Boards are instrumental in forming strategic decisions and ensure the oversight of the business. They can provide the expertise a business owner may be lacking, or to help take the company to the next level of growth and achievement.
The most successful companies have boards that are strong, diverse and able to meet the challenges of today. These boards are the “voices” of shareholders and ensure the company is in line with its long-term goals. They are able to identify risks and ensure that the company is meeting the regulatory requirements, as well as future legislative or societal expectations.
Boards are required to consider the social impact their company’s operations have on society as it grows more digital. These responsibilities include ensuring the business is morally accountable and protecting the rights its stakeholders. These responsibilities are resource becoming more complex, and require the ability to respond quickly to changes.
Modern boards are actively involved in financial strategies, sustainability as well as leadership development, succession planning and culture development, as well as branding management. These broad activities point to the need for more forward-looking governance. Boards are also expected to overcome their resistance to taking positions on issues and engage in constructive disagreement with management. This is often required in the face of growing environmental and social pressures. As a result, the landscape of corporate Boards has radically changed. It is important that business owners are aware of these changes, and ensure that their boards be able to meet the demands of the current environment.
