Board of Directors Responsibilities

Being part of a board of directors provides many benefits for both individuals and organizations. It’s a great way to gain experience in the process of making and managing decisions, build a networking and establish connections with philanthropists or community leaders and can help you advance your career.

All boards, whether they are non-profit or for-profit, must follow the rules which govern their operations. It is important that people who are thinking of joining a board understand these guidelines and what their responsibilities entail.

Board members should be involved and active They should attend regularly scheduled meetings and review documents such as financial statements and strategic reports and know how to ask questions. They must be able identify the organization’s long-term and short-term goals, as as its resources and conflicts of interest.

In the case of a publicly traded company, board members must be prepared to assume the lead and react swiftly to any crisis to perform their fiduciary responsibilities and uphold good governance standards. A board should also maintain a relationship with the community, be aware of the needs and expectations of the community and be involved in outreach activities.

The boards of non-profit organizations should concentrate on their stakeholders. These are usually the people that they serve, the companies who support them, and the elected officials and government agencies who oversee them. They are also accountable to donors who provide funds to their organizations. They are also responsible for implementing systems to prevent fraud and embezzlement and for establishing connections with other community groups.

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