The Guardian GC: Brand Reputation and Success

It is now well established that the original scope of the general counsel a decade ago, resides firmly in our memories. In fact, as change and uncertainty have become the only certainties in our lives, this role has evolved significantly.

This evolution does not come as a surprise, given today’s dynamic corporate landscape. In a world where companies face constant scrutiny and are expected to excel on multiple fronts, prominent concepts like ESG and Corporate Social Responsibility have compelled legal leaders to extend beyond their traditional legal obligations. They are now expected to take the helm in shaping the company’s brand image and actively participate in the decision-making processes of the business, thereby driving organisational growth.

In the intricate ecosystem of modern business, where brand reputation can determine success or failure, the role of the GC emerges as indispensable. They serve as guardians, protecting the intangible yet invaluable asset of brand reputation.

We had the opportunity to discuss this with Riccardo Guarino, the general counsel at IperalSupermercati.

GC: Could you tell us a bit about your career journey and how you arrived at your current role today?

Riccardo Guarino (RG): Of course. I am Neapolitan, born in 1993, and I graduated from the Federico II University in Naples.

During my studies I had the opportunity to do an internship in a leading law firm in Milan, which then offered me a position for legal practice. Afterwards, I worked with several structured law firms deepening several topics such as corporate law, compliance, governance, and M&A.

When I was just 29 years old, I was offered the opportunity to lead the legal department at Iperal. Now, at nearly 31, I am one of the youngest general counsel in Europe, especially considering the scale of the company.

My path has led me to explore a variety of issues, which are a plus for me because, from my point of view, the general counsel is a generalist who must be able to provide internal advice to the business, even without external support.

Talking about myself, I have always taken great care of my network and my free time has always been dedicated to deepening my knowledge and exchanging views with professionals, entrepreneurs, and colleagues. I founded the legal magazine ‘Ius In Itinere’, of which I am the editor. I am also a director of the master’s degree in business law at LUMSA University in Rome. This has been a key component of my career for me and is still crucial today. Continuous exchange and continuous learning are beneficial in any role.

GC: How, would you say, has the role of the general counsel evolved in the past few years? 

RG: In recent years, there has been a shift from poorly structured legal departments that acted as the back office of external firms to in-house legal departments that function exactly like law firms.

Companies have come to realise that establishing an efficient legal department is beneficial not only during the structuring of processes, but also in subsequent stages, covering more than just typical processes such as ‘extraordinary transactions’.

This process reduces and keeps legal expenses under control, while increasing the compliance of companies that have a legal department that operates in continuity of action, always supporting all business functions.

We often talk about the legal department as a business partner, and I absolutely agree. At every decision-making stage, having a legal department that helps you structure the processes and carries out a risk analysis helps management to make informed choices.

Very often external lawyers provide legal opinions without knowing the industry context and this leads to confusion. The corporate lawyer serves as a genuine business partner, thinking like an entrepreneur and collaborating with them to determine the optimal path forward.

GC: How has the role evolved particularly in its relationship with other business functions?  

RG: The relationship with other functions is always crucial to the success of the legal function. The idea that needs to be discarded and that is gradually being broken down, thanks to the training of the new generation of lawyers, is that corporate lawyers are not lawyers. They have legal skills but are managers acting in concert with corporate functions. They are not merely ‘controllers’ but an indispensable support ensuring the smooth functioning of everything. I always say that you should not be authoritarian but authoritative with colleagues.

GC: Can you share examples of successful partnerships or initiatives where the legal function played a key role in driving business growth or innovation? 

RG: Sure. I could talk about the extraordinary transactions that took place in a unique manner that has enabled the company to earn (in this case save) thanks to my previous experience in a law firm. However, the most fulfilling moments come from the small but meaningful things. My industry is very regulated and controlled, and when, after structuring a process, training employees, and verifying with controls that the process was followed, we do not incur in sanctions, it makes it evident what is the real added value of the in-house legal.

GC: Are there any specific metrics or indicators you use to assess the contribution of the legal function to business outcomes?

RG: It is not easy to evaluate the performance of a legal function with unambiguous indices. The only important index is the trust that business functions place in you daily. If they call you, if they talk to you, if they feel supported, it means that the function is working.

GC: Can you provide examples of how legal considerations intersect with brand reputation management in your day-to-day responsibilities?

RG: The reputation of the company is as important as the business itself. One must always work in concert with the functions to structure each process in a compliant manner, always trying to work ethically. Compliance represents the ethics of the company, but it must always be supported by the management to be able to operate and shelter the company from reputational damage.

National and EU legislators are increasingly focusing on and enacting ‘ethical’ regulations, marking a significant cultural shift. Think of sustainability or consumer protection legislation. Companies must always be careful and try to balance business and ethics and are increasingly evaluated by the market and their customers for their impact and attention to common issues.

The companies that will survive this epochal change will be those that know how to evolve and adapt their business in an ethical manner, and in this situation the legal manager must be a change-maker.

GC: In the event of a crisis or reputational threat, what is the general counsel’s role in managing legal aspects and protecting the company’s brand reputation?

RG: Crisis management (of all kinds) is the most delicate part of the in-house lawyer’s role, but also the most exciting. Analysis, risk understanding and strategy, in concert with the functions concerned, is the best way out of a crisis. Good managers are ready and know that the worst can happen, and they need to be prepared for such moments.

It is always essential not to panic and to work together with the business functions. Every issue has a solution — it is simply a matter of finding it!

 

Riccardo Guarino, General counsel, IperalSupermercati
Sara Maggi, editorial – GC Powerlist