Directors are accountable for overseeing the business’s governance and are obligated to act in the shareholders best interests. However, boards must also consider the needs and interests of all stakeholders — including employees, suppliers, customers, communities, investors, and others. This approach to business is known as stakeholder management and is one of the core principles that drive the ESG (environmental, social and governance) movement that is changing the ways companies are run around the world.

A board of directors is a group of people who collaborates to achieve the goals of an organization. A well-functioning board of directors can play several roles, including establishing strategies and providing guidance and support to management, and ensuring that the business is operating in accordance with its mission and vision.

A well-run board will seek out diverse perspectives to better understand the unique challenges the company faces. In addition, it should be able provide clear channels for communication between the board members and stakeholders. This is not just an essential aspect of corporate management, but it’s also crucial for building trust between stakeholders and the board. Stakeholders will be more likely to do business with a company that is transparent and open in its reporting, since it demonstrates that the board takes its responsibilities seriously. It will also boardroomnyc.com/role-of-the-board-in-strategic-planning/ help to build a better reputation for the business, and increase its long-term value.