Legal news and trends for Canadian in-house counsel and c-suite executives
Issue link: https://digital.canadianlawyermag.com/i/50884
CLOSING • A roundup of legal department news and trends Corporate counsel increase use of social media A recent survey of 164 in-house lawyers in the United States found that nearly 70 per cent of respondents aged 30 to 39 expect their consump- tion of business and legal industry news through social media platforms to increase within the next six months. The survey, conducted by Greentarget Strategic Communications, ALM Legal Intelligence, and Zeughauser Group, also found the adoption of social media among corporate counsel is growing, although there is a generational split among younger and older lawyers. In-house coun- sel's usage of the big three media platforms — LinkedIn, Facebook, and Twitter — is growing for both professional and personal reasons, the survey says. It revealed those who make decisions on purchasing legal services in major corporations increasingly are influenced by lawyer-authored blogs in forming opinions that influence law firm hiring decisions. It also noted blogs are widely recognized and used by in-house coun- sel across age groups and company size as increasingly credible sources of news and information. About 43 per cent of in-house counsel identified blogs as among their leading sources of news and information, and 50 per cent envision a future in which a high-profile blog will influence a client's decision to hire a law firm. The survey also indicates overall new media consumption is on the rise as 53 per cent of in-house counsel expect their use of industry news and information via new media platforms will increase over the next six months to a year. Pressure mounts for prosecution of overseas corruption New regulations and aggressive enforcement by American authorities of anti-bribery regulations will increase pressure on many Canadian compa- nies operating in North America and overseas, say securities lawyers. The U.S. Wall Street Reform and Consumer Protection Act was signed into law July 21, containing important provisions that could affect Canadian companies, says John Keefe, a partner at Goodmans LLP. "The Americans take a very broad look of their jurisdiction over foreign compa- nies, even if they are not listed on their exchanges," he says. "Any general counsel of a company that has busi- ness in foreign countries where there is some dealing with the government, whether getting licences or contracts, should be very aware of where all the money is going and have internal compliance programs in place to make sure that there is no money going to government officials." Canada has its own foreign anti- In-house counsel seeking lawyers as project managers Clients are driving more and more lawyers to embrace project management as they search for new ways to increase efficiency in an increasingly competitive market, according to Andrew Terrett, national director of knowledge manage- ment at Borden Ladner Gervais LLP who spoke at the August Canadian Bar Association annual conference in a session about leadership in the area of project management. "Clients want budgetary certainty; that is the key driver right now," he said. "We see that in the [Association of Corporate Counsel's] Value Challenge and the emphasis on alternative fee arrangements and, in particular, fixed fees." That message surfaced again during a speech by Richard Susskind later in the conference. The noted author and CBA special adviser said in-house counsel around the world have responded to pressure from chief executives in tough economic times to get things done more efficiently by finding innovative ways to achieve more for less. Susskind pointed to Rio Tinto, the mining company that saved US$14 million in six months after outsourcing its legal department to an Indian company. Now that they've seen that it's possible, other CEOs aren't likely to forget it. "It became clear that work can be done differently," Susskind said. "Changes are afoot, and a return to the old ways of working is unlikely." 46 • OCTOBER 2010 INHOUSE bribery laws, but the enforcement level is not as aggressive as in the U.S., which has been a leader in international efforts to level the playing field for all companies doing business in countries where corrup- tion is endemic. There have been only two criminal prosecutions in Canada on inter- national anti-bribery charges under the Canadian Corruption of Foreign Public Officials Act, which has been in effect since 1999. It makes both giving and taking bribes overseas illegal. There are likely more than just two cases of Canadian companies bribing officials abroad, but Canadian firms are also among the least likely in the world to be offenders, says Transparency International, the best- known global corruption watchdog. In its 2008 report, it ranked Canadian companies in first place as the least likely in the world to give bribes when investing abroad.