The Legal Profession as a Social Process: A Theory on Lawyers and Globalization

This article proposes a processual theory of the legal profession. In contrast to the structural, interactional, and collective action approaches, this processual theory conceptualizes the legal profession as a social process that changes over space and time. The social process of the legal profession includes four components: (1) diagnostic struggles over professional expertise; (2) boundary work over professional jurisdictions; (3) migration across geographical areas and status hierarchies; and (4) exchange between professions and the state. Building on the processual theory and using China as a primary example, the author proposes a research agenda for studying lawyers and globalization that seeks to shift the focus of research from the legal elite to ordinary law practitioners, from global law firms to local law firms, and from advanced economies to emerging economies.     

Legal Elites and the Shaping of Corporate Law Practice in Brazil: A Historical Study

Brazil today has a legal market that allows for foreign lawyers and foreign firms, but existing regulations are restrictive. Foreign lawyers cannot practice domestic law or litigation, nor can Brazilian‐licensed lawyers working for foreign firms or partnering with foreign lawyers. This was not always the case, however. Until 1963, there was little regulation of the legal profession. Beginning in 1913, elite US lawyers traveled to Brazil, with some even becoming prominent domestic practitioners. They partnered with local elite lawyers (who maintained their domestic privileges) and served as key brokers for US businesses seeking market entry. Drawing on the elite theory literature, and on ethnographies, interview data, and over 1,000 pages of rare Portuguese and English archival sources, this study's thesis is that sophisticated US and Brazilian legal elites capitalized on the lack of regulation to advance their financial interests, and in the process transformed Brazil's corporate legal sector.     

Law and policy of platform economy in China

China is experiencing a phenomenal expansion of platform economy fuelled by the advancement of information and communication technologies. It has become a global frontrunner in many sectors, including commerce, finance, and entertainment. A comprehensive law and policy narrative, however, is largely absent from English academic literature. This paper seeks to fill this gap by analysing the dynamic relationship of industrial development, policy engagement and regulation construction in one of the prime sectors of platform economy: Electronic Commerce (E-commerce). China's E-commerce market rose to global dominance shortly after its origination in the mid-1990s. This paper holds that such an expeditious ascendency is nourished by carefully designed public policies. To implement these policies, also to redress information asymmetries and other pertinacious market failures, a tailored regulatory paradigm has been instigated. This regulatory paradigm manifests a new mode of polycentric, participatory, and collaborative governance that strives to balance interest disparities between various stakeholders. The dynamic relationship exemplified in China's E-commerce market would provide a valuable indication for administering other sectors of platform economy not only in China but also across other jurisdictions that openly embrace commercial innovations in the context of information technological transformation.     

The legal profession of China in a globalized world: innovations and new challenges

ABSTRACT

The legal profession is undergoing fundamental changes; and this is the case not just in established legal markets. Based on a state-of-the-art sketch, this paper identifies and analyzes the latest innovation initiatives and alternative business models in China’s legal profession. It finds that, propelled by market demands and benefiting from technological advancements, the provision of legal services has become highly versatile today, giving rise to various alternative service providers, especially the rapidly rising online legal service portals. Because they are technically not law firms, the exclusivity requirements on lawyer ownership and legal service provision are not applicable to them. In the meantime, the competition for large corporate clients and lucrative business transactions is fierce and will continue to be so, not only within the club of big Chinese corporate law firms, but also between Chinese law firms and international law firms globally. In this course, some leading big corporate law firms in China are observed to have creatively incorporated key corporate features in running their business and compensating their partners, effectively deviating from the partnership?+?pure legal services regulation. Such market realities question the necessity and effect of the regulatory restrictions on law firm legal form and ownership structure, and call for an agenda for related research in the future.     

Three Principles of Transnational Corporate Bankruptcy Law: A Review

Abstract: After having discussed the weaknesses of the universalist and territorialist approaches to transnational corporate bankruptcy law, this article argues that a free‐choice régime could combine the advantage of ex post value maximisation of the firm's assets with a comparatively higher degree of ex ante predictability to investors. In addition, it could lead to a better alignment between corporate ownership structures and corporate bankruptcy régimes. Moreover, a free‐choice régime could potentially open the door for regulatory competition in corporate bankruptcy law. However, EC Regulation 1346/00 on insolvency proceedings implements a system of modified universalism, which allows for strategic ex post forum shopping by debtors while keeping the national legislatures’ monopoly in the field of corporate bankruptcy in place. It is suggested that even though it cannot be predicted that a free‐choice régime will pressure state lawmakers to improve their corporate bankruptcy laws, a system of free choice could redirect the law‐making agenda in the EU by focusing the coordination efforts of lawmakers on those issues—such as security interests in property and statutory priority rights—which could negatively affect the proper functioning of the Internal Market, while enabling Member States to customise corporate bankruptcy laws to local preferences and needs.     

When Social Norms and Pressures Are Not Enough: Environmental Performance in the Trucking Industry

Why do some business firms and not others work hard to advance regulatory values such as environmental protection and comply with regulations? Previous research indicates that business firms are influenced in that regard by a number of variables—not merely the perceived likelihood of legal punishment but also the risk of negative reactions by societal actors (which we call “social license pressures”) and the intensity of managers' commitment to norms of law‐abidingness and environmentalism. This article reports on a study of control of diesel emissions in the trucking industry, a highly competitive market with many small firms, mobile pollution sources, expensive “best control technologies,” and weak regulatory demands. In contrast to findings in studies of large firms, we found that social license pressures on small trucking firms are minimal. Trucking companies' environmental performance—good and bad—flows from managers' economic choices, which are influenced by their particular market niche. In such highly competitive, small‐firm market contexts, these findings imply, significant improvement in environmental performance is not likely without strong direct regulatory pressures.     

公司法结构性改革总体思路

在资源配置由市场起决定性作用的经济体制下,公司这种无论何种经济成分出资设立、最契合市场经济运行机制的商事主体必然会在国民经济中占据更加重要的地位.为此,有必要重新考虑公司法结构性改革的总体思路.在科斯法律经济学的视野下,改革方案的顶层设计应当立足于公司法在我国当前整个商事主体立法中的实际地位,认清商事主体经济分类和法律分类双轨制所带来的种种矛盾和弊病,围绕对各种经济成分实行同等待遇,促进国内统一市场形成,提高国际竞争能力的制度设计目标,尽可能吸收消化世界各国晚近公司法修改乃至整个商事主体立法全面整合的新经验新成果,形成和国际趋同的现代公司法和内外资统一、以法律分类中的责任形式及主体资格标准为依据的、以公司为主导的商事主体体系和商事主体法体系.     

New Governance,Chief Privacy Officers,and the Corporate Management of Information Privacy in the United States: An Initial Inquiry

While the turn from traditional regulation to more collaborative, experimentalist, and flexible forms of governance has garnered significant academic focus, far less attention has been paid to the effects of such “new governance” approaches on regulated firms' understanding of the laws' demands, and on the structures employed within business organizations to meet them. This article targets this analytic gap by examining internal corporate practices regarding consumer privacy, an arena in which the Federal Trade Commission and the states have adopted new governance models. Using data from qualitative interviews with leading corporate Chief Privacy Officers, as well as internal corporate documentation, it examines the way privacy practices have been catalyzed in the shadow of new privacy governance approaches and the combination of regulatory, market, and stakeholder forces they seek to harness. Specifically, it suggests the convergence of a set of practices adopted by privacy officers identified as “leaders,” regarding both high‐level corporate privacy management and the integration of privacy into entity‐wide risk management goals through technology, decision‐making processes, and the empowerment of distributed expertise networks throughout the firm.     

In Dependence: The Paradox of Professional Independence and Taking Seriously the Vulnerabilities of Lawyers in Large Corporate Law Firms

In this article, and drawing on the work of Martha Fineman and others, we deploy a vulnerability lens as an heuristic device to push against the concept of professional lawyer independence as enshrined in statute and promoted by legal services regulators. Using interviews with 53 senior partners and others from 20 large corporate law firms, we show how the meaning and practice of independence are profoundly mediated by the contexts, relationships, and interactions of corporate lawyers’ everyday working lives. Vulnerable to competition from other firms, the demands of clients, the shift over time from ‘trusted advisor’ to ‘service provider', regulatory requirements, pressures to make profit, and so on, these corporate lawyers appeared prone to developing and normalizing potentially risky and irresponsible practices. We therefore argue that a debate about corporate legal regulation is better based upon a richly theorized concept of interdependence that takes seriously the causes and effects of practitioner vulnerabilities in particular circumstances.     

Hiring Teams,Firms, and Lawyers: Evidence of the Evolving Relationships in the Corporate Legal Market

How are relationships between corporate clients and law firms evolving? Drawing on interview and survey data from 166 chief legal officers of S&P 500 companies from 2006–2007, we find that—contrary to standard depictions of corporate client‐provider relationships—(1) large companies have relationships with ten to twenty preferred providers; (2) these relationships continue to be enduring; and (3) clients focus not only on law firm platforms and lead partners, but also on teams and departments within preferred providers, allocating work to these subunits at rival firms over time and following “star” lawyers, especially if they move as part of a team. The combination of long‐term relationships and subunit rivalry provides law firms with steady work flows and allows companies to keep cost pressure on firms while preserving relationship‐specific capital, quality assurance, and soft forms of legal capacity insurance. Our findings have implications for law firms, corporate departments, and law schools.     

Mitigating the Harshness of FCPA Enforcement Through a Qualifying Good‐Faith Compliance Defense

In recent years, the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have enforced the Foreign Corrupt Practices Act (FCPA) with increasing rigor. These zealous enforcement practices have been criticized for putting excessive pressure on companies to settle, often through nonprosecution or deferred prosecution agreements. The resulting proliferation of such settlements has created a dearth of case law interpreting the statute, resulting in legal ambiguity that reinforces pressures on companies to continue to settle rather than litigate, as uncertainty of the law adds to risk. This dynamic is exacerbated by the broad vicarious liability that firms face for the wrongdoing of individual actors. Given the need for government to enlist business as a partner in any effective battle against global corruption, the current highly adversarial relationship between enforcement agencies and firms is unreasonable and counterproductive. The law and its enforcement agencies should go further in providing incentives for businesses to develop and implement strong good‐faith FCPA compliance programs. They should establish standards for rigorous compliance programs that would provide qualifying companies with a defense against entity liability for the corrupt behavior of individuals. Creation of a qualifying good‐faith compliance program defense would help to prevent future FCPA violations, to recruit companies as partners in fighting corruption, to encourage ethics‐oriented corporate cultures, and to encourage upstanding firms to do business in regimes where rectitude is most needed.     

Interpreters of International Economic Law: Corporations and Bureaucrats in Contest over Chile's Nutrition Label

This article analyzes the everyday interpretive practices of corporations and bureaucrats that shape the meaning and force of international economic law. To understand how common practices such as public consultation submissions, corporate threat letters, and external legal assistance influence regulators' understanding of their “legally available” policy space, we study the contested introduction of a pioneering nutrition labeling regulation in Chile. The transnational food industry powerfully challenged the regulation's legality under World Trade Organization law. But Chilean health bureaucrats, in coordination with segments of the country's legally highly competent economic bureaucracy, effectively defended the legality of their proposed regulatory measure. Drawing on data from freedom-of-information requests and in-depth interviews, the article argues that the outcomes of such interpretive contests are substantially shaped by participants' knowledge of the entitlements created by international economic law and thus by the international legal expertise they have access to. This often but not always puts transnational corporations at an advantage over national regulators in the strategic interpretation of international economic law.     

'New Governance' in European Corporate Law Regulation as Transnational Legal Pluralism

The present transformation of European corporate governance regulation mirrors the challenges that have been facing the EU's continuously evolving polity, marked by tensions between centralised integration programmes, on the one hand, and Member State's embedded capitalisms, path-dependencies and rent-seeking, on the other. As longstanding concerns with remaining obstacles to more mobility for workers, services, business entities and capital in recent years are aligned with post-Lisbon commitments to creating the world's leading competitive market, European corporate governance regulation (ECGR) has become exposed to and implicated in a set of highly dynamic regulatory experiments. In this context, 'New Governance' offers itself as both a tentative label and immodest proposal for a more responsive and innovative approach to European law making. The following article assesses the recently emerging regulatory forms in ECGR as illustrations of far-reaching transformations in market governance. The arguable parallels between the EU's regulatory transformation in response to growing legitimacy concerns and the recurring question about whose interests a business corporation is intended to serve, provide the framework for an exploration of current regulatory trajectories in European corporate law that can most adequately be understood as a telling example of transnational legal pluralism.     

Divided Selves: Professional Role Distancing Among Law Students and New Lawyers in a Period of Market Crisis

In the terms of Erving Goffman's classic role‐distancing analysis, newly admitted law students often aspire to an “embraced” lawyer role that directly expresses their personal and political values. Empirical research has suggested that during law school these students are instructed in an amoral and apolitical vision of professionalism. The literature has paid less attention to how students internally experience these norms within their continual processes of self‐construction. This article takes an exploratory micro‐dynamic look at professional identity formation drawing on longitudinal interviews and identity mapping with three student cohorts. Over the course of their legal education, students bound for large corporate law firms tended to report increasing professional role distancing. In contrast, students who pursued jobs in the public‐interest sector tended to sustain a more proximate conception of professional identity, overlapping with racial, gender, political, and other centrally constitutive roles. The article concludes with normative and theoretical implications.     

Regulatory Analysis in Corporate Law

Drawing on recent experiences in the US, UK, and EU, this article suggests that regulatory analysis of corporate law policies, as currently understood and applied, suffers from severe weaknesses. The effects of proposed corporate law policies are often difficult to predict and even more difficult to quantify, which negatively impacts analytical reliability. Moreover, given its nature and strong intersections with economic, societal and political issues, corporate law is less amenable to technocratic assessments than other areas of law. Based on three case studies, the article explores these problems. It outlines a revised ‘procedural’ view, suggesting that regulatory analysis in corporate law should be understood as a process for enhancing information, transparency, and monitoring, independently of specific normative criteria. This leads to several implications. In short, regulatory analysis should combine quantified analysis with leeway for regulatory judgment and focus on increased consultation, critical engagement, review, and transparency as the dominant guiding factors.     

反倾销法与竞争法之冲突与协调

反倾销法与竞争法存在一些天然的联系.然而许多国家的实践表明,对外贸易政策的实施,很有可能与其竞争政策相冲突.随着贸易的自由化、市场全球化和一体化的发展,运用产业政策与贸易政策支持国内的产业发展受到越来越多的限制,反倾销法就是典型的体现.从反倾销法和竞争法的经济理论出发,分析了两者的潜在冲突,并试图指出解决反倾销法与竞争法之冲突的途径.     

Private Law Firms in the Public Interest: The Organizational and Institutional Determinants of Pro Bono Participation, 1994–2005

Despite longstanding concern that the commercialization of legal practice is antithetical to professionalism, corporate law firms have dramatically increased their pro bono participation over the past few decades. What explains this paradox? This article examines the organizational and institutional determinants of pro bono participation across an elite field of large law firms. I find that pro bono work is only partly rooted in internal organizational dynamics and that the institutional environment appears more important for explaining variation in pro bono participation. These findings indicate that large firms may be more drawn to pro bono work as a social process tied to professional status and legitimacy than to concrete, rational organizational goals. Moreover, these findings point to the importance of the interstitial space that these firms inhabit between the legal profession and corporate market as an especially important factor in facilitating, rather than dampening, pro bono participation.     

Practice and Privilege: Social Change and the Structure of Large Law Firms

Despite dramatic changes in size and specialization, large law firms have remained remarkably unchanged in other respects. Introducing research on major Chicago law firms, this article examines how large law firms have changed so much by changing so little. It proposes a theory of law firm growth emphasizing the relationship between changes in the market for sophisticated legal services and changes in the approach law firms have taken to organizing their practices. The author discusses the organizational structure of large law firms, giving particular attention to the various roles that lawyers play in such firms. After speculating on trends affecting large law firms, he points to implications of these trends for law and social change.     

Governing Globalization? The State,Law, and Structural Change in Corporate Governance

Current analysis of the 'globalization' of the activity of capitalist corporations tends to argue that the legal institutional frameworks of the nation state are of little importance in determining the governance of those corporations, and that the regulation of those corporations therefore is impossible. This view simply ignores the role that those frameworks do in fact play. In this paper, various styles of corporate governance are analysed in terms of the influence of the company law, financial market regulation, and employment law promulgated by nations or nation state groupings. Rather than the globalization of corporate governance reflecting the unimportance of the nation state, it reflects a change in the style of regulation.