What is the role of the board of directors in ABC?

• A. Set overall corporate strategy, approve investments, and balance growth with shareholder expectations and environmental pressures
• B. Manage day-to-day operations
• C. Handle marketing campaigns
• D. Oversee only financial reporting

Answer: (A)

Governance and strategic oversight come first for the board. The board guides the company’s long-term direction, approves major investments and strategic initiatives, and balances growth with the expectations of shareholders while also considering environmental and other stakeholder pressures. It also monitors performance, oversees risk and compliance, and ensures proper governance and accountability by supervising the CEO and senior management. Day-to-day operations are handled by the company’s management, not the board, and marketing campaigns are run by the marketing team. Reviewing financial reporting is part of governance, but the board’s role is broader than just financial matters. This combination best captures what the board is responsible for.