The Corporate Governance Role

Boards are accountable for establishing the company’s strategy, overseeing management and making sure that the best interests of shareholders as well as stakeholders are protected. They are also accountable for addressing conflict between the shareholders and management in the event of disputes concerning compensation or disagreements over the direction of the company.

Boards are often required to assist and guide the management team, giving them guidelines and resources for things like the approval of marketing data in business development on the website campaigns or allocating more resources. They also have to be involved in determining the company’s risk appetite and implementing a robust risk management plan. They also have to ensure that internal controls are operating effectively.

Another aspect that requires board supervision is to ensure that all legal requirements are met and that the company maintains good standing with regulators. This is a complex task that requires coordination with other committees, including audit and compliance.

In the end, boards should aid in the development of an enduring culture by setting a good example for all employees. This is especially crucial in this day and age, when corporate conduct is scrutinized more than ever.