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Introduction
Decision making in sport organizations is complicated because decisions impact diverse groups of people (athletes, fans, the community, business, the media) whose interests are often in conflict. While weighing decisions regarding these issues, sport managers may consider financial costs, the effect on the team and the league's reputation, the law, and the impact on winning games ([39] Pike Masteralexis et al. , 1998). One aspect of complex decision-making is the potential for conflict of interest to arise. The concept of what constitutes a conflict of interest is elusive and subject to dispute, as authors struggle to define the variety of roles, responsibilities, interests and organizational settings that contribute to identifying a conflict of interest.
Increased media and public attention has brought about a greater awareness of conflict of interest situations. In particular, experts and professionals are expected to justify their views and decisions ([49] Vallance, 1995). [40] Post et al. (1996) noted that "the general public expects business to exhibit high levels of ethical performance and social responsibility. Companies that fail to fulfil this public demand can expect to be spotlighted, criticized, curbed and punished" (p. 91). Investment in sport, both financial and social, places higher levels of expectation on those who are involved both on and off the playing field. This importance is identified by [46] Tatz (1986) who stated that "modern sport is ... always serious. It is organized; it is an industry; it is business; money; vested interests; it is a medium of and for ideology, prestige, status, nationalism, internationalism, diplomacy and war" (p. 47).
Research in the broader field of business ethics ([21] Felo, 2001; [38] Milton-Smith, 1997; [47] Turnbull, 1999) has demonstrated concern about conflicts of interest within corporations. Survey evidence indicates that a majority of firms with ethics programs do address potential conflicts of interest, and business executives generally view potential conflicts of interest as ethical issues that firms should address ([21] Felo, 2001). The Australian sport industry is no exception to this concern. The Australian Sports Commission, the peak government body for sport in Australia, advocates provisions for conflicts of interest to be taken into account in the governance of national sporting organizations ([3] Australian Sports Commission, 2004).
The governance and management of sporting organizations in Australia...