What is the primary role of a board of directors?

The primary role of a board of directors is to oversee management and strategic decisions. This is fundamental for ensuring that the organization follows its mission and tries to achieve its long-term objectives. The board provides guidance and supports the executive team in making critical business decisions, while also critically assessing the performance of management.

The board's oversight includes ensuring ethical governance, compliance with laws, and alignment with the organization’s strategic vision. It represents the shareholders' interests in guiding the direction of the company while also balancing various stakeholder perspectives. This vital function of oversight helps maintain accountability within the organization, providing checks and balances for the management team. By focusing on strategic decisions, the board plays an essential role in setting the organization's overall goals and policies, making sure that resources are effectively allocated to achieve those objectives.