General counsels (GCs) have cited greenwashing, data breaches, and regulatory changes as some of the major issues causing them concern, according to discussions at the ninth annual General Counsel Summit in Sydney on August 7. These issues loom large in their thought processes and strategic planning due to their potentially disruptive impacts on their respective corporations and legal departments.
Amid escalating instances of cybersecurity failures and the infiltration of corporate networks, data breaches have emerged as a particularly vexing issue for GCs. Such breaches can be hugely problematic for corporations, both from a reputational standpoint and with regard to the potential legal implications. Moreover, data breaches can often expose corporations to significant financial risk, further underscoring the gravity of the situation.
Greenwashing – the process of conveying a false impression about a company’s environmental responsibility – also featured prominently in GCs’ discussions. This practice has progressively come under fire, as consumers become increasingly conscious of corporations’ environmental footprints, thereby increasing the potential for reputational damage and legal challenges.
Regulatory changes, another key area highlighted by the GCs, is especially concerning in the Australian context. Not only, as they pointed out during the summit, have regulatory authorities, like the Australian Securities & Investment Commission (ASIC) and the Australian Prudential Regulation Authority (APRA), seen increased funding, but they are also making more robust use of data. This has led to an expectation of greater vigilance among regulators and, in turn, has signalled the need for GCs to be attuned to evolving regulatory changes and bolster their compliance efforts accordingly.
Taken together, these concerns shed light on the contemporary landscape that GCs must navigate, characterised by increased scrutiny, evolving standards, and the looming threats of reputational damage and legal action.
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