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In late spring, just before the British summer rains arrived, a new
code of practice titled Voluntary Code of Good Governance for
the Sport and Recreation Sector was published by the Sport &
Recreation Alliance. Formerly the Council of Physical Recreation,
the SRA is an umbrella organisation for sport and recreation
governing bodies in the United Kingdom. Less than two months
later Vicsport, an independent member-based organisation
representing the sport and active recreation sector in the
Australian state of Victoria, released their Good Governance Tool
Kit.
The publication of these statements has implications for the
way in which sport is governed and sets a benchmark for the
worldwide sporting community. They could be considered as
the Cadbury Report of the sports world, articulating standards
for achieving and maintaining good governance and assisting
sporting management bodies run their organisations more
efficiently
Endorsed by senior political figures, the initiatives are primarily
aimed at administrative bodies toward the top of the chain
of command. However, it has applicability from international
federations to local clubs.
Though voluntary, the statements set a benchmark standard by
which the management bodies of all sporting groups could be
judged. The dangers of failing to observe the standards include
leaving management exposed to accusations of failing to act in
the interest of the sport or activity, itself the first principle of the
SRA Code. In the absence of other standards for the sector, it
is possible that any case brought before a judge in court or in
arbitration will be assessed against the standards promulgated
by the new statements.
Accordingly, all groups involved in
sport and recreation should familiarise themselves with the
principles, identify where they are unable to meet that principle
and take steps to rectify the matter to at the least achieve
compliance in spirit.
Legislation, such as the Bribery Act 2010 recently implemented
in the UK which makes the governing body responsible for
acts of bribery of associated persons and their agents, further
strengthens the argument for administrative bodies to put in place
sound, transparent governance procedures.
Whether or not a body chooses to adopt the standards, formally
or otherwise, there remains risk in an increasingly litigious world
that they are required to defend themselves from accusation of
mismanagement. Regardless of whether such accusations are
ultimately proven to be justified, management can take action to
protect themselves from the financial implications of such action.
Directors and officers liability insurance personally protects the
directors and officers of an organisation, and the organisation
itself, from the financial consequences of defending actions
and damages awarded against them as a result of alleged
wrongful acts whilst acting in their professional capacity for that
organisation.
A copy of the Voluntary Code of Good Governance for the Sport
and Recreation Sector is available from the Sport & Recreation
Alliance website at
www.sportandrecreation.org.uk
The Good Governance Tool Kit is available from the Vicsport
website at
www.vicsport.asn.au
Governance issues
in focus for sports and
recreation organisations
The worldwide economic situation has increased attention on the governance of organisations. The
focus of this attention has been on financial institutions, particularly banks, but in recent months
sporting governing bodies have been prompted to consider their own governance.
Article by Dominic Ford
VOLUNTARY CODE OF
GOOD GOVERNANCE
FOR THE SPORT AND
RECREATION SECTOR
Good Governance
Tool Kit
vicsport good governance project
v i c t o r i a ’ s p e a k f o r s p o r t & a c t i v e r e c r e a t i o n
Suppor ted by:
FOCUS on Risk Management
Part V