The board's key purpose "is to ensu

The board's key purpose "is to ensure the company's prosperity by collectively directing the company's affairs, while meeting the appropriate interests of its shareholders and relevant stakeholders".
(Standards for the Board, IoD).

It is for the board to judge, on a case-by-case basis, which stakeholders it treats as 'relevant' and which of their interests it is appropriate to meet, taking into account the law, relevant regulations and commercial considerations. In pursuing this key purpose, a board of directors faces a uniquely demanding set of responsibilities and challenges. It also faces a range of objectives that can sometimes seem contradictory. The board:

must simultaneously be entrepreneurial and drive the business forward while keeping it under prudent control;
is required to be sufficiently knowledgeable about the workings of the company to be answerable for its actions, yet able to stand back from the day-to-day management of the company and retain an objective, longer-term view;
must be sensitive to the pressures of short-term issues and yet take account of broader, long-term trends;
must be knowledgeable about 'local' issues and yet be aware of potential or actual wider competitive influences;
is expected to be focused on the commercial needs of its business while acting responsibly towards its employees, business partners and society as a whole.
Each board member is expected to recognise these challenges and ensure that they personally contribute to finding the right balance between these various competing pressures. In seeking to do so, executive directors may find it difficult to see beyond their direct focus on the business and its day-to-day problems; non-executive directors, on the other hand, may find it difficult to feel sufficiently informed about the direct day-to-day pressures faced by the company.