Boards vary in size and structure but all boards should have a clear definition of the duties of the board in order to make sure that members are accountable. Typically, board responsibilities include strategic leadership, managing for financial stability, serving as ambassadors, and ensuring good governance.
Based on the type of company, some boards might have additional responsibilities such as fundraising and community partnerships. The primary goal of the board is to manage and oversee the non-profit organization’s activities. The vast majority of nonprofit boards are volunteer who are not paid compensation for their efforts.
A board is not responsible for managing day-to-day business, but it does make important strategic decisions like mergers and acquisitions as well as high-level financial decisions. It is also responsible for ensuring that the company operates in a legal manner and in the best interests of shareholders and other stakeholders.
A board must also have a robust policy regarding conflicts of interest and an in-depth knowledge of the organization’s organizational documents (such articles, bylaws and exemption applications).
A strong board will communicate with stakeholders to listen to their concerns and advocate for changes in corporate behaviour. They also aid in build the reputation of the company in the community. In the end, it is the actions of the board that define the ethics of the organization. They are more important than written ethical guidelines and reveal what the organization’s beliefs truly are. This is more important than ever before, especially in light of the recent controversy over the use of bribery.
