The Board Corporate Governance Role

A board’s role in corporate governance includes overseeing and providing advice to an organization to ensure that it operates in a fair, legal manner and in its shareholders and stakeholders’ best interest. Boards operate independently of the management of the company and daily operations. The board ensures that the company’s plans for strategic planning align with its legal ethical and financial obligations. It also decides on the main risks facing the company and the best ways to manage them, delegating responsibility for certain tasks to committees.

Most boards have a chair who is responsible for facilitating collaborative tools transforming remote work meetings, keeping an appropriate atmosphere and setting the agenda. Chairs’ other responsibilities include to spark discussions and debate, and to make sure that important matters receive proper attention. Board secretaries are also vital in scheduling board meetings and making the agenda.

Additionally boards are becoming more involved in a range of issues such as strategy and risk management, sustainability, mergers and acquisitions, and culture and talent development. They are also expected have keen attention to ESG (environmental, social and governance) factors that have become critical to investors and consumers alike.

To be effective, a board must have the proper structure and have members with a mix of expertise, skills, and knowledge. It is crucial that members of the board have a deep knowledge of the industries and sectors in which the companies operate. This is essential for their ability to support and challenge management and bring the strategy of the company in line with the changing needs of investors and consumer expectations.