What is a key role of the board in corporate strategy?

The board's primary role in corporate strategy is to guide and evaluate the strategic direction of the organization. This involves overseeing the development and implementation of strategic plans, ensuring that they align with the company's mission and goals. The board assesses whether the strategies proposed by management are appropriate and effective in responding to market conditions, competitive landscapes, and stakeholder interests. It is also responsible for tracking the performance of the organization against strategic objectives and making necessary adjustments to the strategy when external or internal circumstances change.

By focusing on strategic guidance, the board ensures that the long-term vision for the organization is maintained, while also providing accountability and oversight of the executive team’s decisions regarding the execution of this strategy. This high-level involvement is crucial for fostering sustainable growth and navigating risks, which aligns with the fundamental responsibilities of board governance.