Responsible Competitiveness

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    BRC Project

    BuildingResponsible

    CompetitivenessGuidelines

    to Enhance CSRin the

    Construction Sector

    Sponsored by the European CommissionDG Enterprise and Industry

    Grant Agreement N. SI2.ACGRACE020970800

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    APRIL 2010

    Sponsored by the European CommissionDG Enterprise and Industry

    Grant Agreement N. SI2.ACGRACE020970800

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    BRC Project - Building Responsible Competitiveness

    1

    Index

    Executive Summary ........................................................................................ 2

    1. Introduction .................................................................................................. 6

    2. Socially responsible company: an interpretative model ..................... 8

    3. Corporate social responsibility in practice

    3.1 Health & Saety ................................................................................ 11

    3.2 Eco-compatibility .............................................................................. 22

    3.3 Supply Chain ..................................................................................... 33

    3.4 Equal Opportunities ......................................................................... 41

    4. The Role o the Public Authorities ........................................................... 50

    5. The Role o Trade Unions and Business Associations ........................ 51

    6. Management System Standards ............................................................. 52

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    Sponsored by the European Commission DG Enterprise and IndustryGrant Agreement N. SI2.ACGRACE020970800

    Executive SummarySocially responsible and sustainable principles have or a long time been limited to isolated initiatives

    o single market participants. In recent years however, Corporate Social Responsibility (CSR) hasmade its way into the mainstream o business and an increasing number o companies are nowadaysengaging in the urther expansion o CSR into their core business activities.

    Correspondingly, recent studies such as the Stiglitz-Sen-Fitoussi Commission1 report and the latestCommunications o the European Commission, have put ocus on the necessity to go beyond aneconomic model solely based on economic growth as well as the awareness o the links between theadoption o virtuous behaviors and the long-term creation o value. In this context, the commitment to CSR principles may be considered a core actor or sustainable competitiveness and uturegrowth.

    Under this premise, the project BRC - Building Responsible Competitiveness, co-nanced by theEuropean Commission, sets out to oster Corporate Social Responsibility within the constructionsector by involving large companies operating in the eld, SMEs that are part o the supply chain,and relevant stakeholders2 (business organizations, trade unions, universities). The project covereda period o 18 months and involved ten partners coming rom ve European countries: Italy, Spain,Austria, Hungary and Portugal.

    The toolkit developed by the project which includes the present Guidelines or companies, aims toveriy and demonstrate how the adoption o socially responsible behavior (not on a one-o casebasis but according to a strategic approach) enhances the competitiveness o business in theconstruction sector and the territory it belongs to.

    The elaboration builds upon an in-depth analysis o 44 best practices in the areas o health andsaety; responsible supply chain management; eco-compatibility and equal opportunities along thelines o a social value chain model (Porter). In particular,the analysis is based on the assumption oa constant interchange between a company and its external context that is considered as havingreciprocal eects on each others competitiveness.

    Thereore, the assay o best practices in the present document bases itsel on the interrelationbetween a company and its societal context. In particular, it highlights the costs and benets orthe company, the acilitating and hindering actors related to the adoption o socially responsiblepractices, as well as the benets or the community. This model enables to overcome a visionaccording to which CSR and business are dimensions separated rom one another and contributes

    to their integration under a logical and operational prole. The Guidelines have been developedin collaboration and with the contribution o companies rom the construction sector and relatedstakeholders.

    1 Report o the International Commission on Measurement o Economic Perormance and Social Progress, under the initiativeo the French government to study metric alternatives to the GDP: www.stiglitz-sen-toussi.tr/documents/rapport_anglais.pd

    2 Stakeholders are dened as any group or individual who can aect or is aected by the achievement o the rms objectives,Freeman, R.E., Strategic Management: a stakeholder approach, Pitman, Boston, 1984

    BRC Project - Building Responsible Competitiveness

    Sponsored by the European Commission DG Enterprise and IndustryGrant Agreement N. SI2.ACGRACE020970800

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    Executive Summary

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    Health and SafetyDue to the specic context actors and workfows that apply to the construction sector (intense use

    o workorce, risk o accidents, et al.), health and saety issues play a vital role in the operationalperormance o companies.

    Looking at a companys external context o health and saety issues, it can be stated that this eldrefects a high level o political attention and regulation. Hence, companies have to comply with amultitude o legislation. Being able to anticipate the uture evolution o laws bears potential or theeective exploitation o a competitive advantage vis--vis other companies as it enables them tomaintain production eciency and to avoid wastage and costs arising rom the necessity to complyto unexpected rules within short delays.

    Moreover, the implementation o sustainable health and saety conditions has a positive impacton eciency and employee well-being, in turn, increasing productivity. Furthermore, the reductiono injuries and their associated costs (penalties, social insurance, absenteeism, all-out) directlyinfuence operational perormance.

    Specic solutions to tackle the challenges o health and saety can be:

    Trainingprograms forworkers to increaseawareness and knowledge onhealth and safety

    issues, also tailored to immigrant workers speaking dierent languages (c p. 13);

    Controlsystemstoensuretheapplicationofsafetystandards,internallyandinthesupplychain

    (c p. 16);

    Useofcutting-edgeandsaferequipments(cfp.16);

    Improveemployeeshealthbyphysicalactivitiesandwarm-upexercises(cfp.17);

    Increasedtransparencyandcontrolalongthesupplychain(cfp.16);

    Develop partnerships with external consultants and local experts to assess and intensify

    necessary actions in the eld o health and saety (c p. 18);

    Useofhealthybuildingmaterials(cfp.18).

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    Executive Summary

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    Equal OpportunitiesEqual opportunities deals with the valorization o people, regardless o gender, origin, ethnicity, age

    and others. In this respect, the societal trends such as demographic change, an increasing numbero women in higher education or immigrant infows pose challenges to companies to adapt theirrecruitment and employee management systems to new conditions. Here, it is important to highlightthe need to deploy a structured approach towards equal opportunities, as it deals with people romdierent backgrounds and with diverse needs. Because o those demographic changes, women willrepresent an added value or the competitiveness o a company: the perspective brought by women,their signicant level o entry in the labor market and their high rates o skill and educational levelprovide an opportunity to attract skilled talents.

    Many researches show that companies that developed diversity policies revealed that theirworkplace diversity has contributed to innovation and creativity in the company and is key to

    business perormance and development3.Hence, potential solutions and approaches include:

    Integrationofequalopportunitypoliciesintothecompanysorganizationalprinciplesandinternal

    governance (action plan, code o conduct, trainings or human resources managers) (c p. 43);

    Toolsforwork- familylifebalanceviasupportingstructuresand facilitations(exibleworking

    hours, reintegration ater maternity/paternity leave via trainings, nancial contributions) (c p. 45).

    The underlying contribution on Building Responsible Competitiveness: CSR Guidelines providesan in-depth analysis on the costs and benets o adopting the above CSR policies and showcases

    the best practices in this eld as implemented by construction companies across Europe.

    3 For instance, see: http://www.csreurope.org/pages/en/mainstreamingdiversity.html

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    BRC Project - Building Responsible Competitiveness

    1. IntroductionThese Guidelines have been created under the European project Building ResponsibleCompetitiveness(BRC)1. The project has carried out important theoretical research on CSR issuesrelated to the constructions sector in ve countries: Italy, Spain, Austria, Hungary and Portugal.However, being aware that this is an extremely broad scope o analysis, the project partners decidedto condense the eld o research to the ollowing our CSR areas: health and saety; responsiblemanagement o the supply chain; eco-compatibility and equal opportunities.

    How to use the Guidelines?The Guidelines are targeted at companies in the construction sector with the aim to promote the

    adoption o CSR practices and to develop business actions in accordance with desired economicand sustainability perormances.

    In this regard, the ollowing elaboration has been developed as a support mechanism or enterprisesin the construction sector to improve their business, by acilitating an understanding o the actorsthat contribute to the creation and returns o economic and social value.

    The Guidelines were developed taking into consideration the exigencies o big as well as smallcompanies (except micro ones with less than 10 employees). The concrete experiences and bestpractices rom these companies were analyzed.

    Companies in the construction sector are encouraged to use these Guidelines as a tool or supportingthe practical management o responsible business practices.

    For each o the our CSR topics, the Guidelines present rst a brie theoretical ramework, based onthe document CSR in the construction Sector: state o the art and regulatory ramework in the EU2.Then they analyze the companys external context, to show how best practices may be conceivedas a reaction to opportunities or critical situations that tend to emerge in the external context.An analysis o the companys internal context, highlighting that there are acilitating or hinderingaspects, benets or costs that may infuence a company is also drawn. The Guidelines ocus on the description o the possible solutions or each o the our dimensions. Finally, they include abrie analysis on the role o public authorities, trade unions and business associations, as well as asynthesis o the main management standards that have been set in the eld o CSR.

    1 BRC Project - Building Responsible Competitiveness - DG Enterprise and Industry - Grant Agreement N. SI2.ACGRACE020970800.The project (which started in 2008 and will end in 2020) aimed at investigating the relationship between the value (economicand social) gained by the company or the conduct o its business rom the environment to which the company belongs, and thereturned value given back rom the sector to all stakeholders to downstream o the production process.

    2 The document is the abstract o the research carried out in the rst part o the BRC project (2009) . The document is availableor downloading in the European projects section o the website: http:///www.improntaetica.org/?lang=en

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    Introduction

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    MethodologyThe Guidelines are the result o qualitative research carried out by the BRC project. The partners

    in the project analyzed 114 best practices within the our aorementioned ocus areas. Here, thecollection o best practices has been carried out through online research, consultation o nationaland international CSR databases, companies sustainability reports and, in some cases, throughdirect contact with the companies.

    An in-depth analysis o the best practices has been the manner through which the Guidelineshave been developed. 44 best practices were selected or this analysis which is based on Porterstheoretical scheme o social value chain (briefy introduced in the next chapter). The ollowingcriteria have been used or the selection o the practices: completeness o the case study,innovative potential, transerability, representativeness o the 4 analysed CSR dimensions,and o theve countries involved; and the prevalence o general contractors over suppliers in order to ocus

    on the main part o the production process and reduce the eld o research.The research adopted a multistakeholder approach, aiming to involve dierent stakeholders, suchas companies, business associations, trade unions, public administrations, general contractors,research institutes and academics. For the purpose o the research, interviews have been carriedout with representatives o the above stakeholders through application o a specic survey.

    Moreover, the Guidelines have been validated during workshops organized in the ve countriesinvolved in the project, to which representatives o companies and other relevant stakeholder haveparticipated.

    TerminologyFor the classication o companies, the denition o the European Commission o small and medium-sized enterprises has been used: the category o micro, small and medium-sized enterprises (SMEs)is made up o enterprises which employ ewer than 250 persons and which have an annual turnover

    not exceeding50 million, and/or an annual balance sheet total not exceeding43 million3. Thetwo parameters are thereore the number o employees and the annual turnover.

    This denition distinguishes a SME rom a big company (BC). In the present Guidelines, the denitionbig company is used i the enterprise is working nearly totally in its country o origin, whereas theexpression multinational enterprises (MNE) reers to companies that are based contemporary in

    dierent countries and have signicant construction sites abroad. Throughout these Guidelines,branches o multinationals use the acronym o multinational companies.

    3 Recommendation 2003/361/EC adopted on 6th o May 2003 by the European Commission regarding the SME denition whichreplaced Recommendation 96/280/EC as rom 1st o January 2005.

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    2. Socially responsible company: an interpretative modelAccording to Porter4, in order to advance CSR, it must be rooted in a broad understanding o the

    interrelationship between a company and society while at the same time anchoring it in the strategiesand activities o specifc companies. The mutual dependence o companies and society impliesthat both business decisions and social policies must ollow the principle o shared value. Thatis, choices must benet both sides. To put these broad principles into practice, a company mustintegrate a social perspective into the core rameworks it already uses to understand competition

    and guide its business strategy.

    4 M. E.- Porter, M. R. Kaplan, Strategy & Society The Link Between Competitive Advantage and Corporate SocialResponsibility, Harvard Business Review, December 2006

    Fig.1: Porters Social Value Chain

    Source: M. E.- Porter, M. R. Kaplan, Strategy & Society The Link Between Competitive Advantage and

    Corporate Social Responsibility, Harvard Business Review, December 2006

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    Introduction

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    Along the line o Porter, the interdependence between a company and society takes the ollowingtwo orms:1. A company impacts society through its daily business operations: these are inside-out linkages.

    Virtually every activity in a companys value chain touches on the community in which the rmoperates, creating positive or negative social spillovers. The value chain that is traditionally usedcan be re-interpreted in order to analyze the companys processes and its strategic approach, tomake their eects more explicit.

    2. Not only does corporate activity aect society, but external social conditions also infuencecompanies. These are outside-in linkages. Every company operates in a competitive context,which signicantly aects its ability to carry out its strategy, especially in the long term.

    Figure 2 represents the connection between a company and its external context, which takes ormthrough inside-out linkages(time 1) and outside-in linkages(time 2).

    Fig.2: The relationship between company and external context

    Source: BRC Project

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    CMB Carpi has been among the rst companies in the construction sector whichintroduced the use o the Porters social value chain as a logical way to analyze thecompany in its organizational and operational processes. The model proposed byCMB allows a more ecient system o control by the social base, the integrationo environmental protection into the production line, in service provision and theincreasing o the awareness o the employees.

    From a methodological point o view, the project implemented by CMB Carpispecically describes the creation o value generated by the activities o theproduction chain. By developing its own chain o social value, CMB has obtaineda synthetic indicator system to respond to three questions that simpliy reasoning

    that could be produced by a company in terms o CSR: does my company workwell? How is the progress /development o the CSR program approved by thecompany? Which are the impacts generated by the company on the social-economic-environmental context?

    Fig.3: CMBs social value chain

    Source: Social Report 2006

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    Health & Saety

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    3. Corporate social responsibility in practice

    3.1 Health & SafetyHealth and saety issues are o particular relevance or the construction sector due to specicworkfows and context actors that imply an intense use o workorce and high degree o exposureto the risks o accidents and injuries. For this very reason, the preventive measures and numerouslegal norms that have been set by national governments must be considered as a key issue in theconstruction sector. Hence, i a company complies with requirements related to health and saety,it will decrease the risk and seriousness o accidents, avoid experiencing interruptions in thebusiness process, and prevent any potential delays in terms o meeting its objectives. Moreover,non-compliance can lead to sanctions causing nancial implications or individual companies.

    According to the analysis, companies that develop health and saety programs, also beyond basiclegal requirements, can obtain an added value or the business. Employees working in sae sites areless exposed to injuries, thus helping companies to avoid losing human resource. Employee saetymay have a direct positive eect on a companys productivity and eciency. A company whichworks towards ensuring that its employees are protected and sae at work is more attractive tovaluable and competent resources.

    Investments in health and saety can also contribute to the stability and transparency o thecompanys supply chain, and consequently reinorce the protection o health and saety on worksites. This is particularly valid in terms o selection o more reliable suppliers (and consequentlymore qualied ones), and in terms o prevention o reputational risks deriving rom non-compliant

    behaviors along the subcontracting chain.

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    3.1.1 Analysis of the external contextThe underlying assumption is that the external

    context infuences the company in takingdecisions. With regards to health and saety,internal management solutions are connectedand infuenced by this external context, mainlythrough two aspects: the necessity o compliancewith existing legislation, and the need to preventinjuries or deaths caused by accidents that mayoccur in the workplace.

    STAKEHOLDER Related opportunities and limits perceived by the company

    Central/LocalAdministration and

    Public Authorities withcontrolling unctions

    Securing health and saety in the workplace is o strong political andsocial importance. Public authorities, both at European and nationallevel, tend to have stringent regulations on this issue. In this light,companies can choose to not only comply with existing legislation butalso to go beyond existing legislation. This extends the margins to whichcompanies are able to proactively tackle challenges more creativelyand autonomously without being compelled to comply with legislative

    norms in a reactive way.

    Employees

    A company is made by its employees, and the adoption o practiceswhich look to improve and secure their health and saety conditions,brings advantages or the company in terms o productivity and workersretention.

    Trade Unions

    Trade unions are important actors in this eld and can play a role ininfuencing company behaviour. There are many cases where tradeunions promote the importance o health and saety issues andencourage that companies tackle it through openness to dialogue andpartnerships or the implementation o specic projects.

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    3.1.2 Possible solutions: the best practices analyzedIn order to address the challenges related to the construction sector, in particular the risks o

    accidents and injuries in the work site, various good practices have been identied. It is worthhighlighting the importance o general proessional training provided to workers, as an increasedquality o work is the basis or improved saety. They ocus specically on linking health and saetymeasures to the competitiveness o individual companies.

    A company can intervene on dierent aspects, but one solution may be more suitable to a companythan to another, according to its priorities, its eatures and the context.

    Provide employees with appropriate knowledge and

    training on health and safetyEmployees trained on health and saety at work are more aware o risks and subsequently willbe more capable o saeguarding themselves against the risks implied in construction activities.When applying such a practice it is important not to promote isolated trainings but to build structuralapproaches or health and saety challenges.

    It is important to underline that these good practices, related to employees training, are an exampleo practices which go beyond the law, as legal systems oresee only low standards o inormationand training o employees. Employees operating in the construction sector are not always consciouso the risks associated with the environment where they work.

    Companies should provide them with the conditions to know the risks related to their job to preventaccidents and react to emergency situations. A company needs to develop initiatives which aim tomake employees aware o health and saety issues. This can be done through personal protectiondevices, the procedures dealing with specic situations (or example, how to turn o specicengines) and how to prevent or manage emergency situations in the best way.

    These could look like primary measures, but it is important to expose and develop them, because thenumber o accidents and injuries shows that even these aspects oten are not taken into account orare underestimated. Thereore, it is important to tackle the issue o health and saety with employeesto avoid accidents.

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    Bouygues Enterprises France-Europe (France - MNE) wanted to provide training to its employeesaround health and saety and social development as a way to address this challenge. The company

    organized a meeting on My Commitment to Health and Saety held on April 2008. The eventmarked the launch o a proactive policy whose target was zero accidents, aimed at increasingcompanys reputation and reduce costs related to accidents.

    Holcim (Italy - BC), aware o the importance o creating the basis o a saety culture within thecompany promoted the project OH&S Awareness Campaign. This initiative included workshopson Health & Saety engaging all employees in the company. The company developed communication

    tools, such as pocket guides, posters, videos on these issues.

    PORR Gruppe (Austria- BC) due to the high accident rates in the construction sector in general,PORR Group decided to develop the More Saety on the Construction Siteproject. The programoresaw three weeks o obligatory training on saety topics or apprentices.

    Grupo Lena (Portugal - SME) develops a constant training or workers, in order to minimize risks

    and occurrence o accidents in line with the OHSAS18001 standard. In particular, the system whichhas been implemented aims to respond to the development o the health and saety managementsystem, the risks evaluation through each sector o activity, training in health and saety, internalinvestigation o the accidents and development o new action plans.

    Develop training tools for immigrant workers

    Immigrant workers are participants in the labor market o European countries and represent a great

    potential or companies. The construction sector is generally characterized by a high presence oimmigrant workers. Dierent cultural backgrounds might infuence behavioral patterns o workersand may turn out to be unsecure on worksites. Thereore it is important that companies consider thisaspect in order to develop specic awareness-raising campaigns or workers rom dierent culturalbackgrounds. Moreover, one o the challenges construction companies must ace is to provide theseworkers with high-quality trainings that they are able to understand. In act, it is critical to enablethem to understand their workplace environment and the risks involved.

    This improves the integration o immigrants in the company, and guarantees that immigrant workershave the capacity to respond correctly in case o emergency situations and are able to bettercontribute towards a sae and productive workorce.

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    Contratas y Obras Empresa Constructora (Spain - SME) has realized that the construction boom inSpain generated a high concentration o immigrant workers in sub-contracting companies. To ace

    this situation, it has developed on-site saety manual or immigrant workers in various languagescovering most o the spectrum o countries o origin o these workers (Chinese, Arabic, Romanianand French). In the meantime, it combined this initiative with a system o control on the supply chain(see box next page).

    CMB Carpi (Italy - BC), in partnership with the Health service o Modena, organized health andsaety lessons or immigrant workers rom mostly Romanian and Moldavian heritage that constituted

    the main part o the companys workorce. The lessons dealt with health issues and risks linked tothe use o alcohol and the consumption o alcoholics during work time. An anonymous survey wasdistributed to workers to learn about their daily habits with regards to smoke, alcohol and diet.Aterwards, training lessons were organized and training material written in the workers mother

    tongue was distributed.

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    Adoption of cutting-edge equipmentsThe use o cutting-edge technological equipments in the worksites (such as scaolding with devices

    to prevent accidental alls) may be considered as an important instrument to prevent accidents andto saeguard workers saety.

    Develop a control system in the supply chain toincrease stability and transparencyThe construction sector is characterized by a long and complex supply chain composition osubcontractors, where the respect o health and saety principles in the worksites is directly linkedto the stability and transparency o the supply chain. An eective monitoring o the worksites ando all the actors involved is seen to improve the communication on risks and standards to workers.Moreover, it contributes to detecting non-compliant behaviours and helps in making correspondentinterventions (c chapter on the supply chain, p. 33).

    Thus, improving control systems within a company, surpassing the standards oreseen by thelegislation, can acilitate greater saety at work. To ensure proper control and monitoring systemsare in place, companies need certain tools, especially as it relates to the monitoring o their suppliersand subcontractors.

    Such mechanisms can be site inspections by qualied services (or instance an external consultant)in the general contracting company and their supplier companies or health and saety reports toassess perormance and provide recommendations or improvement.

    It is suggested that monitoring and control procedures are combined with training programs toensure maximum eciency around the creation o a sae and health workplace along the supplychain.

    Skanska Property Hungary Ltd. (Hungary - MNE) developed an educational program with workersand subcontractors beore they began to work on the site. This strengthened its health and saety

    perormance assessment, planning regular site inspections, also through collaboration with anexternal consultant, who was in charge o writing a monthly report aiming to evaluate perormancesand improve saety procedures.

    Contratas y Obras Empresa Constructora (Spain - SME) developed a system o control based ona personal, non-transerable identication card and access via a colour code (in helmets). Thisallows individuals to distinguish which supplier a given worker is rom.

    CIMPOR (Portugal - SME), to minimize risks or employees and other parties involved in thegeneral activity o the company, adapted its occupational health and saety management systems

    to the requirements oreseen by the OHSAS 18001 standard. This measure allow the company tocontinually improve its H&S internal management system.

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    Improve employees healthHealth is strictly related to saety: a healthier work environment and employees means a saer

    production process or a company. Physical activities involved in the processes o constructioncan have negative eect to employee health. Thereore, strategies which aim to ensure health oemployees and preventive measures to acilitate a health environment are crucial or the properunctioning o a company. An ecient health management strategy aims both to train employeesphysical conditions to prepare them or physically-intensive labor and to improve workplace healthstandards.

    Bouygues Entreprises France-Europe (France - MNE) deployed several activities and initiatives,such as the possibility o warm-up exercises or their workers at the beginning o each day. These

    exercise aim to ensure the minimal health issues related to starting work in the morning and to prepareemployees or physically challenging labor, such as that implemented within construction sites.

    Dipl.Ing. Franz Robier Baugesellschaft m.b.H.(Austria - SME) developed the programmeBAUftTwicea week a sport physician came to do hal an hour o practical exercises and two hours o monitoringand individual evaluation o progress while the employees were ollowing their daily business.

    Construcciones Llabres Feliu (Spain - SME) oer an external prevention service which monitorsworkers health both through medical examinations and periodic check-ups. This service aimsat evaluating workers aptitude on perorming their duties and/or the impact that specic tasksmay have on workers health condition. Moreover, the company drats specic risk assessmentreports, as well as provisions o the necessary training in the area o prevention o accidents in

    the workplace. Periodical health and saety Committee meetings also take place. They are themain tool or the integration o accident prevention in the company policy as they oresee regularperiodic consultation on risk prevention actions.

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    CMB Carpi (Italy - BC) had to deal with a particular work site, constructed in height and with very tighttubes that made the intervention o only one assistance unity with specic but limited competencesinsucient. In order to avoid accidents, they realized a joint analysis and emergency simulation o

    the assistance to injured workers, in co-operation with the local Fire Department and the EmergencyHealth Service. In this way, they developed a systemic and organized approach to ace emergencysituations in the work site.

    Develop partnerships with other actors in the territoryManaging health and saety requires specic competences that a company might not have. Depending

    on the external context o a companys operations, individuals with such competencies may or may notbe easily available. Partnerships with dierent organizations and authorities could be a solution whichmakes tackling such health and saety challenges easier and more ecient.

    For example, and in the context o the construction sector, it could be valuable to partner with the FireDepartment o the companys municipality or province, the Emergency Health Service and with localinstitutions, Universities or other.

    Such partnership allow or the implementation o such strategies, while reducing the amount oresources required by companies and supporting the development o skills and individuals rom local,community groups. Such partnerships with other local actors can be repeated in uture projects orachieving the maximum benet or the community, its workers and the company.

    Coordination of the companies present on theconstruction sitesAs many construction sites tend to involve dierent companies, they could join orces to ensure thator a given site health and saety strategies are a combined eort. Thus, reducing the amount oresources individual companies need to implement and reduce the occurrence o potential problemslinked to the presence on a given construction site o workers employed by dierent companies andinvolved in dierent tasks with dierent risks potentials.

    Use of healthy building materialsIn order to ensure a greater protection o workers health, it is important that the company choosesbuilding materials that are as healthy as possible, mainly by paying attention to the compositiono materials that are used and by giving preerence to natural, healthy and ecological materials.Moreover, a greater attention given during the construction and design phases can ensure moresaety in the internal environment, to the benet and protection o the nal users.

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    3.1.3 Analysis of the effects

    The internal contextIn adopting such practices there are costs and benets as well as acilitating and hindering aspectsor a company that may infuence its action, directly linked to its internal context.

    BENEFITSarising from the adoption of socially responsible behaviors

    Substantial reduction o injuries and collateral damage or workers

    Development o a systematic approach to emergencies derived rom accidents

    Lower costs associated to injuries (or social insurance and to cover work absenteeism)

    Reducing costs related to suspension o the production process

    Lower risk o penalties, suspension o activities, oreclosure fnancing

    Preventing the risk o occurrence o social tensions related to injuries in the work place

    Increasing employees commitment and loyalty as well as a companys attractivenessor specialized workers

    Improvement o the institutional reputation within the company (employees) and

    externally (Public Administration, banks, supplier, civil society)

    COSTSrelated to the adoption of socially responsible behaviors

    Indirect costs related to the impossibility to carry out normal work activities oemployees attending educational trainings

    Indirect costs related to organizational change in the internal culture, and to theovercoming o internal resistances due to changes in procedures and processes

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    FACILITATING FACTORSrelated to the adoption of socially responsible behaviors

    Awareness and commitment rom the companys top management on the importanceo a right approach to the management o emergency and prevention issues in theconstruction sector

    Internal collaboration and readiness to change among workers

    Widespread culture o health and saety protection and respect o law in the territorialcontext o reerence

    Adequate availability o time and money, or the realization o specifc trainingactivities

    Ability o the company to cooperate and create partnerships with other social actors to

    achieve specifc objectives

    Greater enhancement o Health and Saety issues in public procurement, and other

    initiatives coming rom public authorities

    HINDERING FACTORSrelated to the adoption of socially responsible behaviors

    Lack o innovation within the companys culture, hostility to change, consolidated

    processes

    Lack o awareness on the importance o protecting the health and saety, romcompanies management and employees

    Tolerance o lawlessness within the territorial context o reerence

    Limited amount o resources, in terms o money, time and human resources

    Poor relational capital o the company and consequent difculty in establishingsynergies

    Widespread use o subcontracting, unstable working collaborations

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    The external contextThe adoption o socially responsible practices by a

    company has an infuence on the external context oreerence, and contributes to change it.

    BENEFITS FOR THE COMMUNITYrelated to the adoption of socially responsible behaviors

    Increase in the confdence towards the construction sector

    The establishment o synergies and partnerships between dierent local actors thatcan be applied in uture projects and could generate important benefts or the local

    society

    Lower level o health care expenses and people with higher health level

    Positive social impact on the lie o employees and their amilies in the community

    Reduction in social uncertainty

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    3.2 Eco-compatibilityThe term eco-compatibility touches upon various issues that impact on the operational business o

    construction companies; rom the reduction o CO2 emissions or the re-use o waste materials tonoise pollution, urban and landscape impact as much as the aesthetic and practical harmonizationo buildings with their surrounding contexts.

    Especially in light o national government targets or energy saving and reduction o CO2 emissionsand the rising public demand or environmental sustainability, the issue o eco-compatibility impliessignicant challenges and opportunities or construction companies. Hence, on the one hand theEuropean Commission estimated that buildings are responsible or the use o more than 40% othe total energy consumption o the European Union, therewith positioning the construction sectoras an important strategic tool or the achievement o environmental policies. On the other hand,increased public awareness towards sustainable environmental perormance has given rise to

    new requirements and demands in the construction process and the nal product, such as limitedenvironmental impact or low energy consumption.

    Following this, a commitment to eco-compatible perormance improves the reputation o a companyand encourages the development o innovative practices. In particular, eco-compatible productinnovation and the construction o buildings under application o green criteria opens up newmarkets and extends the outreach to new customer groups.

    In order to respond to these challenges and capitalize on potential benets, management andgovernance systems have to be build upon concrete eco-riendly principles to be urther cascadedinto the operational process and the supply chain.

    Moreover, specic training programs can be used to train workers on the issue o eco-compatibility,therewith raising awareness or the need o ecient implementation o environmental principles onall company levels and promote coherence o eco-compatible behaviors and objectives.

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    STAKEHOLDER Related opportunities and limits perceived by the company

    Clients/consumers

    Private and public clients preerences are changing. There is anincreased attention towards sustainability criteria (in particular, withregards to energy eciency).

    Local Administrations/central

    administrations

    Here, the infuence o local and central administrations on constructionsector companies is mainly linked to:

    - the continuous evolution o laws on eco-eciency and eco-compati-bility and the tendency o companies to anticipate those changes;

    - provision o incentives and support (nancial & non-nancial)

    3.2.1 Analysis of the externalcontextThe construction market is changing rapidly. This isdue on the one hand, to the evolution o legislation in

    this sector that imposes more and more restrictionsin avor o environmental protection, and, on the otherhand, to customer demand which is characterizedby an increasing ocus on sustainability.

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    3.2.2 Possible solutionsEco-Compatibility may reer to numerous aspects o environmental sustainability that can be tackled

    on dierent levels o corporate structures, such as companies internal systems, their constructionsites and/or the supply chain.

    Moreover, a company approach towards eco-compatibility needs to be holistic in order to includeall operational activities that may have environmental impact, such as waste management, energyconsumption, transports et al.

    Development of eco-compatible buildingsIn the eld o eco-compatibility, one approach or construction companies can be to develop astrategy or eco-riendly buildings that is based on environmentally responsible and resource-

    ecient processes, structures and tools. In particular, the criteria o green building oreseen andcertied at an international level by the World Green Building Council1 cover: the reduction o energyconsumption; raw materials saving; restraint o water consumption; reduction o CO2 emissions;choice o materials according to health and eco-compatible criteria.

    The sustainable planning o a buildings lie-cycle is o major importance in order to optimize eco-compatibility rom the location to the construction, rom the design to the maintenance and renovation.Especially it is important to ensure a regular interaction among all the designers involved (architects;engineers; installers, etc.), in order to guarantee more eciency and an optimal coordination.

    1 http://www.worldgbc.org/

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    Pirelli & C. Real Estate (Italia - MNE) responded to the evolution o the construction market inlaunching an Eco-building program or operating in an environmental respectul way and to

    oer products that comply with high sustainability standards. The program oresaw our areas ointervention: energy eciency, eco-compatible materials, renewable sources, and home comort.

    Mischek Bautreger Service Gmbh (Austria - SME) developed the eco-passproject, in collaborationwith the Austrian institute or biological and ecological construction (IBO) and construction experts.The project oresaw a general set o legal, ecological and biological standards based on comort,health and energy-eciency and ecology. In particular, some evaluation criteria were based onnoise protection, quality o internal air, use o water and ecological materials. The IBO institutegives the eco-pass ater operating controls on the buildings to check their conormity with thosestandards.

    Contratas y obras (Spain - SME) considered the act o having a LEED (Leadership in Energyand Environmental Design) certication to promote actions and projects aiming at increased

    sustainability. For this reason the company set up a new business unit in charge o designingsustainable projects. The company also trained and raised awareness o employees and the humanresources unit on issues related to sustainability. Moreover, the company promoted a collaborationwith the University in order to develop a research on sustainable innovation,. Finally it bound itscontracts with suppliers to the use o resources and materials with reduced CO2 emissions.

    Geda Construction (United Kingdom - SME) built an eco-village (residential sector), Coill Darach,on the basis o high sustainability and energy eciency standards. The buildings o the village hadsolar panels or water heating and a system o rainwater recycling.

    Sustainable management of construction processesand materials life-cyclesConstruction processes are characterized by a multitude o activities. The reduction o environmentalimpacts o each single activity in the process, rom waste management or recycling o materials totransport and use o equipment, oers the potential to optimize the use o available resources.

    The starting point or such eorts is the analysis o the internal management, where environmentalimpacts need to be evaluated and tools or their reduction can be developed. Here, constructioncompanies need to consider the entire lie-cycle o materials that are used or reaching the

    nal output. In the end, decisions taken at management level need to cascade eciently to theconstruction sites as they represent the main centre o activity, therewith, oering the greatestpotential or eco-ecient operational perormance.

    Hence, eco-compatible management o construction processes and product lie-cycles can optimizeresource-eciency, or instance waste management, transport, use o equipment, etc.

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    Skanska Property Hungary Ltd (Hungary - MNE): in order to respond to the increasing demand orgreen construction in Hungary, the company developed an eco-design tool to ensure its sites wereenergy ecient and included a liecycle perspective. At the same time, the company organized a

    training program on environmental education or workers and contractors beore they start workingon the construction site.

    Herbsthofer (Austria - SME) in the context o a greeningprogram aimed at reducing its emissionschose to work closer in the local region, therewith reaching that 80% o its customers/supplierswere within 50 km rom the company site in 2008.

    Strabag SE (Austria - MNE) developed guidelines or environmental riendly planning and executiono its construction sites to reduce noise, waste and emissions.

    GRUPO LENA (Portugal - SME) implements an environmental management system (in line withISO 14001) aiming at the development o sustainable construction trough the implementation omeasures that will reduce the environmental impacts. The company implements two dierentkind o controls: Execution Control (that allows to veriy and inorm about the actions in course)and Objectives Control (that indicates i the decision making process is producing the expectedeects).

    Develop tools for an efcient use of resources

    One o the major aspects or the reduction o environmental impacts is related to the ecientuse o resources. At construction sites and in internal management, a company can reduce itsenvironmental impact by ollowing concrete eco-eciency standards and models aiming tooptimize the use o resources related to the activity o the company (such as reduction o waterconsumption; use o renewable energies; use o ecological vehicles or workers and companysemployees displacements).

    This can also be related to the reduction o CO2 emission through a strategic choice in the twostages o the operational process (on the side o suppliers and o the customers) and the involvemento local actors operating on the territory. In particular, the choice o partners should respect thecriteria o proximity in order to minimize displacements.

    Reducing company waste: recycling and reusing materials

    The ecient management o waste and product lie cycles opens up a variety o opportunities. Thus,the quantitative reduction o materials used and their reintroduction into the production processater rst use, potentially lowers operational costs.

    Thereby, the evaluation o recycling methods and the re-use o material can represent interestingadvantages in terms o eciency.

    This can imply their simple re-use ater cleaning them up or their introduction into a dierent stage othe production process, such as use or replenishment. In addition to this, a companys specializationin recycling management provides the opportunity to oer services and expertise to customers andpartners, therewith creating company value.

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    Green Network Kft. (Hungary - SME) deepened the commitment to eco-riendly constructionactivities in ampliying its engagement on the recycling o building materials and oering this

    service to business partners. In act, the company created a specic Environmental protectionbusiness unit which takes care o recycling and waste reduction management.

    Wates Group (United Kingdom - BC) in a proactive response to new Government legislation,developed the Zero targetplan, a waste management plan or reducing and reusing waste. Inparticular each worksite developed a waste management plan aiming to evaluate the opportunitiesrelated to reduction, re-use and recycling o waste. This has been done in combination with aneort to consciously engage employees in this process.

    CIMPOR (Portugal - SME) the cement manuacturing process generates a substantial quantity owaste heat that is oten not harnessed or other uses. Even i a part o hot gases rom the pre-heating tower and the clinker cooler can usually be recovered, there is a signicant part whichcannot be reused. CIMPOR implements a system to recover the waste heat rom production gases

    in order to generate electricity. The company obtained an operating licence or energy recoveryrom hazardous waste. This licence allows hazardous waste to be used as alternative uel or the main burner. The use o such uels allowed a 0.80% reduction in the use o non-renewablenatural and imported uels, as well as the reduction o CO2 emissions associated to the cementmanuacturing process.

    Promote a sustainable supply chainThe construction sector is characterized by a multitude o actors that contribute to the production

    process. As a result, consistent selection and evaluation o suppliers and business partners oersthe possibility to exert control on the compliance with eco-compatibility standards in each step othe production process.

    For example the urther suppliers are located rom the construction site , the higher the environmentalimpact o transport. Thereore, i the company chooses nearby suppliers, it positively infuences theeco-compatibility o its supply chain.

    A signicant ocus has to be put on the importance o designers in the supply chain, as the designrepresents the core and the starting point o the ollowing construction phase. Indeed the buildingcharacteristics are highly infuenced and/or determined by the choices that are done during thedesign phase.

    Engage suppliers in more sustainable practices

    A construction companys day-to-day business is characterized by interaction with a multitudeo actors that make up the supply chain. Hence, an approach to ensure eco-compatibility shouldconsist o both, a sustainable selection o suppliers along the lines o eco-compatibility criteria andthe involvement and awareness-raising o suppliers to sustainable practices and compliance witheco-standards.

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    Wates Group (United Kingdom - BC) developed a Target Zero plan(c box on previous page). Thecompany applied this initiative to suppliers and procurement in order to raise awareness on the

    companys commitment to eco-compatibility. Carillon (England - MNE), in order to respond to local demand and national legislation or the

    reduction o CO2 emissions, launched a sustainable procurement policy which, in turn, is alsocommunicated to customers.

    Stakeholder engagementThe stakeholder engagement in the decision-making process can be very useul. It may improvethe identication o the main perormance indicators in the environmental eld through diversiedpoints o view. It may also contribute to prevent orms o tensions or contests towards the company,in case o highly-impacting works.

    Among the most relevant stakeholders, there are employees that can be involved towards a correctuse o equipment, in order to reduce the use o energy during the main production phases.

    Autostrade per lItalia S.p.a. (Italia - MNE) set up an exchange mechanism with local actors(local institutions, such as Municipalities and Regions, and local citizens committees). Following

    this interaction, the company created environmental observatories to execute audits on theeectiveness o its environmental protection system. Members o the observatories are elected by

    the local institutions and organizations involved in the agreement.

    Rhomberg Bau GmbH (Austria - SME) developed the Factor 2project aiming to double the lieexpectancy o the equipment within three years. This initiative oresaw on one hand the organizationo trainings and seminars in order to raise the awareness o workers or the right handling oequipment, and on the other hand the purchase o high quality and easy to handle building siteequipment.

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    Develop research on eco-sustainable buildingR&D investments can urther develop the eco-compatibility landscape and encourage the

    individuation o sustainable solutions. This can oster the evolution o the construction market,develop new housing typologies and represent an important opportunity in order to ace the evolutiono the market demand, increasingly oriented towards greater sustainability.

    The involvement o private/public research institutes or universities in the realization o R&Dmeasures bears the potential to increase quality, credibility and eciency.

    UNIECO (Italy - BC) developed the Astrolabioproject that oresaw training programmes andpractical work experience or current and uture employees. The initiative aimed at creatingawareness on all aspects related to eco-compatibility. In parallel, the company developed aresearch program on the implementation o new materials and innovative building techniques. Theproject has been realized thanks to the involvement o young researchers both in the researchphase and in view o their entrance in the labor market, taking into account the innovative potential

    that young people can bring to the company.

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    3.2.3 Analysis of the effects

    The internal contextIn adoption o best practices, there are cost and benets or a company, and acilitating aspects orhindering aspects that may infuence its action, directly linked to its internal context.

    BENEFITSarising from the adoption of socially responsible behaviors

    Increased ability and attitude to innovation

    Possibility to detect new market opportunities and extend the outreach to newconsumers/clients

    Improvement o productive process efciency due to, or example, a reduced waste oresources

    Ability to anticipate the evolution o legislation and consequently to be one step aheado competitors

    Improvement o the reputation within the company (employees) and externally (PublicAdministration, supplier, civil society, customers)

    Thanks to the current attention o mass media to the environmental sustainabilityissues, realized actions are valorized

    With regards to the sel- promotion market :

    Reduction o the cost o maintenance o buildings in the medium-and long-term

    Competitive advantage derived rom the opportunity to raise higher selling costs thanor traditional building

    COSTSrelated to the adoption of socially responsible behaviors

    Direct cost or providing specifc trainings

    Costs related to the study and development o technological knowledge and skills

    Direct costs for the promotion of awareness-raising campaigns, inside and outside the company

    Costs or the adoption o new technologies

    Costs related to R&D investments

    Costs related to the selection o eco-compatible materials (in some cases)

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    FACILITATING FACTORSrelated to the adoption of socially responsible behaviors

    Awareness and clear commitment o the companys top management

    Public administration attentive to the issue and encouraging the adoption osustainable solutions when awarding tenders and in other initiatives

    Availability on the territory o potential partners interested in collaborating to startinnovation processes

    Sensitivity o clients/consumers and public/private general contractors

    Internal collaboration and readiness to change among workers

    Availability o adequate resources and know-how

    HINDERING FACTORSrelated to the adoption of socially responsible behaviors

    Short-term assessment o investments by the companys management

    Under-estimation o potential savings

    Indirect costs related to companys culture change and to the overcoming o internalresistances due to the change o processes and procedures

    Little awareness rom employees and the companys top management

    Limited amount o resources

    Limited availability o actors with whom to activate partnerships (Universities,research institutes, etc.) on the territory on which the company operates

    Low attention on the territory towards environmental issues

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    The external contextThe adoption o socially responsible practices by

    the company infuences the external context oreerence, and contributes to change it.

    BENEFITS FOR THE COMMUNITYrelated to the adoption of socially responsible behaviors

    Less environmental impact (reduction o noise, dust and emissions on constructionsites, landscape preservation, biodiversity protection, water saving, energy saving,reduction o CO2 emissions, healthier environments, etc)

    Increasing environmental sensitivity o the community

    Increasing confdence towards the construction sector

    Promotion o high living-quality areas as a consequence o urban renovation and

    environmental improvement measures

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    3.3 Supply chainThe construction sector is characterized by a multitude o actors that contribute to the production

    process. Here, the complex supply chain composition o construction companies as well as theimportance o sub-contracting refects the signicance o responsible supply chain management inthe sector in order to ensure compliance with social, environmental but also qualitative standardsalong the production process.

    The concept o supply chain can be dened as all the steps that defne a production process, namelythe set o phases and actors that contribute to the realization o a particular product / service1. On the basis o this denition, the dierent actors in the various stages o the supply chain can bedivided into:

    mainactorsthataredirectlyinvolvedinoneormorestages,and

    actors insupport thatcarryoutsupport functions for the sector (individuals, institutionalorotherwise, the key players that provide a range o support unctions, coordination and control,

    detection and resolution o problems o the sector)2.

    The construction company supply chain is very long, going rom the building planner to severalcratsmen which take care o the nal adjustments. The longer the supply chain, the more ragmentedit is, as many subcontractors intervene. Moreover, the supply chain tends to be particularly unstable,because o the requent changes in its composition.

    As already mentioned, the complex and ragmented composition o construction companies supplychains complicate the exertion o control on the dierent stages o the construction process, theassurance o stability and transparency as much as the compliance with existing laws and company

    standards.

    The diculties in eectively managing supply chains in the construction sector, directly aect theaorementioned issues o health & saety and eco-compatibility. In this regard, health and saety onthe construction site must be considered as being linked to the transparency o the supply chain.Thus, the eective monitoring o the site and involved actors improves channels or consistentcommunication o risks and standards to workers and allows to detect non-compliant behaviorsand to intervene accordingly. In line with this logic, the issue o eco-compatibility is also linked to eective monitoring and evaluation o the supply chain as it potentially ensures the eectivecommunication o eco-standards and assesses the compliance o suppliers and sub-contractorswith company targets.

    1 The region o Emilia Romagna, Nuova Quasco, IPL, Nomisma Foundation: T.e.r.s.o .Project, 2007.For urther inormation: http://www.terso.it/index.htm

    2 Ibidem

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    STAKEHOLDER Related opportunities and limits perceived by the company

    Suppliers

    Supply chains in the construction sector are usually long and highlyragmented, due to a strong use o subcontracting. Eorts to increaseresponsible management o supply chains is oten related to theawareness o the need or increased control over several suppliersinvolved in the production process, in order to assure the necessary transparency and compliance with the standards established by thecompany.

    Local/ centraladministration

    In some cases, construction companies are led to exert a stronger controlon their own supply chain so as to prevent negative consequences thatcould potentially derive rom illegal behaviors, or in any case, rom thesanctions set by the subcontractors.

    3.3.1 Analysis of the externalcontextThe external context infuences the companyin its decision-making process. With regard to the supply chain, companies that developedvirtuous practices have been infuenced by theirexternal context in particular via two aspects: theawareness o the central eature o the supplychain, and indirectly, the controlling unctionassumed by the public administration.

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    3.3.2 Possible solutionsThe complex compositions o supply chains oer a myriad o possibilities to intervene via consistent

    methods o management, selection, monitoring and evaluation.

    Denition of suppliers selection criteriaConstruction companies are sub-contracting business partners to provide them with raw materialsnecessary or the realization o buildings and/or inrastructures, equipment or proessional expertise.Thereore, the responsible and consistent selection o suppliers and sub-contractors is o majorimportance to ensure compliance with social, environmental but also qualitative standards alongthe production process.

    Establish specic criteria for the choice of suppliers and adopt adequatetools for their implementation

    For the selection o suppliers, service providers and sub-contractors it is important to establish andmake explicit specic criteria that guide the choice o suppliers, in order to reduce discretionarychoices and encourage a selection process that is in line with the companys objectives. In thisregard, a company may develop a set o criteria that translates its CSR priorities and strategy intoconcrete action and allows or its implementation in the supply chain. The selection criteria canbe identied in analyzing risks and opportunities or the company, potentially involving the point oview o stakeholders in the decision-making process. Once the criteria are identied, the companyneeds to put in place implementation measures in the selection process operated by the purchasingunction. Tools such as the creation o a database o qualied suppliers or lists o suitable orunsuitable suppliers could be set. Monitoring and evaluation activities, as the one presented in thenext chapter, will be then necessary to keep those tools up-to-date.

    Fratini Costruzioni (Italy - SME) aimed at globally complying with the SA 8000 standard and at thesame time respond to the dicult conditions related to supply chains in the construction sector.The company developed a monitoring program in order to evaluate and select its suppliers and

    partners on the basis o ethical and socially responsible principles. These criteria set out to guidethe procurement choices o the company.

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    Develop tools to involve suppliers as active partners inthe processThe overall aim o a company should be to seek sustainable relationship with its suppliers and builda responsible supply chain able to last in the long term. According to this, the company should alsointervene proactively and try to improve perormance along the supply chain in order to create theconditions or a system o stable relations, based on reciprocal reliability and trust, and able toproduce an added value or all the components o the supply chain.

    Possible ways to proactively engage suppliers in sustainable perormance include training measuresand the improvement o communication and inormation fows.

    Ferrovial (Spain - MNE) developed tools aiming to encourage suppliers to pro-actively incorporateCSR principles into their operational perormance. The tools include: a centralized purchasemanagement system, corporate responsibility clauses and a supplier evaluation plan, to ensure

    transparency and compliance with company standards along the production process.

    Limitation to the number of sub-contractorsGreater transparency and traceability o the supply chain can be acilitated by limiting the maximum

    number o subcontracting in the productive process o a company, with the aim to ensure a bettercontrol along the whole supply chain.

    Coop Costruzioni (Italy - BC) decided to limit the use o subcontractors, by xing a limit to themaximum number o subcontracting in the productive activities, by releasing a ormal authorizationin case o subcontracting o subcontracting and controlling all the steps o the supply chain with

    the aim o having a greater control and an easier assessment o saety in all the worksites in orderto ensure greater transparency in the supply chain.

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    3.3.3 Analysis of the effects

    The internal contextThe adoption o best practices engenders costs and benets or a company. In the ollowing,acilitating and hindering aspects are presented that spring rom a companys internal context andmay infuence operational perormance.

    BENEFITSarising from the adoption of socially responsible behaviors

    Ability to prevent possible negative consequences (reputation, sanctions, etc.) derivingrom wrong behaviors o the supply chains components

    Greater transparency in the supply chain and easier identifcation the causes oinefciency

    More stability o the supply chain, that means more quality o work thanks to theselection o qualifed subjects and to the creation o bonds based on trust

    Increased process efciency through the implementation o new methodologies andknow-how related to purchases, supplier selection and processes o communication

    COSTSrelated to the adoption of socially responsible behaviors

    Direct costs or the development o new systems o supplier management and theadoption o adequate tools and technologies

    Direct costs or the evaluation and monitoring activity

    Direct costs or training sta in using new supply chain management systems

    Costs related to the realization o awareness-raising campaigns and activities

    Indirect costs related to the change o the internal culture, and to the overcoming ointernal resistance to changes in procedures and processes

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    FACILITATING FACTORSrelated to the adoption of socially responsible behaviors

    Internal collaboration and readiness to change in particular by those responsible orpurchasing unctions

    Awareness and clear commitment rom the companys top management

    Company culture oriented to transparency, efciency, process innovation and open todialogue with stakeholders

    Sufcient availability o resources and know-how

    Integration and collaboration between the design area and the purchasing unction

    Stable relationships with suppliers

    Increased awareness by the companies that are part o the supply chain and diusedculture o transparency

    Increased awareness on these issues by public administrations and valorization by thecompanies that adopt virtuous behaviors.

    HINDERING FACTORSrelated to the adoption of socially responsible behaviors

    Lack in culture o respect o law and transparency along the supply chain

    Widespread use o unstable working collaborations and difculties in access toinormation about suppliers

    Inadequate availability o resources to set controls and monitoring tools in the supplychain

    Reluctance to control and ensure transparency both by the company and its suppliers

    Indirect costs related to the change o companys culture and to the overcoming ointernal resistance to the change in procedures and processes

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    BENEFITS FOR THE COMMUNITYrelated to the adoption of socially responsible behaviors

    More reliability and quality o actors in the territory that are part o the supply chain

    Greater protection o workers and the environment through the spread o a culturethat promotes the respect o the law

    The external contextThe adoption o socially responsible practices by

    the company infuences the external context oreerence, and contributes to change it.

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    3.4 Equal OpportunitiesEqual opportunities deals with the valorization and non-discrimination o people, regardless o

    gender, origin, ethnicity, age and others. It is important to highlight that equal opportunities requiresa structured approach, as it deals with dierent people with diverse needs, implying an in-depthanalysis o a companys internal context to identiy the specic needs o employees. Given thevastness o the topic, the section ocuses on gender equality, being aware that it is not the only onerelevant to diversity management.

    More precisely, it has been considered that this aspect can be important or the construction sector,due to the act that there is a quite diused tendency to not pay an adequate attention to equalopportunities related to gender.

    Due to current demographic changes which will become more visible in Europe within the next yearswomen represent an added value or the competitiveness o a given company. The perspectivebrought by women, their signicant level o entry in the labor market and their high rates o skill andeducation level provide an opportunity to attract skilled talents. According to these considerations,the integration o women in the labor market ollows economic eciency criteria, as it valorizes animportant resource or the economic development o a country and ensures a more ecient use opeople available in the territory and o the potential o women workers.

    Managing diversity does not only concern identity diversity, but also cognitive diversity, consideredas the exposure to diverse points o view and experiences that can encourage people to think romdierent angles. It increases the global perspective o reerence and, consequently, companysproductivity.

    The integration o women in the construction sector can bring about greater innovation and creativityby having dierent perspectives and experiences, that can contribute to enrich companys viewby improving their ability to renovate. In this sense, womens integration can improve productsquality, because it implies a wider consideration o dierent needs which can be considered by thecompany. There is still much work to be done today to integrate women in the construction sectorin an equal manner.

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    STAKEHOLDER Related opportunities and limits perceived by the company

    Employees

    The strong infuence o workers around the adoption o equalopportunities practice in a company could be primarily connected to:

    - Increasing number o women with an higher level o education andgreater technical expertise in the labor market

    - The awareness o the increasing needs and diculties or employeesin terms o work-lie balance

    - The lack o supporting acilities on the territory

    - The important demographic changes in progress which lead to astronger and increased number o elderly persons, that is relatedto the need or work/lie balance or those who have to take care othem and or the necessity to reproduce workorce

    Trade UnionsIn the construction sector trade unions tend to be open to ruitul debatesand they have oten participated in the ideation and implementation ospecic projects.

    3.4.1 Analysis of the externalcontextAs shown below, the biggest infuence or theimplementation o diversity practices in companiesin the construction sector come directly rom theevolution o the workorce in terms o structure,motivation and behaviors.

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    3.4.2 Possible solutions: the best practices analyzedI they are implemented with the solid commitment rom top management and integrated as part o thecompanys general CSR strategy, equal opportunity initiatives can positively transorm the organization.Here, companies tend to develop public or private partnerships which oer specic competences toenhance internal research capacities or realize specic interventions.

    Integrating equal opportunities promotion in the companysorganizational principles and internal governance.Introducing equal opportunities in the internal policies can help to develop the right approach towardsdiversity management based on the companies and workers needs and priorities. For this, it is important

    to involve and train a companys subsidiaries and branch oces responsible or human resourcesmanagement. In particular, a ocus on a human resource department is necessary to implement such

    diversity management strategies and to obtain the benets that it oers.

    Realize an internal analysis of the companys organization in a gender perspective

    In order to develop an ecient strategy, a company should realize a previous analysis o its internalorganization, aiming to describe the organizational state o the company. On the basis o this data, thecompany can lead a redenition o its organizational processes in a gender perspective and or theintegration o equal opportunities in its internal governance.

    Introduce Equal Opportunities in the companys code of conduct

    A code o conduct sets out the general principles about a companys responsibilities and practices. Itdenes rules o behavior that guide decisions and procedures or that company. It provides the basis or

    behavior o a company and thus, introducing equal opportunities within the code, would mean integratingthis issue in the genetic o the company.

    Skanska AB (Sweden - MNE) revised and updated its Code o Conduct, including targets ondiversity in all levels o organization, diversity goals or every business unit, the appointment o aperson responsible or diversity strategy in each Business Unit, and the addition o diversity in topmanagers development program.

    Create a companys Equal Opportunities PlanDevelop specic policies or protocols that aim to promote equal opportunities could be the basis orresponding to the growing social concern about the role o women in the labor market. Such policiesneed to ensure respectul and non discriminatory gender policies. Generally, an equal opportunity planis a written statement about a companys commitment and intent with regard to equal opportunities anddiversity management, ollowed by the denition o suitable internal procedures to be implemented.Such policies are developed on the basis o an internal diagnosis o the current situation and needs tooresee an implementation strategy, targets and assessment systems.

    Trade unions can be a partner in the eld o equal opportunities mainly through a contribution in policiesas they have specic competences and knowledge o employees needs and the challenges within theconstruction sector.

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    CMB Carpi (Italy - BC) introduced an innovative gure in its human resources branch: a reliableadvisor, specically involved or the identication and correction o possible mobbing episodes,

    sexual harassments or gender discrimination. Ferrovial (Spain - MNE), in order to respond to the diuse social concern about equal opportunities,

    developed the Plan Iguala, consisting o a group o measures on labor fexibility, parental leave,etc. The plan was developed in our successive phases: evaluation o the present situation, planning,implementation and evaluation. This involved the Internal Communication and Employee corporateresponsibility Department, specically.

    Contratas y Obras (Spain - SME) articulated a Plan or equal opportunities between men andwomen, establishing a Protocol to prevent sexual harassment based on sex; equity and equalityin remuneration and working conditions; a study or acilitating the implementation o work liebalance measures.

    Pas (Spain - BC ) created an Equity Committee, composed o representatives o workers and

    representatives o the company, which aims to promote measures that are in the Equality Plan.Under the Equality Plan ramework they conducted a training and awareness session on EqualOpportunities between women and men directed to all employees o the organization. Pas alsomade agreements with some associations (as Caritas and other NGOs) and training bodies toacilitate the incorporation o women into positions where they are underrepresented.

    Training for human resources managers

    It is important to consider training o human resources managers because o their key role in theselection o personnel and in the general management o employees. A company should oreseespecic training programs addressed to its human resources branch to avoid unconscious biases,to be aware o specic needs o dierent types o employees, contributing to the valorization o thepotentialities o each worker and avoiding discriminations which are not always obvious.

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    Pas (Spain - BC) allowed the oce workers to have fexibility with regards to working schedule.Thus, during holidays period in schools, Pas has introduced an adjustment o working hours so thatemployees have the possibility to spend time with their children o school age.

    Facilitare laccesso dei dipendenti ai servizi che possono favorire laconciliazione vita-lavoro

    The lack o appropriate supporting acilities on the territory (such as nurseries, schools, acilitiesor elderly and disabled people, etc) as well as the diculties to conciliate working hours with theopening hours o main public acilities, can represent a problematic element or work-lie balance.

    In order to provide support to their employees in the area o work/amily balance, companies canprovide dierent services within the company, such as acilities or child care and social centers orelderly, or develop agreements with the main acilities.

    Such practices can contribute to more productivity rom the side o employees, thanks to theimprovement o the working lie and better responses to their needs.

    Todini Costruzioni S.P.A. (Italy - MNE) aced the need or its employees to be closer to their childrenduring working hours, due to the lack o childcare support acilities in the neighborhood. Thanks toa partnership with an Educational Services society (Gruppo Matarazzo per lInanzia), the companywas able to build a nursery or children rom 3 to 36 months, with the capacity or 46 children rom8 a.m. until 18.30 p.m.

    Create tools for conciliating work and family lifeThe needs or work-lie balance are increasing and the way o organizing the work can contribute to

    address those needs, also thanks to the development o new communication technologies.One o the main obstacles related to conciliation between work and amily can be related to theneed o taking care or amily members, such as children, elderly, or disabled people.

    The fexibility in terms o working hours and worksite can represent an answer to the needs o work-lie conciliation o workers. These practices are tools that can help the employee to better managepersonal responsibilities in line with work.

    Examples o orms o fexibility can be the encouragement o part-time work, a concentrated workingtime, work at distance, home working. For example, these tools can help, parents in the managemento the implications related to having children.

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    Introduce support tools for return from maternity

    A urther challenge related to work-lie balance is the reintegration o women workers ater amaternity leave, which oten implies a series o diculties that could discourage their return towork. For this purpose, it could be useul to invest resources in the training o those employeesor in orms o tutoring aiming to ensure a progressive and ecient reintegration in the company.Another measure that could acilitate the return rom the maternity leave is the regular updating onthe companys activity provided to women during their period o leave. Return to work can also beacilitated through economic incentives aiming at supporting expenditures o the amily.

    Coopsette (Italia - BC), ollowing a survey on the companys internal climate, deemed it useul to

    deepen the research on working conditions o women to identiy suitable measures to valorizewomens work. Thereore the company supported the development o a study by the PsychologyDepartment o the University o Bologna, that developed a research on the internal climate o thecompany, aiming to point out its employees wellbeing. The research highlighted the main exigencieso emale workers within Coopsette and introduced actions such as the possibility o fexibility ando weekly scheduling o working hours. The company also provided economic contributions orneeds related to childbirth.

    Confector Mrnk Iroda Kft. (Hungary - SME) in order to respond to the increasing demand orequal opportunities, the company established an indenite time contract with pregnant women.This is an exceptional practice in Hungary, as contracts are usually signed within a xed time. Thecompany created new positions or them when returning rom maternity leave (which is 3 yearslong in Hungary) and gave them the possibility to work through telecommuting during pregnancy

    and motherhood.

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    3.4.3 Analysis of the effects

    The