Boards vary in size and structure, however, all boards should have a clear understanding of board responsibilities to ensure that members are accountable. The roles of a board typically include strategic leadership, ensuring financial stability, serving ambassadors and ensuring a good governance.
Depending on the company, some boards might be entrusted with additional duties, such as community partnerships and fundraising. However, the primary goal of a board is controlling and overseeing the nonprofit’s activities. The vast majority of nonprofit boards are volunteers who do not receive any compensation for their efforts.
While boards do not manage day-to-day operations, it makes crucial strategic decisions such as mergers and acquisitions, as well as the top-level financial decisions. It also makes sure the company is operating legally and in the best interests of shareholders and other stakeholders.
In addition to legal duties The board should also have a comprehensive conflict of interest policy and an understanding of organizational organizing documents (like articles, bylaws, and applications for exemption).
A strong board will communicate with the stakeholders to consider their concerns and advocate for changes in corporate behaviour. They will also help build the reputation of the company within the community. In the end, it is the actions of the board that define the ethics of the organization. They go beyond written ethical declarations, and reveal what the organization’s true beliefs are. This is more crucial than ever given recent controversies regarding corruption and bribery.
