GOVERNANCE, SUSTAINABILITY, AND FAMILY LEGACY: ESG IN A FUNERAL HOME IN THE 3RD GENERATION

Abstract

The São Judas Tadeu Funeral Home, located in Videira, Santa Catarina, is an example of adaptation and evolution of a family business that has reached the third generation. Founded in 1977, the funeral home began as a carpentry shop that produced funeral urns and, over the years, has established itself as a reference in the sector, standing out for adding highly specialized services to the products it already produced, and for its growing commitment to the community and sustainability. In this qualitative study, based on a semi-structured interview with the manager, the implementation of ESG practices in this organization is analyzed, and how this work permeated the success and family succession of the company, respecting the values that have always been practiced by it. Funerária São Judas Tadeu exemplifies the resilience and adaptation needed in the funeral sector, standing out for excellence in service and for monitoring and implementing the most modern practices in its sector, demonstrating a proactive posture in relation to market trends, not waiting for government regulations to act. Always seeking to focus on the needs of customers, it was a regional pioneer in the implementation of various services, such as thanatopraxia, the creation of the Memorial for farewell ceremonies and the installation of the crematorium, in addition to the adoption of the protective mantle of urns, essential to avoid contamination of the environment. The trajectory of Funerária São Judas Tadeu reveals that continuous innovation, concern for ESG and respect for origins are the key to a legacy that transcends generations.

Purpose – This article analyzes how Funerária São Judas Tadeu, a third-generation family business in the city of Videira-SC, has adopted ESG (environmental, social, and governance) practices throughout its history. The study investigates the impact of these practices on organizational culture, family succession and whether they have contributed to the prosperity and continuity of the company in a market where the vast majority of family businesses do not reach the third generation.

Design/methodology/approach – This study analyzes how Funerária São Judas Tadeu adopted ESG practices through qualitative research, including an interview with the manager and the analysis of historical data. This methodology makes it possible to understand the challenges of family succession and the impact of ESG practices on the sustainability of the business and on the succession itself.

Findings – The results show that the adoption of ESG practices, along with innovation in services and the incorporation of sustainable and ethical principles, was crucial for the sustainability and growth of Funerária São Judas Tadeu. The alignment between family values, innovation, and ESG initiatives not only professionalized management, but also increased profitability, even with the reduction of the geographic area of operation and the customer portfolio.

Limitations/implications of the investigation – A limitation of this study is its focus on a single family business, based on reports from only one of the stakeholders, which may restrict comparison and implementation in other companies. In addition, the research is only qualitative, creating the need for quantitative analysis to more accurately assess the company's evolution and the impact of the ESG model.

Practical implications – We contribute to the management process by showing how the implementation of ESG practices can be integrated into the management of small family businesses, promoting their longevity and relevance in the market. The study also offers insights for managers on family succession based on the data presented.

Originality/value – We contribute to the theory by exploring the relationship between ESG practices and the longevity of family businesses in the funeral sector, an understudied area, whose research may be relevant to other segments with similar concerns. This study offers practical insights into how the integration of governance, sustainability, and social responsibility can positively impact family succession and business performance. For future studies, we suggest expanding the analysis to other sectors and conducting quantitative research to validate the conclusions presented.