THE CHALLENGE OF FRENCH COMPANIES

The impact of new regulations is a major issue for businesses and in-house lawyers in French companies must tackle upstream the elaboration of policies that could apply tomorrow to their company.

There is however a dichotomy in France between the Public Affairs and the Legal Department and this division is harmful as it restricts in-house lawyers’ participation in the lobbying process. Public affairs is often at the heart of public policy advocacy activity without having the necessary technical competencies of an in-house lawyer when debating a draft law.

An integrated strategy that sees in-house lawyers working alongside other internal teams, and often law firms, public policy advocates and public relations specialists can pay dividends.

Every business will at some point face proposals to change the law in their given sector which will have a direct impact on how they operate. Many will seek legal advice on how to absorb the changes, and even consider how they can shape the planned legislation. It’s a role that corporate counsel is well placed to advise on.

Getting this information right is a key deliverable for general counsel. The various elements involved in a corporation such as legal, compliance, risk, regulatory affairs and public affairs need to work together closely to deliver this thematic and compound information effectively. Responding to proposals for reform has to be a team exercise calling on different types and levels of expertise, and using them to differing degrees, according to the subject. When in-house lawyers are hands on, they can judge the implications and the applications [of any reforms] for the business better than anybody.

In-house legal teams need to work alongside internal communications, public affairs and government relations teams to consider planned legislative reforms and offer insight. Even though the primary responsibility of the in-house lawyer may be to advise on the law, invariably the senior in-house lawyer needs to work with other functions, including public affairs. Lawyers think in terms of risk mitigation and stakeholder analysis, and therefore will often have a good understanding of how to respond to public affairs challenges. But there are also difficulties in bringing together professionals who have very different ways of working, and the lawyer, public policy advocate and public relations specialist can have conflicting agendas. Differences need to be thrashed out openly as early as possible  and, in doing so, each individual must try to understand what the others bring to the table.

There is nevertheless value to integrate legal counsel with regulatory insight, government relations and strategic advocacy: not only advising on the current landscape, but also providing a forward-looking strategy.