Boards are accountable for establishing the company’s direction, overseeing management and making sure that the best interests of shareholders and their stakeholders are met. They also have the responsibility of resolving conflicts between management and shareholders, whether they be conflicts over compensation or disagreements on the direction of the business.
Boards are often asked to help and guide the management team, by providing them with resources and guidelines that include approuving marketing campaigns or allocating more resources. They also assist in determining the risk appetite of a company and support a robust risk-management programme. They also have to ensure that internal controls are operating effectively.
The board also has to ensure that all legal requirements are met and that the company is in good standing with regulators. This is a complex task that requires coordination with other committees, including audit and compliance.
Finally, boards are expected to help the business create a healthy and strong environment by setting an example of positive behavior to all employees. This is especially important in the present climate, where the behavior of corporate employees is scrutinized more than ever.
