Anyone assuming the chairman of the board role takes on a tremendous corporate governance fiduciary responsibility. Frequently they take on this role out of a commitment to serve and a desire to see the organization succeed. It is within this spirit that the chairman of the board recognizes they must follow good corporate governance on behalf of all stakeholders, and set out on a path to identify and implement best practices for the board of directors. This path is called the Board of Directors Scope.
Corporate governance is about setting policies to give overall direction to the company to ensure it has adequate oversight and resources to fulfill its intended purpose. Good corporate governance sets clear expectations and measurements for the organization, and holds the management team accountable to those outcomes. At first glance, this undertaking appears overwhelming to a newly-minted chairman of the board, but fortunately can be distilled down into a manageable process. It begins with the underlying key concepts, which form the foundation of any best-in-class corporate governance program:
In conclusion, we have covered the board of director scope. It is intended to provide the chairman of the board direction on the most important corporate governance practices to put in place.
Mark Richards is the retired Chairman and CEO of Appvion, Inc. headquartered in Appleton, WI.