Board of directors

Welcome to this lecture on the Board of Directors. The board is the apex body responsible for overseeing an organization's success. Boards play a crucial role in corporate governance, shaping policy and strategy, and serving shareholders’ and stakeholders’ interests. In the United Kingdom, directors are legally accountable for company conduct and must ensure accurate and transparent accounts. In the United States, laws like Sarbanes-Oxley strengthened board responsibilities after corporate scandals. Across jurisdictions, the board’s main tasks include approving strategy, appointing and supervising senior management, and ensuring strong internal controls. Effective boards are rarely the work of one individual but the product of strong collective dynamics. Board composition is critical: diverse backgrounds and expertise foster innovation and help boards stay resilient in volatile, uncertain, complex, and ambiguous—VUCA—environments. However, research highlights issues such as unused skills or resistance to new perspectives. Collaboration is vital, but constructive challenge is also necessary. Directors must balance cohesion with healthy debate, preventing stagnation and groupthink. Boards benefit from regular reviews of their composition and processes, ensuring the inclusion of change agents who can challenge the status quo and drive renewal. The Board of Directors is entrusted with ethical leadership and strategic oversight, going beyond compliance to critically examine management assumptions, scrutinize strategies, and assess risks—especially