Nonprofit boards of directors and corporate boards have a lot in common. Both groups of leaders exist to guide and better an organization through strategic leadership. Board members bring their various talents and experiences to the table in order to collaborate for a better end goal.
There are some innate differences between these two groups, though. For example, a nonprofit board focuses on gaining a deep understanding of its organization’s mission and seeks out ways to promote it in an ever-changing world.
For corporate boards, however, loyalty belongs to shareholders. As Beginnger’s Invest puts it, “The primary responsibility of a corporate board of directors is to protect the shareholders’ assets and ensure they receive a decent return on their investment.
The board of directors owes its shareholders the highest financial duty.”
Although these two types of boards have a different “chief goal” in sight, they can actually learn a lot from their counterparts.