Board corporate governance is the job of a board of directors in advising and supervising a business to ensure that it is operating legally, fairly and in the interests of its shareholders and stakeholders. Boards accomplish this by operating independent of management and daily operations. The board makes sure that the company’s strategic plans comply with its legal, ethical and financial obligations. It also determines the most significant risks facing the company and the processes for managing them, delegating responsibility for certain tasks to committees.
Many boards designate a board chair, whose role is to facilitate meetings and maintain an atmosphere of harmony, as well setting the agenda. The chair’s other responsibilities are to inspire discussions and debates and to make sure that important matters receive proper attention. Board secretaries are also essential in scheduling board meetings and making the agenda.
Boards are also increasingly involved in issues like sustainability as well as mergers and acquisitions, development of talent and culture, and strategy and risk management. They are also expected to put a particular attention to the ESG (environmental, social and governance) aspects that have become important to both consumers and investors alike.
To be efficient, a board needs to have the proper structure and include members with different capabilities, knowledge, and expertise. This means that they have an knowledge of the industries which they work and how they operate. This is crucial to their ability to help and challenge management and bring the business’s strategy in line with evolving investor and consumer expectations.