From Headquarters to Global Markets
Legal and Operational Challenges for In-House Counsel in U.S. Multinational Corporations
By Annierys Dominguez Perez,
Smith Business Law Fellow
J.D. Candidate, Class of 2027
In-house Counsel from a Global Perspective
The role of in-house counsel has evolved from one focused solely on legal compliance to a proactive and strategic function with multifaceted responsibilities. First, in-house counsel engages in strategic leadership through participation in high-level decision-making and the “align[ment] of legal advice with business objectives.”[1] Second, the position plays an important role in risk management by “assess[ing] legal risks associated with international operations and advis[ing] on mitigating strategies to protect the company’s interest.”[2] Third, it must understand and navigate complex corporate governance frameworks by ensuring compliance with ethical and legal standards across multiple jurisdictions to mitigate exposure to liability and protect the company’s reputation.[3] Lastly, in-house counsel facilitates stakeholder engagement by acting as an intermediary between a vast range of stakeholders and helping to inform them of the legal implications of corporate decisions.[4]
In-house counsel plays a critical role in ensuring that company operations align with diverse regulatory frameworks, particularly in areas such as anti-corruption measures, data protection regulations, and employment law compliance.[5] Additionally, it provides valuable insight to multinational corporations in key transactions, including mergers and acquisitions, intellectual property management, and contract negotiations.[6] “Legal counsel help navigate due diligence processes by assessing potential risks, ensuring compliance with international regulations” and “drafting and negotiating contracts that protect organizational interests while fostering strategic partnerships.”[7]
“In-house counsel must also be aware of cultural nuances that influence legal interpretation and business practices.”[8] Communication barriers, cultural sensitivities affecting compliance and risk management, and differing negotiation styles require a thorough understanding of counterpart priorities to establish successful partnerships.[9] Furthermore, in-house counsel typically must also implement governance practices that promote accountability by developing internal policies aligned with legal requirements, conducting training programs to reinforce compliance obligations, and creating crisis management strategies to effectively respond to legal challenges.[10]
In-house Counsel from a National Perspective
“Companies today are national and global in scope, yet the legal framework that governs our profession in the U.S. remains fragmented,” said Susana McDonald, Vice President and Chief Legal Officer at the Association of Corporate Counsel (ACC).[11] An online survey of 623 in-house counsel from across the United States provides insight into the experiences and challenges faced by in-house counsel engaged in multi-jurisdictional practice (MJP).[12]
Notably, “a significant majority of in-house counsel hold bar licenses in only one state,” with “just 13% licensed in three or more states.”[13] Additionally, 48% of respondents reported that they “regularly perform[ed] legal work in a U.S. state where they are not licensed.”[14] As a result, in-house counsel face substantial challenges “staying updated on varying state laws and managing confusing or conflicting MJP rules” outside their home jurisdiction in MJP, including state law compliance, unclear or conflicting MJP rules, and the potential for allegations concerning the unauthorized practice of law. [15] Despite these issues, only a “small percentage of in-house counsel have sought official or formal opinions from state bar associations.”[16] This could be because state licensing requirements often deter in-house counsel from pursuing employment opportunities in unlicensed states, which limits professional growth and restricts the efficient flow of legal talent nationwide.[17] These challenges highlight the urgent need for modernized MJP rules to support the needs of today’s fast-moving national economy.
According to Law360’s 2025 Special Report, corporate legal experts identified five additional areas of concern facing in-house counsel today.[18] First, Environmental, Social, and Governance (ESG) compliance continues to expand, requiring adherence to dynamic regulations and reporting standards.[19] Second, artificial intelligence (AI) is altering business operations and introducing complex legal and ethical challenges.[20] This necessitates strengthened data security and proactive risk mitigation strategies in-house.[21] Third, the role of in-house counsel continues to evolve beyond traditional legal functions into that of a “business partner … technology adopter . . . and a change manager,” leveraging innovation to improve efficiency and legal operations.[22] Fourth, global regulatory complexity, particularly amid “rising tensions between the [United States] and China,” demands careful monitoring of trade policies, cross-border regulations, and the development of enhanced international compliance programs.[23] Finally, cybersecurity threats are increasing in “sophist[ication] and frequen[cy],” requiring comprehensive incident response plans in which in-house counsel play a crucial role in securing sensitive data and directing breach responses in compliance with regulatory requirements.[24]
As multinational corporations navigate the complexities of today’s global market, the role of in-house counsel has never been more critical. By embracing a strategic mindset, in-house counsel can drive compliance, foster innovation, and meaningfully advance organizational objectives while operating within legal boundaries. This is a continuous battle in which adaptation and improvement are imperative—one that all in-house counsel must master to survive and succeed in a fast-changing, highly demanding global society.
[1] In-House Counsel: Strategic Role in Multinational Corporations, THE CONSULTANT GLOBAL (May 4, 2025), https://theconsultantglobal.com/in-house-counsel-strategic-role-in-multinational-corporations/.
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] Id.
[9] Id.
[10] Id.
[11] Inaugural ACC Survey Reveals Challenges Facing In-House Counsel in Multi-Jurisdictional Practice, ASS’N OF CORP. COUNS. (Sept. 11, 2025), https://www.acc.com/about/newsroom/news/inaugural-acc-multi-jurisdictional-practice-survey.
[12] Id.
[13] ASS’N OF CORP. COUNS., Understanding US Multi-Jurisdictional Practice Challenges: Survey Results & Key Considerations 6 (2025).
[14] Id. at 8.
[15] In-House Counsel: Strategic Role in Multinational Corporations, supra note 1; ASS’N OF CORP. COUNS., supra note 13, at 20.
[16] ASS’N OF CORP. COUNS., supra note 13, at 15.
[17] Id. at 18.
[18] What Challenges and Strategic Insights Await In-House Legal Experts in 2025, LEXISNEXIS (Jan. 23, 2025), https://www.lexisnexis.com/community/insights/legal/b/thought-leadership/posts/what-challenges-and-strategic-insights-await-in-house-legal-experts-in-2025.
[19] Id.
[20] Id.
[21] Id.
[22] Id.
[23] Id.
[24] Id.


