17 Feb 5 Fundamental Practices of Board Member Ethics
A Board that serves with the association’s best interest in mind is imperative but how to do so is not always clear. CAI’s HOA Board Member Rights and Responsibilities is a great starting point for understanding board members’ duty to behave ethically in all matters while serving their community.
1. Exercise Discretion
The Board has access to confidential information about homeowners, the association’s finances, and more; it is the responsibility of every board member to protect this sensitive information.
2. Conduct Business in a Transparent Manner
Homeowners have the right to be informed about association business. For matters that are not executive session only, every decision should be documented in the minutes. Regular session minutes should always be available to homeowners to review if they wish.
3. Always Exude Professionalism
Communicate respectfully and exercise your best judgement. The Board is expected to act in a professional manner in all interactions including those with homeowners, management, vendors, and other board members.
4. Handle Conflicts of Interest Appropriately
Board members are expected to report any conflict of interest that arises and should not take part in decisions in which they have a material interest or may personally benefit. The board member should always excuse themselves from voting on the matter and allow the remaining members to make an unbiased decision.
5. Exercise Sound Business Judgment & Follow Established Management Practices
When conducting business on behalf of the HOA, it is expected that board members will make decisions that are going to be in the best interest of the association and in accordance with industry best practices.
Board member volunteers can significantly affect the well-being of their association, while the position should be taken seriously, it is a great opportunity to serve the community. An experienced manager can provide guidance and access to educational resources that can aid board members in their duties. Hiring a professional community association management company can lessen the burden of running an HOA. For information on our customizable HOA management services, request a proposal or contact us today at 800-227-6225!