon and thus greener economy.”

His thesis builds upon an analysis of the Action Plan launched by the European Union, the first real step towards integrating environmental factors into the financial field. Following this, the research focuses on how the Bank of Italy is altering its investment choices in favour of selection criteria that take ESG factors into account – ESG stands for environmental, social and governance. The last section of the paper considers the response to climate change that may be supplied by the various monetary authorities – i.e. central banks – in the future, by means of the instruments of monetary policy.

Pietro Acerbi’s synthetic work succeeds in successfully and clearly illustrating a theme that is constantly evolving, in which cultural drivers are combined with more strictly economic motivations. It’s definitely worth a read.

Investimenti ESG: la svolta sostenibile del settore finanziario (ESG investments: the sustainable turnaround of the financial sector)

Acerbi Pietro

Thesis, University of Padua, M. Fanno Department of Economics and Business Sciences, Master’s in Economics, 2020

Now must be “a time for builders”, maintained the President of the Republic Sergio Mattarella in his message to the Italian people for the new year. We are still in the depths of the Covid-19 pandemic, with its daily roll-call of contagion and pain, worry and death. The economic crisis is causing enormous suffering, and in the spring, when the wild and unbalanced parachute jump represented by the redundancy freeze ends, we will see the consequences of another million job losses, while already being punished by the closure of tens of thousands of companies. The most recent data (from Moody’s) shows a 9% drop in Italy’s GDP in 2020, and predicts a rebound of 5.6% in 2021; it appears that we will have to wait until 2022 at the earliest to get back to pre-crisis economic levels (France and Spain are in the same boat). And for Europe as a whole, the economy will be “slow, erratic and fragile” this year. Fragility is the marker of a difficult era. But, to quote Bob Dylan, “the times, they are a-changin’”. Or, to be more precise, the times could and should change. Indeed, now is the “time of the builders”.

In fact, vaccination has already begun – albeit with all the initial stumbling blocks, from errors to incompetence, uncertainty and controversy. But between late summer and early autumn, enough Italian people will have been vaccinated that we will be protected by the so-called “herd immunity”. Various doubts still remain as to the duration of protection offered by the vaccine, the residual contagiousness of Covid-19 and its variants, and the measures that will be made permanent as good habits (wearing masks, avoiding overcrowding, ensuring that there are well-established treatments in urgent cases), but the vaccine remains a real turning point. We can begin to rebuild the fabric of trust, and to think about the future, without the nightmare of death everywhere we look.

The second pillar of trust is the EU’s “Next Generation” Recovery Plan, which places 200 billion euros and more at Italy’s disposal, to be invested in funding a radical renewal of the Italian system, as part of an ambitious period of reforms under the dual banner of the green economy and the digital economy – or in other words, environment and innovation – with the changes needed to achieve those objectives: the areas targeted will include the public administration, justice, training, research, tangible and intangible infrastructures (beginning with 5G, which will prove crucial in the digital transformation that will affect industry and services, health and work, schools and culture). And indeed, it is right here that Mattarella’s admonishment takes on the greatest political and institutional significance.

Indeed, the government and political forces in general have so far demonstrated a worrying lack of vision with regard to the contents of the Recovery Plan, along with a number of serious shortfalls in defining the concrete projects that will constitute the basis of the EU funding due to be provided. For a long time, within the four walls of the rooms of Palazzo Chigi and in the circles of government majority, the prevailing logic was more typical of an “economy of subsidies” rather than a strategy characterised by innovative investment; a passion for “bonuses“ and “relief” that overshadowed the need to formulate clear ideas on where investment should be directed, and on how to enable and subsequently verify step by step the process of implementation.

The results of all this have given rise to a real risk of projects falling victim to corporate and welfare-related deviation, along with a sluggishness in governance decisions that has been of great concern to EU leaders, the Quirinal Palace and the most responsible figures in the economic, entrepreneurial and social spheres, where there is an acute awareness of the unrepeatable nature of the conditions under which these resources are being made available, as well as of the political drive to transform Italy and strengthen Europe.

The threatening shadows of the government crisis have not helped to date, and continue to hinder progress.

Public opinion is increasingly restless and perturbed, with a growing sense that we are running the risk of wasting a crucial opportunity for renewal and growth, and of finding ourselves prisoners of a gargantuan public debt without having rolled out the reforms necessary to relaunch growth and development, and thus repay this debt and ensure a better future for our young people. Indeed, these young people are the “Next Generation” that Europe is focusing on, a generation that we must categorically not sacrifice as a result of the ignorance of a large swathe of our ruling class.

Today’s urgent challenge is to define the terms of the Recovery Plan, in a concrete and lucid manner. The goal is to ensure that we know how to be “builders of the future”.

New developments in the international arena can also serve as a stimulus and a source of help. The new Biden administration in the White House is set to usher in a new era founded upon the revival of multilateralism, in a more relaxed climate – albeit one still full of tensions – following the disasters that have characterised the turbulent years under Trump and the overbearing sovereignism of “America first”. And the re-evaluation of the historic Atlantic axis, of the privileged relationship between the US and Europe could help to improve international relations, giving the EU a stronger sense of function and balance. The wound of Brexit remains raw, with serious consequences, particularly for the United Kingdom. Elsewhere, tensions remain high in the restless Mediterranean, with pressure arriving from both Turkey and Russia. But in spite of everything, we are entering an era in which diplomacy will play a more central role, and the overbearing assertiveness of national leaders will fade into the background.

Europe is the second positive change we are seeing; a Europe with a greater awareness of its political responsibility, with a greater belief in the need to take charge of public investment choices in order to emerge from the pandemic and the recession together; as well as the need to lend a practical and moral structure to its system of values, as a union of states of liberal democracy and newly inclusive welfare, with a particular focus on young people, the environment and the future. It is a key player in the “paradigm shift” that is moving us towards greater environmental and social sustainability, with regard to which Brussels and Washington must make ambitious joint choices, in order to assert their stance against the rest of the world. In symphony with the message of Pope Francis, and his “just economy”.

The crisis of sovereignism and populism represents the political, cultural and ethical axis upon which we must try to base our progress. The cornerstones of civil development are also there in the Quirinal’s exhortation to embrace this “time of the builders”, the point from which we began. The time for “builders of the future”. And it is precisely this symbolic thought which – as Ernest Cassirer, one of the greatest philosophers of the 20th century, taught us – “can help us to overcome the inertia that weighs us down, and to find the energy to transform the bad present.”

The launch of the 2020/2021 Pirelli Foundation Educational project was an occasion to remember. Devoted to primary and secondary schools, it came in a fully digital form.

Between October and December, more than 1000 students logged on from all over Italy to take part in live online courses. They went on virtual tours, carried out workshop activities and, with the support of the teachers, they continued their studies with the in-depth analyses provided.

We examined how technological research and study is required for making a tyre, and we made the acquaintance of the top international graphic designers of the twentieth century who helped create Pirelli advertising campaigns that made history. We travelled all the way to rubber tree forests in Southeast Asia and we ended up going on a virtual walk through a smart city and entering Gio Ponti’s masterpiece building, the Pirellone.

We end the first part of this school year with an example of the activities we have carried out: a video clip of the works created by the students of the Liceo Scientifico Corradino D’Ascanio in Montesilvano, in the province of Pescara. Here, the students took inspiration from the artists’ sketches that they had studied during the History and Future of a Poster course, and created real animations, giving a contemporary twist to the posters by Bob Noorda, Riccardo Manzi and other great designers.

The courses are now taking a short break, but a whole lot of other classes, which will convey the core values of Pirelli’s corporate culture, have already been booked for January.

Thank you, all of you, for taking part. We look forward to seeing you in 2021 with Pirelli Foundation Educational.

A book from the USA explains why business should also be seen as a positive feature in society

Business is neither good nor bad. It’s just business. It can have considerable positive traits, even when it is managed solely on the basis of profit. It’s a question of management strategies and, above all, of the men and women at the helm. This is certainly an interesting way of looking at production organisations and should be done, even if it can lead to unexpected results.

That’s why it is interesting to read “Big business. A love letter to an American Anti-hero” by Tyler Cowen, professor at George Mason University and a columnist for the New York Times. The author writes in clear and engaging language “in defence of business, to convince you that it deserves more love and less hate”. Based on an analysis of American companies, the text aims to make the reader think by debunking a series of preconceptions (sometimes based on real data, sometimes not) that undermine the credibility and good name of businesses (with a particular focus on the USA).

The reader is led to consider issues such as the honesty of production organisations, the remuneration of CEOs, the monopolies held by big business, the significance of Wall Street and the relationship between business and politics. On closer examination, Cowen’s argument is that business is “a better deal than it seems: in fact, when business is at its best, it provides us with more opportunities to pursue noble and heroic goals, because we can use the products of business to satisfy our creative desires and improve our lives”. Nevertheless, Cowen helps to provide a better understanding of the reality. In some passages he raises more than one question, but his words are certainly worth considering and remembering.

“Many of the problems relating to business are actually problems relating to us, reflecting the inherent, almost universal imperfections of human nature”, writes Cowen, for example. Sharing and stimulating is one of the final passages of the book. According to the author, this describes the essential aspects of his vision of a company made up of a “set of assets, brought together at advantageous purchase prices”, but also a “nexus of internal and external reputations and procedures”, as well as being “a vector of responsibility” and “a complex band of efficient and sometimes very inefficient transactional relationships”.

Cowen’s book is clearly “biased”, but should be read with care, and perhaps read again at a later date.

Big business. A love letter to an American Anti-Hero

Tyler Cowen

LUISS University Press, 2020