Boards of directors are accountable for advising and supervising companies to ensure they operate legally and in the best interests of shareholders and other stakeholders. They work independently from management of the company and its day-today operations. They also act as a check on the executives of the company and make them accountable for their performance. Executive directors as well as nonexecutive directors are in a tough job, as they have to keep a balance between managing the day-today pressures of an organization and paying attention to board room now info strategic issues.
The primary responsibilities of a board include setting the company’s vision, purpose and mission, as well as making sure that the business is operating as per organizational goals and plans. The board also determines the company’s strategic plan, makes key financial decisions and plans for mergers and acquisitions. They also decide on the best utilization of a company’s resources. The board is also responsible for overseeing the CEO’s performance and holding them accountable.
One of the most important obligations is to establish basic guidelines that help to ensure an organization’s integrity. This includes the whistleblower policy and code of ethics. The board should also regularly interact with all stakeholders, both internal as well as external, to promote the image of the company and enhance its standing in the public eye.
As a board member is a chance to enhance your leadership abilities and make new acquaintances and contribute meaningfully. When you are deciding to accept this prestigious job, it’s important to understand the primary responsibilities a board is required to fulfill. This will assist you in making the right choice when you apply for a position on a board and give you a clear picture of what you are likely to encounter.