Balancing governance, kaupapa Māori and commercial success

The Māori economy is growing at an extraordinary pace, reaching $126 billion in assets and contributing $32 billion to New Zealand’s GDP in 2023. With this growth, many iwi and Māori entities are establishing holding companies and asset management structures to oversee their resources and settlement funds. However, governing these entities requires a unique blend of commercial best practice, te ao Māori values and strong stakeholder engagement.

Māori directors sit at the intersection of tikanga Māori, social responsibility and commercial imperatives. Unlike traditional corporate boards, Māori governance demands a closer, more direct connection with shareholders – whānau, hapū and iwi.

Māori governance is fundamentally different from mainstream corporate models, where strategy often revolves around quarterly results or short-term market gains. Instead, Māori entities are guided by a multi-generational vision.

Wakatū Incorporation, a Māori-owned organisation managing land, seafood, and food and beverage assets on behalf of its whānau shareholders in Te Tauihu (top of the South Island), operates under a 500-year strategic plan, Te Pae Tawhiti.

Te Pae Tawhiti embodies a deeply intergenerational approach to governance, ensuring decisions made today uphold the legacy of taonga tuku iho (inherited treasures) for future generations. Rather than focusing on short-term financial gains, Wakatū’s governance model is designed to protect and enhance its whenua, resources and cultural identity over a 500-year horizon.

This long-term commitment reflects a broader trend in Māori governance, where strategic foresight and intergenerational responsibility take precedence over immediate returns. By embedding whānau-centric governance, Wakatū ensures economic success is balanced with cultural integrity and sustainable resource management, safeguarding prosperity for both current and future generations. This ensures governance decisions today are made with the well-being of future generations in mind.

Ngāti Whātua Ōrākei’s governance structure ensures strong leadership, strategic oversight and long-term sustainability for its people. At the heart of this model is the Ngāti Whātua Ōrākei Trust, which appoints highly skilled whānau and independent directors to govern its two subsidiaries – Whai Māia Limited and Whai Rawa Limited. Whai Māia drives social and cultural development, focusing on employment, education, health, arts and environmental stewardship. Whai Rawa, the iwi’s property development and investment arm, maximises financial returns to fund Whai Māia’s initiatives, ensuring a balance between economic growth and iwi well-being.

This model highlights how Māori governance structures can balance representation and cultural values with commercial oversight, embedding iwi aspirations into decision-making while enabling strong economic leadership.

For Māori directors, this intergenerational mindset is not just a cultural obligation, it is a strategic advantage. Long-term planning enables Māori entities to withstand economic volatility, manage risks proactively, and build enduring prosperity for their people.

A core focus of long-term planning is balancing financial performance with cultural, environmental, and social responsibilities. Māori directors must embed these priorities within governance structures by integrating kaupapa Māori values such as kaitiakitanga (guardianship), whanaungatanga (relationships and kinship), tikanga (customs and traditions), whakapapa (connection to history), manaakitanga (care and respect), and pono (integrity) into corporate decision-making. This approach ensures that investments not only generate financial returns but also enhance iwi well-being and uphold intergenerational sustainability.

With Māori commercial entities growing in scale and complexity, boards are increasingly seeking directors with strong governance experience, but not necessarily from within their iwi. Many iwi commercial arms appoint external directors to bring financial expertise and business acumen while maintaining a governance structure that reflects iwi priorities.

However, finding the right balance is key. Boards require directors with strong commercial skills, governance expertise, and competency in te ao Māori. The ability to navigate both corporate best practice and tikanga-based governance models is crucial for success.

Within iwi there is a strong ethos of volunteerism rooted in cultural values and communal responsibilities. This tradition emphasises collective ownership and intergenerational stewardship, guiding iwi to act in the best interests of both current members and future generations. While volunteerism is integral, iwi governance structures also recognise the importance of professional expertise in managing complex economic and social initiatives. This has led to the incorporation of paid directorships to ensure effective leadership and accountability.

Committed to long-term governance, Māori organisations place great importance on succession planning. The growing number of Māori in high-skilled employment (46 per cent) means there is a strong talent pipeline for governance roles. Many iwi-led organisations actively develop future directors through mentoring, governance training, and leadership pathways ensuring that future boards remain connected to whānau, hapū, and iwi aspirations.

As iwi businesses continue to thrive, by selecting skilled directors, fostering robust succession planning and embedding kaupapa Māori values in governance, Māori entities can build a legacy that balances commercial success with cultural integrity.