The Importance of Digital Literacy for Board Directors

Board Directors are accountable for overseeing the direction, strategy and performance of a company. They are also tasked with representing the interests of shareholders and making sure management is delivering value. In order to do this, boards need to decide what tasks fall under their control and which ones can be delegated by senior management.

They also make a decision on crucial strategic issues, such as mergers and acquisitions and stock splits, share repurchase programs, and declaring dividends. In addition, they are charged with the task of hiring and firing the CEO and determining the compensation for the top executives. In order to accomplish this, they must be ready to ask tough questions and engage in constructive debate. Lastly, they are responsible for overseeing the company’s finances and compliance with regulations and ethical standards.

A good board member will offer insights and help the board be more efficient. They can also foster a culture which encourages collaboration and cooperation in the boardroom. They are knowledgeable of the industry they work in and possess the depth of knowledge that allows them to offer critical advice.

As the world gets more complicated, our corporate responsibilities also grow. The COVID-19 epidemic has taught us that we must increase our speed and agility in order to keep pace with. As a result many boards have widened their duties and are now focusing on topics such as the development of talent and culture, sustainability, risk and resilience management, and technology and digitization. To do this effectively board members must be digitally proficient, and prepared to engage at a higher level to deliver forward-looking goals.

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