When it comes to setting strategies, overseeing management and finances, establishing relationships with the community or setting ethical standards and values, the roles of the management board are many and diverse. Boards choose and supervise the CEO; they establish an overall vision, mission and strategic goals; they create relationships with the community; they set the management procedures for governance, quality and compliance; and finally, they tackle organizational changes due to changes in the environment and regulatory pressures.

Boards are legally accountable as fiduciaries, whose job is to represent shareholders and investors. They determine policies for dividends and payouts, as well as hire/fire and compensate upper management and establish corporate rules. They also maintain strong communications with management and serve as their representative to the company. The Chair of the Board, who is usually elected by the board members is the chief of the basic boards functions whole board. They are often non-executive directors (NEDs) who serve as the link between the chief executive officer and the board.

The primary function of the board is to function as a steward to the organization. Some boards however, stray from the line and try to manage the organization themselves instead of ensuring the activities are aligned with the mission of the organization. The board should be focused on balancing their oversight functions and their responsibility for ensuring the success of the organization. The most effective way to accomplish this is via the use of committees. Audit as well as compensation and nominating committees, for instance have become popular ways of examining complicated issues. These committees present their findings to the entire board.