Chief Legal Officers Share Similar Challenges Within Distinct Cultures
I am privileged to travel and meet with CLOs around the world. I recently
participated in a wide-ranging discussion in Canada. Some observations:
1. CLOs just about everywhere (Europe, Canada, Australia, China and the U.S.)
face many of the same issues no matter where they are located. How they
respond varies depending on their country’s view of in-house counsel as a profession, their seniority in the corporate hierarchy and their own corporate culture.
2. Internal investigations raise many issues: how do you keep a balance
between due diligence and going overboard? At what stage do you decide you
cannot do it internally and need to go outside for help? One common thread appears to be that if you potentially have a reportable offense, then you should employ outside counsel.
3. Along those lines, whistleblowing presents cultural challenges. For example, anonymous hotlines may work in the U.S. but they remain anathema in parts of Europe because of the connotation with repressive regimes.
4. Law department structure and reporting lines always present food for
thought: Is centralized vs. decentralized preferable?; Do you embed attorneys within a division or unit but also have them reporting to the CLO?
5. To what budget do you allocate legal expense? Are outside counsel
expenses charged to the legal or the business unit? What about legal
salaries and G&A?
6. CLOs recognize there are many alternatives available to address key issues.
Ultimately, you have to do what works best for your company and its culture.
