Boards vary in size and structure however, all boards should have a clear understanding of their responsibilities and make sure that members are accountable. Typically, the responsibilities of a board include strategic leadership, managing for financial stability, serving as ambassadors, and ensuring good governance.

Based on the type of organization, some boards may have additional responsibilities such as fundraising and community partnerships. The primary focus of the board should be to govern and oversee the non-profit organization’s activities. That’s why the majority of board members serve as volunteers and are not paid for their work.

A board is not responsible for the day-to-day operations however, it is responsible for making important strategic decisions like mergers and acquisitions or other high-level financial decisions. It also makes sure the company is operating legally and in the best interest of shareholders and other stakeholders.

A board must also have a robust policy regarding conflicts of interest and an in-depth understanding of the organization’s organizing documents (such articles, bylaws, and exemption applications).

A strong board will communicate with stakeholders to understand their concerns and pursue necessary changes in corporate behaviour. They can also help build the reputation of the company within the community. In the end, it’s the actions of the board that establish the company’s ethical standards. They override written ethical statements and reveal what the organization truly believes. It is more important now than ever, in light of the recent controversy over the use of bribery.

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