Final answer:
The board of directors is responsible for overseeing a corporation's management and determining key policies like financial strategies and social responsibility initiatives, although their role can be influenced by top executives. They work with auditing firms and investors as part of corporate governance.
Step-by-step explanation:
The board of directors of a corporation plays a critical role in corporate governance. This body is elected by the shareholders and is primarily responsible for overseeing the company's management and ensuring that the company is run in the best interests of its owners - the shareholders. A crucial part of the board's oversight includes deciding on high-level policies and strategies, such as financial strategies, social responsibility initiatives, and sometimes even on marketing campaigns and operational efficiency. However, it's noteworthy that the board's composition and effectiveness can be influenced by the top executives, who may have a strong role in nominating board candidates. Despite this, the board's responsibilities do not end there, as they also work alongside other corporate governance institutions like auditing firms and outside investors to ensure accurate financial information and proper checks on the company's management.