Director Orientation

Definition
A process that provides a new board member with an understanding of his/her areas of responsibility and the duties he/she will be expected to fulfill.

Current Context

• Boards of directors are expected to contribute maximum value to their organization
• Sarbanes Oxley sets up clear rules that boards of Directors are expected to follow
• In today’s business climate, it is advisable for the boards as a whole and for individual board members, as well, to have a thorough understanding of the risks involved in board membership and of how to manage that risk
• As seen in the spate of recent corporate scandals, chronic issues that are not discussed, communicated, and actively managed can lead to disaster for a board and ultimately for the organization it leads

Recommendations

Provide new and current board members with a solid understanding of the fundamental elements of board organization such as:

• Strategic direction
• Finances and financial reporting
• Standards
• Reputation (both internal and external)
• Leadership strength
• board performance
• A clear understanding of what public disclosure is and how individual, as well as corporate communications, affects a Board’s activities
• A comprehensive knowledge of the organizational roles and functions
• Insight  into the protocols and processes associated with crisis management decision-making