Economist article “A guardian and a guide – Chief legal officers have more power than even before”

Dr. Richard Leblanc started a discussion in the LinkedIn group “Boards & Advisors” about an article in the Economist by Schumpeter entitled “A guardian and a guide – Chief legal officers have more power than even before”.  The full Economist article can be read here.  The LinkedIn discussion to date is set out below.  I’ve also now started a discussion on this in the ACC Canada LinkedIn group.

I think Richard’s concluding comment is right on!  One of the elements is for the Chief Legal Officer (“CLO”) to be able to merge our legal advice with business considerations.  This does not mean advising of illegal courses of action because the business side wants to do something.  It means weighing various legal options that are available and advising as to what will support what the business is trying to accomplish.  The method of business execution is then chosen to comply.  It comes down to what amount of risk is acceptable to the corporation; the balancing act that is referred to in the article.  I like how the author refers to the balance of law and business, and also the balance between precedent (that we as lawyers are so steeped in!) and being visionary.  If external counsel says to me that his or her job is to protect the corporation against every eventuality (which they might do to explain why it is taking them so long to do something or why they are preparing a 40 page agreement when 8 pages will suffice), then I fire them on the spot.  The job for them, as for in-house counsel, is to advise as to the legal options and couch this within the risk appetite of the business. 

And by the way, I love the quote in the article from Norman Veasey and Christine Di Guglielmo’s new book, “Indispensable Counsel”, that a CLO must be a “courageous Renaissance person”.  Now that’s something to aspire to!