Piaggio is a group distinguished today by a strong international presence, but which has exported a business model targeting innovation and a strong link with the places where it operates, and a philosophy of doing business characterised by strong social responsibility: a culture of safety, respect for people and the protection of natural resources are a common theme throughout the Group.
The Group's conduct is guided by the principles and values set forth in the Code of Ethics, which all Group staff, and all those who interact with Piaggio throughout the world, are required to observe. The values contained within the Group’s Code of Ethics are consistent with the 17 Sustainable Development Goals (SDGs). We are aware that to be able to successfully work in the global market a precise environmental policy needs to be at the centre of our business model which is in line with the needs of the communities where we work and helps their economic and social development.
Sustainable Development Goals
On 25 September 2015, the United Nations, together with governments, institutions and civil society, adopted 17 sustainable development goals (SDGs), outlined through 169 milestones to be achieved by 2030 in order to fight poverty, protect the planet and ensure prosperity for all. These goals are interconnected and indivisible, and balance the three dimensions of sustainable development: economic, social and environmental. The SDGs are common objectives which apply to areas that are fundamental to ensuring sustainable development throughout the world, such as combating hunger and poverty, protecting resources, promoting responsible consumption, providing access to education and reducing inequality of all types. These are shared goals, meaning that everyone (countries, institutions, individuals) is required to contribute to achieving them. As such, companies must also play an active role; their own resources and skills can have a fundamental impact on the achievement of the overall goals.
Piaggio believes that SDGs represent an opportunity for and an approach to steer the Group's future development. Piaggio knows its activities can contribute to achieving the following SDGs:
3. Good health and well-being
5. Gender equality
8. Decent work and economic growth
9. Industrial innovation and infrastructure
11. Sustainable cities and communities
12. Responsible consumption and production
The Group’s objectives include creating value for all shareholders, while complying with ethical business principles and adopting a number of key social values.
Specifically, the Group’s industrial strategy is founded upon technological innovation, which in turn is focused on environmentally-friendly mobility.
In this context, the Group considers research into cutting-edge solutions as a critical factor for successful investment choices and industrial and commercial initiatives. Innovation is geared to cutting pollutant emissions and consumption, as well as increasing vehicle safety. Furthermore, Piaggio Group strongly believes that stakeholder engagement is one of the fundamental elements in the development of Piaggio and the communities where it operates, both in terms of economic success and social wellbeing.
Safeguarding the environment while carrying out all company operations is essential for humankind, technology and nature to coexist peacefully. The Group therefore makes sustainable products, which must be manufactured using production facilities with minimal environmental impact. Production systems are made sustainable through optimising process efficiency and converting facilities that are no longer competitive.
In particular, the environmental strategy for the Group's production sites is designed to promote a more rational use of natural resources, and to minimise harmful emissions and waste from production.
People are fundamental for Piaggio. They are vital to creating added value in the long term. The Group has defined objectives for the growth, promotion and training of human resources, ensuring that each person is rewarded for the contributions they make and that their expectations and goals are met.
In order to achieve the objective of sustainable development, growth must go beyond the boundaries of the company. It must go further afield to reach suppliers and dealers, with whom Piaggio wants to cooperate being a reliable partner, forging a common ground to work and grow together, to create value for the end customer. The success of a company over time is closely linked to customer confidence and satisfaction: customers must be listened to, informed and respected, establishing relations based on transparency and trust.
Piaggio’s Corporate Social Responsibility Model
The Group's Corporate Social Responsibility (CSR) strategic objectives – which are largely integrated with and connected to the development of the long-term plan – are based on the following areas:
- Timely, correct, in-depth information to stakeholders.
- Creating value while respecting business ethics.
- Technological investments to meet the need for sustainable mobility.
- Innovation to develop products that are environmentally friendly, safe and cost-effective.
- Reducing energy consumption.
- Reducing emissions of CO2 and other pollutants.
- Conserving natural resources.
- Waste handling and recovery.
- Developing, training and promoting human resources so that everyone's expectations and aspirations are met.
- Listening to and assisting customers, to establish relations based on transparency and trust.
- Selling products that are environmentally friendly, reliable, safe and cost-effective.
- Working together with suppliers, through jointly developed projects.
- Engaging and supporting local communities through social, cultural and educational initiatives.
In achieving its own strategic goals, the Piaggio Group is fully committed to complying with the laws and regulations of the countries where it operates, condemning corruption and respecting human rights.
Generation of sustainable value
The organisational structure of Piaggio Group analysed through the application of the model of the value chain theorised by Prof. Michael Porter in 1985 is the following:
Each primary company function, in carrying out its own activities, seeks to create value for all shareholders, while complying with business ethics and adopting a number of social values. Specifically:
- the Product Development Departments oversee activities focussed on the technological innovation, design, engineering, reliability and quality of vehicles;
- the Product Development and Marketing Department identifies market and customer needs and technological innovation opportunities;
- The Marketing and Sales offices perform product advertising on the market and manage the sales process, strictly following the rules established by Italian Institute for Self-Regulation in Advertising;
- the Manufacturing Technologies Department manages infrastructure and plants and guarantees the use of the best production technologies, aiming to reduce consumption and emissions and achieve a responsible use of resources;
- Logistics seeks to maximise the efficiency of activities to manage the flow of incoming and outgoing tangible goods;
- After-sales service for customers is performed with the care and competence necessary to guarantee one of the highest service standards on the market.
Support and procurement processes
Support processes do not directly contribute to creating output, but are necessary for its production, and comprise:
- Procurement: all activities for the purchase of resources needed to produce output and for the organisation to function.
- Management of human resources: recruitment, selection, hiring, training, teaching, updating, development,mobility, remuneration, rewards systems, trade union negotiations and collective bargaining, etc.
- Infrastructure activities: all other activities including accounting, finance, planning, IT systems, legal affairs, etc.