When It Comes to Regulators, Checkr GC Says Companies Can Be 'Proactive, Interactive or Reactive'
There are a few different philosophies to choose from when interacting with the government, according to Checkr's Irene Liu.
October 01, 2018 at 05:51 PM
3 minute read
The original version of this story was published on Corporate Counsel
The ability to comply with growing regulations and work successfully with those who create and enforce them can make or break a company, especially in the fast-moving tech industry.
On Friday, San Francisco-based online background check company Checkr's general counsel Irene Liu gave in-house lawyers at the University of California Berkeley Law School's Peer 150 General Counsel Institute her tips for dealing with regulators in a number of situations.
“You could be proactive, interactive or reactive,” Liu said, but the right strategy varies based on company, industry and timing.
A proactive stance works in the situation tech companies often find themselves in—attempting to navigate laws that don't exist yet. Liu said that if it's clear regulations will eventually come, legal leaders should plan for them and, if possible, help shape them.
That means reviewing internal policies and setting standards that are likely to meet future regulation. It also means developing a presence in Washington, D.C.
“Go in earlier and influence, before they [create] the legislation that impacts you,” Liu said. Meeting with regulators before any issues arise allows a company to start off on good terms. If legal's first conversation with lawmakers is an unfriendly one prompted by regulators' concerns, Liu said lawyers ”will regret not going in earlier.”
Companies can get their foot in the door by hiring former Washington insiders. Here, Liu noted there's one crucial element: the person should be well liked. Having a rude, standoffish person representing the company won't help boost its image.
But company representatives shouldn't just be respectful to top lawmakers. Liu said junior attorneys and other staffers have influence as well, so it's important to make a good impression.
The interactive strategy can come into play here. Liu said companies should let lawmakers know that they're available to send someone to industry-perspective hearings and to discuss any updates to their product. This also provides a chance to highlight the positive work a company is doing.
“If you have a great mission, talk to the regulators about it,” Liu said. One of Checkr's goals is to do good by helping formerly incarcerated individuals find jobs. Liu said her team ends meetings with regulators by discussing this goal, as it sends a message to lawmakers.
But not every company, tech or otherwise, should take the interactive or proactive approach.
If regulations don't seem to be coming in the near future, and if their installment could put an end to a company still getting off the ground, Liu said it might be best to lay low and take the reactive approach.
“[If you] don't foresee an instance where government will be coming down with a regulation on your product, you may be raising your profile unnecessarily,” Liu said.
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