ARTICLE
In the past, Legal, Compliance and Government Affairs were distinct fiefdoms in the corporate kingdom. Each had its own remit, and everyone was perfectly happy to stay in their lanes. But those days are over. Now, these functions are morphing into a united front—a necessity in a world that’s spinning faster and growing more unpredictable, including businesses in the Middle East. The rise of geopolitics as a boardroom priority means companies in the region can no longer afford to keep these teams working in isolation. Some may refer to this as mission creep but it’s better to think of it as mission alignment, where Legal’s sharp tactical instincts meet Compliance’s meticulous eye for detail, and Government Affairs’ knack for storytelling with policymakers and governments. Together, they’re becoming the corporate world’s power trio.
There are clear drivers of this integration, notably:
From the US/ China’s AI and tech race to Europe’s GDPR and ESG mandates, companies are under pressure to adapt—or risk falling foul of cross-border policies that can cripple operations overnight.
Stakeholder Expectations:
Employees, consumers, and investors expect companies to not only follow the law but also champion social and environmental causes. That puts Legal, Compliance, and Policy teams in the hot seat, shaping strategies that navigate these murky waters.
Speed Kills: In a world of real-time news cycles, delays in coordinating a response can result in massive reputational damage. When these functions work as a unit, they can anticipate issues and react decisively.
So, who’s Leading the Charge? Quite simply, lawyers. As an example, the traditional path to Government Affairs used to wind through think tanks, political campaigns, journalism or academia. But today, more legal professionals are making their way into policy leadership. The numbers speak for themselves.
Firstly, according to a 2023 survey1 by the Association of Corporate Counsel (ACC), 32 per cent of Chief Legal Officers (CLOs) are now directly responsible for their company’s Government Affairs. This shift is further underpinned by a study from Deloitte2 in 2022, which revealed that 43 per cent of Fortune 500 GCs have some involvement in public policy, up from 27 per cent a decade ago.
There’s been a clear shift here, but what has been the driver? Lawyers, by nature, are trained to think strategically, weigh risks, and craft arguments—skills that are indispensable when engaging with policymakers or regulatory bodies. Their ability to decode legal jargon and align it with public priorities makes them a natural fit for these hybrid roles. Consider the wave of AI regulation emerging from the European Union, where the 2024 Regulatory framework was the first of its kind. Companies need General Counsel who can guide their approach not only to compliance with this regulation but also to advocacy, shaping the narrative in their favour.
Take Microsoft, considering it as the standard-bearer for this new wave of Legal diplomacy. The tech giant has created a USD1 billion legal and lobbying machine to help advance their interests globally. As a result, they have one of the most sophisticated examples of the converging trend in Legal, Compliance, and Policy, and have made themselves and their systems useful to governments3 , who may be looking for help on tech policy or cyberattack support.
The value of having strong relationships with government isn’t just theoretical—it’s a competitive advantage. A company’s lack of established government connections can turn a crisis into a catastrophe. Without allies in high places, an organisation has no one to vouch for its integrity or explain its side of the story. The result? Delays, reputational harm, and millions in unnecessary costs. The time to build those bridges is long before a crisis hits, if regulators and policymakers know your company’s values, contributions, and key players, they’ll think twice before jumping to conclusions.
Government affairs strategies often shift in response to changes in political leadership. For example, Meta’s recent policy shift on fact-checking conveniently aligns with the return of Trump-era rhetoric. Critics argue that aligning with a leader who challenges regulatory scrutiny could bolster Meta’s standing amid intensifying EU regulatory pressures. As a global company under siege in key markets, building an alliance with the leader of the free world—whether through aligned rhetoric or policy concessions—can serve as a powerful counterbalance to international regulatory challenges. This demonstrates how government affairs teams must adapt to leverage political shifts as strategic opportunities while mitigating potential risks.
To thrive in this new environment, companies need a cohesive strategy that marries Legal, Compliance, and Government Affairs into a single, well-oiled machine. Here’s how:
As the walls between Legal, Compliance, and Policy continue to crumble, the companies that thrive will be those that embrace this integration. It’s not just about checking boxes or staying out of trouble— it’s about shaping the rules of the game, owning your narrative, and using these functions as a strategic lever for growth.
In today’s volatile world, GCs aren’t just legal advisors; they’re risk managers, policymakers, and corporate diplomats rolled into one. It’s a big job—but for those who get it right, it’s also an unparalleled opportunity to lead