The board members of a company are selected individuals from different backgrounds with different skill sets who assist the corporation. This assistance comes in the form of writing a mission statement, establishing goals and organizing the company. Once a board has been selected, the members meet to vote on who should be the chairman or executive of the board.
Board members determine the company's mission and put it into a written statement for the employees and stakeholders to know what the company wants to accomplish. This mission statement is what governs the company and gives it a clear direction for what its purpose is going to be in the community. Most companies hang this mission statement in the front lobby for every visitor to read.
Board members determine and document the goals of each department of the company. Whether it be the production department or the human resources department, the board of directors sets guidelines for employees to meet their goals. The goals of the company change over the course of time, and the board members are the ones to make the adjustments.
After the board members have determined the mission and goals of the company, they must decide on how to set up its organization. They determine what personnel are needed, who heads the departments and how funds are budgeted. This organizational responsibility changes as the company grows and is adjusted over time. The board members make these adjustments at scheduled meetings throughout the year.
Board members are accountable for the success and failure of the company. They find funds to run the company, and they are accountable to the shareholders for profits and losses and to the public for the quality of services or goods provided. The board of directors decides which committees oversee specific areas of the company. The board of directors is also accountable to the shareholders when it comes to the budget of each department.