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Boards' involvement in firm strategy
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The role of the board of directors in firm strategy §has been the subject of debate for a long time. Many §researches have been made from different §perspectives particularly on this issue. §§Board of directors is elected by the shareholders of §a corporation and assigned to carry out certain §tasks on behalf of the shareholders to govern the §corporation. Some of the main tasks of the boards §are appointing the Chief Executive Officer, issuing §additional shares and declaring the dividends. Board §of directors is responsible for defining the §strategy for the firm and make sure that it is §implemented by the management.§§The research concludes that the boards can be §effectively involved in firm strategy if the board §directors have relevant knowledge and skills to the §firm and have experience from the industry they are §in. The board and CEO should have close relations §and have frequent meetings. Board diversity is also §important because diverse boards will come up with §different perspectives, healthy debates and good §information for decision making.
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