Question

From the mini case, recommend two (2) desired characteristics of a board of directors. Provide support for your response, citing the ways in which these characteristics usually lead to effective corporate governance.

Answer 1

Board of directors are an integral part of an organisation. Following characteristics in a director are essential for effective corporate governance -

Excellent and clear communication:

The importance of clear communication cannot be stressed enough and forms an integral part of an effective leader. The director should convey his thoughts, ideas, needs, wants to his employees clearly. If the communication is not clear, it will lead to misunderstandings and ineffectiveness in management

In sync with organisation's mission/vision/values:

It is very important for a director to have thorough knowledge and excellent understanding of the mission and vision of the company. The director can keep in mind these statements while planning governance so that the goals set by the director and the decisions taken are in line with the company's values.