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12.4 - Manage legal and ethical issues

PCF ID: 11013 | Elements: 22 | Metrics Available: Y | Benchmarkable: 1

Definition

Managing legal practices to abide by the law, as well as ethical practices.

Overview

This process group covers manage legal and ethical issues within the broader context of Manage External Relationships.

Process Hierarchy

Processes

IDProcessPCF IDSub-elementsMetrics
12.4.1Create ethics policies110440N
12.4.2Manage corporate governance policies110450N
12.4.3Develop and perform preventive law programs110460N
12.4.4Ensure compliance110472N
12.4.5Manage outside counsel110486N
12.4.6Protect intellectual property110494N
12.4.7Resolve disputes and litigations110500N
12.4.8Provide legal advice/counseling110510N
12.4.9Negotiate and document agreements/contracts110520N

12.4.1 - Create ethics policies

PCF ID: 11044

Definition: Creating a code of ethics that communicate the organization's philosophy to employees, vendors, customers, clients, and the public.

12.4.2 - Manage corporate governance policies

PCF ID: 11045

Definition: Administering the system of rules, practices, and processes through which a company is directed and controlled. Balance stakeholder interests including shareholders, management, customers, suppliers, financiers, government, and the community. Outline a strategy for achieving organizational goals, from action plans and internal controls to performance measurement and corporate disclosure.

12.4.3 - Develop and perform preventive law programs

PCF ID: 11046

Definition: Creating and applying programs and activities. Encourage the adherence preventive laws, such as environmental law, sex discrimination, computer law, estate planning, corporate compliance, business planning, and property transactions.

12.4.4 - Ensure compliance

PCF ID: 11047

Definition: Ensuring the organization's compliance position. Validate compliance with different statutes, regulatory directions, and legal principles (using Establish compliance framework and policies [17468]). Coordinate with compliance and risk management personnel.

IDActivityPCF IDTasksMetrics
12.4.4.1Plan and initiate compliance program110530N
12.4.4.2Execute compliance program110540N
12.4.4.1 - Plan and initiate compliance program

Definition: Employing an internal system or process to identify and reduce the risk of breaching the Competition and Consumer Act 2010. Remedy any breach. Create a culture of compliance. Design compliance programs.

12.4.4.2 - Execute compliance program

Definition: Implementing the established compliance program in order to meet the government laws and regulations. Create a compliance team that scrutinizes the rules set out by government bodies such as the Securities and Exchange Commission.

12.4.5 - Manage outside counsel

PCF ID: 11048

Definition: Managing professionals, sought externally for assistance over legal and ethical concerns. Administer and oversee assistance from subject matter experts and professionals for sourcing expert opinion and counseling over legal and ethical matters.

IDActivityPCF IDTasksMetrics
12.4.5.1Assess problem and determine work requirements110560N
12.4.5.2Engage/Retain outside counsel if necessary110570N
12.4.5.3Receive strategy/budget110580N
12.4.5.4Receive work product and manage/monitor case and work performed110590N
12.4.5.5Process payment for legal services110600N
12.4.5.6Track legal activity/performance110610N
12.4.5.1 - Assess problem and determine work requirements

Definition: Examining the problems and deciding the action requirements for engaging outside counsel. This process element calls upon the organization to internally analyze the issues for which assistance from external counsel is needed. Additionally, the organization needs to break-down the issue, identifying the tasks and exercises where outside counsel can help.

12.4.5.2 - Engage/Retain outside counsel if necessary

Definition: Recruiting the assistance of outside counsel for any legal and/or ethical concerns. Engage and/or retain any external counsel sought from subject matter experts and professionals.

12.4.5.3 - Receive strategy/budget

Definition: Making a financial plan. This strategy sets out, using figures, an organization's expected future results. Enlist the finance function to support work generated by other business functions in order to build and secure their support for the budget.

12.4.5.4 - Receive work product and manage/monitor case and work performed

Definition: Receiving deliverables from outside counsel, and monitoring the efforts committed by them. Track the progress of, collect, and validate the required work product from the subject matter experts and professionals engaged as external counsel. Verify the amount of effort dedicated by these counsels to the issue at hand, in order to confirm their fees.

12.4.5.5 - Process payment for legal services

Definition: Making payments to legal advisers for their services. Payments include addressing issues or suits by customers, suppliers, competitors, bankers, government agencies, etc.

12.4.5.6 - Track legal activity/performance

Definition: Keeping track of the legal activities and performance of the organization.

12.4.6 - Protect intellectual property

PCF ID: 11049

Definition: Safeguarding the intellectual property of the organization. This process requires the organization to protect a wide variety of intellectual property created by it. It involves creating and managing non-disclosure agreements (NDAs), following up on current developments in the areas where the organization holds patents, tracking the use of the organization's copyrighted material, creating and upholding licensing terms, and administering policies for safeguarding intellectual property.

IDActivityPCF IDTasksMetrics
12.4.6.1Manage copyrights, patents, and trademarks110620N
12.4.6.2Maintain intellectual property rights and restrictions110630N
12.4.6.3Administer licensing terms110640N
12.4.6.4Administer options110650N
12.4.6.1 - Manage copyrights, patents, and trademarks

Definition: Managing the patents and copyrights already held or sought by the organization. Administer and oversee applying for, securing, and maintaining intellectual property rights in the form of patents and copyrights. Submit applications for such rights. Handle associated legal issues. Draft and communicate proper attributions. Collect royalties. Monitor any misuse of the intellectual property rights.

12.4.6.2 - Maintain intellectual property rights and restrictions

Definition: Managing the upkeep of intellectual property rights by creating and managing a framework of rules, policies, procedures, and restrictions. Outline a clear policy for any possible scenario of their use by any external agent.

12.4.6.3 - Administer licensing terms

Definition: Administering and overseeing the terms and policies associated with licensing the organization's intellectual property. Create and manage the policies and terms governing the possible granting of a license to any external agent. Demarcate a clear framework that governs the licensing of any patents or copyrights held by the organization.

12.4.6.4 - Administer options

Definition: Managing options regarding licensing agreements. Follow favorable terms and conditions.

12.4.7 - Resolve disputes and litigations

PCF ID: 11050

Definition: Resolving disputes or civil lawsuits internally or externally.

PCF ID: 11051

Definition: Providing legal advice concerning the substance or procedure of a law in relation to a particular situation.

12.4.9 - Negotiate and document agreements/contracts

PCF ID: 11052

Definition: Negotiating terms to reach a final draft of a contract that is acceptable to all parties.

Change Summary (v7.2.1 vs v6.1.1)

Changes indicated by:

  • +XXXXX - New element added
  • -XXXXX - Element removed
  • cXXXXX - Element changed
  • NEW - Newly introduced

Complete Element List with Definitions

All 22 elements
IDNameDefinition
12.4Manage legal and ethical issuesManaging legal practices to abide by the law, as well as ethical practices.
12.4.1Create ethics policiesCreating a code of ethics that communicate the organization's philosophy to employees, vendors, cust...
12.4.2Manage corporate governance policiesAdministering the system of rules, practices, and processes through which a company is directed and ...
12.4.3Develop and perform preventive law progr...Creating and applying programs and activities. Encourage the adherence preventive laws, such as envi...
12.4.4Ensure complianceEnsuring the organization's compliance position. Validate compliance with different statutes, regula...
12.4.4.1Plan and initiate compliance programEmploying an internal system or process to identify and reduce the risk of breaching the Competition...
12.4.4.2Execute compliance programImplementing the established compliance program in order to meet the government laws and regulations...
12.4.5Manage outside counselManaging professionals, sought externally for assistance over legal and ethical concerns. Administer...
12.4.5.1Assess problem and determine work requir...Examining the problems and deciding the action requirements for engaging outside counsel. This proce...
12.4.5.2Engage/Retain outside counsel if necessa...Recruiting the assistance of outside counsel for any legal and/or ethical concerns. Engage and/or re...
12.4.5.3Receive strategy/budgetMaking a financial plan. This strategy sets out, using figures, an organization's expected future re...
12.4.5.4Receive work product and manage/monitor ...Receiving deliverables from outside counsel, and monitoring the efforts committed by them. Track the...
12.4.5.5Process payment for legal servicesMaking payments to legal advisers for their services. Payments include addressing issues or suits by...
12.4.5.6Track legal activity/performanceKeeping track of the legal activities and performance of the organization.
12.4.6Protect intellectual propertySafeguarding the intellectual property of the organization. This process requires the organization t...
12.4.6.1Manage copyrights, patents, and trademar...Managing the patents and copyrights already held or sought by the organization. Administer and overs...
12.4.6.2Maintain intellectual property rights an...Managing the upkeep of intellectual property rights by creating and managing a framework of rules, p...
12.4.6.3Administer licensing termsAdministering and overseeing the terms and policies associated with licensing the organization's int...
12.4.6.4Administer optionsManaging options regarding licensing agreements. Follow favorable terms and conditions.
12.4.7Resolve disputes and litigationsResolving disputes or civil lawsuits internally or externally.
12.4.8Provide legal advice/counselingProviding legal advice concerning the substance or procedure of a law in relation to a particular si...
12.4.9Negotiate and document agreements/contra...Negotiating terms to reach a final draft of a contract that is acceptable to all parties.

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