An interview with Takayuki Kitajima, Head of Legal, General Counsel at Takeuchi in Japan.
How would you describe the state of the GC Community in your region? How has it changed since you first moved in-house?
The GC community in Japan seems to have developed significantly over the past few years. Initially, a number of legal organisation communities sprang up to provide opportunities for information exchange, best practice research, and networking. At that time, the GC community was small and limited, as the concept of GC was not very prevalent. However, with the release in 2018 and 2019 of a report by the Ministry of Economy, Trade, and Industry (METI) on the legal function of Japanese companies to strengthen their international competitiveness, the position of GC has been highlighted as a way to create organisations that respond to the increasing complexity and internationalisation of business and as the person responsible for such organisations As a result, the GC position, or the GC-like position, has become a key focus of attention. As a result, an increasing number of companies have established GC positions or GC-like roles, increasing the need for a GC community. 2020 saw the launch of the Japan CLO Association, which provides a platform for GC networking and sharing best practices at the GC level.
Why is expanding your network important to you? What kinds of connections or discussions would be most valuable to you?
I believe there are three important implications of expanding GC networking:
(1) Support responsible business growth and lower compliance and reputational risk by sharing how to update and respond to legal matters related to management.
(2) By building a close relationship among GCs, they can share and learn from each other’s business partnering methods on how to relate to management and business, such as improving operational efficiency, developing human resources (especially succession planning) and team management, and utilising AI and legal tech.
(3) Deepen discussions on how GCs and in-house legal organisations can demonstrate their value as a compass for navigating management, rather than merely explaining legal matters in a situation where complex economic conditions and geopolitical or human rights issues cannot be ignored as environmental factors surrounding business. By doing so, we can be part of the solution for improving the international competitiveness of not only our own companies and the industries to which we belong, but also of the entire industry as a whole. We believe that this will make a significant contribution to the enhancement of corporate value.
What do you want to achieve by collaborating with other GCs and senior in-house lawyers? Are there specific topics, challenges, or experiences you’d like to share or learn more about?
Until now, there has been no “common method” for the role and exercise of functions of GC and in-house legal affairs in the Japanese GC community. This is because the “rationale” and “corporate culture” for decision-making and risk management in each company differ. However, if a “common method” can be developed through discussions at the GC level on the following themes while overcoming such differences, we believe that this will contribute to securing legal human resources within companies in the future:
– Risk management method (not risk averse approach)
– Reputation risk management (to enhance corporate value)
– Human resource development (including leadership and Growth Mindset)
– How to establish a grand design for the medium- to long-term strategy of the legal organization (resource, organisation, investment)
– Fostering a culture of business integrity
