Three Obligations of a Board of Directors


The Boards are accountable for the oversight of the strategic direction of an organization, including its finances, risk management and opportunities management. They also manage succession to leadership and development of talent and corporate culture. They also create and maintain policies that prioritize the interests of shareholders and stakeholders.

No matter the type of organization or its purpose, all board members have to fulfill three specific obligations:

1. Establishing a foundation for values and goals.

Board directors need to be able to comprehend and support the core values of their organization, whether it’s compassion, respect, or kindness. In a similar vein, they must be able to exemplify the values they hold in their actions and interactions with staff and others. In the aftermath of the pandemics, many organizations have reaffirmed their values and made a commitment to their staff and community that they’ll adhere to those values each day going forward.

2. Offer a platform to help the company grow.

A board with diverse skills and experience is helpful, whether your goal is to expand your company into a new market or accelerate growth. A member with a background in sales can provide valuable insights and perspectives on the revenue-generating aspect of a company, while someone with fundraising experience may be able attract investment capital.

During the interview or recruitment process, it’s important to provide new board members with an in-depth orientation. This will assist them in understanding their responsibilities and roles, so they can assume the new role with confidence.