Principle
An organisation’s culture and behaviours should be underpinned by values which are demonstrated by the board and embedded in its decisions and actions.
Behaviours, culture and values
People bring the policies and structures of governance to life. While policies and structures are an important part of governance, they are only meaningful if they are implemented, enacted and enforced by people within the organisation. As such, governance occurs through the behaviours and actions of individuals. For example, this could be a director reminding their peers at the start of a meeting to declare their conflicts of interest.
Individual behaviours are partly driven by culture; culture being an organisation’s shared values and beliefs. Values are intangible guides to how an individual is expected to behave. A shared set of values, and the resulting culture, outlines what behaviours are and are not acceptable. Describing and measuring an organisation’s culture can be difficult because of its abstract nature. Culture is not the ticking of boxes; it is lived and breathed and influences all aspects of an organisation.
Governance and the role of the board
Governance is impacted by culture. For example, a culture which fosters constructive communication between directors leads to more considered decision-making. Conversely, a passive or reactive culture may mean directors do not consider all decisions with the same level of rigour, leading to ill-informed and ill-considered decisions.
The relationship between behaviours, culture and governance is not simply one way. Governance, while influenced by culture, also shapes culture. As the leaders of an organisation, a board and its directors can influence culture and behaviours by defining and modelling organisational values. This occurs in the way the board works with the CEO, represents the organisation and makes decisions. Additionally, clearly articulated values provide an objective and shared reference point for discussing, assessing and challenging culture and behaviours.
What should our values be?
There is no right answer, but they should reflect current or changing societal expectations. Values should be, and are, specific to each organisation. However, values should be developed in collaboration with members and with the future in mind.
Example behaviours and actions
Recommendations
A set of good practice suggestions, which should underpin the Board’s considerations in applying this principle.
Resources and tools to help
We recommend all current and aspiring board and committee members enrol in the free online course, The Spirit of the Game – Organisational Culture.
You can also find related resources and tools on the National Governance Resource Library.
For guidance, or to discuss how your organisation may best implement good practice in this area, please contact your state or territory agency for sport and recreation.
NSOs can email queries to SportsGovernance@ausport.gov.au and a governance adviser will contact you. All other sporting organisations are encouraged to contact their state or territory agency for sport and recreation for more information.