Three Obligations of a Board of Directors
Boards oversee the strategic direction of a business, which includes its finances and risk and opportunity management. They also oversee succession of leadership, talent development, and corporate culture, while setting and maintaining policies that focus on the best interests of shareholders and other stakeholders.
Regardless of the type of company or purpose All board members must fulfill three specific obligations:
1. The foundation of values and goals.
Board directors must be able to comprehend and support the primary value of their organization. This could be compassion or respect. In a similar way, they must be able to show these values in their interactions and actions with staff and others. After the pandemic, a number of organizations have recommitted themselves to their core values. They’ve also made a commitment to their staff and the community that they will live by these values each day.
2. Provide a platform to help the business expand.
It doesn’t matter if the goal is expand into a new market or accelerate growth, a well-rounded and diverse board will be beneficial. A member with sales expertise will provide valuable information and perspectives on the revenue-generating side of a business, and those with experience in fundraising could be able to attract investors.
In the recruitment and interview process, it’s important to provide new members of the board with an in-depth training session. This will give them an accurate description of their roles as well as the responsibilities they will have, allowing them take on their new role with confidence.