A Handbook for New Company Directors by Michael Moore

Author:Michael Moore
Language: eng
Format: epub
Publisher: Austin Macauley Publishers
Published: 2020-03-01T16:00:00+00:00

Conclusion:

Broadly, then, the Board of Directors of any company, large or small, has a duty to ensure that the organisation conforms with the legal requirements of the countries in which it operates

Corporate Responsibility

Corporate responsibility can be taken too lightly. For many boards, corporate responsibility extends to just the company shareholders and overlooks the broader picture. How are board’s decisions impacting on the broader scale? Under common law in the western world, board members have a responsibility:

To act honestly,

Exercise reasonable care and skill and

Understand their fiduciary duties whilst performing their necessary tasks

The board’s responsibility is one of stewardship and trusteeship on behalf of stakeholders and is ultimately accountable for all organisation matters. This responsibility includes:

Liaising with key stakeholders such as management of the company, staff and clients to inform them of achievements and acknowledging contributions towards determining strategic goals and direction,

Appointing Chief Executive Officer (CEO), providing guidance and advice as required and setting targets in order to evaluate the performance of and reward as appropriate, the CEO,

Putting into place appropriate corporate governance structures including standards of ethical behaviour promoting a culture of corporate and social responsibility,

Monitoring the CEO and the company’s compliance with the relevant federal, state and local legislation and bylaws and with the organisation’s own internal policies,

Monitoring the company’s strategic business plans and direction and their performance including the annual budget outcomes,

Setting the company’s strategic direction,

Reporting to all stakeholders at the Annual General Meeting (AGM),

Making sure a firm policy framework for governing the organisation is in effect and from which all operational policies and actions may be developed,

Having in place a Risk Management Plan to assessing all potential risks facing the organisation and monitoring its compliance.

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