Lawyers as Leaders: the essential role of lawyers in accelerating transformational governance

Transformational governance is not a new legal concept. It is a way of thinking and acting responsibly and in the best interests of a business with its long-term sustainability in mind. It recognises that the society and environment in which businesses operate are assets on which they depend. It therefore dictates that businesses be mindful of and transparent and accountable for their environmental, social and governance (ESG) impacts. This approach to corporate responsibility and accountability dovetails with directors’ fiduciary duties to the businesses they serve. 

Lawyers are also bound by fiduciary responsibilities to act in the best interests of their clients. When that client is a business, advice and counsel must reflect the principles of transformational governance for it to be in the best interest of the businesses’ long-term, sustainable health. We submit that in this way, lawyers can fulfil their professional and ethical mandate by playing a pivotal role in shaping the structures and culture of our society and economic system with the future in mind.

We live and work in a world of increasing uncertainty and escalating challenges further influenced by growing trends like the rise of artificial intelligence and technology. The “never normal”, “VUCA max” world. 

The pace of change and the level of uncertainty make it difficult to understand the situation or predict the future. In addition, the Covid-19 pandemic has demonstrated in a very tangible way what previously seemed theoretical and abstract: the interconnection between businesses' ability to operate and thrive; and the health of the society in which it operates. 

What is the role of the legal profession in this unpredictable environment? Do lawyers have a responsibility to tackle the challenges that we face as a society? How can lawyers adapt and thrive in this new operating context and help their clients do the same? These are the questions that we seek to answer.