- Date:18 Jun 2013
- Type:Media release
The Australian Institute of Company Directors today launched its Good Governance Principles and Guidance, which are specifically tailored and designed for not-for-profit (NFP) organisations.
John Colvin, Chief Executive Officer and Managing Director of the Australian Institute of Company Directors, said the Principles and Guidance take into account the considerable diversity of the NFP sector.
“NFPs range from large national organisations with experienced boards, professional management and fundraising, paid staff and prominent brands through to small, sometimes remote, organisations with limited resources,” said Mr Colvin.
“The objective of the Principles and Guidance is to share with the NFP community a framework that we believe offers a useful starting point for NFP boards when considering what constitutes good governance practice.
“Individual boards and organisations are able to tailor the Principles having regard for their particular circumstances,” he said.
Derris Gillam, Chair of the Heart Foundation Tasmania Division, noted that the Principles and Guidance have been the subject of a lengthy consultation process in the sector.
“It’s critical that these Principles have been developed by the industry, which demonstrates the sector’s commitment to good governance,” said Mr Gillam.
“They will play a vital role in helping organisations strengthen the solid foundation that has been set by directors and boards in the sector, who are largely voluntary,” he said.
The 2012 Directors Social Impact Study, conducted by Curtin University on behalf of Company Directors, found that there were no discernable differences between the governance effectiveness of not-for-profit and for-profit boards.
Melanie Raymond, Chair of Youth Projects Limited, said the Principles and Guidance are a critical tool for the community sector, which is typically challenged by a lack of resources.
“The NFP sector makes a significant social contribution to Australian society but is seriously under-resourced,” said Ms Raymond.
“The Principles and Guidance can be accessed free of charge by all boards and directors operating in the NFP sector and will drive a conversation about how good governance can deliver better outcomes for the organisation, and ultimately the community,” she said.
The ten Principles that Company Directors believes provide a useful starting point for NFPs to understand what constitutes good governance cover:
• Roles and responsibilities
• Board composition
• Purpose and strategy
• Risk – recognition and management
• Organisational performance
• Board effectiveness
• Integrity and accountability
• Organisation building
• Culture and ethics
A full copy of the Principles and Guidance can be downloaded atwww.companydirectors.com.au/goodgovernance.
Download the above media release (PDF 131 KB).
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