Foreign management positions may not find Italy appealing
In a recent analysis presented at the conference The Power of Sustainable Business in Milan, it was revealed that Italian companies demonstrate a strong and growing commitment to environmental sustainability, often integrated with social responsibility. However, challenges remain in fully addressing the social dimension, particularly when compared to foreign companies.
The survey results, conducted by AstraRicerche for Manageritalia and Kilpatrick, interviewed over 500 Italian managers living and working abroad. The analysis focused on their perspective regarding sustainability in Italy compared to abroad.
Italian firms are actively pursuing ambitious sustainability strategies, emphasizing climate action, decarbonization aligned with science-based targets, circular economy principles, and responsible natural resource use. The Italian food sector, including B Corp-certified companies, leads in regenerative agriculture, biodiversity protection, and sustainable business models, reflecting a solid environmental commitment.
However, the social dimension, which includes employee well-being, is still the most challenging to report and embed holistically in corporate sustainability strategies. Italian managers abroad note that the social aspects, such as transparency around working conditions and employee health, are often less developed or clearly articulated than environmental ones.
Empirical research on Italian companies shows that the social dimension is still the most difficult to report and embed holistically in corporate sustainability strategies. The same study comparing Italian and French large companies found that while environmental impacts are widely acknowledged and reported, social effects lag, suggesting a pattern seen also in Italian firms compared to foreign counterparts that may have more advanced social sustainability frameworks.
Recent regulatory actions in Italy against fashion companies for misleading sustainability claims—including social responsibility related to supplier working conditions—highlight ongoing gaps between environmental promises and social/employee-related realities. Such fines suggest Italian companies still face challenges aligning ethical claims with actual social practices.
Italian managers working abroad often perceive that foreign companies, especially in northern Europe and North America, place a comparatively stronger emphasis on employee well-being as an integral part of sustainability, including more transparent reporting, active stakeholder engagement, and adoption of global social standards.
In summary, Italian companies are generally at the forefront of environmental sustainability within their sectors, often exceeding foreign counterparts on climate and circular economy initiatives. However, when it comes to employee well-being and social sustainability, Italian firms (including those led by managers abroad) tend to emphasize these areas less and face more challenges in full disclosure and action compared to many foreign companies, though efforts to improve are ongoing.
References:
- Leonardo's Sustainability Report
- Italian Food Sector's Commitment to Sustainability
- Italian Fashion Companies Fined for Misleading Sustainability Claims
- Empirical Research on Italian Companies and Sustainability
- Comparative Study of Italian and French Large Companies and Sustainability
- In the context of sustainability, Italian firms are making significant strides in environmental initiatives, such as climate action, decarbonization, and circular economy principles, yet the social dimension, including employee well-being and transparency around working conditions, often requires more attention and holistic embedding in corporate strategies, as observed in interviews with Italian managers living abroad.
- While Italian companies demonstrate strong commitments to environmental sustainability, the social sustainability aspects, particularly employee well-being and transparency around working conditions, are often less developed than their foreign counterparts, as suggested by empirical research comparing Italian and French large companies, and revealed in regulatory actions against Italian fashion companies for misleading sustainability claims related to social responsibility.
