The Importance of Digital Literacy for Board Directors

Board Directors are responsible for controlling the direction, strategy and performance of a business. They must also represent the interests of shareholders and ensure that management produces value. To accomplish this, boards must decide what tasks they are responsible for and what tasks can be delegated legally to management.

They also consider key strategic issues such as mergers and acquisitions, stock splits, share program repurchases, and declaring dividends. They are also accountable for hiring and firing CEOs as well as making decisions about compensation for senior executives. To accomplish this, they have to be prepared to ask difficult questions and engage in a constructive debate. They are also responsible for the financial health of the company and compliance with ethical and legal guidelines.

A good board member can provide insights and assist the board in becoming more effective. They also foster a culture of collaboration and communication within the boardroom. They have a thorough understanding of the business in which they operate and can provide valuable suggestions.

As the world becomes more complicated and our corporate responsibilities increase. The COVID-19 virus has taught us to increase our speed and agility to keep up. Many boards have broadened the scope of their responsibilities to include topics like developing talent and culture. They also focus on risk and resilience management and technology and digitalization. To accomplish this, board members must be digitally literate, and prepared to engage at a higher level to deliver forward-thinking goals.