How is Maori business different? Lake Taupo Funding Ltd. (2004). How is Maori business different? Retrieved September 02, 2008, from http://www.ltf.co.nz/about/maori-business.htm

What do we mean by a Maori business? Maori business is identifiably different to mainstream Pakeha business. Culturally, Maori have different inherent values and responsibilities which influence the way we live and ultimately conduct business. We interpret a Maori business to be a Maori-owned entity with multiple or collective ownership.

A key point of difference … is that the beneficial owners in a Maori business are there by inheritance or whakapapa and their equity interest or shares also denote their ‘tangata whenua’ status and turangawaewae of the beneficiary.

A collective focus as opposed to an individual focus Fundamental principles within Maori culture that are imbued in Maori business A collective focus as opposed to an individual focus People motivation over profit motivation Holistic or inclusive philosophy as opposed to one that is segregated or exclusive

In business the responsibilities of Maori are to: Protect the ‘taonga tuku iho’ for future generations Incorporate (or at least not compromise) tribal and hapu tikanga and other cultural values Assume some responsibility for socio-economic and cultural well-being of the beneficiaries

Underlying principles Underlying these is the obligation to achieve optimal and sustainable asset growth and financial returns for the beneficial owners.

Governance and management What makes Maori businesses extra challenging is the fact that the governing bodies are generally appointed by a political popular vote process, as opposed to a skills or experience-based selection.

Compliance To add to the mix a Maori-owned business is required to comply with the many governing legislations such as Te Ture Whenua Maori Act, Trustees Act, Companies Act, RMA and so on. The compliance requirement is not uncommon but in many cases, due to the relative infancy of the legislation, particularly those parts that have resulted from Treaty of Waitangi ratification, the clarity of Maori rights and obligations are not that clear.

Uniqueness The Maori business may also have a host of unique responsibilities specific to the Maori cultural and social value base which influence the way in which business is conducted, the level of expenditure and the way in which benefits are realised. Cultural Administrative Political and social

Summary A Maori business faces a myriad of responsibilities, and many of these responsibilities are related to our cultural heritage. The way in which a Maori business is conducted is underpinned by Maori cultural and social values and we are finding that Maori business ethics or protocols are starting to develop (not too dissimilar to the Japanese business culture).

Measuring success What is more perplexing to most is that the measurement of success, by many of the beneficial owners in a Maori business, is not necessarily by the equity value or net profit but more by the practical benefits reaching the owners.

Fundamentals common within successful Maori businesses. Long term goals Sustainable returns Risk adversity Diversification

These fundamentals are generally sustained with: Respected leadership in both cultural and business matters The beneficial owners having a sense of pride and identity with the business.