Once shrouded in mystery, and primarily overseeing financial strategy, the role of a company’s Board of Directors has dramatically shifted, with members expected to be proactive leaders in a complex and ever-changing landscape.
The past decade has witnessed a seismic shift in board responsibilities. Today, directors are grappling with a broader spectrum of challenges that span far beyond traditional risk management. These challenges range from respecting human rights and talent acquisition to sustainable development, environmental justice, and corporate culture. This expanded mandate necessitates a deeper understanding of the company’s operations, its impact on and obligation to society, and the evolving expectations of stakeholders.
A recent conversation with Helle Bank-Jorgensen, founder of Competent Boards, shed light on the contemporary challenges facing board members and the qualities required to navigate them successfully. Helle founded Competent Boards in 2019, in the midst of the global COVID pandemic, and in five short years has become the “go-to” resource for peer-to-peer education of Board members and c-suite executives.
The Modern Board Member: A Multifaceted Role
Helle emphasizes the growing complexity of the board’s role, particularly in areas such as diversity, equity, inclusion, biodiversity, and the intricate web of sustainability issues. These topics, once peripheral, now demand center stage due to increased regulatory scrutiny and heightened stakeholder expectations.
“To enable board directors to make informed decisions in a modern world, it is essential for them to be well-versed in a variety of critical topic areas,” says Bank Jorgensen, adding “there are a lot of things coming at them – geopolitics, cyber-attacks, AI considerations, human capital and climate change risk and opportunities, to name a few. Those directors come to Competent Boards to get informed, learn about best practices in governance and new ways of thinking, and share knowledge with global peers.”
Balancing short-term business imperatives with long-term sustainability goals is a delicate art. Helle suggests that directors adopt a child-like curiosity, customer focus and people-centric mindset to ensure decisions align with both ethical and financial considerations. This approach fosters a culture where innovation and sustainable value creation take precedence over short-term gains.
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