Question

what are the responsibilities of the board of directors to stakeholders other than shareholders? Answer in 2-3 paragraphs

Answer 1

There are different responsibilities of the board of directors towards the different stakeholders. The first responsibility is the full compliance of the regulations and laws prescribed by the agencies as stakeholders. It is the responsibility of the directors to ensure that organization follow the guidelines and develop an adequate framework that facilitates the implementation of government norms. The second responsibility of the board of directors is to focus upon the community and contribute towards its development. As a part of these responsibilities, organization provides health care, education & training as well as hygiene & sanitation among the others. As a part of community development, the board of directors tries to give back to the society where they operate.
The next responsibility of the board of directors is towards the consumers who are served by the products and services offered by the organization. It involves value creation for them by following business ethics and consumer friendly practices. It not only develops local acceptability, but also it incr4eases the market reputation.
The board of directors, have responsibilities towards the suppliers, vendors as well as employees. The board makes polices to help suppliers and vendors to follow standard practices and comply with the necessary laws. While the board, also develops reward and reinforcement programs that motivate the employees and that brings increased level of engagement. So, employee turnover comes down. Hence, the board of directors, specifically prepares a plan of responsibilities, dedicated to each stakeholders and help organization to succeed.