Corporate Governance: The Role of the Board of Directors

Abstract

Great power brings great responsibility. Being part of the ’team’ participating in the management of the world’s largest corporations is a real challenge, both moral and material. The main objective of this paper is to clarify the role and importance of the board of directors in corporate governance. When the term ’board of directors’ is mentioned associations of beautifully dressed ladies and gentlemen who sit round the mahogany table and satisfi ed smile at each immediately arouse. But if you ask yourselves what their core role is and which tasks do they perform, what would be your answer? The growing complication of international relations inevitably raises the question: who are the key individuals responsible for the success / failure of the corporate world – the largest producer of the world’s wealth. It is reasonable to argue that responsibility lies within the members of boards of directors worldwide. A detailed analysis follows in addition of what is actually a board of directors, which is its role, duty and responsibility, how to organize and how to improve its effectiveness.