Responsibilities of a Board of Directors
The role as a board member is a a considerable time commitment. Meetings can be lengthy and include review of financial documents, addressing legal issues, and deciding on the goals of the organisation.
A board member’s responsibility is to put the needs of the corporation first over their own, in order to represent the company and fulfill its mission effectively. Board members are also required to act with integrity and not utilize their position for private profit. This principle is often found in the corporate governance rules.
The importance of community relations is an essential responsibility for non-profit organizations. This may mean working with citizens, businesses as well as elected officials in order to develop new programs or initiatives. This type of collaboration can help a board be more aware of the needs and expectations of those it serves.
Board members are required to adhere to the corporate governance guidelines. This is often more important than their ethical statements. It is essential that board members conduct their activities in compliance with the rules of the company and are required to conduct a thorough study of an issue before voting on it.
It is important that the board is made up of both outsiders and insiders to ensure balance. A mixture of both brings a wide range of experiences and perspectives to the table that can benefit a business or an organization.
