Duty of Care
The duty of care requires the board to conduct the affairs of Inspired in a way that a prudent person would. Board members are expected to make reasonable and sound judgments when acting on behalf of the organisation. Active preparation for, and participation in, board meetings where important decisions are to be made is an integral element of the duty of care.
Duty of Loyalty
The duty of loyalty requires the board to be loyal in its dealings with Inspired and to put the organisation’s needs above its own. Inspired has a robust conflict of interest policy covering both financial and nonfinancial conflicts which is fundamental to fulfilling the duty of loyalty.
Duty of Obedience
The duty of obedience requires the board to be faithful to the mission of the organisation. The board’s responsibility to ensure compliance with laws and regulations falls within this responsibility.
A fiduciary duty is defined as the obligation to act in the best interest of another party.
For board members of Inspired, that means acting to protect the property, financial assets and, most importantly, the reputation of the organisation. The Inspired board is responsible for evaluating financial policies such as investment and debt policies, approving annual operating and capital budgets, and reviewing and analysing financial information to ensure that the organisation has the resources necessary to fulfill its mission while remaining accountable to its donors and other stakeholders. The board is also responsible for ensuring that Inspired has adequate insurance coverage and that controls are in place to ensure the security of private information.