Whether it’s setting strategies, overseeing management and finances, fostering relationships with communities, or establishing ethical standards and values, the responsibilities of the management board are many and diverse. Boards elect a CEO, and monitor their progress. they set the direction of an organization by establishing goals, vision and strategic goals; build community relations and establish management practices to ensure quality and compliance, governance and quality; and take action to address any organizational changes that arise due to changes in circumstances or regulatory pressures.
As fiduciaries, boards are legally responsible for representing owners/shareholders as well as investors. They decide on policies for dividends and payouts, hire/fire and compensate upper management and set corporate rules. They also ensure a constant communication with management, and also represent the organization. The chair of the Board, who is often elected by the board members is the leader of the whole board. They are often non-executive directors (NEDs) who act as the intermediary between the chief executive officer and the board.
The primary role of the board is to act as a steward for the organization. However there are some boards that cross the line into management, and attempt to handle things themselves rather than simply making sure that activities are keeping with the organization’s fidelity to its mission. Boards check my source need to be able to balance their oversight responsibilities with their responsibility to ensure organizational success. The most effective method to do this is through the use of committees. For example, audit, compensation, and nominations committees have become popular ways of examining complicated issues. These committees present their findings to the entire board.