What should be the board of directors’ duties, tasks and responsibilities? How should the board, the chief executive and the management committee work together? And how can senior management live the company’s mission and lead by example? IESE’s Dean Jordi Canals reflects on these difficult questions in this insightful article on how companies should ultimately be run and supervised.

Executive Summary
The main objective of corporate governance, which is developed by the board of directors and the management committee, is the long-term survival of the company. This article defines and explores the specific tasks of the CEO, the members of the management committee, its relations with the board of directors, and its practical day-to-day functioning in the life of the company. The author analyzes the principles upon which the relationship of the board and the committee must be based: a balance between inititative and control, subsidiarity and transparency. He also highlights the two priorities of a good board: development of the company’s mission and a strategy for carrying out this mission. Finally, Prof. Canals emphasizes basic daily criteria for the board.

PDF Full version