Articles

The Intersection of Risk, Culture and Crisis and at What Price

Much is said and written about personal, brand and company reputations, but when all is said and done reputation rests on three pillars: context, stakeholders, and culture. Context because what happens around a business from a government, social, environment and economic perspective dictates the level of risk associated with your operations and your business decisions. What was right or acceptable 20 years ago may not be right today. What is right according to the letter of the law may not be perceived as right by the society in which you operate.

What is an Indigenous Corporation?

When establishing a non-profit organisation specialising in providing programs or services to Aboriginal and Torres Strait groups, founding an Indigenous Corporation is a great option. An Indigenous Corporation is a specific type of organisational legal structure that can be used in Australia. Indigenous Corporations are overseen by the Office of the Registrar of Indigenous Corporations (ORIC), an independent statutory office appointed by the Minister for Indigenous Affairs under the Corporations (Aboriginal and Torres Strait Islander) Act 2006.

What is an Incorporated Association?

An incorporated association is one of several formal legal structures available to non-profit organisations in Australia. Incorporating your association can offer your members certain rights and legal benefits. The main benefit of incorporating as an association is that your members will have limited liability status and will be protected legally if you fail to meet your financial obligations or are sued for negligence. When establishing a non-profit organisation, founders can choose from a large range of legal formats.

Cooperatives in Australia: What are they?

Co-operatives in Australia come in several different forms. The co-op organisational structure may be the right one for you if your goal is to produce goods and services in an isolated community where the middleman is making it difficult for businesses to thrive or people to access affordable services. Co-ops in Australia may vary since each has its own unique purpose and membership. An organisation’s legal structure will determine the types of activities you are legally able to carry out and which government bodies it is required to seek registration from or report to.

Constitutions – The Foundations of Good Governance

Constitutions are crucial documents. At a national level, they describe how a country is governed. In democracies Prime Ministers and Presidents are elected to office following the processes described in a nation’s constitution. The Australian parliament states that the “national constitution is a set of rules for governing a country”. Similarly, constitutions lie at the heart of associations and charities and provide their rules. Significantly, they define who the members are and the process by which the organisation is run and elects its leadership.

What is a Company Limited by Guarantee?

When establishing your non-profit organisation, you have several legal structure options to choose from, including an incorporated or unincorporated association, a cooperative, a charitable trust, or a company limited by guarantee (CLG). As a founder, the choice you make will determine the types of activities you can legally carry out. An organisation’s legal structure will inform the way reports and registration requirements are determined and regulated by government bodies and must be made clear during the registration process.

Coaches in the Boardroom?

Leading a not-for-profit organisation can be a lonely pursuit but it need not be. Leadership experts say board chairs, non-executive directors and CEOs all need allies to help them monitor and navigate the shifting dynamics of a volunteer board. Increasingly, not-for-profit leaders are looking to organisational or executive coaches to be that thinking partner. And, with good reason. Organisational coaching is a practice that has been proven to increase effectiveness of decision-making, sharpen strategic focus, develop, and encourage constructive board leadership behaviours, and help navigate transitions.

In Service of Two Masters – Conflicts in the Context of Multiple Directorships

Director recruitment is an important task for both not-for-profit and for-profit organisations alike. It is an opportunity to enhance the skills, experience and diversity of the existing board and ensure the directors are best placed to serve the organisation into the future. But what happens when the preferred candidate already sits on multiple boards, including the board of a potential competitor? It is a well-known principle of corporate governance that a director owes certain duties to the organisation they serve.

How to Handle Conflicts of Interest at your Not-for-profit Organisation

A conflict of interest occurs when someone has the opportunity to use their authority to benefit themselves, instead of the party they’re supposed to be serving. In not-for-profits (NFPs), this can take the form of awarding lucrative supply contracts to family or friends, giving certain people exclusive benefits, or interfering with awards. NFPs have to consistently monitor for conflicts of interest, so that changes with the agenda and board members’ circumstances don’t create an issue no one catches.

Integrating ESG into Not-for-Profits: Managing Risks and Opportunities

Environmental, Social and Governance (ESG) strategies and practices have become important aspects for Not-For-Profits (NFPs). The three ESG pillars are not only essential in risk management but have also been seen as emerging considerations for growth and opportunities. The three pillars of ESG are: “E” - the Environmental aspects. This refers to the NFP’s environmental impact and environmental stewardship. “S” - the Social aspects. This refers to how the NFP manages relationships with, and creates value for, stakeholders - including the interaction with its employees, beneficiaries, and the community.