Between July and October, there were incidents involving players at various levels of the game - most notably the Chiefs' end-of-season celebration, which triggered a inquiry after a stripper claimed she was abused at the event.
Such adverse publicity highlighted the lack of diversity in the governance at all levels of the game and ramped up NZ Rugby chairman Brent Impey's desire to bring a woman on to the previously all-male board.
Palmer takes over from the long-serving Wayne Peters, who retired this week after a bout of ill health.
Listen: Farah Palmer talks to Newstalk ZB's Mike Hosking
"My hand has been itching to go up for a while but it hasn't because of where I was at in my life with my young family and also because I thought, if it was going to be a woman, there are lots of other women out there who have the potential to be great board members," Palmer said yesterday after attending her first board meeting. "I do see this as opening the door to encourage other women to put themselves forward for board positions at provincial and Super Rugby level.
"I wouldn't like to think that I will be the one and only representative of diversity on the board."
Recognised as one of the greatest Black Ferns of all time and one of the best women players in history, Palmer not only has a rich playing pedigree, she has also completed extensive rugby, business and leadership research in her capacity as a lecturer at Massey University.
Those qualities, combined with her passion for Maori rugby, particularly at the grassroots level, made her the standout candidate. "When the Maori seat became available because of Wayne's retirement that's when I did think that I could fulfil this role and be a good representative for Maori rugby, which is front and centre of my mind. I was also aware of the stakeholder feel that it was time to have a woman on the board.
"I am used to working in a male-dominated area in rugby. It is normal for me to be a minority but I would like to see more diversity. I think it is wonderful to see that New Zealand Rugby has acknowledged that it's more than time to do this. A lot of women around New Zealand and globally will be celebrating this."
Palmer says her longer-term goals are to encourage greater diversity in the governance of provincial rugby and to improve the overall health of Maori rugby, including the exploration of commercial and sponsorship opportunities.
Labour Associate Spokesperson for Sport and Recreation Louisa Wall said Palmer's appointment was a huge achievement for her, the game and women everywhere.
"I'm thrilled for Farah. She's a rugby great, a respected academic and a role model for all of us.
"There's no better qualified candidate who can be a strong voice advocating Maori rugby and for the interests of women on the board of our most important sporting organisation.
"I am incredibly proud of Farah and I'm sure her achievement will inspire other Black Ferns and women rugby players to seek roles in rugby and other sporting boards across the country."
She said it wouldn't "stop at this".
"One in seven rugby players are women. There needs to be far greater representation of women in governance positions across the game from provincial unions to NZR."
Judy McGregor, who in her former role as Equal Employment Opportunities Commissioner campaigned for the inclusion of women in sports governance, said the appointment was "fantastic news".
"There is no one better qualified as a former outstanding Black Fern captain and with professional development rugby management experience," said McGregor, who is now head of the School of Social Sciences and Public Policy at AUT.
"One of the last bastions of male chauvinism in New Zealand has finally been breached, four years after my campaign."
"Now the challenge for the NZRU is to move beyond tokenism to add to Farah on the NZRU so she is not the only woman, and to address why there are too few women on super rugby franchise boards and only about 2 per cent of females as directors of provincial rugby unions.
"Women in rugby governance will add value in significant ways with a diversity of perspectives and in addressing sexist cultures and behaviours."