ANNUAL REPORT 2016 SA8000:2008 · dienpi s.r.l. sa8000 annual report – year 2016 rev. 00 1 annual report 2016 sa8000:2008

DIENPI S.r.l. SA8000 ANNUAL REPORT – Year 2016

Rev. 00 1

ANNUAL REPORT 2016

SA8000:2008


Rev. 00 2

TABLE OF CONTENTS

Introduction Part I

Targets

Principles used for preparation

PART A – CORPORATE PROFILE

- A.1 Corporate identity

- A.2 Organization model

- A.3 Presence on the territory

- A.4 On-going strategies

PART B- CORPORATE REPORTING SYSTEM

- B.1- Identification of Stakeholders

- B.2- Corporate performance

Child labour

Forced labour

Health & Safety

Freedom of association and the right of collective bargaining

Discrimination

Disciplinary practices

Working hours

Salary

Management system

Communication

Periodic programs of education, training and sensitivisation for staff


Rev. 00 3

DIENPI ANNUAL REPORT

In undertaking a strategy and a process based on principles of Social Accountability, DIENPI has identified in

the SA8000 standard, the most appropriate tool to certify the compliance of all activities conducted in full

respect of human rights. DIENPI has voluntarily adopted the requirements of the SA8000 standard with the

goal of integrating social issues within its policy, its operations and relationship with stakeholders.

This "Annual Report" is the voluntary instrument through which DIENPI intends to divulgate to all

stakeholders (internal and external) its Social Accountability Policy, Management System, achievements and

future goals for improvement, in order to establish complete transparency with employees and other

interested parties.

The SA8000 Annual Report provides qualitative and quantitative information that show respect for the

individual requirements of the standard, covering different areas of employment, namely:

• Child labour

• Forced labour

• Freedom of association

• Health and Safety

• Discrimination

• Disciplinary practices

• Working hours

• Salary

• Management system.

For the purpose of its continuous improvement, DIENPI is committed to:

• comply with all requirements of the SA8000 standard;

• comply with national laws, other laws in force and principles of the ILO conventions (International

Labour Organization), the Universal Declaration of Human Rights, the UN Convention on the Rights

of the Child, the UN Convention to Eliminate All Forms of Discrimination against Women;

• continuously improve in the adoption of social accountability behaviours


Rev. 00 4

• document, implement, maintain active, communicate and make accessible the social

accountability policy to all internal stakeholders (staff, directors, officers and management, operating

staff) and external stakeholders (community, interest groups, institutions).

Part I Targets

The SA 8000 management system is aimed at:

1. adopting business practices that share and respect the cultural, ethical and social values of all

stakeholders;

2. continuously improving its organization and working conditions, without the possibility of child labour,

combating all types of discrimination (sex, race, age, religion, etc.);

3. contributing to overall improvements in the standard of quality and Social Accountability through

professional development and respect for the rights of its staff;

4. spreading the culture of Social Accountability also to its suppliers/sub-contractors and sub-suppliers;

5. ensuring the protection of confidential information and intellectual property rights of customers;

6. ensuring the impartiality and skills of its operators;

7. stimulating constructive criticism of own training and its improvement at all levels;

8. respecting the environment, health, safety in the workplace and Social Accountability principles applied

within the company.

Principles used for preparation

Fundamental principles

transparency: report users shall be able to be informed about the processes, procedures and

assumptions relating to the information included;

periodicity: the information contained in the report must be provided with a frequency related to

the nature of the information.


Rev. 00 5

Methodological principles

involvement: the company needs to involve stakeholders in the process of report drafting (in

particular, in the process of identification of assessment indicators);

verifiability: data and information shall be reported and described in order to make possible the

identification of the source, to allow verification of their reliability;

contextualization: the company needs to expand the environmental and social context of reference

of the report, when it attaches greater significance to information;

competence and comparability: certainty of the time reference of the content of individual reports

and possibility of confrontation between those of different years;

neutrality: means that the content of the report shall be impartial with respect to the interests of

individual groups;

clarity: the detail of the information shall be appropriate to the need of the reference stakeholders,

including through the use of charts and glossaries.

Characteristics of the information

completeness: the information shall be reported in a manner consistent with the object of economic

activity, the purpose of the report and the reference time period;

relevance: information (management aspects and indicators) should be provided in order to highlight

the degree of significance that they acquire in the decision-making process of the company;

accuracy: the information shall be given by showing the degree of accuracy and precision (i.e. the

margin of error) that have in the representation of company operations.


Rev. 00 6

PART A – CORPORATE PROFILE

- A.1 Corporate identity

DIENPI S.r.l. designs and manufactures accessories for clothing and footwear, mainly labels, tags, thermo-

adhesive decorations with studs and rhinestones, belts and small leather goods. The company was officially

founded in 2011, but it comes from the thirty years of experience of DIENPI partners in the field of fashion

accessories; the company operates in the domestic and international fashion market.

The company work begins with graphic design up to the manufacture of prototypes/samples and finally is

able to deliver orders worldwide.

DIENPI has recently created a new fashion and production line and the accessories thereof are identified by

corporate brands:

- DIENPI LABELING (labels and tags)

- DIENPI PRECIOUS (rhinestones and studs)

- DIENPI TASTE (combination of fashion and wine) Innovative labels for wines and foods.

The DIENPI products reflect all the quality standards required by current regulations for the work protection

and ethic. The company uses only certified raw materials and their collections often include the use of green

materials (recycled paper, chrome-free leather and water-based inks). DIENPI has been promoting its

products on the foreign markets for several years; thanks to its presence in international exhibitions DIENPI

intends to strengthen its network of agents in Italy and abroad, in particular in Northern Europe and America.

The samples are the demonstration of commitment to research and design, production is a reflection of high

quality target and the full respect of the commitments. DIENPI is also a member of FIT, Finest Italian

Trimming.

Dienpi supports "I bambini di Manina"

- A.2 Organization model

The following is the organizational structure of the company, through the organizational chart, which

describes the responsibilities, duties and tasks of the professionals who work in Dienpi, whose activities have

a direct influence on the definition and implementation of the Company policy.

http://www.dienpi.com/fiere.cfm

http://www.dienpi.com/fiere.cfm

http://www.fititaly.com/

http://www.fititaly.com/

http://www.bambinidimanina.net/

Rev. 00 7

DIENPI S.R.L. SA8000 ANNUAL REPORT – Year 2016

DIENPI S.r.l.

Shareholders

SOLE DIRECTOR

(AD)

Prevention and Protection Service

Manager

(RSPP)

Representative

of Management

(RD)

Workers' safety representative

(RLS)

Workers' representative for

Social Accountability

(RLRS)

Administration

(RAmm)

Administration Assistant

(AA)

Sales (RCom)

Purchase

(RAcq)

Production

(RPro)

Design (RPrg) Storage

(RMag)

Logistics

(RLog)

Tags Labelling Precious - Rhinestones Research - Sampling and

Labelling

Precious-Rhinestones and Labelling

Rev. 00 8

- A.3 Presence on the territory

DIENPI is a made-in-Italy company based in San Benedetto del Tronto (AP). The company is able to assert its

presence in the domestic market (mainly in the Marche, Abruzzo and Veneto regions), European market (in

the countries of Northern and Southern Europe) and international market (in North Africa and Asia - Pacific)

through structured presence in trade fairs and planning and implementation of marketing activities. The "bi-

directional and interactivity" of communication, which can be reached through participation in fairs, enables

the company to achieve set objectives, such as the projection of the corporate image, the illustration of its

strategies and product presentation to potential customer, knowledge of the potential buyers, the feedback

from the market, gathering of information on competitors and sales support.

Mass communication, company publications, direct mail, sponsorships, website instead are a type of business

strategy that allows the company to quickly reach a bigger audience and deployed anywhere, without first

establishing a direct link with the end user.

The company philosophy has also been based on the full and comprehensive research for solutions that offer

customers the opportunity to choose from a wide range of products, constantly in line with the latest trends

and the most innovative materials.

The company, in fact, invests heavily in research and development as evidenced by the design team

constantly striving to implement projects and inventions, to select new materials, to industrialize new

prototypes in order to offer the market innovative products.

Dienpi undertakes to inform its customers on the environment and energy saving commitment that

characterizes the corporate policies. This sensitivity has also led to adopt a policy of suppliers' selection based

on respect for the environment, safety and the principles of the SA8000 standard.

- A.4 On-going strategies

Thanks to a targeted strategy and constant investments, DIENPI has increasingly strengthened its market

position, not only in Italy, but also abroad, to the point that currently, about 20% of the demand comes from

countries within and outside the EU.

The reasons for this success are: control over every stage of production, product reliability, high technology

involved, innovation and refined design. All this is possible thanks to the people who work in DIENPI, each

strengthened by their experiences, with a keen eye to current needs and to a project aimed at the future.

The products (labels and accessories) and packaging design services are aimed primarily at the best brands of

clothing and footwear, which, in detail, appreciate the research, quality and service offered by Dienpi, taking

care of every stage of the domestic production and ensuring the traceability of each production lot.

In this context, Dienpi plans to strengthen its commercial presence and enter new market segments by

Rev. 00 9

implementing an expansion of the geographic coverage of its products, especially to North America, Middle

East, Russia, Japan and Australia. In order to achieve these objectives, the company plans to expand its

product portfolio, improving related services and its production technologies.

The company, in fact, has undertaken a process of diversification and creation of cross-sector

"contamination", initiating an approach to other industries, such as food and agriculture, through the

creation of labels and special accessories that can increase the perception of the preciousness of a specific

product.

Today, the market is changing, with consumers asking new questions, new needs and, if we analyze in depth

these behaviours, there is a greater focus on eco-sustainable processes and products. The consumer,

therefore, no longer just chooses based on price and quality, but also on the history of the products

themselves and the behaviour of companies that offer them.

Rev. 00 10

PART B- CORPORATE REPORTING SYSTEM

- B.1- Identification of Stakeholders

An accurate mapping of the categories of stakeholders shall be made. It is the identification of strategic

partners in respect of which the company has interest to report its legitimacy and its actions. The recipients

of the Annual Report of Dienpi are as follows:

- B.2- Corporate performance

The commitments arising from the SA8000 certification are to comply with the principles and requirements

of the standard and indicate precisely the most common standard for global social accountability of a

company, with particular reference to the human and social rights.

Below are reported the main contents and displayed the data of quality and/or quantity in Dienpi.

Child labour

With reference to SA8000, DIENPI does not allow the use of child labour and recognizes education as one of

the main factors of the mental and physical development of adolescents: accordingly, DIENPI undertakes to

use only staff older than 18 years.

Below is a breakdown, by age, of the workforce in the year 2016.

Rev. 00 11

AGE RANGE < 15 15-17 18-30 31-40 41-50 51-60 >61 Total

Men 0 0 1 3 2 1 0 7

Women 0 0 0 3 1 1 0 5

Total 0 0 1 6 3 2 0 12

% 0 0 8,3% 50,0% 25,0% 16,7% 0 100%

Age range and sex of employees in 2016 (no.)

Targets for the future

Objective 2017 Action Person in charge Deadlines

Keep the current situation stable.

Continuing the policy of employment according to age principles.

AD

December 2017

Give support to minors through collaboration with Humanitarian Associations.

Identification of a humanitarian association committed to protection of minors and adoption of a child.

AD

December 2017

Do not facilitate employment of minors within the supply chain.

Provision of a questionnaire and/or audits to suppliers. AD

December 2017

Rev. 00 12

Forced labour

The company that has its own identity, which is instantly recognizable, is a reality that works. "The soul" of

Dienpi consists of human resources, with their commitment, their professional skills and experience; they

characterize the company's success.

The business strategy, a process under construction day by day, based on the constant work, on a transparent

management of the projects and the sharing of responsibilities, requires the involvement of all the people,

just as in a real family.

Therefore, one of the company's objectives is to foster a more peaceful work environment, stimulating from

a professional point of view, rejecting the recourse to any form of coercion of its staff.

Note that the company, in compliance with current regulations, assesses, at the worker's request, the

possibility to make advance payments of severance pay (T.F.R.), in addition to advances on wages, in order

to meet the specific economic needs of the staff.

No advance has been requested and paid In 2016.

Management of advances on wages/severance pay

Average amounts (€) granted on requests for advances of wage/ severance pay

1

0.8

0.6

0.4

0.2

0

Year 2015 Year 2016

No. requests

No. of advances granted

1

0.8

0.6

0.4

0.2

0

Year 2015 Year 2016

The company has also enabled an analysis of the working environment through the distribution of a

satisfaction questionnaire to employees in order to verify the status of internal perception of employees with

respect to certain specific issues: safety, interpersonal relations, hygiene and work schedules. Employees

have also been invited to send any complaints, suggestions and comments to the Department for monitoring

of the principles established by SA8000 policy and improvement of business performance.

The employees' satisfaction survey, conducted in 2016, has found a positive situation and has not detected

any significant issues, as highlighted in the chart below.

From the responses observed, in particular, arises a fair degree of satisfaction on the part of all staff, in

particular the company's strengths appear to be the serene working environment and attention of Dienpi to

health and safety at workplaces. The employees also seem very pleased with the training given.

Rev. 00 13

DIENPI S.R.L. SA8000 ANNUAL REPORT – Year 2016

Employees' satisfaction Year 2014

Have you received any training on safety and health? Have you received any training on SA8000? Are employees free to express their opinion? Does the company apply any disciplinary practice/sanction? Does overtime work exist? Have you faced problems in planning your holidays? Does the company provide any explanation in case of errors in the payroll? Are the corporate rooms clean? In your opinion, is the staff selected according to skills? Is the company sensitive towards environmental risks?

Is the company sensitive towards risks for health/safety? Within the company, are there any minor < 16? Does the company apply any discrimination by race, sex, age, etc.? Is your relationship with senior head positive? Is your relationship with colleagues positive? Does the company allow its employees to freely join labour unions? Is the company sensitive towards the personal needs of employees?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Rev. 00 14



Keep the current

situation stable.

Monitoring through the

specific questionnaire

and check of

suggestions left in the

special mail box.

AD

December 2017

Stimulate the

employees'

involvement and

continuous dialogue

at all corporate levels

Organization of

training/information

meeting every year on

the issues requested by

RLRS or directly by

employees.

RLRS

December 2017

Do not facilitate

forced labour within

the supply chain.

Provision of a

questionnaire and/or

audits at the suppliers'. AD

December 2017

Health and Safety

Dienpi has always paid attention to the safety and health of its employees:

- Dienpi constantly invests in training and information for employees;

- provides safe workspaces, thanks to an accurate risk assessment.

The Company is committed to protecting the health and safety of its employees and partners, taking the

appropriate measures to correct any condition possibly dangerous to health or safety. Everyone has his/her

own share of responsibility in achieving this goal, in strict accordance with established procedures to ensure

his/her own safety and safety of colleagues. The reference for employees are the Head of Prevention and

Protection (RSPP) and the Employees' Representative for Safety (RLS), two figures inside the company

actively participating in the management of safety at work in prevention and protection service. In 2016,

specifically, there have been no accidents. The analysis of the trend of other types of absences also allows

for signals, though indirect, and to be checked, about the "mood" of the employees. In fact, it is possible that

stressful periods of work or unpleasant situations in the company (difficult relationships with colleagues or

heads, unpleasant tasks, etc.) can lead to a higher percentage of sick days or other absences.

Rev. 00 15

The trend during the year 2016, as shown in the tables below, was influenced by a particular case of an

employee who had accumulated 141 illnesses days (not dependent on work causes). However, the data

was also recorded considering the event's exceptional character.

Between round brackets is data net of the event.



Continuous

monitoring of

accident level and

causes.

Monitoring of corporate

operations in order to

ensure a suitable, safe

and healthy working

environment.

RSPP

December 2017

"Ensure" an

accident-free

working

environment

Organization of

training/information

meeting on prevention of

the most-likely accidents

in the working

environment

RSPP

December 2017

Freedom of association and the right of collective bargaining

Although currently in Dienpi there are no union representatives and union members, the company does not

hinder the possibility of being able to elect them and is also in favour of employees joining labour unions. For

this reason too, the information board displays the references of the main organizations in the area.

In addition, to facilitate meetings and raise awareness among employees, space for meetings have been

defined and made available by the company.

DAYS OF ABSENCE 2014

REASON DD

Sick leave 150

Accident 0

Strike 0

TOTAL 150

TABLE NUMBER OF SICK LEAVE DAYS

YEAR DAYS No. EMPL. WORK HOURS

2016 150 12 15.526

(9) (11) (14.232)

Rev. 00 16



Keep the current

situation stable.

Keep the current

information level on the

opportunity to be a

member of labour union

and be represented by a

labour union.

RD

December 2017

Discrimination

Depending on the position within the company, everyone must ensure a work environment free of prejudice

and discrimination, in accordance with the personality of professional resources; in this sense, everyone must

work actively to maintain a working environment that guarantees respect for the dignity of each. Dienpi does

not take or support any form of discrimination in hiring, remuneration, access to training, promotion,

termination or retirement based on gender, race, social class or national origin, religion, disability, sexual

orientation, family responsibilities, marital status , union membership, political opinion, age or any other

condition that could give rise to discrimination.

The data on the following pages provide further information related to the workforce: gender, agreement

types and qualification.

Men Women

Rev. 00 17

No. employees No. workers No. apprentices Executives

Women Men

Fixed-term employment Permanent employment

Women Men


Objective 2017 Action Person in charge

Deadlines

Keep the current

situation stable.

Monitoring through internal

questionnaire

RLRS

December 2017

Disciplinary practices

No situations of abuse or misuse of disciplinary procedures laid down in national collective bargaining

agreement by CCNL or by the standard of social accountability, exist. Employees have never filed any

complaints. The company does not use nor support corporal or mental punishment or physical coercion or

verbal abuse.

No cases of use of disciplinary measures against employees have ever occurred.

Rev. 00 18

The company has developed and delivered to its employees a Code of Conduct, which is exposed in the

information board.



Keep the current

situation stable.

Monitoring through

internal questionnaire

RLRS

December 2017

Working hours

Dienpi respects the provisions of the collective labour agreement applied on working time, holidays and

vacations. The working time is detected by means of a register containing details of the number of daily hours

of staff attendance.

The company applies the full time schedule, as set in the collective bargaining, or individual part-time

schedule, defined and agreed between the parties.

There has been no overtime in the year 2014.

In fact, there are situations where overtime may be required to cover:

• peaks of work related to specific orders

• activities related to particularly specialised professionals

Overtime is, however, always voluntary and agreed with the employee. Remuneration for overtime respects

the provisions of the national labour agreement by CCNL.

The company also takes care to ensure that all staff benefit from holidays and leave accrued, as planned and

as required by local regulations. The company is also available to agree upon and facilitate any need for

flexible working hours of employees. A recent administrative supervision has recognized situations of

accumulation of holidays and leave, arising from the previous year, due in particular to a major commitment

that the production has experienced the last year. All vacation/permits are still used by workers within the

deadlines set by local regulations. If the employee does not use it on a voluntary basis, the company sees to

the enforcement of legal obligations.

Rev. 00 19

100%

80%

60%

40%

20%

0%

Detail of annual worked hours (%)

2015 2016

% ordinary

% extraordinary



Deadlines

Reduction of no. of hours of

holidays and permits not

used in the year

Monitoring of

holidays/permits used by

staff every four months.

RD

April 2015

Salary

Salaries are compliant with the provisions of the collective labour agreement.

The salary is paid by the 10th of each month and the method of payment is freely chosen by the employees

upon hiring.

The company outsources the accounting of payroll to external consultants. The received pay slips are also

checked internally to verify their correctness and completeness.

Year Employees Workers

2014 € 1.380,00 € 1.150,00

2016 € 1.498,00 € 1.465,00 *Source istat: €708.61 poverty threshold of a person

Rev. 00 21



Deadlines

Keep the current

situation stable.

Monitoring through internal

questionnaire

RLRS

December 2017

Stimulate employees

and ensure their

satisfaction is high.

Organization of

training/information meeting

with labour consultants.

AD

December 2017

Management systems

The SA8000 Manager, in the year 2014, has proceeded to launch a system of verification and awareness on

the work of suppliers asking them, as a condition for inclusion in the suppliers' list, compliance with the rules

and principles contained in SA8000 (extended to the chain of their suppliers), the filling-in of a specific

questionnaire and the willingness to provide information when requested.

During 2016 no new suppliers are qualified.

The priority criteria used in the year 2014 to identify the suppliers are summarized as follows:

• amount of turnover

• geographical area of operations of the supplier

• belonging to identified "social" risk categories, as relevant depending on the type of supply

• company structure and size.

In addition to written compliance with the principles of SA8000 and filling-in of questionnaire, suppliers are

€ 0,00

€ 200,00

€ 400,00

€ 600,00

€ 800,00

€ 1.000,00

€ 1.200,00

€ 1.400,00

€ 1.600,00

2014 2016

Average remuneration per qualification

employees

workers

poverty threshold*

Rev. 00 22

also requested to carry out external audits and adopt specific actions agreed to reduce/remove the anomalies

that may arise.

The test carried out on suppliers has not revealed any non-conformity to the effects of the SA8000 standard.



Improvement of the

supply chain

investigation

Implementation of an intensive

stimulation and request for

feedback by the suppliers and

two audits of the second part

RD

December 2017

Communication

The SA8000 Representative has assumed responsibility for the communication, to internal and external

stakeholders, of the social commitment of Dienpi. In this first year of social reporting, employees, customers

and suppliers of the company have been identified as stakeholders closer to the company and more involved

in corporate life.

In 2016, the activities of communication have been through the publication of the policy of Social

Accountability, the Code of Conduct and the SA8000 Report, as well as the SA8000 certificate of the country

of Applicant, on the website www.dienpi.com.

Management is proactive in responding to the claims received from both internal and external parties.

http://www.dienpi.com/

Rev. 00 23



Deadlines

Improved

involvement of

stakeholders in

sharing the

commitment to

compliance with

SA8000 requirements.

- Organization of sensitivisation

meeting on issues such as

environmental sustainability

and social responsibility

- Continuous updating of the

web site

- Setting-up a customer

satisfaction questionnaire

AD

December 2017

Periodic programs of education, training and sensitivisation for staff

The Management involves its employees in the whole process to maintain SA8000 certification through

training sessions/information. Given that the organization is going to upgrade the system to the new SA8000:

2014 standard, no specific training on Social Responsibility for Workers has been carried out in 2016, even

though informal meetings were held to illustrate goals and make them aware of the collaboration

functionality to improvement of the system.

The main topics covered by the training sessions are:

• Principles of social responsibility, Requirements of social responsibility: SA 8000 Policy

• Code of Conduct

• Procedure for complaints and reports

• Monitoring of suppliers

• Fulfilments and obligations for occupational safety.

However, on each occasion of the meeting, it was reiterated the possibility for workers to contribute to the

improvement of the management system with suggestions with proper own reports in anonymous form; The

Management has made available to all staff a special box, also in order to improve internal communications

and in particular allow employees to express their.

Approved by AD on 16/01/2017

Documents

ANNUAL REPORT 2016 SA8000:2008 · dienpi s.r.l. sa8000 annual report – year 2016 rev. 00 1 annual report 2016 sa8000:2008