Stakeholder engagement

With a presence in 190 countries worldwide, CNH Industrial’s strategy is to maintain an ongoing, healthy relationship with all its stakeholders. The Company meets its responsibilities in the social sphere in which it operates through relationships founded on ongoing communication and active engagement.

Stakeholders present a wide range of differing interests: establishing and maintaining stable and lasting relationships is crucial for creating shared value over the long term. Understanding specific requirements and priorities enables CNH Industrial to deal with issues before they become critical, and to fine tune its responses according to the interests of its stakeholders.

The first step toward building effective engagement involves precisely and promptly identifying stakeholders and establishing the most effective communication channels, while continuously monitoring expectations, needs and opinions. The Company continuously and proactively interacts with stakeholders worldwide through dedicated functions, promoting ongoing dialogue and remaining responsive to needs. CNH Industrial believes that such exchanges are mutual opportunities for growth and improvement, and that cooperation and trust are built on receptiveness and engagement.stakeholder engagement

CNH Industrial identified and selected key stakeholders through an internal assessment performed by the corporate functions managing stakeholder relations on a daily basis. Each stakeholder was assessed in terms of importance for the Company and significance in terms of activities carried out. The table indicates: the functions responsible for ongoing dialogue with the various stakeholders, the engagement tools used, and the main stakeholder expectations. Corporate functions respond to stakeholder expectations through identified channels, translating needs and areas for improvement into Sustainability Plan targets (see also pages 104-123).

In performing the materiality analysis (see also pages 33-35), the views of the concerned stakeholders were presented by the Company representatives who interact with them each day. In 2014, the analysis will engage stakeholders directly through targeted exchanges with selected groups; therefore, through the materiality matrix, they will play an active role in next year’s Sustainability Report.

  • THE COMPANY CONTINUOUSLY AND PROACTIVELY INTERACTS WITH STAKEHOLDERS WORLDWIDE THROUGH DEDICATED FUNCTIONS, PROMOTING ONGOING DIALOGUE AND REMAINING RESPONSIVE TO NEEDS.
  • CNH INDUSTRIAL BELIEVES THAT SUCH EXCHANGES ARE MUTUAL OPPORTUNITIES FOR GROWTH AND IMPROVEMENT, AND THAT COOPERATION AND TRUST ARE BUILT ON RECEPTIVENESS AND ENGAGEMENT

StakeholdersCorporate functions1Tools and interaction channelsKey topics and concerns
  • Public institutions: government, local authorities, public agencies, regulatory bodies, international institutions,trade associations and non-governmental organizations
   icona
Institutional Relations
  • periodic ad hoc meetings on corporate objectives and decisions
  • participation in working groups, development of joint projects and alliances
  • ad hoc engagement
  • collaboration on R&D projects
  • initiatives to promote environmental issues
  • responsiveness and proactiveness towards
  • projects presented
  • collaboration and access to information
  • satisfaction of tender requirements for R&D projects
  • technical support on specific industry-related issues
  • Environment
   
Environment,
Health and Safety
  • dialogue with institutions and environmental associations
  • inclusion of environmental aspects in business strategies (e.g., combating climate change)
  • strengthen environmental management through: dedicated organizational structure, environmental performance monitoring systems, management objectives and action plans
  • Employees
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Human Resources,
Environment,
Health and Safety
  • daily dialogue
  • people satisfaction surveys
  • meetings to communicate expected and actual performance levels and professional development path
  • clarity of organization and protection in periods of market uncertainty
  • clarity of objectives and reward system
  • information on strategies and results
  • training and professional development
  • stimulating and safe work environment
  • Professional organizations and associations
  • meetings to share and align with corporate objectives and decisions
  • indirect participation in the decision-making process
  • developing sense of belonging
  • access to information
  • Employees’ families
  • participation initiatives (Children’s Christmas, Family Day, etc.)
  • targeted initiatives (nursery school, academic scholarships,
FASIFIAT)
  • indirect participation in corporate life
  • Trade unions and employee representatives
   
Industrial Relations
  • institutional meetings and other talks pursuant to legal or contractual provisions at the plant, company, regional, national or European levels
  • trilateral meetings (company, trade unions and government bodies) on matters of particular importance
  • ad hoc meetings at plant, company, regional or national level
  • social dialogue in line with the applicable legal or contractual provisions under which from time to time and dependent on the country, the matters at issue and the level of dialogue trade unions or employee representatives have the right to information, consultation and/or negotiation. As part of a participatory system of industrial relations, joint committees have been established in various countries to focus on specific topics of interest
  • Dealer and service network
   
Sales
  • daily contacts and periodic meetings with the network
  • two-way communication through the web and dedicated phone lines
  • individuals responsible for monitoring the network and ensuring fulfillment of contractual standards
  • dealer development programs
  • programs to support dealers, including training, definition of standards, financing and promotional campaigns
  • complete and rapidly accessible product information
  • business profitability
  • developing sense of belonging
  • quality and availability of products/parts/services
  • competitive prices
  • expansion of product lines
  • expansion of services offered to customers, including financial services
  • support services for dealers and rapid response to breakdowns
  • Prospective and existing customers, and opinion leaders
   
Marketing
and Customer Care
Innovation
Product Development
  • market research
  • focus groups customer satisfaction surveys
  • above-the-line and below-the-line communication hannels
  • two-way communication through: web, direct mailing, dealerships, toll-free numbers, etc.
  • events (product launches, etc.) and participation in exhibitions, trade fairs and conventions
  • Customer Driven Product Development (CPD)
  • quality, reliability and safety of products
  • competitive prices and availability of credit
  • speed and efficiency of assistance
  • professionalism and courteousness in direct contacts and through dealers
  • increase in products and services offered to customers (including financial services)
  • Suppliers and commercial partners
   
Purchasing
  • daily relationship through buyers
  • conventions
  • Technology Days
  • Su.Per.
  • continuity of supply
  • fulfillment of contractual conditions
  • Local communities: religious, cultural, socio-political, scientific and technological research, health system, schools and universities, non-governmental organizations, non-profit organizations
   
Miscellaneous entities
  • meetings with representatives of associations, organizations or local communities
  • definition of actions or projects, managed directly or in partnership
  • collaboration on R&D projects
  • cultural exchange programs
  • responsiveness to project proposals and individual requests for assistance
  • contributions and support for initiatives over medium-to-long term
  • satisfaction of tender requirements for R&D projects
  • access to information
  • Financial community: traditional and socially responsible investors (SRI)
   
Investor Relations,
Corporate Affairs and
Sustainability Unit
  • Annual General Meeting
  • price-sensitive disclosures and information
  • quarterly conference calls
  • seminars, industry conferences, roadshows and meetings
  • daily dialogue (meetings, telephone, email)
  • Investor Relations section of the Company website
  • expand and reinforce knowledge of the Company and its businesses
  • value creation (return on investment, sustainability of the business)
  • transparent and responsible management
  • Journalists and media
   
Communications
  • daily dialogue
  • presentations and press conferences
  • meetings
  • the Brand and Company websites
  • availability, timeliness and accuracy of information, transparency

(1) The names provided in the index for corporate functions have, in some cases, been altered to make them more self-explanatory and, therefore, do not necessarily coincide with the official name given to the corresponding activity or area of responsibility.

BREAKDOWN OF ADDED VALUE

The value added through the activities of the Company and distributed to its various stakeholders totaled €5,732 million in 2013, equivalent to 22% of revenues (in line with 2012).

DIRECT ECONOMIC VALUE GENERATED

CNH INDUSTRIAL (€ million)
 2013
Consolidated 2013 revenues25,778
Income of financial services companies(725)
Government grants (current and deferred/capitalized), release of provisions, other income173
Other income758
Direct economic value generated25,984
Cost of materials(18,195)
Depreciation and amortization(1,062)
Other expenses(995)
Value added5,732

direct economic value generated


GRI-G4
G4-24; G4-25; G4-26; G4-27; EC1
Sustainability Plan

Our commitments on page Our Commitment to Sustainability

Glossary
Stakeholders