Board member Juarez Leão talks about Governance and its role within Retail Companies

By: Clara Briggs

Governance is one of the main pillars within an organization. In the past, the prevailing view was that the practice, along with its tools and those of the board of directors, compliance and audit, for example, was meant only for large companies. Today, it is understood that this entire structure is important for any company, whether small, medium or large.

In retail companies, good Governance practices are being adopted at an accelerated pace. Juarez Leão, Board Member, explains that, with this awakening to governance among companies, the demand for new board directors – prepared, well informed and with the right experience to hold a Board seat – has grown exponentially. Working in the Retail segment today means being ready for new changes and innovations, and raising ideas and ideals.

In Retail, a business used to be opened with profit as its aim, whereas today companies are embracing a much broader objective, championing the ESG agenda and Corporate Governance practices. Juarez observes that “Corporate Governance, more conscious management and ESG practices are major growth levers for the business, to the point that it is no longer possible today to see businesses being built and established without this additional commitment that goes beyond profit.”

In Governance within Retail, it is important to take a broader view of selling products and offering experiences, services, customer relationships and consumer support. Much more than selling a product, it is necessary to sell an ideal along with it, and this is happening in great strides across the segment. This need arises mainly from the acceleration of these new times: connectivity, above all, leaves companies more “vulnerable”.

Juarez concludes by saying that the Board within Retail aims to “bring life as it is”. It is therefore important to take into account each company's characteristics and the demands placed on it, in order to contribute to the organization's accelerated growth, starting with the structuring of the board of directors. It is also important to keep in mind that structural changes take place through an unfolding series of actions until growth is reached.