One of the primary duties of a chancellor is to host dignities and special guests to the university. Whether it's the governor president who comes to tour the campus and speak, it is the chancellor who normally greets dignitaries and helps to acquaint them with the campus and programs of the university. Thus, an important role of a university's chancellor is to be the public face of the institution.
Some chancellors continue to teach in their areas of expertise. A chancellor will also occasionally guest lecture in a class, if he is not a member of the faculty. Many chancellors also continue to publish academic papers in their particular disciplines. Alternately, they may publish papers on subjects that relate to institutional concerns, such as how to better attract the best faculty and students and improve student life.
A university chancellor is officially the person who bestows degrees on students. A chancellor also generally sits on the board of governors of a college and helps to set the agenda for the institution, including overseeing budgetary matters. A chancellor will also work with the university's legal counsel, helping to set and clarify policies on discrimination, and fairness and transparency in the university's dealings with students and with the overall community. He is also deeply involved in developing new degree programs.