Position
The Department of Local Government, Sport and Cultural Industries
considers strong governance principles and practices essential to the
viability and sustainability of sport and recreation organisations.
Effective governance requires leadership, integrity and good judgment.
An organisation’s structure off the field can have a significant impact
on what happens on the field.
Purpose
Good governance
practices strengthen the structures that support sport and recreation
organisations which create strong leadership, appropriate
decision-making and compliance with legal and regulatory obligations.
The department works with organisations to ensure continuous improvement
and to support the implementation of strong governance and business
practices.
Background
The State Government, through the department, provides significant
financial resources to a large number of sporting and recreational
organisations to support them in achieving their strategic objectives
and their service delivery outcomes for the benefit of the Western
Australian community.
The department invests in recognised sport and recreation
organisations strategic intent and operational plans. Every organisation
is benchmarked against best practice in governance and business
management, people development, high performance and other specific
areas relevant to the organisation.
The department endorses the Australian Sports Commission (ASC) Sports
Governance Principles encompass the following six key principles based
on accountability, contestability and transparency:
- board composition, roles and powers
- board processes
- governance systems
- board reporting and performance
- stakeholder relationship and reporting
- ethical and responsible decision-making.
The ASC has a clearly stated position with respect to the governance
of National Sporting Organisations (NSOs) which directly relates to
outcomes required under ASC funding. They currently have mandatory
principles in place and NSOs will be required to make progress towards
compliance.
Leadership and management of sport
and recreation organisations should represent Australia’s changing
demographics with diversity in age, gender, culture, disability, race,
religion and sexuality. Different backgrounds, skills, experience and
ideas are widely accepted to promote better governance, leadership and
decision-making outcomes.
Western Australia compares poorly to other states in relation to
female representation in leadership roles. This issue presents in
corporate settings, across government and is similarly replicated within
sport and recreation.
There is clear evidence that shows the benefits for organisations from
having a diversity of people and opinions in decision making positions.
Firms with the highest representation of women on their boards
outperform those with the least (Catalyst, 2014 and McKinsey, 2012).
Implementation
The department supports sport and recreation organisations to implement good
governance principles and practices through continuous consultancy
services, benchmarking and evaluation processes and investment into
professional development opportunities for boards and high level
management.
Contacts
Manager, Industry Development
Department of Local Government, Sport and Cultural Industries — Sport and Recreation
Telephone 61 8 6552 7300
References
Catalyst 2014 census: women board directors. Catalyst, 2014.
Is there a payoff for top team diversity? McKinsey, 2012.
Useful websites and resources
Endorsed
17 May 2016
Review
1 February 2017