Boards can vary in size and composition, however they must all have a clear set of responsibilities for the board to ensure that members are held accountable. Typically, the responsibilities of a board include strategic leadership, ensuring financial stability, acting as ambassadors, and ensuring good governance.
Depending on the organization, boards may also have additional responsibilities, such as fundraising or community partnerships. The main focus of the board should be to govern and oversee the non-profit’s activities. Because of this, the vast majority of board members are volunteers you could look here and receive no compensation for their services.
While a board doesn’t manage day-to-day operations, it does make important strategic decisions like mergers and acquisitions as well as high-level financial decisions. It also ensures that the company operates in a legal manner and in the best interest of shareholders and other stakeholders.
A board should also have a clear policy regarding conflicts of interest and an in-depth understanding of the organization’s organizing documents (such articles, bylaws, and exemption applications).
A solid board will work with stakeholders in order to understand their concerns, pursue necessary changes in corporate behavior and assist in building the organization’s reputation within the community. In the end, it is the actions of the board that define the company’s ethical standards. These override any written ethical standards and reflect what the business truly believes. It is more essential more than ever, considering the recent controversy surrounding corruption.