The success of a company is contingent on the board of directors and the stakeholders. The board is made up of individuals who are responsible for overseeing a company and making decisions in the best interests of shareholders and other stakeholders. The board is independent from management and focuses on a company’s major issues rather than the day-to-day activities.
A well-functioning board will significantly improve the performance and growth of a company. Board members are essential to giving direction and guidance for news the company’s leadership to drive the strategy and ensure that the company is on the right track to achieve its business goals. The board is also accountable for ensuring that the company adheres to all applicable laws and commercial aspects.
In the beginning stages of a business, stakeholders, shareholders, and directors are the same. As the company expands, however the roles could begin to diverge.
Stakeholders are directly involved in the decisions taken by the board as well as the management team. The decisions can impact their salaries as well as their job security and the work environment. Employees may also be concerned about whether or not the company is moving in a direction that is compatible with its culture, values and goals.
A board position offers the chance to create a wide network of professionals with similar abilities and interests. This can lead to future opportunities for professional development and add benefit to your personal life in a variety ways.