A Code for Sports Governance

SGA says

A sound structural framework lays the foundation for sustainable governance. Responsibility for decision making and strategic planning are key duties of the board, and the governance architecture of the organisation should be clearly established, identifying where authority and competence reside and setting terms of reference and channels of accountability for delegated matters. Appropriate structures will vary in detail between organisations, but many of the core practice recommendations will apply across a range of bodies.

Regardless of the structure adopted, the authority – and legal responsibility – for leading the organisation lies with the board. It is the board which directs the organisation and which determines what authority it delegates and to whom, based on the provisions set out in the governing document and applicable legislation.

SGA says

It can be argued that the most important factor in an organisation’s governance is the people that lead and work within it. A decision-making body composed of skilled and experienced individuals who bring a broad range of perspectives and different ways of thinking and approaching problems will contribute to more effective leadership, making the organisation more adaptable in meeting the challenges it faces. A more diverse board will also reflect and be more able to engage with the community which the organisation serves and will demonstrate that the organisation is one to which that community can relate. This can confer legitimacy on the organisation and promote confidence and inclusivity among all those involved in the sport.

The revised Code contains new obligations for funded organisations around diversity, requiring those in receipt of significant funding to produce a detailed, ambitious and published plan to increase the level of diversity and inclusion not only on their boards, but also on their senior leadership teams and across their wider organisational structures. 

When considering who the best people are to lead an organisation, it is important to have regard to the long-term strategic plan. Identifying where the organisation wants to go and what it wants to achieve should lead to an assessment of what skills are required on the board to realise those goals. This should prompt an honest appraisal of whether the current composition meets those needs and can be used to inform future recruitment processes.

There is a growing awareness that policies and processes form only part of an effective governance apparatus. It is just as important that the behaviour, values and culture which inform all of an organisation’s activities are embedded throughout the structure. Organisational culture is dealt with in Principle 4 of the Code (Standards and Conduct). However, people are key to this: it is they who implement policy and engage with participants, supporters, coaches, volunteers, the public and a whole range of other stakeholders. Having the right people in place at all levels will ensure that what an organisation does and what it professes to stand for are in alignment.

SGA says

In common with organisations in other sectors, sports bodies need to have regard to a range of stakeholders. Effective and consistent two-way communication with all those who have an interest in their activities or are affected by their actions – participants, supporters, staff, volunteers, customers, suppliers or the public, to name a few – forms a crucial part of a robust governance framework. Transparency is essential to making an organisation accountable and promotes confidence among stakeholders. Frequent and constructive dialogue can also help the leaders of sports bodies to understand current trends, concerns and experiences and become more adaptable to developments in the sporting and non-sporting landscapes. In ensuring that it is responsive to those who work in or engage with it, an organisation can benefit its strategic direction, long-term health and relationships with those who make it function at all levels.

Effective communication with stakeholders also serves an important purpose in the democratic life of an organisation. This is particularly true in those bodies which maintain a membership structure or where a board operates above a council or other representative forum, but for all organisations timely and ongoing dialogue with those who have a legitimate interest furthers inclusion and can enhance decision making by enabling consideration of a range of views and perspectives.

While it is important to be as open as possible, it is acknowledged that a balance needs to be struck between providing sufficient information about activities and engaging with stakeholders on the one hand, and on the other ensuring that the burden on organisations, particularly smaller ones, is not disproportionately onerous, nor that the stakeholders are overwhelmed with information.

Though an organisation may seek the opinions of a variety of stakeholders, ultimate responsibility for decisions made lies with the board who must ensure that these reflect what is in the interests of the organisation. As part of the engagement process, the board will need to manage expectations of stakeholders by being frank and open with them and offering a feedback mechanism in order to retain confidence and cooperation even when a decision does not have the outcome which a particular group may have sought.

Organisations should not view increased communication simply as a compliance issue, nor as concerning only governance and financial information. It is also an opportunity for them to share with stakeholders their successes, exciting developments and their vision for the future. The interest of these factors to those who interact with the organisation should not be underestimated.

SGA says

The Code for Sports Governance is an aspirational document. Though compliance with the agreements put in place with Sport England or UK Sport will be a requirement for funded bodies, the Code is also intended to drive up standards of governance in the sector more generally. This may be achieved by organisations seeking to exceed minimum expectations, or by the proportionate adoption of good governance practices regardless of receipt of public money. In either case, the objective is a constant improvement in the way in which organisations are run.

Such improvement can be made to the governance framework which an organisation has in place. It can also be made in the ways in which those with oversight responsibilities work to achieve the strategic objectives. Ensuring that the sport’s leadership possess the necessary skills and experience and work together constructively and effectively will maximise the opportunities to reach the organisation’s potential and to place it on a strong, sustainable footing.

An interesting addition to the revised Code was the requirement to 'cascade' good governance, ensuring not only that it is observed at the top of an organisation, but throughout its structure.

The SGA offers fantastic content on cascading good governance, including:

• an essay on the County FA Code of Governance
• a webinar featuring a discussion of initiatives put into action by The Football Association and the Lawn Tennis Association
• a panel discussion at the 2022 Annual Conference exploring the experiences of three national governing bodies (coming soon)

High profile stories in sectors across the economy (and sport has been in no way immune) have highlighted the damage which can be done, both to victims of poor choices, actions or behaviour, and to the reputation of the organisation concerned. Such conduct also represents a risk to public investment (where relevant), to the trust of stakeholders more widely and to the sport’s legitimacy. Seeking to embed a positive, healthy organisational culture where values are clearly stated and lived can help to protect against adverse conduct, both by individuals and by the collective. It should be seen as an essential component of the governance framework.

SGA says

Board members have obligations to ensure that their organisation is compliant with the relevant legislation and regulation and also that it is run effectively and sustainably. In fulfilling these obligations, they must be satisfied that they possess a sufficient understanding of the legal environment in which the organisation operates to be able to identify potential problems and to address known issues. This potentially covers a range of considerations, from company and charity law to health and safety, data protection and safeguarding, as well as issues specific to sports, such as integrity matters.

Board members must also ensure that the organisation has in place adequate controls of finance and processes for the identification and management of risk. It is their responsibility to agree an appropriate strategy – generally for four or five years – against which progress can be measured and the achievement of which is sustainable and prudent, underpinned by the policies in place.

When considering an organisation’s governance, it is an increasingly popular view that policies and processes go only so far, and that the culture of the organisation and the people who comprise are equally important. This is true. However, the processes which are in place provide a vital structure for those people to work within. The two factors together offer the best conditions for the achievement of the organisation’s purpose in an effective, responsible an sustainable manner. Coupled with transparency, this can provide stakeholders with an optimal level of trust in that organisation.