Every large corporation has a legal department, which can
become fairly large in size. Smaller businesses may or may not choose to have a
lawyer or staff of lawyers on call in case of legal issues. Corporations have
far more legal issues than small businesses, however, necessitating a fully
staffed and dedicated department.
One might think that as long as a corporation is following
all rules and regulations, there is no need for a legal department. That,
however, is not the case. Legal departments don’t just deal with problems like
lawsuits; they also do a number of other necessary tasks such as drafting
waiver forms, writing contracts, filing patents and other legal documents, and
ensuring that a company doesn’t accidentally break any laws or guidelines (of
which there are many).
In addition to staffing a legal department, corporations
often hire qualified lawyers to fill other positions as well, since law school
also produces individuals who better understand how society functions and how
to lead effectively. For example, Kenneth Mehlman is a lawyer hired by KKR to
fill the role of Head of Global Affairs. Gregory Ruben is a lawyer hired by Goldman Sachs. In fact, other than the MBA, the JD is one of
the most popular degrees for CEOs and top executives in the business world.
Legal departments are generally staffed with fully trained
and educated lawyers, support staff like paralegals, and other law
professionals. Their work pertains only to legal matters, and they often
function as legal advisors for company CEOs and managers. Legal advice may be
given about a variety of topics, such as potential legal issues arising from
product releases, hiring practices, and HR policies.
When more serious problems do arise, such as customers
complaining, the legal department usually gets involved in order to make sure
that the company covers all of its bases legally and keeping it safe from lawsuits.
When a lawsuit does come through, the legal department represents the company.
In the largest of corporations—national and global—legal
departments can be the size of a law firm because there is so much legal data
to handle. When companies are established in a variety of countries, lawyers
will often be of different nationalities and backgrounds to ensure that
companies have as clear of an understanding of local laws and regulations as
possible.
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