How to become a benefit spring manufacturer

A benefit corporation is a type of business that seeks to balance the creation of economic value with that of social and environmental value. Subject to the same laws and regulations as traditional corporations, it differs from them in that it has a legal obligation to align the interests of shareholders or ownership with those of the community and the environment. In Italy, benefit corporations were introduced by Law No. 208 of 28 December 2015, but they are not yet very well known: according to data, there are just over 2,000 benefit company in the country.

One of these is CO.EL. srl, a company based in Northern Italy specializing in the production of elastic components such as springs and metal fittings. I had a chat with Angelo Cortesi (company founder and administrator) who has been working for years to promote an ethical business model.

When did the transformation into a benefit corporation take place? What led you to this decision?
The signing took place in front of a notary in December 2022 - mind you, this is a relevant and substantial formal step. It is necessary to include all the commitments that the company is undertaking in the Articles of Association, putting in writing the purposes of benefit that we aim to achieve for our staff, the community, and the environment. For us, it was the culmination of a two-year process in which we shared our thoughts on principles, values, and visions for the company: all things that also influence our strategies.

One might think that when you do good, it doesn't need to be written down - what is your opinion on this?
I used to think that some initiatives did not need to be formalized, either. I relied on the attitude of being a good Italian family man, which is typical of us entrepreneurs used to pursuing good practices, especially toward the community in which the company operates, without strict obligations or prescriptions. But I had to change my mind, even overcoming my aversion to "measuring" public utility activities.

What do you mean by “measuring”?
The law that established benefit corporations requires official control of the commitments that the company has undertaken: every year, an impact assessment must be carried out to determine the degree of success of the actions taken by the company. How effective were the activities carried out in relation to the objectives set? Without measuring, you cannot improve and do more and better the following year. The impact assessment is a public document, that anyone can consult; as such, it commits us even more to pursuing our aims. Then there is another important aspect related to communication, if you will.

Which one?
It's time to stop telling only bad things! We are used to hearing terrible news or, even worse, of little value: we need to learn to communicate the good things that we do in the companies for the community's benefit and promote positive examples so that others are also encouraged to do the same.

What path should a company that wants to become a benefit corporation take?
I have been assisted by external consultants and have personally committed myself to ensuring that the impact assessment model - which is usually based on the US BIA (Benefit Impact Assessment) - is more respectful of our culture and suitable for the Italian business system, which is made up of 99.3% of micro and small businesses. If we want the benefit corporation model to spread, we need a lean solution based on the Mediterranean corporate culture and business size. This is why I gladly agreed to participate in the development and beta testing of the "impact matrix" developed by the School of Civil Economy in Florence.

What are the next steps for CO.EL.?
To continue in this way! The hope is that customers and suppliers choose us not only for the quality of our products, but also for this stance we have taken. I can already say that our choice has generated a lot of interest.

Congratulations to CO.EL. once again!
For more information on the company and contact details, please refer to the information on the side.

Daniela Di Maggio
Editor-in-chief expometals.net