Benefits of Effective Governance

Develops confidence

People are more likely to have confidence in the organisation’s decisions when they are made in a transparent and accountable way:

• Members can act on behalf of their community because they are supported by open and ethical processes which adhere to the law and stand up to scrutiny.
• Stakeholders feel confident that the governing body will act in the community’s overall interest, regardless of differing opinions.
• Members feel better about their involvement in leading an organisation when good governance is practised

Leads to better decisions

High level leadership skills and knowledge of governance processes promote a safe place for debate and decision making:

• Decisions that are informed by good information and data, by stakeholder views, and by open and honest debate will generally reflect the broad interests of the community.
• Stakeholders are more likely to accept outcomes if the process to come to a decision is transparent and follows procedure.
• Difficult and controversial decisions are more likely to be accepted by stakeholders if they have confidence in the process, even if they don’t agree with the decision.

Supports ethical decision making and legislative responsibilities

An effective governing body creates an environment where members ask themselves ‘What is the right thing to do?’ and can navigate a process through different points of view to find a decision:

• Making choices and having to account for them in an open and transparent way encourages honest consideration of the choices facing those in the governance process.
• Governing body members are less likely to take shortcuts or bend the rules when they understand good governance responsibilities.
• Good knowledge of the legislation means a governing body can protect the organisation and its stakeholders.