Below are some of the functions performed by a company’s board of directors:
- Institution of a code of conduct
One of the functions of the Board of Directors is to put in place a Code of Conduct, to which, board members themselves, senior managers and other employees must adhere. In order to be fair to every member of the company, the Code of Conduct must be widely circulated within the company so that everybody becomes aware of, especially, the policies and procedures to follow under any prescribed circumstance.
- Grievance management
Another function of the Board of Directors is to establish a grievance management system. This way, grievances can be easily identified and quickly addressed. In every company, there are bound to be misunderstandings among workers and between workers and Management, especially concerning company policies and procedures. There must be laid procedures for bringing these grievances to the attention of management and for them to be addresses.
- Vision and Mission Statement
It is the function of the Board of Directors to prepare a vision and mission statement for the company. The intention is to provide a clear direction that fits into the corporate strategy of the company. Every action or inaction of the company must have these vision and mission statement in mind.
- Internal Control
The Board functions to put internal mechanisms in place to control the activities of the workers of the company, at all levels. This is rightly so because the Board only gives broad directives, they do not unnecessarily interfere in the day-to-day running of the company. This being so, there must be ways of controlling what exactly happens in the day-to-day activities of the company. This is where the internal control mechanisms come into play.
- Annual Evaluation
It is also the duty of the Board of Directors to establish mechanisms by which their own performance can be evaluated annually. In other words, since the Board seem to be above everybody within the company and it may be almost impossible to question their actions, there must be a way of holding them accountable for the decisions they take. It is, therefore mandated to institute ways by which the board can be evaluated.
- Determination of company priorities
It is the duty of the Board to determine what is important or otherwise to the company. In doing this, the board takes into consideration, the current circumstance of the company and any recommendations of the any technical committee established for that purpose.