The Role of the Board in Corporate Purpose and Strategy

The study investigates the active involvement of the board in the purpose and strategy of the corporation to cope with a complex and uncertain environment.

Format: Paperback / softback
Length: 75 pages
Publication date: 15 September 2022
Publisher: Cambridge University Press

This Element is an attempt to contribute to the extant literature on boards and corporate governance by exploring in detail the active involvement of the board in the purpose and strategy of the corporation in order to cope with a complex and uncertain environment.

The board's active involvement in the purpose and strategy of the corporation is crucial in navigating a complex and uncertain environment. In today's dynamic business landscape, organizations must adapt quickly to changing market conditions, technological advancements, and regulatory changes. The board plays a vital role in shaping the direction and direction of the corporation by setting its vision, mission, and values.

The board's role in setting the purpose and strategy of the corporation is multi-faceted. It involves identifying the organization's long-term goals and objectives, developing a strategic plan to achieve them, and monitoring and evaluating the organization's performance against these goals. The board also plays a critical role in ensuring that the corporation has the necessary resources, capabilities, and infrastructure to support its strategic plan.

One of the key ways in which the board contributes to the purpose and strategy of the corporation is by setting the tone and culture of the organization. The board sets the standards for behavior and conduct within the organization, and ensures that employees are aligned with the organization's values and mission. This helps to create a positive and productive work environment, which in turn contributes to the organization's success.

In addition to setting the purpose and strategy of the corporation, the board also plays a critical role in monitoring and evaluating the organization's performance. The board reviews financial statements, performance metrics, and other relevant data to assess the organization's health and identify areas for improvement. This information is then used to make informed decisions about the organization's future direction and strategy.

The board's active involvement in the purpose and strategy of the corporation is not without its challenges. One of the biggest challenges is ensuring that the board is diverse and inclusive. A diverse board can bring a range of perspectives and expertise to the table, which can help to improve decision-making and ensure that the organization is responsive to the needs of its stakeholders.

Another challenge is ensuring that the board is effective in its role. This involves setting clear expectations for the board, providing them with the necessary resources and support, and holding them accountable for their performance. The board also needs to be able to communicate effectively with other stakeholders, such as employees, shareholders, and the broader community.

In conclusion, the board's active involvement in the purpose and strategy of the corporation is crucial in navigating a complex and uncertain environment. By setting the vision, mission, and values of the organization, developing a strategic plan, monitoring and evaluating performance, and setting the tone and culture of the organization, the board can help to ensure that the organization is successful and responsive to the needs of its stakeholders. However, ensuring that the board is diverse and inclusive, effective in its role, and able to communicate effectively with other stakeholders is not without its challenges.

Weight: 126g
Dimension: 151 x 227 x 12 (mm)
ISBN-13: 9781009221085