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The role as a board member is a a considerable time commitment. Meetings can be lengthy and include looking over financial documents, addressing legal issues, and discussing strategy and the goals of an organization.
The role of a board member is to put the corporate interests before their own interests, in order to represent the company and accomplish its objectives efficiently. Board members should also act in good faith, and not use their position to gain personal benefits. This principle is typically reflected in the company’s rules for governance.
Another aspect that is exclusive to non-profit organizations is attention to community relations. This could mean working with business, residents, and elected officials to develop new programs or initiatives. This type of engagement will also assist a board to be more sensitive to those it serves.
Board members are expected to follow the corporate governance guidelines. This is usually more important than their ethical declarations. Board members are required to conduct their business in accordance with the rules of the corporation and are required to study every aspect of a matter before they vote.
To ensure an even board, it is vital that a board of directors is comprised of both inside and outside directors. A combination of both can provide a range of perspectives and experience to a business.