The board of directors has specific characteristics that lead to effective corporate governance, integrity, and objectivity (Wanyama, 2016). Integrity is a vital characteristic of the board of directors as it ensures that they are truthful and fair when deciding. Effective corporate governance is dependent on this as integrity assures the relevant stakeholders that every decision made is sound (Wanyama, 2016). Therefore, integrity creates confidence in the board of directors and respect for the company.
When referring to objectivity, the board of directors is expected to observe appropriate safeguards to avoid their judgments being swayed by their self-interest or influenced by a third party. By staying focused on the company’s goals, the directors will avoid being biased or having any conflict of interest that might affect their leadership (Wanyama, 2016). In cases where there could be a conflict of interest among the board of directors, the person should be refrained from contributing to decision-making.
Reference
Wanyama, S. (2016). (PDF) characteristics of Effective Board members. ResearchGate.