Three Obligations of a Board of Directors

Boards are accountable for the oversight of strategic aspects of an organization, including its finances, risk management, and opportunity management. They also guide leadership succession and talent development as well as corporate culture. They also formulate and maintain policies that focus on the stakeholder and shareholder interests.

All board members, regardless of the type or mission of their organization they must perform three specific duties:

1. The foundation is a set of values and goals.

Board directors should be able understand, support and communicate the core values of their company. This could include compassion and respect, or even kindness. In the same vein, they must be able to demonstrate those values through their actions and interactions with staff as well as others. After the pandemic, lot of organizations have recommitted themselves to their values. They've also made a promise to their staff and community that they will abide by these values each day.

2. It provides a platform for the business to grow.

A board of diverse expertise and experience is capable of helping, whether the goal is to expand your company into a new market or speed up growth. A member with sales expertise can provide valuable insights and views on the revenue-generating part of a business, and those with experience in fundraising could be able attract investment capital.

During the recruitment and interview process, it is crucial to provide the new members of the board with a detailed training session. This will give them an accurate picture of their roles and responsibilities, allowing them to take on their new role with confidence.

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