General counsel say they can most positively influence their companies by setting the right culture, an elusive concept that when mastered can drive almost every aspect of the business, from making the right hires to boosting profits.

The famous quote from management guru Peter Drucker that "culture eats strategy for breakfast" holds true, the GCs say, and they believe they're in a unique position to shape that culture because they are advisers to the board and people are prone to listen to them.

John Albright, the chief legal and compliance officer of the Chicago-based insurance brokerage HUB International Ltd., said the quote means that "we may not be successful if we're not working effectively within the company's culture."

Damon Hart, chief legal officer of Liberty Mutual Insurance, added: "Legal departments … are the conscience of an organization in many ways and have a seat at the table to keep an organization true to its values."

The Association of Corporate Counsel, in an essay on culture on its website, put it this way: "A strong general counsel can establish the practices that reinforce a corporate culture that values ethics and integrity. But this value can only occur if the general counsel is properly situated within the company, and the legal department has effective interactions with the company's business units."

Hart said one of the reasons he joined Liberty Mutual eight years ago is because the culture was "palpable." He rose to chief legal officer in January.

"I felt it right away, both within the legal department and within the great collaborative relationship with the business," he said.

Theresa Shea, who joined Hanover, Pennsylvania-based snack-maker Utz Brands Inc. as general counsel a year ago, said legal chiefs often also serve as compliance chiefs, a role that gives them clout to help ensure the company behaves ethically and appropriately in all its interactions.

"This has a tremendous impact on culture," she said. "Once you have your employees' ears, you can impact much more than mere legal compliance."

CEO Is Chief Influencer

But legal experts agreed that, while the GC can shape culture, the CEO has the greatest impact.

"The tone set by the CEO is one of the most critical factors for success in the company's culture," said Heather Fine, a partner with Major, Lindsey & Africa specializing in placing attorneys in corporate legal departments.

"When we interview candidates for general counsel opportunities, in particular, they want to understand what's important to the CEO. They want to know that they are setting a tone at the top or are mission-oriented or that they frankly want to partner with legal," she said.

If CEOs do want to partner with legal, GCs have the opportunity to make their departments a model that other leaders, including the CEO, can emulate with their own teams, Fine said.

"If a general counsel is able to have a strong culture within the legal department and they are seen as a community and a cohesive group, that allows them to influence culture in the company generally," she said.

Fine said legal departments even can go a step further by demystifying what they do, in part by avoiding legalese and explaining the tasks they perform in everyday language.

"A lot of times, you'll hear lawyers say folks may or may not understand exactly what they're doing. But once they do, it helps them create a stronger culture of risk, ethics and integrity," she said.