The Importance of Digital Literacy for Board Directors
Board Directors are responsible for guiding the strategy, direction and performance of a business. They are also tasked with representing the interests of shareholders and making sure management is delivering value. To accomplish this, boards must decide what tasks they are responsible for and which tasks can be delegated legitimately to management.
They also have a say in important strategic issues such as mergers and purchases, stock splits and share repurchase programs, as well as dividend declarations. They are also accountable for hiring and firing CEOs, as well as determining the compensation of senior executives. To do this, they have to be prepared to ask difficult questions and engage in a constructive debate. They are also accountable for the company’s financial health and compliance with ethical and legal guidelines.
A well-informed board member can offer insights and help the board become more efficient. They can also help create an environment which encourages collaboration and cooperation in the boardroom. They are well-versed in the field they work in, and have a depth of expertise that allows more helpful hints them to provide an unbiased opinion.
As the world becomes more complex and complex, our corporate responsibilities expand. The COVID-19 pandemic has taught us that our businesses must increase their speed and agility to keep pace. As a result, many boards have broadened their scope of responsibility and are now focusing on areas such as developing talent and culture, resilience, sustainability, risk management, and technology and digitization. To accomplish this board members must be proficient in digital technology and ready for the higher level of involvement required to develop forward-thinking agendas.