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Home Knowledge

Who is an Independent Director?

The general consensus among stockholders is that independent directors improve the performance of a company through their objective view of the company's health and operations.

India CSR by India CSR
October 31, 2022
in Knowledge
Reading Time: 2 mins read
Who is an Independent Director?

Photo Credit: Economic Times

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At times independent directors can also bring specific expertise from their sector and/or personal experience.


An independent director is a member of a company’s board of directors (BoD) that the company brought in from outside. The general consensus among stockholders is that independent directors improve the performance of a company through their objective view of the company’s health and operations.

At times independent directors can also bring specific expertise from their sector and/or personal experience.

For example, a company specialising in health technologies might bring in an outside director with a prestigious medical background and degree to provide additional insight into the science behind their products.

Because independent outside directors haven’t worked with the company for a period of time, they aren’t existing managers and do not have ties to the company’s current way of doing business.

Independent directors can bring new insights and balance to a team; however, some downsides also exist.

From the Book – ‘ Know Everything about Corporate Social Responsibility ‘

Available on Amazon.in

Also Read:

  • What is Humanistic Management?
  • What is the Public Enterprise?
  • What is a Private Firm?
  • What is Family Owned Business?
  • What is Corporate Financial Performance?
  • What is Profit?
  • What is Bottom of the Pyramid?
  • What are the Basics of Corporate Structure?
  • What is Corporate Governance?
  • What is E-Governance?
  • What is Status of E-Governance in India?
  • Corporate Governance and the Board of Directors
  • Who is an Independent Director?

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India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

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