A Good Governance Guide from the Governance Institute of Australia (4 of 4)

Posted on 27.11.2017


The fourth in a series of 4 articles focusing on governance in the not for profit sector.

The content is based on information from resources provided by the Governance Institute of Australia 


Governance encompasses not only the system by which organisations are controlled, but the mechanisms by which organisations and those who comprise them are held to account. The concept of stewardship recognises the responsibility of those who control not-for-profit (NFP)
organisations to develop and maintain an enterprisewide recognition that the organisation is managed for the benefit of the purpose for which it has been established (which often is for its members), taking reasonable account of the interests of other legitimate stakeholders.

It is good governance for a NFP organisation to understand and document:

  • the identities and roles of key stakeholders
  • the powers vested in each stakeholder and the basis on which such powers rest
  • the reporting responsibilities of each stakeholder
  • the extent of board, member and executive management’s decision-making powers respectively.
  • read more

Governing body
It is good governance for the governing body (which could be called a ‘board’, ‘council’, ‘synod’ or a ‘management committee’) to:

  • establish a mission and values statement detailing the objectives of the organisation (remembering that these must reflect the objects within the constitution)
  • ensure that the mission and values are embedded in the culture of the organisation by inclusion in:
    • a code of conduct
    • the employee and volunteer induction program
    • policies governing employee and volunteer activities, including employees acting as volunteers for other organisations
    • the risk management policy
    • policies governing stakeholder engagement.
    • read more

An organisation’s culture is the sum of its shared values and behaviours. Culture is a key determinant in the performance of an organisation and its capability to achieve its objectives … read more

Stakeholder engagement

It is good governance for a NFP organisation to:

  • recognise the benefits of stakeholder engagement
  • define the interests of all stakeholders, and
  • develop an understanding of the role that stakeholders have in or with the organisation.
  • read more

Good Governance Guides
Governance Institute of Australia

For more information and resources on governance for your organisation go to GOVERNANCE






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