Three Obligations of a Board of Directors

Boards are accountable for the strategic oversight of an organization, including its finances, risk management, and opportunities management. They also manage succession to leadership, talent development, and corporate culture. They do this by establishing and maintaining policies which focus on the best interests of shareholders and other stakeholders.

No matter what the type of organization or its purpose the board members must meet three specific obligations:

1. Establishing a solid foundation of values and goals.

Board directors must be able to be able to comprehend, support and communicate the core value of their organization. This could include compassion, respect or kindness. In a similar vein they must be able exemplify these values in their interactions and actions with staff members and other employees. In the wake of the pandemics, many organisations have reaffirmed their values and pledged to their employees and the community that they will live by those principles every day moving forward.

2. The platform provides a way for the business to grow.

If your goal is to expand into a new market or accelerate growth, a well-rounded board with a variety of expertise can help. A member with sales expertise can offer valuable insight and perspectives on the revenue-generating side of a company, whereas someone with experience in fundraising might be able to draw investors.

During the interview and recruitment process, it is crucial to provide the new members of the board with a thorough training session. This will aid them in understanding the responsibilities and roles of board members so that they can assume their new role confidently.

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