The economic concept of Organizational Behaviour refers to the academic study of how people interact within groups and how management principles are applied to make business operate more efficiently. Several difficulties have severely threatened the stability of financial markets and companies around the world during the last year, beginning a crisis that seems not to be finished yet. As a light at the end of the tunnel, Brunello Cucinelli gave a signal of hope, growth and future development.
Part of the mostly known Italian luxury firms, Brunello Cucinelli Spa was originally founded in 1978 near Perugia and moved to Solomeo four years later, where it has the productive headquarter nowadays. The high quality of its products and the business model on which it is based contributed to the international success and the brand reputation of the firm. The society has been listed on the Italian stock exchange since April 2012, when it became part of the FTSE Italia Mid Cap with a placement price of €7.75.
During the IPO day – Initial Public Offering, the first quotation of a company on the primary market – the stock price registered a pick of €12. The asset trend began a continuing climb which leaded Cucinelli’s investors to gain positive profits in the further years. On the first days of June 2021 it signed the highest closing price since 2012 when the stock closed at €51.75, a generated return of more than 500% with respect to its landing on the Italian markets. In despite of the controversial situation of Italy during 2020 and 2021, a positive sentiment has characterized Brunello Cucinelli and the main reasons regard its Organizational Behaviour.
The company is identified by a Humanistic Capitalism which established an original way of thinking to relationships between its stakeholders. This business model basically consists in two principles. On the one hand, the company profit should be fair and sustainable. According to this a percentage of the income obtained from Cucinelli’s operativity must be destinated to projects dealing with the enhancement of the local territory which the company is part of. On this basis the project “Periferia Amabile” was founded in 2010, with the intention to realise a park in the area surrounding the Solomeo plant where beauty, humanity and essence get in touch around a suggestive natural place of 100 hectares. On the other, the second principle refers to ensuring the economic and moral dignity of work in order to allow a sustainable and consolidated growth of the company during the years. Brunello Cucinelli fundamentals have been the driving force of success even during a dark period like that of the pandemic. In May 2020, Cucinelli started a collaboration with the University of Perugia to develop a renovated organizational model. This enabled the firm to promote continuous screening controls which guaranteed the total workplace safety and the production continuity. Under the financial perspective, in 2020 no dividends have been distributed to shareholders but the 19% of the economic value generated have been reinvested in projects aimed at supporting the future sustainable growth of the company. This decision contributed to enhance the investors’ confidence in Brunello Cucinelli as a reality consolidated in the long-term horizon. A new project – “Brunello Cucinelli for Humanity” – have been established. It focuses the attention to donate the products remained unsold during the previous year. The total value of production amounts to 30 million Euros and it will be distributed to non-profit organization: “This project will honour all those who worked on the realization of these item” – these have been the words pronounced by Mr Brunello Cucinelli, current CEO of the firm. In addition, more than €320 000 have been devoted to support the local health system – in serious difficulty during the sanitary emergency – to produce PPE during the first Italian lockdown and to promote the opening of a vaccine hub in Solomeo.
All these actions represent a confirmation of the humanistic business model proposed by Brunello Cucinelli, characterized by territoriality, sustainability and mankind. The company corporate governance and the key elements of its structure have been crucial in turning the pandemic risks into an opportunity to be captured. What have been Cucinelli’s fortune? The ability to capture the human needs, learning from the present, adapting when things seem to change, still maintaining a respectful eye on what is yet to come.