Blog

Good Governance – Why Every Business Needs It. You may recall we explored this topic in November last year.  

And here we are in 2026, in the headlines, stories of governance, regrettably, tales of poor governance. Examples highlighted failures in systems, bad conduct, and downright dishonesty by some corporate players.  

But poor governance can and does happen in organisations, big and small and in all spheres of business sectors, private, public and non-profit. Indiscretions are not isolated incidents, whether by deceit, default or ignorance.  

• Examples. In the high-flying gambling entertainment industry, it was reported that a key leader failed to report suspicious conduct to the Board. Corporate governance failures emerged as the problem, with vigilance lacking. 

• The headlines. In the current investigation of an established accounting firm, it is reported to have ‘bad practice and poor oversight’ when dealing with a whistleblower’s concern. This suggests that some officials failed in their duty. 

What's the answer? How to avoid these mistakes?

For Leaders, Board members and Committees, core responsibilities include

1. Know the Rules 

2. Set the direction 

3. Protect finances 

4. Manage risk 

• The key is knowing and understanding your governance responsibilities and obligations.  

• Seek legal advice or help if needed with these matters.  Ignorance doesn’t stand as an excuse. 

• It’s acting with honesty and integrity, following the rules and taking responsibility for your decisions and actions.   

• Meeting compliance with any related rules and standards is critical. This helps keep the entity or group safe and focused on its goals and mission.  

• Poor governance can be the ruin of any business. Take all the necessary steps to protect everyone's interests: the Business, stakeholders and staff. 

Personal responsibilities 

• Know the rules, legislation and laws that apply to your organisation/group. 

• Attend meetings and read reports before you vote. 

• Ask the easy and hard questions. Importantly, get answers. 

• Be prepared to speak up if you see a conflict of interest or a problem. 

• Seek appropriate support, advice or independent help if you are worried that your concerns, fears or issues are being ignored, discounted, stifled, or gagged.  

There are key areas governing bodies must address.   

• Legislation and Regulations – there can be a raft of documents for an organisation, and understanding your legislative obligations can be overwhelming. To help, compiling a Document Legislative & Regulation Register can bring these together for easier access and use when needed. 

• Constitution/ Rules - this is your business's legally binding document. Copies should be given to all Committee & Board members. Importantly, they need to be familiar with the content and requirements. It outlines your purpose and parameters and is your guide to governing your Business/organisation. Copies should also be made available to members.  

• Industry Standards – these can be legislated requirements, and failure to comply can result in defunding, deregistration, and reputational damage. Ensure you follow them.

• Contracts & Agreements – these are arrangements between parties that usually impose obligations on both. Failure to meet your contractual obligations can result in poor customer outcomes, defunding, and potential penalties. Ensure you understand your obligations before signing and seek legal advice prior if needed. 

• Policies & Procedures – these are the documents that ensure quality governance by stating the agreed position on matters and the best way your organisation manages and operates within the context of your particular field. Guiding documents such as the Code of Conduct, rules, and instructions are examples. Everyone must know these documents exist, that they have access to them and, importantly, know that they need to follow them.  

• Financial obligations – managing and meeting these is at the heart of every Business success or failure. Besides those activities to keep your Business solvent, there can be other financial obligations. These depend on your Business activities. Important to remember that financial accountability is not the sole responsibility of the Accountant; all Board and Management committee members share this. Best practice is to engage a sound accounting firm to provide professional advice and services. Blackburn Accounting, your family Business specialists, provides a broad range of services including Family Business Management, Structures, Taxation, Cashflow Management, Retirement & Superannuation Planning and Business Development. 

• Managing risk – this needs a strategic approach to better manage, mitigate, and deal with potential and real risk factors that can impact your Business. People's safety, wellbeing and health are key areas, but your organisation, whatever industry, big or small, can be exposed to unforeseen issues and events.  

Takeaways: 

• Good governance comes from knowing your responsibilities and obligations.  

• Access the necessary information, policies, etc. to understand these. Importantly, follow them to do the right thing to best serve your own interests and those of the body, organization or Business you are representing. 

• Ignorance is no excuse. Seek appropriate help and advice on your role and responsibilities if needed.