What is the primary responsibility of the board of directors?

The primary responsibility of the board of directors is governance of the organization. This role involves ensuring that the organization operates in the best interest of its stakeholders, including shareholders, employees, customers, and the wider community. Governance encompasses establishing the strategic direction, monitoring performance, and ensuring adherence to laws, regulations, and ethical standards.

In this role, the board provides oversight rather than getting involved in daily operations, which is typically managed by executive leadership. By focusing on governance, the board helps to create a framework within which the organization can successfully operate, ensuring that strategic goals align with the mission and vision of the organization while also managing risks appropriately.

Furthermore, while setting financial goals and implementing new technologies are important functions within a business, they are typically handled at the management level and are part of executing the strategy set forth by the board. The board's governance role is essential for long-term sustainability and accountability, thus making it the primary focus of their responsibilities.