Legal – the business partner ensuring responsibility

Accountability is about long-term solutions and doing things properly – not just for the company's own sake, but also for its stakeholders and society at large. The modern Legal department possesses unique competences to support the company in making strategic and commercial decisions with due responsibility to the company's stakeholders, objectives and surrounding society.  

Navigating today's hyper-regulated society as a company requires more than simply being able to comply with the relevant applicable legislation. It also requires an understanding of the society in which the company operates and of which it is a part. In 2026, this also encompasses technological understanding. 

All of these competences – and many more – are often already to be found within the company's legal department. 

And if Legal is also given the opportunity to support other departments in achieving their commercial KPIs, it will generally take on a more value-creating role in the company. 

For if the company includes strategic risks in Legal's general work on risk assessments, risk reporting will become more holistic, ultimately providing a broader foundation for senior management's decisions. 

And if negotiation outcomes are measured against the achievement of commercial objectives, this simultaneously increases the commercial value of Legal's work. 

This makes Legal a strategic business partner for the rest of the business – a role that strengthens the company's work on accountability both internally and externally.

The prerequisite for the legal function to be able to fulfil its responsibilities as a business partner is that Legal can define a clear raison d'être.  

For what is Legal's actual role and mandate within the company? How does Legal enrich business-critical processes – both now and in the near future, where AI can be expected to carry out standard reviews directly for the business?  

The answer to these questions will also be the key to structuring the department so that Legal's time and resources can be focused on tasks where legal judgement, business acumen and strategic thinking create the greatest value for the company.  

In this way, Legal becomes a key player that creates strategic and commercial value for the rest of the business. And this is precisely why it makes perfect sense for senior management to keep the Legal function close and give Legal access, influence and proactive involvement in decision-making processes.  

Having Legal close to senior management and major decisions will often have a positive knock-on effect on the entire company's culture, as it underlines that management values and prioritises accountability.  

For when Legal participates in discussions on both strategic and significant operational decisions, the basis for those decisions will not only be informed by legal considerations, but also by ethical and other relevant public policy matters.  

When Legal is involved in discussions on strategy and significant commercial matters before those discussions culminate in decisions, the lawyers will be better placed to help the company assess and avoid risks associated with non-compliance – and in so doing, prevent (and perhaps entirely avoid) situations that could jeopardise the company's reputation.  

Having Legal represented when important strategic and other commercial decisions are to be made will send a positive signal to the rest of the company that management is committed to promoting compliance in the broadest sense.  

Legal's risk-based approach can also be applied to assess, understand and navigate the interests of other stakeholders – such as customers, end users, the environment, and those parts of wider society that are affected by the company's activities.  

For customers, end users and the general public have become considerably more aware of the role companies play in society and of how companies affect local communities.  

Negative impacts quickly attract public criticism, even where no breach of applicable law has occurred. And the court of public opinion can swiftly catch out companies that have not taken sufficient preventive measures.  

 
This is why a Head of Legal who knows the company and its stakeholders is a valuable asset to involve in discussions on strategic and commercial decisions.  
 

And as regulation grows ever more complex and societal expectations of companies continue to rise, the role of the Legal department will only become more important. Companies that position Legal as a strategic business partner today will be better placed to navigate the landscape ahead – and create sustainable value for both the bottom line and society.  
 

For when Legal evolves from an isolated support function into an integrated business partner, everyone wins. The business gains a stronger foundation for decision-making. Legal takes on more meaningful work. Employees experience a stronger compliance culture. And stakeholders encounter a company that takes responsibility. This is not a zero-sum game – it is value creation across the board.