Ética empresarial BENETTON

BENETTON GROUP • Benetton was established in 1965 as a partnership by the Benetton family in Ponzano Veneto, Italy • Benetton group is a world class company with a global image • The apparel business is the group core activity • in 120 countries around the world • Continued innovation into new materials and logistics. All systems and equipment are totally renewed every 5 years • Company’s key values: quality, knowledge and teamwork

COMPANY’S BRANDS • United Colors of Benetton is the Group's global brand • Undercolors is a brand specialized in underwear, sleepwear, beachwear and accessories • Sisley is the Group's most trend-setting brand • Playlife is a casual wear brand with college style • Killer Loop is a street wear brand aiming at young urban people

SOCIAL RESPONSABILITY-CAMPAIGNS • Benetton has been always committed to ethical values, with a multi-ethnic and multi-racial approach, respect for minorities and for the environment, support of human rights. • Through its communications campaigns and tangible actions, the Group has realized many initiatives in cooperation with internationally renown institutions and organizations: •World Food Programme •United Nations •FAO •SOS Racisme

INDUSTRIAL RELATIONS Benetton Group represent the ongoing commitment on transparences and fairness in work partnership. Company labour agreements are mainly intended for employees. The Organizational and Operational model contains a set of principles according to which the Group conducts its activity and that of the parties who operate on its behalf.

INDUSTRIAL RELATIONS 1. RELATIONS WITH THIRD PARTIES: • With political and trade-union organisation • With the Administration or Civil Service • With news organisations and mass media • Supplier relations • Customer relations

INDUSTRIAL RELATIONS 2 . TREATMENT OF CONFIDENTIAL INFORMATION & PRICE-SENSITIVE INFORMATION 3 . MANAGEMENT OF HUMAN RESOURCES AND PROTECTION OF THE DIGNITY, HEALTH AND SAFETY OF THE EMPLOYEE

ETHICS •Benetton has been always committed to ethical values •Respect minorities and for the environment •Supports human rights •Cooperates with internationally renown institutions and organizations •Alessandro Benetton is carrying on his family’s decades-long commitment to social activism and responsibility with a cutting- edge program in the developing world

ADVERTISING • Oliviero Toscani, "Advertising is the richest and most powerful form of communication in the world. We need to have images that will make people think and discuss“ • Luciano Benetton, adds: "Advertising has a habit of portraying only the rich, beautiful and blonde. We need images of normal people, to help us see the world differently" • The company positions on the role of marketing has received mixed reaction; from very positive, to ferocious attacks of others

ADVERTISING

EMOTIONAL AROUSING ADS • The company's controversial ads have won awards and United Colors of Benetton has become the third most recognized brand in the world-following Coca-Cola and McDonald's • On the other hand, the company has faced a lot of problems tied to its marketing practices (legal suits form retailers who claim that company's advertising is sabotaging their sales).

BENETTON FOUNDATIONS • Promotes initiatives on both international and local levels • The aim of safeguarding and raising awareness of natural heritage. The main field of scientific activity concerns the knowledge, study and management of landscape. • The Foundation organizes seminars, short courses, study trips and experimental workshops • The Foundation collaborates to the construction of a new-concept European university • Offer its help in creating a children's centre • Its purpose is to provide an essential service which will improve the quality of life and work of the Group employees, and give support to the community

REASONS FOR WHY COMPANY’S ADS UNETHICAL • Most of the advertising is irrelevant to the products/services sold by the company • The ads evoke strong emotions that sometimes cannot be control or that are unwelcome by viewers • They can be perceived as psychoactive ("Death Row" campaign)

REASONS FOR WHY COMPANY’S ADS UNETHICAL "The 'united colors' of Benetton are turning to blood red," says PETA Europe Campaign Coordinator Andrew Butler. "If Benetton wants to wipe the blood of millions of sheep off its hands, it must refuse to sell clothes made from Australian wool."

LOW PRODUCTION COSTS • Italian clothing giant Benetton has cut prices by 20 per cent this season thanks to lower production costs from suppliers in India. Benetton was using Indian suppliers because of customer demand, not cost-cutting • Wool is normally subject to a 60-per-cent tariff, but Asian fabrics are cheaper. Benetton said this would increase sales by 15 to 20 per cent this year

CODE OF ETHICS •Benetton Group has a code of ethics, an official document of Benetton Group S.p.A. and its subsidiaries. It contains a set of principles according to which the actual Group conducts its activity and that of the parties who operate on its behalf

THANK YOU

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Ética empresarial BENETTON

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