The Importance of Digital Literacy for Board Directors

Board directors are responsible for the direction, strategy, and performance of an organisation. They are also accountable for representing shareholders’ interests and ensure that management produces value. In order to do this, boards must determine what tasks they are responsible for and what can be delegated legitimately to management.

They also weigh in on crucial strategic issues, such as mergers and acquisitions such as stock splits, stock programs for repurchase and declaring dividends. They also have the responsibility of hiring and firing CEOs, as well as setting the amount of compensation senior executives receive. In order to accomplish this, they have to be prepared to ask tough questions and participate in constructive discussions. They are also accountable for the financial health of the company and compliance with ethical and legal standards.

A good board member can give insight and help the board be more efficient. They can also foster an environment which encourages collaboration and cooperation within the boardroom. They are aware of the industry they are in and have a wealth of experience that allows them to provide an unbiased opinion.

As the world becomes increasingly complicated and complex, our corporate responsibilities expand. The COVID-19 virus taught us that our companies must increase their speed and agility to keep pace. Many boards have expanded the responsibility of their boards to include topics such as developing talent and culture. They also concentrate on managing resilience and risk as well as technology and digitalization. To do this effectively board members must be digitally literate and able to work at higher levels to achieve forward-looking goals.

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