What Are the Responsibilities of a Board of Directors?
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Boards differ in size and structure, but all boards should have a clear understanding of board responsibilities to make sure that members are accountable. Board responsibilities typically include strategic leadership, ensuring financial stability, assisting ambassadors and ensuring good governance.
Based on the type of organization, some boards may be entrusted with additional duties, such as fundraising and community partnerships. However, the primary goal of a board is governing and overseeing the non-profit’s activities. This is why the vast majority of board members serve as volunteers and are not paid for their time.
While boards do not control day-to-day operations but is able to make strategic decisions such as mergers and acquisitions and high-level finances. It also ensures that the company operates in a legal manner and in the best interest of shareholders and other stakeholders.
In addition to legal obligations the board should also have a strong conflict of interest policy as well as an understanding of documents that organize the organization (like bylaws, articles and applications for exemption).
A solid board will work with stakeholders to listen to their concerns, seek out necessary changes in corporate behavior and help develop the organization’s reputation within the community. In the end, it’s the actions of the board that establish the ethical standards of the company. They are more important than any written ethical statements and show what the organization actually believes. It is more essential more than ever, considering the recent controversy involving bribery.