Directors are responsible for overseeing the management of a business and are held to a fiduciary duty to act in the shareholders best interests. However, boards must also consider the needs and interests of all stakeholders – including employees, customers, suppliers as well as communities, investors and many more. This method of business is known as stakeholder management and is one of the key concepts behind the ESG (environmental, social and governance) movement that is revolutionizing the management of companies across the globe.
A board of directors could perform a variety functions within the company but at its core it’s a group that works together to accomplish its goals. Be it setting guidelines and support to management or ensuring that the business is operating in accordance with its vision and mission A well-functioning board is vital to the DocSend success of a company.
When it comes to stakeholder engagement, a great board should seek out diverse perspectives to understand the particular challenges and opportunities the company is facing. In addition, it should be able provide clear channels for communication between the board and stakeholders. This isn’t just an essential aspect of corporate management, but it is vital to build trust between stakeholders and the board. Stakeholders are more likely to work with an organization that is transparent and open regarding its reports, as it demonstrates that the board takes its responsibilities seriously. Additionally, it could aid in building a better image for the company and increase long-term valuation.