Making In-House Departments Business Accelerators

Historically, the in-house departments handled the administrative arm of corporates, while private lawyers were hired to look into more complex legal work. However, since the 80s, there has been a significant rise in the acceptance of general counsel’s position in MNCs, which enables them to work with the board of directors directly. Their role has also widened over the years, expanding to issues like crisis management, compliance reporting management and public policy advocacy, etc.

It is also quite evident that the role of the chief counsel has evolved into more of a business enabler today. Speaking at the BW Legal World’s BW 30under30 event, Pratibha Jain, Group General Counsel and Head- Corporate Affairs, Everstone Group agrees that the perceptions have changed in the past years. Laying some context, she explains “It is important to go into the genesis of the role of in-house departments and general counsels in India. It is still nascent in the corporate sector, say about 30-35 years old. The concept of powerful general counsels started with MNCs flocking in, getting their global policies and functions on board along. Initially, they acted as gatekeepers who would ensure everyone followed the rules of the global headquarters.

Over the years, India has opened up. It has become easier for the general counsels in MNCs to act as enablers as well as gatekeepers. For Indian promoters, it is easier as they know the environment in which they are operating. The reason to have a senior in general counsel is to provide solutions to business and not just manage risk. Hence, its role has primarily developed on the business front.”

Dr Akhil Prasad, Director, Country Counsel India and Company Secretary, Boeing India points out that the other change has been in the mindset.

“When you are a part of a senior team, it is up to an individual on what and how he demonstrates himself/herself in a senior management role. We, as lawyers, are exposed extensively to business issues. It is on us to unlearn ourselves as lawyers. We are here to provide legal advice. However, the expectation of today or even in the future is more for a business enabler. I can’t be a general counsel unless I understand the business very clearly and think like a businessperson. Otherwise, the acceptance of a general counsel will be questioned, he adds”

But why did the shift take time?

While this new change is being well received by everyone today, there still remains a poignant debate on why it took so much time for this industry to be seen as business facilitators or perhaps work on its image to be seen in more than a single tone. 

Parveen Mahtani, Chief Legal Officer, Mahindra Lifespace Developers asserts, “As a lawyer and as a general counsel, we have always been business enablers. What has changed is the corporate mindset, not the general counsel. In the Indian context, corporates are either board-driven or family-run. It really stems from which corporate you really are as it is directly linked to the risk appetite of that particular corporate- of how much of legal is more important than business. Thus, the role of general counsel within any corporate is determined by how much you can really walk the path. Historically, general counsel had prioritised risk mitigation. Now, it is seen as a business partner.”

Roop Loomba, General Counsel, Head of Ethics, India and South Asia, Rolls-Royce sums by emphasising that understanding the business must be a priority for general counsels today. “We are not only documenting as we work or we are not just legal advisors. We must understand the business well. Sitting down with each function and aligning with them holistically has made us become business enablers. And hence, a transition from gatekeepers to business enablers.”

Watch the enlightening panel discussion on the link below:

https://bit.ly/3LnVyHn