Table of Contents
Part 1 The General Counsel as Partner and Guardian 1
Chapter 1 Introduction: The Inside Counsel Revolution 3
A Transformation 3
B Credit Where Credit Is Due 8
C Causes: A Schematic View 10
D The Prescriptive Perspective 15
E Core Concepts and Key Issues 21
Chapter 2 The Lawyer-Statesman Ideal 23
A Overview: Is It Legal? Is It Right? 23
B Historical Traditions 26
C Outstanding Expert, Wise Counselor, and Accountable Leader 31
D "Complementary" Competencies: Beyond the "Core" 41
E Analysis before Recommendation 46
F Analysis before Advocacy 51
G An Important Conscience of the Corporation 53
Chapter 3 Partner-Guardian Realities 55
A The Tension 55
B The Fusion 58
C The Obstacles 63
D The General Counsel's Character, Reputation, and Identity 68
E Protecting Other Inside Counsel 71
F Alliance with Other Staff Functions 74
G The Board of Directors 75
H The CEO 81
I Dealing Directly with CEO Risk 83
Chapter 4 The Cultural Imperative 91
A Primacy 91
B The Pressures That Corrupt 95
C Imposing Discipline 108
D Letting Employees Speak-and Then Listening 115
E An Integrity "Learning Culture" 121
F Financial Rewards 125
G Assessing Culture 127
Part 2 Key Issues 129
Chapter 5 Compliance and Legal Hazard: The Essence 131
A Complexity 132
B Regulatory Trends 135
C Determining What Is the Law 140
D The CEO as Chief Compliance Officer 142
E Prevent, Detect, and Respond 144
F Deals 159
G Value of a Good Compliance System: Morgan Stanley 161
H Value of a Good Response to Compliance Disaster: Siemens 163
I GC, CFO, and Chief Compliance Officer: Function Not Form 168
J People and Resources: Platinum, Gold, Silver, Bronze-or Nickel 176
Chapter 6 Ethics: The Complexity 183
A Identifying Ethical Issues 185
B Setting Ethical Standards 188
C Challenges in Global Supply Chains 197
D Conflict between Global Standards and National Law 213
E Ethical Problems When There Is No National Enforcement 219
F Exiting Rogue States 222
G Cost: Small and Medium-Sized Companies 226
H Values 226
Chapter 7 Risk and Crisis Management 229
A Scope 230
B Organizational Principles 232
C Framework Questions 236
D Catastrophic Events and Crisis Management 244
E Fukushima: Debating Disaster 249
F BP and the Gulf: "Exhibit A" for Catastrophic Costs of Failure 253
G A Comment on Geopolitical, Terrorism, and Cyber Risk 264
H The Need for Specialized Knowledge 270
Chapter 8 Governance: The Board Relationship? 275
A The Three Dimensions of Governance 276
B The Framework of Formal Rules 278
C The Six Essential Tasks of Board-Management Leadership 280
D Special Problem: Executive Compensation 300
E Board Independence and Leadership 307
F Shareholders: Stewards and Activists 310
Chapter 9 Citizenship and the Primacy of Public Policy 317
A Philanthropy 319
B Business Activities 323
C Collective Action: Anticorruption 326
D Public Policy 335
E Reporting 354
F Reputation 357
Part 3 The Global Legal Organization in the Future 359
Chapter 10 Leading the Law Department 361
A Mission 361
B Hire the Best 363
C Delegation 371
D Accountability: Centralized or Decentralized Model 374
I Global Integration 380
F Duties to Inside Lawyers 382
G Innovation, Management, and Cost 390
H Explaining the Legal Organization to Business Leaders 398
Chapter 11 Law Firms-And Alternatives 401
A Problems: A Brief Bill of Particulars 402
B Solutions: A Brief History 406
C The Primacy of Segmentation 411
D Rethinking Resource Allocation 412
E Resetting the Relationship 417
F Cooperation on Ethics 428
G A Personal Note 438
Chapter 12 The Future: Problems and Possibilities 441
A Extending the GC's Reach 442
B Attitudes: Boards of Directors, CEOs, and Business Leaders 444
C Making the Case That Cost Creates Value 447
D Going Global? 450
E Portner and Guardian 454
Notes 457
Acknowledgments 491
About the Author 493
Index 495