What are Board policies?
Policies are the rules and guidelines developed by organisation to help day to day decision making by management. Board policies can include for example, conflict of interest, procurement or diversity and inclusion policies. This is in contrast to those operational policies that are better developed by the executive of the organisation, such as performance appraisal and travel and expenses policies.
Board policies supplement the organisation’s articles of incorporation and by-laws, as those documents are the bedrock of the organisation. In addition to approving policies, the board is also responsible for ensuring that the organisation abides by them, because the board and its members hold a fiduciary trust to see that the organisation functions effectively and efficiently.