governance

Sport organizations in Canada govern the delivery of sport at all levels. Our resources offer credible information and practical solutions to optimize the Board and enhance the overall governance of sport organizations.

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Quick Facts

Governance is a broad and multi-dimensional concept. It’s about oversight, steering, and directing, which can occur in 3 different spheres:

At the organizational level, good governance is of particular interest. This is especially the case given the governance issues seen at national and international levels (for example, corruption, conflicts of interest, and match fixing). Good governance has its roots in the corporate world. It considers who has power, who makes decisions, how stakeholders’ voices are included, and how accounts are rendered.

Although good governance is still a popular term, it leads to the idea of “good” versus bad” governance. Instead, there’s a trend to replace the term with better or improved governance to acknowledge that all (sport) organizations can do better in terms of their governance.

Better sport governance is an ethically informed steering of a sport organization or system’s structures of practices. This includes overseeing management, making decisions, allocating resources, integrating stakeholder voices, and rendering accounts.

When poor governance principles are in place, there can be some serious effects on the organization and its direction. Poor governance can divert people from the strategic plan, wasting resources and time. It can also include damage to finances, reputation, and trust from stakeholders. When organizations have poor governance, their own people in the organization may leave for an organization with better governance. It is within the organization’s best interest to have good governance to maintain strategic direction, financial health, and perhaps most importantly, their people.

The Canadian Sport Governance Code is a system of principles and rules by which National Sport Organizations (NSOs) must comply to receive funding from the federal government. The Code outlines clear targets for sport organizations to improve in areas such as board diversity and independence, transparency, athlete representation and financial statements. To receive federal funding, NSOs must adopt the Canadian Sport Governance Code by April 2025.

In any sport organization, the board of directors’ role is to govern the whole organization. At all levels of sport, it’s the board’s role to ensure that a governing system is in place to:

A board is 100% accountable for everything that happens in an organization. However, being accountable for everything doesn’t mean the board must do everything, or even specify how to achieve its purpose. For example, boards may delegate some responsibilities to board committees and board officers. Where there’s staff, the board typically delegates the management of the organization to 1 senior staff member, such as the CEO or Executive Director. This involves the authority to bring people together to accomplish goals using resources efficiently, wisely and ethically. When the board delegates this authority and responsibility for management, it must hold that senior staff accountable for the use of delegated authority. The Canadian Sport Governance Code identifies good principles for board management.

There are lots of different areas to examine to improve the good governance principles of the organization. Three principles that every organization should consider are:

Other examples of good governance principles include equality and inclusivity, autonomy, compliance, and board structure and composition.

While governance and management are linked, they’re separate functions. Governance ensures organizations pursue the right purpose, in the right way, and continuously develop. This is the role of the Board of Directors. Alternatively, management is focused on “getting the work done.” Management is often led by a senior staff member, such as the CEO or Executive Director, or a senior leadership team.

A conflict of interest is when a board member’s ability to act solely in the organization’s best interest is affected by personal, financial, and occupational considerations. There are three types of conflicts of interest:

It is always best to determine any conflicts of interests before an individual joins the board.

Video Resources

Knowledge Nuggets

More Governance resources

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2021

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Parachute Canada, University of British Columbia, Water Ski & Wakeboard Canada, Centre for Injury Prevention Sunnybrook Health Sciences Centre, and SIRC
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2016

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Queen’s University, Special Olympics Canada, Sport Canada, Sport Matters Group, Coaching Association of Canada, Canadian Paralympic Comittee, Sport for Life, Canadian Women & Sport, and SIRC
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2024

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Abuse-free Sport and Sport Dispute Resolution Centre of Canada
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