Boards of directors are responsible to oversee and advise companies on how to operate legally and in the best interest of wikipedia reference shareholders and other stakeholders. They work independently from daily operations and management of the business. They also serve as a check and balance to executives and hold them accountable for their performance. The role is challenging for both executive directors and non-executive directors as they must maintain a delicate balance between managing the day-today demands of their organization while focusing on the big picture and strategic issues.
The most important responsibilities of a board is setting the company’s vision, purpose and mission, as well as making sure that the company is functioning in accordance with its organizational goals and plans. The board also frames the company’s strategic plan, makes important financial decisions and develops plans for mergers and acquisitions. They also decide on the best use of an organization’s resource. The board is also accountable for ensuring that the CEO’s performance is monitored and holding them accountable.
Establishing basic policies to support the credibility of an organization including the whistleblower code of ethics and a policy regarding reporting violations, is among the most important responsibilities. The board must also regularly engage with those who are both internal and external, in order to boost the company’s reputation and enhance its public image.
As a board member, you’ll have the chance to enhance your leadership abilities as well as meet new people and contribute in a meaningful way. Before you accept this prestigious job, it’s important to understand the major responsibilities a Board has. This will enable you to make the right decision when applying for a board position. It will give you a clear understanding of what’s expected of you.