Answer to Question #254255 in Management for Khwisti

Question

King IV (Principle 16) notes that company governing bodies should provide strategic direction for the organisation’s stakeholder policy and action plans. What role does the Board play to ensure that stakeholders are managed effectively?

Answer 1

Roles Played by Board to Ensure Stakeholders are Effectively Managed

As stated by King IV, governing bodies play vital role in managing stakeholders’ policies and plans in organizations. These practices involve integration of stakeholders in main function of the governing boards. Their key roles involve setting reliable and effective policies, controlling and offering accountability services and selecting executive management. The board follows a specific pattern and steps for effectiveness (Haridan et al. 2018). They include identifying, discussing and prioritizing potential risks related to societal expectation adjustments. Moreover, they determine and analyses financial information before making decisions related to stakeholders.

Reference

Haridan, N.M., Hassan, A.F., & Karbhari, Y. (2018). Governance, religious assurance and Islamic banks: Do Shariah boards effectively serve?. Journal of Management and Governance, 22 (4), 1015 -1043.