Write one paragraph ONLY! Responding to this discussion.
Do this by: Communicating a central idea or point that builds on the post of a peer. Asking questions, offering thoughtful ideas, or Sharing personal connections that relates the posts.
The board of directors is a group of elected individuals whose sole responsibility is to act in the owners’ best interests by formally monitoring and controlling the firm’s top- level managers. Board’s are generally responsible for long term success of the organizations. However, the extent and manner of engagement in strategy currently vary widely from board to board. At the same time, corporate strategy is also becoming more important hence the need for board’s to be more involved in the selection of strategies.
Board of directors tend to focus on the long term while management tends to focus on short term plans which is understandable. Board’s increased involvement will complement the management. For organizations to remain relevant over time, it must also pay attention to the future. Since directors sit outside day-to-day operations, they are in an ideal position to counterbalance management’s tendencies and focus on the long run, enabling organization to act strategically on multiple timescales.
The evidence I would offer to support their position is based on Chief Executives for Corporate Purposes (CECP). According to CECP, CEOs acknowledge their tendencies of focusing more on the short-term plans than long term plans. For an organization to remain vital in the market it needs to concentrate on both short and long term hence the need for board’s increased involvement