The LBG model is used worldwide by hundreds of companies of all sizes and sectors to measure and communicate programmes benefiting the community. The model is based upon the reasons leading the company to support an initiative in favour of the community. Three main reasons have been identified:

• a sense of moral and social responsibility;
• the belief that companies have a long-term interest in promoting the development of a healthy society;
• the knowledge that being involved in the community may result in direct benefits for company business.

Community initiatives are divided into three categories based on these reasons:

• donations: sporadic donations to support a wide variety of “good causes” responding to the needs and requests of voluntary organizations or local institutions;
• investments in the community: long-term sponsorships aimed at a limited number of social issues, chosen by the company to protect its long-term interests and enhance its reputation;
• commercial initiatives: activities in favour of the community directly aimed at the company’s success, usually promoted by the Commercial Department in partnership with non-profit organizations or local institutions.

In particular, in applying the LBG model, the Generali Group made a decision to consider as investments in the community – alongside initiatives that may increase sales in the medium-long term – those initiatives that aim to improve technical performance such as those whose purpose is to encourage children and adults to adhere to road safety regulations.

In order to classify certain cultural and sports events as investments rather than promotional initiatives, the role of the brand in the event sponsored was taken into account. This aspect is indeed fundamentally related to expectations for increasing business and/or improving corporate image in the short-medium term.