The Board Corporate Governance Role

The role of a board’s corporate governance involves overseeing and advising the corporation to ensure it operates in a fair, legal manner and in its shareholders’ and stakeholders’ interest. The boards accomplish this by being separate from the day-to-day operations and management of the business. The board ensures the company’s strategy plans are aligned with its legal obligations, financial obligations, and ethical obligations. It also identifies the most significant risks that the company faces and the procedures to deal with these risks, while delegating a portion of these tasks.

Many boards designate a board chair, whose task is to facilitate meetings and ensure good energy, aswell as deciding the agenda. Other duties of the chair include stimulating discussions and debate, as well as making sure that important issues get adequate attention. Board secretaries are also vital in scheduling board meetings and making the agenda.

In addition boards are becoming more involved in a range of topics, including strategy and risk management, sustainability, mergers and acquisitions and culture and talent development. They are also expected to put a particular attention to the ESG (environmental, social and governance) aspects that are becoming important to both consumers and investors alike.

The effectiveness of a board’s work is dependent on its structure as well as the members who have a mix of knowledge, capabilities and expertise. It is important that the members of the board have a thorough understanding of the various industries and sectors in which the companies operate. This is IT strategies for enhancing customer experiences essential for their ability to challenge and help management, while bringing the company’s policies in line with evolving investor and consumer expectations.