The Role of CEO - A Brief Look

CEO is responsible for developing a long-term strategy for leading the company and creating shareholder value.   The CEO must have the management skill to hire, organize and staff the company.   Financial assessment in accordance to authorized annual budget of the company is a crucial aspect of CEO’s responsibility.  As such, internal and external risk assessment, implementation of internal controls, and adherence to the company’s standards and policies are parts of CEO’s activities.  According to Carver, “the job of the CEO is to work whatever magic it takes to ensure an acceptable amount, type, and targeting of benefits in prudent and ethical ways.”[1]

CEO is a liaison between management and the board, and is tasked with maintaining effective communication with shareholders, employees and the public.[2]  Therefore, the CEO will have to lead by example and encourage all employees to conduct themselves in accordance to the company’s standards and policies and also with all applicable laws. 

A CEO should be an innovation leader.  Dr. Oster writes, “The position of innovation leaders is complex, difficult, frustrating, politically dangerous, and often virtually thankless.”[3]  As such, a CEO must be courageous, creative and relentless. 

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[1] John Carver, Boards That Make a Difference: A New Design for Leadership in Nonprofit and Public Organizations, John Wiley  & Sons, 2011.

[2] Michael J. Worth, Nonprofit Management, California: SAGE, 2011, 87.

[3] Gary Oster, Leading Corporate Innovation, School of Global Leadership and Entrepreneurships at Regent University, August 2007, 16.