Board of directors’ responsibilities
The roles of the board of directors include:
1) Establish vision, mission and values
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Determining the company’s vision and mission to guide and set the pace for its current operations and future development
Determining the values to be promoted throughout the company
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Determining and reviewing company goals
Determining company policies
2) Policy making
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Making Policies that define, focus and differentiate responsibilities among the board, the management, and the staff
Reviewing and approving well-written policies that lead to more efficient board functioning
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Developing a policy that covers the issue and leaving implementation of the policy to management
3) Set strategy and structure
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Review and evaluate present & future opportunities, threats and risks in the external environment, current and future strengths, weaknesses and risks relating to the company
Determine strategic options, select the most appropriate ones, and decide the means to implement and support them
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Determine the business strategies & plans that underpin the corporate strategy
Ensure that the company’s organizational structure & capability are appropriate for implementing the chosen strategies
4) Decision making
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Decision making involves making choices about the organization’s vision, mission, and strategies
Boards make decisions about issues that are strategic and significant
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As decision makers, boards can also delegate non-governance types of decisions to others
5) Delegate to management
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Delegate authority to management, and monitor & evaluate the implementation of policies, strategies and business plans
Determine monitoring criteria to be used by the board
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Ensure that internal controls are effective
Communicate with senior management