The Board Corporate Governance Role
A board corporate governance role is to oversee and advise the corporation to ensure it operates lawfully, fairly and in its shareholders‘ and stakeholders‘ interest. Boards perform this function by operating independently of the management of the company as well as the day-to-day activities. The board makes sure that the company’s strategic plans comply with its legal, ethical and financial obligations. It also identifies the most significant risks facing the business and the procedures to deal with them, delegating some of these tasks.
Many boards have appoint a chair whose job is to facilitate meetings and maintain the atmosphere, as well as to set the agenda. Other responsibilities of the chair include generating 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 and creating the agenda.
Additionally boards are increasingly involved in a range of issues such as risk and strategy management, sustainability, mergers and acquisitions, and culture and talent development. They are also expected to put a strong emphasis on ESG (environmental social and governance) issues that are becoming crucial for investors and consumers alike.
The effectiveness of a board depends on its structure as well as the members‘ mix of knowledge, abilities and skills. This includes ensuring that they have a thorough understanding of the industries in which they operate and how those sectors operate. This is important for their ability to assist and challenge management and bring the business’s strategy to keep pace with changing investor and consumer expectations.