ABSTRACT Research question Gender policies reflect identity-conscious human resource management structures that aim to reduce unfair treatment based on gender. Drawing on signalling theory and the categorisation-elaboration model, the literature suggests that the relationship between gender policies and organisational performance is moderated by several factors (gender practices, organisational culture, decision-making quality), which have not yet been empirically studied. The purpose of this study is to investigate the presence of gender policies in sport governing bodies (SGBs) and examine their relationship with organisational performance. Research methods An online questionnaire was sent to representatives of German SGBs (n = 202). Structural equation modelling was used to examine the relationships between gender policies, gender practices (i.e. board gender diversity), organisational culture, decision-making quality, and organisational performance. Results and findings Gender policies are rarely present in German SGBs, and can only shape the organisational culture when they are connected to daily routines (in contrast to the simple presence of a written statement). Gender policies and practices are positively associated with decision-making quality and organisational performance. Implications The findings contribute to the literature by shedding light on the theoretical mechanisms (i.e. organisational culture, decision-making quality) through which group diversity affects organisational performance. Sport managers should connect gender policies to the daily work instead of simply including them in good governance guidelines, especially because they also benefit the organisation in terms of better performance. Politicians should consider mandatory regulations to make gender policies more effective.