Corporate governance of the board is the job of a board of directors in advising and overseeing a company to ensure that the company operates legally and fairly, as well as in the best interests of its shareholders as well as stakeholders. The boards do this by being independent of the management and day-today operations of the business. The board ensures the business’s strategic plans are aligned with its legal obligations, financial obligations, and ethical obligations. It also identifies the most significant risks to the business and the procedures for managing them, delegating some of these tasks.
Many boards appoint a board chair, who’s job is to facilitate meetings and ensure good dynamic, as well as deciding the agenda. Other responsibilities of the chair include encouraging discussions and debate, as well as ensuring that important issues receive adequate attention. Board secretaries are also vital in organizing board collaborative tools transforming remote work meetings and in preparing the agenda.
In addition boards are increasingly involved in a range of topics, including risk and strategy management, sustainability, mergers and acquisitions, and culture and talent development. They are also expected to have keen attention to ESG (environmental social, societal and governance) aspects that have become essential to investors and consumers alike.
A board’s effectiveness depends on its structure and its members’ mix of knowledge skills and expertise. This includes ensuring that they have a solid understanding of the industries which they work and how these sectors operate. This is crucial for their ability to support and challenge management and bring the company’s approach in line with changing investor and consumer expectations.
