The Board Corporate Governance Role

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Corporate governance of the board is the responsibility of a board of directors in advising and supervising a company to ensure that the company operates legally and in the fair interests of its shareholders and stakeholders. Boards do this by operating independent of management and daily operations. The board ensures that the company’s strategic plans are in line with its legal, ethical and financial obligations. It also determines the major risks facing the company and the procedures for managing these risks, delegating the responsibility for some of these tasks to committees.

Many boards appoint a board chair, who’s job is to facilitate meetings and ensure good dynamic, as well in determining the agenda. Other duties of the chair include generating discussion and debate, and ensuring that important issues receive adequate attention. Board secretaries are also crucial in scheduling board meetings and preparing the agenda.

In addition, boards are becoming increasingly involved in a range of issues, including strategy and risk management, sustainability, potential mergers and acquisitions and culture and talent development. They are also expected have a strong emphasis on ESG (environmental social and governance) issues that are becoming important for both consumers and investors alike.

To be effective, a board must have the proper structure and include members with different capabilities, knowledge, and expertise. It is crucial that members of the board have a deep knowledge of the industry and sectors in which their companies operate. This is important for their ability to assist and challenge management and bring the company’s approach in line with evolving investor and consumer expectations.