General counsel | Datatec
Mawande Maqungo
General counsel | Datatec
How do you approach managing legal aspects during periods of instability or crises, and how does your legal strategy align with the broader business strategy to ensure the organisation’s resilience?
Managing legal aspects during periods of instability or crises requires a multipronged approach that focuses on agility, collaboration, and risk mitigation to ensure the organisation’s resilience. With any crisis, an assessment should be performed to identify the legal risks and concerns. This requires collaboration between cross-functional teams in the organisation and the collection of information. Once gathered, the information should be analysed to identify critical legal issues such as data privacy, reputational risk, contractual breaches, and regulatory exposure. The legal team should then prioritise the most urgent actions with the largest exposure and impact. For example, during a cybersecurity breach, the focus would be on data protection and regulatory exposure.
Crisis management requires an agile approach that can pivot to the most critical demands. This could involve scenario planning for potential future disruptions, as well as training and empowering the appropriate leaders in the business on legal requirements to make informed decisions under pressure.
Collaboration and communication between the legal team and the rest of the organisation are key. The legal team serves as the bridge between legal complexities and business requirements, maintaining stability and confidence. A well-managed and coordinated legal response to a crisis can ensure business resilience and protect the brand. Any lessons learnt should be used to enhance the organisation’s policies and processes.
During 2024, legal advisory has been provided on several significant transactions, including Datatec’s acquisition of a majority stake in Mason Advisory Limited, a UK-based digital and technology consultancy, and Westcon-Comstor’s acquisition of a London-based Amazon Web Services advanced consulting partner and solutions provider. Legal support has also been given in the sale of a South African information communication company to a UK-based managed services company, as well as in advising a Datatec subsidiary on the sale of a minority stake to a Brazilian engineering, information, and communication technology company.
How can general counsel foster a corporate culture that supports ESG principles and compliance across all levels of the organisation?
The role of the General Counsel has been reshaped over the past few years and will continue to evolve. Beyond being the primary legal advisor, the General Counsel must have the ability to adapt to the ever-changing legal landscape, while also remaining curious, constantly learning and developing beyond legal expertise. The role now requires a skill set that extends beyond legal knowledge, a strategic partner with sound business fundamentals, a strong grasp of ESG compliance, and an understanding of its importance for long-term corporate sustainability and stakeholder engagement. General Counsels can foster a corporate culture that embraces ESG principles and ensures compliance across the organisation.
Tone at the top is crucial in shaping corporate culture, particularly in championing ESG principles. It is essential that General Counsels work closely with leadership to articulate a clear vision and define organisational priorities that align with ESG goals. Each organisation will have its own ESG drivers, which could include managing its carbon footprint or fostering diversity and inclusion.
Effective ESG initiatives require strong support from senior management. General Counsels can play a key role in educating executives on the financial, reputational, and ethical imperatives of ESG compliance, positioning it as a value driver. In this regard, the organisation should collaborate with the board to integrate ESG into corporate governance structures. For example, establishing an ESG committee with direction from senior management and the board ensures strategic alignment.
Communicating the organisation’s ESG strategy, commitments, progress, and challenges to stakeholders is another key role the General Counsel can play. Regular reporting against ESG targets ensures transparency and accountability. The organisation should also leverage any expertise its stakeholders may have in the ESG space. The General Counsel should embrace collaboration with both internal and external stakeholders to drive ESG initiatives forward.
The General Counsel should lead ESG training programmes tailored to different functions within the organisation. In addition, they should foster a corporate culture of accountability and responsibility for ESG commitments. Staying informed about emerging regulations and ensuring compliance is also a fundamental part of the role.
The importance of technology in ESG compliance and monitoring should not be overlooked. General Counsels should advocate for and oversee the adoption of tools that assist in tracking ESG metrics, managing risks, and ensuring reporting accuracy. These tools will help streamline coordination between departments, while the General Counsel ensures any gaps between teams are effectively bridged.
Fostering a corporate culture that embraces ESG principles and compliance requires a multifaceted approach, with the General Counsel serving as both a strategist and a champion of change. ESG should be part of the corporate culture, supported by senior management with a clear vision. As the ESG regulatory landscape continues to evolve, General Counsels must stay informed about emerging regulations to ensure the organisation remains compliant.
General counsel | Datatec
