Three Obligations of a Board of Directors

Boards are responsible for the strategic oversight of an organization, which includes its finances, risk management and opportunities management. They also direct succession for leadership and talent development as well as corporate culture. They also establish and maintain policies that focus on the needs of shareholders and other stakeholders.

All board members, regardless of the type or purpose of their company They must fulfill three distinct obligations:

1. Establishing a solid foundation of values and goals.

Board directors should be able comprehend and promote the core value of their organization. This could be compassion or respect. In the same vein they should be able demonstrate those values through their actions and interactions with staff and others. In the wake of the pandemic, many companies have reaffirmed their values and pledged to their staff and to the community that they’ll live by those principles every day moving forward.

2. Help to create a platform for the business expand.

Whether the goal is to expand into new markets or accelerate growth, a well-rounded board with a variety of expertise will be beneficial. A member with experience in sales can offer valuable insight and perspectives on the revenue-generating aspect of a company, while someone with boardable features and comparison experience in fundraising might be able attract investment capital.

During the interview and hiring process, it’s important to provide new board members with an in-depth orientation. This will aid them in understanding their responsibilities and roles, so they can take on the new role with confidence.