Board Directors are responsible for guiding the strategy, direction and performance of a business. They also have to represent the interests of shareholders and ensure that management provides value. To accomplish this, boards must determine what tasks fall under their control and which ones can be delegated to senior management.
They also better board relationships make a decision on important strategic issues like mergers and acquisitions and stock splits, share programmes for repurchase, and declaring dividends. In addition, they are charged with the hiring and firing of the CEO, as well as determining compensation for the top executives. To do this, they need to be prepared to tackle difficult questions and be able to engage in constructive debate. They are also responsible for ensuring that the company’s finances are in order as well as the compliance with laws and ethical standards.
A good board member is capable of understanding complicated issues and offering insights to improve the effectiveness of the board. They are also able to establish a culture that encourages collaboration and communication in the boardroom. They are knowledgeable of the business in which they work and are able to provide valuable advice.
As the world around us becomes more complex, so too do our corporate responsibility. The COVID-19 virus taught us that businesses need to increase their speed and agility in order to keep up with. Many boards have broadened the range of their responsibilities to include areas such as developing talent and culture. They also pay attention to resilience and risk management as well as technology and digitalization. To be able to do this effectively, board members need to be digitally educated and be able to communicate at the highest level to accomplish forward-thinking goals.
