The Board of Directors an Essential Part

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A board of directors is essential to the success of a company. Therefore, without a productive board of directors, a company can often become directionless, and without proper structure. Often, employees of a company may feel uneasy and unsecure in their positions if a board lacks the essential leadership and direction that is needed in everyday business scenarios. Given these points, a well-developed board of directors is crucial for a company’s ability to maneuver through a complex business environment; therefore, in order to overcome a competitive marketplace, a board should have a clear mission, structure, and delegated functions to be prosperous as a for profit or non-profit. For a start, what is exactly is a board of directors? According to the Harvard Business School, “Boards of directors are the entities charged with ensuring the long-term viability and success of corporations” (The Business Summit). Consequently, it is important for a board of directors to come up with a mission statement to ensure that a proper vision is being followed which leads to the long-term viability of a company. The creation of such a mission statement leads overall to better leadership, values, and direction for members of the board and company during times of adversity. This allows for strategic goals which include growth, increasing market share, improving profitability, boosting return on investment, fostering both quantity and quality of outputs, increasing productivity, improving customer service, and contributing to society (131). Conversely, if a board does not have a well thought out mission statement. A company may find themselves going in directions not previously intended. This can result in confusion that results in an organiza... ... middle of paper ... ...School. Harvard University, May 2008. Web. 05 May 2014. "Building Your Nonprofit's Board | Nolo.com." Nolo.com. NOLO, n.d. Web. 07 May 2014. "Members Home." Toastmasters International. N.p., n.d. Web. 07 May 2014. Wal Mart. "Walmart Corporate - Walmart Corporate: Our Story." Walmart Corporate - Walmart Corporate: Our Story. Wal Mart, n.d. Web. 06 May 2014. Ingram, David. "What Are the Functions of the Board of Directors in a Cooperative?" CHRON. Demand Media, n.d. Web. 07 May 2014. New York State Society of CPA's. "The Sarbanes-Oxley Act of 2002." The Sarbanes-Oxley Act of 2002. New York State Society of CPA's, n.d. Web. 07 May 2014. "Steve Jobs Biography." Bio.com. A&E Networks Television, n.d. Web. 07 May 2014. Bateman, Thomas S., and Scott Snell. Management: Leading and Collaborating in a Competitive World. 10th ed. New York: McGraw-Hill Irwin, 2013. Print
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