Corporate governance of the board is the responsibility of the board in advising and supervising a business to ensure that the company operates legally and fairly, as well as in the interest of its shareholders and stakeholders. Boards perform this function by operating independently of the management of the company as well as daily operations. The board ensures that the strategy plans of the company are aligned with its financial obligations, legal obligations and ethical obligations. It also determines the biggest threats to the business, as well as the procedures to manage them, as well as delegating some of these tasks.
Many boards have appoint a chair, whose role is to facilitate meetings and ensure good energy, aswell in determining the agenda. Other duties of the chair include encouraging discussions and debate, as well as making sure that important issues get the attention they deserve. Board secretaries have a crucial role to play, organizing board meetings regularly and the preparation of agendas.
Boards are also becoming more involved in issues such as sustainability as well as mergers and acquisitions culture and talent development, and strategies and risk management. They are also expected have keen attention to ESG (environmental, social and governance) factors that have become crucial to consumers and investors alike.
To be efficient, a board needs to have the proper structure and have members who possess different abilities, knowledge and experience. It is important that the members of the board have a thorough understanding of the industries and the sectors IT strategies for enhancing customer experiences in which their companies operate. This is important for their ability to help and challenge management and bring the company’s approach in line with the changing needs of investors and consumer expectations.