Boards differ in size and structure but all boards should have a clear definition of the duties of the board in order to ensure that the members are accountable. Commonly, the responsibilities of board members include strategic leadership, managing for financial stability, acting as ambassadors, and maintaining healthy governance.
Depending on the organization, certain boards could be entrusted with additional duties, such as fundraising and community partnerships. The primary goal of the board should be to govern and oversee the non-profit organization’s activities. The majority of non-profit boards are made up of volunteers that do not receive payment for their work.
While a board does not oversee day-to-day operations, it makes crucial strategic decisions, such as mergers and acquisitions and high-level finances. It also makes sure the company operates legally and in the best interest of shareholders and other stakeholders.
In addition to legal obligations the board should also have a strong conflict of interests policy and a good understanding of the documents that organize the organization (like articles, bylaws, and applications for exemption).
A well-run board will work with stakeholders to listen to their concerns and pursue necessary changes in corporate behaviour. They can also help to establish the reputation of the company in the community. In the end, it is the actions of the board that define the ethical standards of the company. These are in addition to any written ethical guidelines and reveal what the company actually believes. This is more important than ever, in light of the recent controversy involving bribery.
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