Transforming Role of GCs: From Custodians of Compliance to Business Leaders
The role of General Counsels (GCs) within organizations has evolved significantly over the years. GCs play multifaceted roles within organizations. Initially, their focus was primarily on compliance and legal matters, but now they are increasingly seen as strategic business leaders.
A GC is involved in the incorporation of a company, dealing with employee issues, negotiating contracts with vendors and customers, ensuring compliance with regulations, advising on shareholder matters, managing relationships with lenders, providing guidance to the board of directors, and much more.
A fascinating analogy can be drawn between the role of a GC and the mythical figure of Krishna. Much like Krishna, who guided Arjuna on the battlefield, GCs guide the management of a company on the right path within legal boundaries. They act as guardrails, steering the organization towards ethical and lawful practices, ensuring sustainable growth. Essentially, they act as the legal and moral compass, guiding the company through various legal and business landscapes.
An interesting comparison can also be made between GCs and brakes in a vehicle. A counter intuitive way of looking at brakes is that it allows the vehicle to move faster. Better the braking system, more is the confidence of the driver to move at higher speed. Just as brakes are essential for controlling speed and ensuring safety, GCs act as checks and balances within an organization. They mitigate risks, prevent potential legal issues, and ensure smooth operations, much like how brakes enable controlled motion in a vehicle.
While external law firms / counsels bring specialized expertise and resources, they can be expensive. On the other hand, an in-house team led by GC offers better understanding of the company’s culture and operations, ensuring more tailored legal solutions. However, it requires some time and investment in building and maintaining the team’s capabilities suited to organization’s objectives.
The key characteristics essential for a successful GC include legal acumen, business understanding, communication skills, and integrity. Additionally, a GC role requires quick decision making, adaptability beyond traditional legal realms, being approachable and having an open-door policy.
In conclusion, the role of GCs has transcended from being mere custodians of compliance to becoming integral business leaders. They navigate complex legal landscapes, drive strategic decision-making, and uphold ethical standards, contributing significantly to the overall success and sustainability of organizations, enabling effective collaboration with all departments and fostering a culture of compliance and transparency.