Board Of Directors : Structure, Mission, And Functions

1455 Words6 Pages
Board of Directors: Structure, Mission, and Functions
For Profit and Non-Profit Organizations

I chose to write my paper about the Board of Directors. It’s a vital component in an organizations structure that I know very little about. By researching this topic, I will gain a better understanding about the structure, mission, and functions of an organization’s Board of Directors.

The Board of Directors is defined as “a group of elected individuals who serve as representatives of an organizations’ stockholders” (Root). They are the decision-making power over management related policies and fiduciary duties of the organization. They make decisions to fire or hire the executive leaders, conduct performance evaluations on the company’s leading executives, and ultimately decide the executive’s compensation, as well as dividends to be distributed to the shareholders. The Board of Directors determine the organization’s strategic direction, and make sure the company is operating under the principles of the law to ensure the organization is conducting itself ethically, legally, and with social and environmental responsibility (Bateman 267).

The structure of the Board of Directors is made up of inside directors and outside directors. Meaning, the inside directors would include the senior leadership executives of an organization, and the outside directors would include top leaders and executives from other companies. In many of the organizations today, the majority of
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