http://scoreboardroom.com/steps-to-create-a-nonprofit-social-media-policy/
Effective corporate governance requires that everyone involved has clearly defined roles and responsibility. It also assists in creating positive workplace culture that is tolerant of differences and promotes fairness and impartiality. These frameworks are applicable to an array of organizations that range from large corporations to professional associations and families.
The board is responsible for establishing and approving corporate plans that create long-term sustainable value including selecting the CEO and supervising management in the operation of the business and distributing capital for investment and assessing and managing risk; and setting the “tone at top” for ethical behavior. The board typically comprises a mix of insiders–major shareholders, founders and executives. There are also independent directors who have experience managing or directing other large corporations. Independent directors are viewed as beneficial in the governance process because they do not have the same ties to insiders that can create conflicts of conflict of interests.
The composition of a board is vital since board members are faced with complex and often technical issues that require multiple perspectives around the table. Governance experts recommend that a board comprised of at least a majority independent directors. Diversity and tenure are also essential to ensure that the board can effectively function, especially when discussions are lengthy and laden with strong opinions. Board members who are new will bring fresh perspectives to the table, while those with longer tenure can offer continuity and know-how of the institution.
Additionally, the board is accountable for reviewing, understanding, and supervising the annual operating plans of management as well as budgets. Additionally, the board, through its nominating/corporate governance committee, must be conducting regular shareholder outreach in order to discover and comprehend the opinions of shareholders who are major and communicate regularly with them on important issues that affect the company.
