The board of directors should exercise control over the corporate governance practices of the company and play a key role in significant corporate events of the company. In this article, we will consider the principles of board members interacting with staff.
The board of directors: how does it work?
Corporate governance is a tool for determining the goals of the company and the means to achieve these goals, as well as ensuring effective control over the activities of the company by shareholders and other interested parties.
The main objectives of corporate governance are to create an effective system for ensuring the safety of funds provided by shareholders and their effective use, reducing risks that investors cannot assess and do not want to accept and the need to manage them in the long term on the part of investors inevitably entails a decrease in the investment attractiveness of the company and the value of its shares.
Another question of the corporate management is board members interacting with staff. The effective current interaction with shareholders, coordination of the company’s actions to protect the rights and interests of shareholders, support for the effective work of the board of directors are provided by the corporate secretary.
The board of directors is the main protective body of the company. He simultaneously guides and supports executives when they make decisions in the struggle for survival, and also ensures that the company creates the conditions to emerge from such a situation as a stronger and more sustainable organization. For a board of directors, discipline, sanity, composure, and measured judgment under the leadership of the chairman are important.
The board should provide internal, non-public support to the executive management – to remain independent, but at the same time be ready to intervene if the organization’s management cannot fully perform its functions or if the leaders directly seek assistance to the board of directors.
Internal control f is a process carried out by the board of directors, executive bodies, and employees of the сompany at all levels of management and aimed at obtaining reasonable assurance that the сompany ensures:
- the efficiency and effectiveness of its activities, including the achievement of financial and operational indicators, the safety of assets;
- reliability, completeness, and timeliness of accounting and other reporting;
- compliance with applicable laws and regulations, as well as internal regulations of the сompany.
Why should board members attend staff meetings?
Against the background of increasingly complex corporate environments, the concept of agility has become the pioneering paradigm of successful corporate management. Internal communication plays a key role in this. Ultimately, it creates the framework of meaning in which corporate events are interpreted.
It informs, motivates and integrates, and increasingly acts as an authority that offers employees orientation certainty. Instead of strongly formalized, hierarchically oriented top-down communication, heterarchical, network-oriented approaches are required because of the new challenges. Internal communication can intelligently accompany this networking through the implementation of dialogue processes.
Today, the use of board management software solutions for online collaboration is a standard. This format aims to present decisions that are relevant throughout the group in a comprehensible manner. This happens, for example, at a general assembly, the annual management conference, or trade fairs where individual projects and teams can present themselves. During online meetings executive board members answer questions from employees, take part in panel discussions or show their sides in video portraits.
The number of clicks and the number of participants at events demonstrate the success of the dialogue formats. The willingness to engage in dialogue is also growing, both on the part of the workforce and on the part of management.