The new role of companies

The price of inactivity in Italy has been much debated for several years, and is estimated to reach approximately €600 billion between now and 2030. This is due to the lack of strategic infrastructure, or to the failure or inadequacy of developing it, from typical substructures such as roads, railways or logistics to 2.0 infrastructure such as super-fast connections.

There are exceptions. Snam’s experience, for example, is different. We think of ourselves as “experts in getting things done”: we make €1 billion worth of investments every year and have 1000 open worksites and 2000 suppliers. We operate across all of Italy: in the 5-year period between 2017-2021, we will invest over €1 billion in Southern Italy. Over time we have become experts in “getting things done well”, partially thanks to the corporate governance and compliance best practices we adopted. In 75 years, we have laid over 32,000 km of gas pipelines across Italy without experiencing any major problems.

Today, however, we witness change. Society is increasingly engaged and less trusting of so-called elites - authorities, institutions, the press, experts and businesses.

True, this trend is visible in Italy and many other European nations like Spain, Germany and the UK, and is certainly a major factor in the US. This ‘disintermediation’ of decision-making figures certainly represents an awkward development for those seeking to achieve projects because it makes it harder to reach consensus and build infrastructure.

Is this widespread participation a problem?

It also represents an opportunity. The active participation of a greater number of people in decision-making processes is the best way of ensuring a functioning democracy and a fair distribution of wealth in the economy. This new trend will be good news for those who are able to do business by directly involving these new social forces.

How should businesses prepare themselves to succeed in this new context?

In order to progress in this new context, businesses must be correctly equipped. They must firstly strengthen their communications, acting not as figures of authority but as entities willing to listen. They must also consolidate their relations with the local area to understand how to reconcile the shareholders’ interests with those of local communities. They must also find a way of restoring the trust that has been lost, forging relationships that go beyond mutual short-term requirements. A key aspect in this regard is fairness in the labour market, a highly topical concept that must be revisited in this incredibly fragmented and polarised context.

Does one work better in a fair environment?

Within a company, the perception of a fair environment generates energy, collaboration and creativity; it can enable people to work together in a more fluid way - essential at a time of such rapid technological discontinuity - and to obtain results that no bonus will ever guarantee. I find this to be an extremely interesting point because the difference between team players and demotivated workers is everything. The work and quality of people is an increasingly decisive factor when it comes to the long-term success of our companies and of the entire economy.

How is a fair company perceived externally?

Within a company, fairness also plays a key role in constructing or rebuilding trusting relations with local communities. A fair company is one you can count on, that will take into account what is right, and not just what is easy, profitable and quick, when making decisions that influence local communities and the environment.

This is all true, but could you please give us concrete examples of fair behaviour from companies?

We work on multiple fronts at Snam to consolidate our ability to achieve outcomes.

• We strive to combine excellence in our core business through R&D initiatives supporting the role of gas in the country’s decarbonisation, with the strengthening of our dialogue and relationship with the community. We have recently created the Snam Foundation, which will promote initiatives for the communities in which we operate. 
• We place a great deal of importance both on our expertise and that of our stakeholders. For example, we have launched a school work experience programme that will involve around 500 pupils from secondary schools all over Italy, with a particular focus on the South.
• At Snam we often meet our suppliers and try to help them in their activities. We are also creating an Academy, a centre of excellence for managerial and technical training that will involve our partners.

Does all of this pay off?

Our observatory suggests that businesses which invest in people and innovation are more likely to be successful, while those that pay closer attention to short-term results are inevitably destined to fail.

Fairness as a competitive advantage for the company, an interesting concept.

We also work to promote fairness as a competitive advantage for the company. We do this by: 

• adapting our business culture to remove from our rules and processes anything unclear, poorly communicated, or that limits the flow of ideas and information and;
• prioritising the wellbeing of our employees through a welfare programme that will include family, healthcare, savings, “giving back” (paid days of voluntary work) and solidarity leave, i.e. the free granting of holidays to colleagues so they can look after children who require special care.
• creating an environment that enables management to make the best decisions for the greatest number of people although they might not be the most risk-free nor the most profitable, in the belief that this is the best way to construct long-term sustainable value.

In summary, how do you see the 21st century company?

The role of companies has changed radically. Companies must become capable of creating connections between shareholders, workers, suppliers and communities and not only to decide and take action. It is a complex and fascinating challenge.