A board corporate governance role involves overseeing and advising a corporation so that it operates in a fair, legal manner and in its shareholders and stakeholders’ best interests. The boards accomplish this by remaining independent of the management and day-today operations of the company. The board ensures that the company’s strategy plans are aligned with its financial obligations, legal obligations and ethical obligations. It also identifies the biggest risks facing the company and the procedures for managing these risks, delegating the responsibility for certain tasks to committees.
Most boards have a chair who is accountable for facilitating meetings, maintaining a good dynamic and setting the agenda. Other responsibilities for the chair include stimulating discussions and debate, as well as making sure that important issues get appropriate attention. Board secretaries also play a crucial role in scheduling board meetings as well as preparing the agenda.
In addition, boards are becoming increasingly involved in a range of topics, including risk and strategy management, sustainability, mergers and acquisitions and development of culture and talent. They are also expected have an emphasis on ESG (environmental social and governance) issues that have become crucial for investors and consumers alike.
To be effective, a board must have the right structure and members with an array of skills, knowledge and expertise. This means that they have a good understanding of the industry in which the companies they represent and the way in which those industries operate. This is essential for their ability to help and challenge management and bring the company’s approach in line with evolving investor and consumer expectations.
