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10 Basic Responsibilities of Board Members

As organizations grow and evolve, and the world they operate in grows and changes, the board is responsible for reviewing the changes and making adjustments that are in the best interests of the organization.

Regardless of an organization’s health, type, or status, boards have the following 10 basic responsibilities:

Establish the organization’s vision, mission, and purpose.
The organization’s vision is the founding members’ view of what they want the organization to be and what purpose it serves. The board is also responsible for writing a mission statement, which is what the organization intends to do to fulfill the vision. The board should consider the vision while doing its strategic planning to ensure that their planning continually aligns with the vision. Everyone who is directly or indirectly connected with the organization should be aware of the vision and the board plays a large role in that.

Hire, monitor, and evaluate the chief executive.
Boards have the task of identifying, recruiting, and appointing the most qualified individual they can find to serve as the chief executive. In addition, the board writes the chief executive’s job description. Before conducting an executive search, the board needs to consider the organization’s needs, strengths, and weaknesses in considering the skills and abilities that a leader can bring to help the organization move forward. The new leader should be clear on what the board expects for his or her first year of service.

Provide proper financial oversight.
Board directors work together to establish a budget and ensure that there are proper internal controls in place for incoming and outgoing funds. Even small companies and startups should have an audit committee and do an internal audit every year.

Ensure the organization has adequate resources.
Every organization needs resources and it’s the board’s responsibility to ensure that every part of the organization has adequate resources for the organization to meet its obligations and fulfill its mission. Boards need to carefully consider the best way to allocate money and other resources for the benefit of the organization and its stakeholders. 

Create a strategic plan and ensure that it’s followed.
Boards set goals and objectives according to a strategic plan so that they have a guide for how to meet the organization’s goals. A SWOT (strengths, weaknesses, opportunities, and threats) analysis is usually part of the strategic planning process. 

Ensure legal compliance and ethical integrity.
All organizations have to abide by rules and laws. Board directors have a fiduciary duty to ensure that their organization is in full compliance with its legal obligations. Board directors should behave in a truthful, ethical manner and thus, set an example for others. Legal compliance also entails setting up policies to establish acceptable behavior such as the Whistleblower policy, Code of Conduct, and Code of Ethics.

Manage resources responsibly.
Board directors are accountable to many individuals and groups. For this reason, boards need to ensure that they’re protecting the organization’s assets and managing them responsibly. Board directors have a legal duty to be transparent and accountable for their actions and inactions. 

Recruit and orient new board members and assess board performance.
The board is responsible for recruiting, nominating and appointing new board directors that have the right mix of skills and abilities to help the organizations fulfill and advance its mission. Boards need to be as objective as they can be about their own performances. Most boards do a self-evaluation every year with the goal of identifying their weaknesses and forming a plan to improve the board’s performance.

Enhance the organization’s public sta