Salvatore Distefano

#Duediligence Alert: The Italian Competition Authority (AGCM) has fined #GiorgioArmani SpA and GA Operations SpA €3.5 million for misleading ethical and social responsibility statements that didn't reflect the actual working conditions at suppliers and subcontractors to whom production had been outsourced. This follows the #Dior case a few months ago. The AGCM cited declarations in the Armani Code of Ethics, the Armani Values website (www.armanivalues.com) and the Armani website (www.Armani.com). Giorgio Armani SpA responded with surprise and plans to challenge the decision in the Regional Administrative Court (TAR), stating that they have always operated in fairness and transparency. This is the latest in the growing list of cases brought by competition authorities in France and Italy against companies whose #humanrights and #environmental claims are vague, unsubstantiated or false. It's important to note that the crux of the matter in each case was the failure to conduct due diligence, including the tracing and verification of production sites and standards. EU due diligence laws may be in flux, but prosecutors and competition authorities are reminding us that the risks to consumers, investors, companies and stakeholders are real. What should companies do now? Doubling down on announced audits of known suppliers will achieve nothing. This is not about the knowns, it's about the unknowns, the risks of subcontracting, of price-driven corner-cutting. Companies need to ask themselves how they may be causing or contributing to supplier attempts to evade labour laws, collective agreements, taxes and social security contributions. In short, companies need better risk identification, then they can target their audits. Michael Posner Dorothee Baumann-Pauly Justine Nolan Markus Löning Christine Kim Equiception Business and Human Rights Simone Cipriani Matteo Ward Ken Pucker

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Mellone Law Firm, with his founder and partner, Marco Mellone, has been the legal advisor of CTE Group S.r.l. in the operation of selling of its majority stake in CTE S.p.a. to Socage Group. CTE S.p.a. is a company with more than 40 years of experience in the production and distribution of truck mounted and self-propelled tracked (spiders) aerial platforms. See link: Socage al controllo di CTE. Gli advisor https://lnkd.in/dwegdDP5 Mellone Law Firm had already advised CTE Group S.r.l. in the operation of selling of the 100% stake in Effer S.p.a. – a leading company in the field of production and distribution of cranes- to the group Cargotec-Hiab in 2018 See link: https://lnkd.in/diRqwkaN

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At the Congresso Nazionale FARE- Federazione Associazioni Regionali Economi e Provveditori della Sanità, our Quality Health Safety & Environment Director, Andrea Tezzele, explored the key role of the Contract Execution Director. He highlighted how this position is essential to ensuring compliance with the obligations undertaken by contractors during the execution phase of contracts. During his speech, he emphasized the strategic importance of controls, not only to improve processes but also to enhance and qualify the entire external services sector. When properly managed, controls serve as a driver of growth for everyone: they help companies demonstrate the quality of their work, support public administrations in monitoring contract performance, and strengthen the trust of those who benefit from these services every day.

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