Legal and ethical responsibilities of the board
The role of any board of directors is to provide direction and guidance to the organization. In the established principles of nonprofit corporation law, the board must meet particular standards of conduct while executing their duties and functions to the organization. Particularly, the legal standards and responsibilities of the board are usually described as the duty of care, the duty of obedience, and the duty of loyalty. The duty of care requires the board of directors to show a particular level of competence while making decisions to steward the organization. The duty of care will enable the board of Mercy Medical Center (MMC) to exercise reasonable care while making decisions (Al Haas, 2011). The other legal responsibility is the duty of loyalty that describes the standard of faithfulness that Mercy Medical Center board members will adhere to. This degree of faithfulness will require them to give undivided allegiance while making decisions. The duty of obedience requires board members of Mercy Medical Center to be faithful to the mission of the organization. As such, they are not expected to act contrary to the central goals of the organization.
Similarly, ethical responsibilities play a crucial role in ensuring the working of corporate governance systems. Individual board members of MMC are expected to accept that they have a litany of ethical responsibilities that they must meet. Notably, a director can’t discharge their duty if they fail to behave ethically towards the company. For instance, they must avoid conflicts of interest and act in the best interests of MMC. Secondly, the board members have an ethical responsibility to society (Ethical Responsibilities of Boards). They have to ensure that the MMC has a minimum negative environmental impact. Thirdly, individual board members must ensure that MMC integrates ethical standards in its daily operations
Essential policies that the board must adopt
Good governance is crucial for the functioning of the organization. At MMC, the board must adopt critical policies that are vital for any administration. One such policy is the whistleblower protection policy. It is imperative for all corporations and organizations, including the not for profit institutions not to retaliate against employees who blow the whistle on improper financial management and poor accounting practices. The other policy that the board at MMC must adopt is the document retention and destruction policy (Board Roles and Responsibilities). This policy is all about document management. This policy shall dictate what kind of documents that MMC will retain and for how long they will be retained. Furthermore, it is important if the board members will adopt the gift acceptance policies. There are particular gifts that MMC might or should not accept. This is because they can result in more expense as opposed to tangible benefits for the organization.
Financial oversight of board members
When it comes to fundraising, the role of the board is to provide leadership, financial support, and unparalleled connection to donors. The boards must be structured to meet the exact needs of MMC. At the same time, individual board members can be useful in securing major gifts, among other numerous opportunities. Since the MMC board is tasked with providing direction to the organization, their role in financial oversight is important (Guest Author). For example, the board offers financial control to prevent fraud and errors. They can achieve this by ensuring different people are responsible for various oversights. Additionally, the board must act as enforcers or rules by ensuring that MMC follows procedures. Besides, they must be visionary and play an active role in fundraisers.