MAORI SUSTAINABLE DEVELOPMENT IN TE PUKU O TE IKA MODULE 2

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MAORI SUSTAINABLE DEVELOPMENT IN TE PUKU O TE
IKAMODULE 2

• DEPARTMENT OF ECONOMICS
• and the
• SCHOOL OF MAORI AND PACIFIC DEVELOPMENT

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OBJECTIVES

• Decision making models -group and single
• Systems thinking
• Values Frameworks-whats important to you?
• Governance in Maori institutions
• Direction and focus groups

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DECISION MAKING MODELS

• What is decision making
• Styles of Decision making
• Different models for different situations
• Group and individual decision making
• Values in decision making

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DECISION MAKING

• Decision-making is defined as the process in
  deciding between alternatives in relation to a
  set criteria for a particular purpose or to solve
  a problem. Firstly, this requires identifying and
  structuring values and objective for those issues
  that matter to the decision maker. This involves
  separating values into fundamental objectives and
  means objectives. Then different alternatives or
  strategies are analysed and measured using
  attributes against a set of specific criteria, to
  see whether the alternative is suitable to use or
  whether trade-offs need to be made between the
  various required criteria (Olsen, 1997).
• Barlow (1999) says there are six steps in
  decision-making
• Recognising the problem
• Establish evaluation criteria
• Identify alternative course of action
• Evaluate alternatives
• Select best alternative
• Implement choice

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Decision Making Style

• The way in which decisions are made is called the
  decision-making style. Decision making styles can
  be formal or informal, based on reason or not, or
  involve groups or just individuals (Clemens,
  1996).
• Decisions can be subjective or objective based on
  the credibility logic, which suggest that the
  highest quality data is ignored due to subjective
  analysis.

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Decision Making Style

• Informal decision-making occurs when decisions
  are based on intuition or a past solution to a
  similar decision situation.
• Formal decisions on the other hand, make
  elimination of alternatives based on best choice
  -worse choice alternatives, which correlates
  with the criteria set for making the decision.
• Decision analysis, can be used to rank
  objectives, criteria, attributes or alternatives
  according to best choice or worst choice by using
  ordinal or cardinal measures of preference
  (Clemens, 1996). Decision analysis is can be
  either multi-objective, multi-criteria, or
  multi-attribute.

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Group decision making

• Group decision-making can be formal or
  non-formal. The way in which decisions are made
  depends on the group dynamics, motivations of the
  group, existing knowledge, and the ability to
  generated ideas to solve problems.
• Group decision-making is the type in which
  various individuals combine together to solve a
  problem(s) requires the development of ideas for
  alternatives and criteria.
• Before analysing each alternative against a set
  criteria of wants or needs.
• Group decision-making is common in the planning
  processes.

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Characteristics of the decision-making environment
(Barlow, 1999)
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Different decision making models

• A model on the other hand is a representation
  of what happens in reality (Harper-Collins,
  1992). Models can be either deterministic,
  stochastic or non probabilistic, and based on
  quantitative or qualitative information (Barlow,
  1999). Models can be used to help make clarify
  decision problems and identify what would be the
  best course of action under different conditions
  of certainty, risk and uncertainty.
• Deterministic models describe behaviour on the
  basis of some physical law and are based on
  quantitative information and all variables are
  known.
• Stochastic (or probabilistic) models are based on
  quantitative and qualitative information. There
  all outcomes are known but the chances of
  happening is probabilistic. The decision-maker
  makes informed decisions. A time series is a
  sample outcome from a stochastic process.
  Non-probabilistic models are used when the
  uncontrollable variables are unknown and that the
  information is qualitative. These decisions are
  made under uncertainty (Barlow, 1999).

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SYSTEMS THINKING

• Systems thinking is about studying the bases on
  how systems works. We can model systems based on
  identifying processes, and influenctial variables
  and drivers.The modelling of a systems and the
  associated decision making process is called
  systems dynamics. The process of systems
  dynamic modelling is presented on the next page.
• Collection and types of information requirements
  needed.
• The modeller needs to have a good understanding
  of different ecological, social and economic
  systems to construct influence diagrams.
• Technical problems associated with models
• As with all models, the model is only as good as
  the information put in it. Models are a
  representation of what happens in reality and may
  incorporate inaccurate information.
• Socio-economic problems because of the non-linear
  positive feedback and shear size are simply not
  amenable to the rigorous mathematics of control.
• Advantages and disadvantages of the model
• Systems dynamic models help visualise problems
  holistically
• The software available is able to formulate
  equations and graphs.
• Able to incorporate biases and weighting factors
• The availability of commercially available
  software
• Ithink, cosmo, cosmic, dynamo, venison, Stella
• Learning needs for the modeller or decision maker
• To fully gain competence with the use of the
  programmes available.

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Systems Dynamic Modeling
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Decision Situation

• When decision-makers is faced with making
  important decisions there are several key issues
  that the person needs to consider.
• Sometimes a sequence of a series of decisions
  needs to be made. These are called sequential
  decisions (Figure 2.1). Decisions that are made
  now will have an impact on what will happen in
  the future. Many important decisions have to be
  made without knowing exactly what will happen in
  the future or exactly what the ultimate outcome
  will be from a decision made today (Clemens,
  1996).
• Many different uncertain events may occur in a
  decision situation but only some are relevant,
  and these need to be identified before hand. If
  the decision situation contains many uncertain
  events, or some uncertain events are dependant on
  other uncertain events, and complicates the
  decision making process.

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Decision Situation

• Clemens (1996) says that if there are many
  uncertain decisions that occur between decisions
  there may be a natural order to the uncertain
  events or there may be not. The time sequence of
  the decisions is important, along with the
  information available. Clemens (1996) also say
  that uncertain events proceed a dovetail will a
  sequence of decision. An arrow from a group of
  uncertain events to a decision indicated that the
  outcomes of those events are known at the time
  the decision is made.
• After the last decision has been made and the
  last uncertain event has been resolves the
  decision makers fate is finally determined. This
  is called consequence or outcome.

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Influence Diagrams

• Influence diagrams (Figure 2.2) is mentioned in
  Clemens (1996) and Coyle (1995) as a way for
  structuring decisions problems. System dynamic
  modelling uses influence diagrams to add feed
  back loops which are more realistic in terms of
  what happens in reality.

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Decision Trees

• Decision trees are mainly used in Multi attribute
  utility theory, scenario planning, and simulation
  models to analyse an undertake uncertainty and
  risk decisions through lotteries (Mollaghasemi
  and Pet Edwards, 1997). The decision tree
  graphically portrays the decision problem and the
  set of alternative solutions or outcome at the
  end of the branches of the tree along with
  expected values for that consequence/outcome
  (shown by the dark blue box). Each branch
  represents an alternative uncertainty in which
  represents the probability of the outcome or
  alternative succeeding where the branches meet
  are the nodes for uncertain events (light blues
  circles). While the decision is made at the green
  box. (Figure 2.3).
• Decision trees are useful in the sense that they
  incorporate uncertainty, but the are restricted
  in that every consequence is measured in monetary
  terms, ignoring environmental or social costs. In
  addition, because of the linearity of the model
  re occurring variables or feedbacks are difficult
  to add in. In practicality, they should be used
  in combination with other decision-making models
  or tools

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Objectives Heirarchies

• Analysis of problems with multiple criteria or
  objectives require stages of identifying
  objectives arranging their objectives into a
  hierarchy and then measuring the performance of
  available alternatives on each criterion.
• The simplest hierarchy would involve value as an
  objective with available alternatives branching
  from this value node. Hierarchies generally
  involve additional layers of objectives when the
  number of branches exceeds some acceptable value.
  Describes possible consequences in order to
  provide a sound basis for value judgements about
  the desirability of objective attainment levels.
• Individuals need to consider fundamental value
  function trading-off profit and other
  consideration.
• Alternatives are located on the bottom of the
  hierarchy, are measured against all objectives
  and criteria immediately superior if an all
  objectives immediately superior to them on the
  hierarchy. If an alternatives performance on an
  objective is not measurable then drop objective.
  Attributes are used to measure the performance of
  alternatives. There are three types of
  attributes, natural, co-structured, and proxy
  (Box 2.1). Value judgements are required for
  fundamental and means objectives (Olsen, 1997).
• Clemens (1996) suggests that objectives hierarchy
  and decision trees may be combined together in
  multiples objectives problems to prioritise
  different alternatives.

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MAUTMulti Attribute Utility Theory

• The type of problems that need to be solved
• Need to know what alternatives are available the
  expected return and the probability of success.
• Collection and types of information requirements
  needed.
• Requires modelling decision, uncertainty/risk,
  and preferences/outcomes by the decision maker
• Technical problems associated with models
• Requires linear structuring of problem with
  decision trees, which can limit uncertainty to
  economic gains/losses and not environmental or
  social.
• Advantages and disadvantages of the model
• Only decision model to incorporate uncertainty
  into it
• Values of weights wk are related to the values of
  single dimensions utility sjk. Hence the SMARTS
  program model was developed. This program uses
  swing weights to change the score of some object
  of evaluation of some duration.
• A later model, SMARTER program model, uses rank
  order to estimate the set of weights minmax
  error by identifying the centriod of all
  possible weights maintaining rank order of
  objectives importance. It replaces obtaining
  judgement weights with a calculator, and is base
  on output of the first step with ordinal
  approximations (Olsen, 1997).
• The availability of commercially available
  software
• First Choice, SMART, SMARTS, and SMARTER
• Learning needs for the modeller or decision maker
• Requires an understanding of stochastic models,
  simulations and scenario building.

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ANALYTICAL Heirarchy Process

• An alternative to the objectives hierarchy shown
  in Figures 2.4 is Saatys objectives hierarchy
  called the Analytical Hierarchy Process model
  (Figure 2.5). Which places alternatives on the
  second level under the objectives and places the
  attributes at the bottom of the hierarchy
  (Mollaghasemi and Pet Edwards, 1997).

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AHP Summary

• The type of problems that need to be solved
• Multicriteria and multi attribute preferences,
  but not estimation of utility
• Collection and types of information requirements
  needed.
• Requires a lot of interaction between the analyst
  and the decision-makers to find the
  decision-makers preferences.
• Technical problems associated with models
• Requires a large use of linear programming
  mathematics.
• Advantages and disadvantages of the model
• Has problems with rank reversal happening when
  changing variables in sensitivity analysis
• Does not take into account uncertainty.
• Requires incremental analysis in the pair wise
  comparisons to prevent the wrong conclusions
  being made.
• Also because the method uses pair wise
  comparison, it can only make preferences between
  2 alternatives at the same time.
• Able to include group decision-making in to the
  model.
• The modeller must formulate the relevant
  questions relating to pair-wise comparison of
  preferences to the decision-maker and that the
  alternatives, criteria, or attributes are
  compensatory in nature when used in the pair wise
  comparison interviews.
• Very time consuming especially when interaction
  needs to occur with other people
• The availability of commercially available
  software.
• Expert Choice is commercially available for
  making decision models. Model can be linked to
  excel and visual basics software.
• Learning needs for the modeller or decision maker
• AHP is very easy to learn

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Geometric Mean Technique-GMT

• The type of problems that need to be solved
• The GMT method is an extension to the AHP method,
  and helps correct the problems associated with
  AHP. The GMT method helps to analyse preference
  data and to model the information.
• Collection and types of information requirements
  needed.
• Requires the use of par wise comparison
  interviews to gain insight into the preferences
  of the decision-maker.
• Technical problems associated with models
• There are no technical problems known as to this
  date.
• Advantages and disadvantages of the model
• GMT has the advantage that it prevents rank
  reversal occurring.
• Also is an added cost to the decision making
  process, but if the decisions being made are
  quite important then it may be useful to obtain a
  copy.
• The availability of commercially available
  software
• REMBRANDT software is commercially available as
  an additional program to AHPs Expert Choice.
• Learning needs for the modeller or decision maker
• The decision maker would need to have a
  reasonable understanding of linear programming
  mathematics to complete this program.

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Preference Cones

• The type of problems that need to be solved
• Preference cones can be used to in ranking
  alternatives, in port folio management,
  investment, environmental and social issues.
• Collection and types of information requirements
  needed.
• Similar to AHP method the Preference cones method
  asks decision-makers whether a trade-off is
  desirable or not.
• Technical problems associated with models
• A possible concern is that when the decision
  maker is uncertain about which choice is
  preferred the impact selecting one of the other
  alternative can be quite drastic with the cone
  possible eliminated a number of remaining
  alternatives based on an uncertain choice.
• Because linear programming is associated with
  decision models that have a known outcome, when a
  decision is made on an uncertain choice
  alternative the model could be wrong.
• Advantages and disadvantages of the model
• The preference cone model has the advantage that
  it is able to eliminate large amounts of
  alternatives into a smaller set of alternatives
  for re selection.
• Non-dominated solutions is gauranteed
• Assumptions are non restrictive.
• The availability of commercially available
  software
• It is unknown from this literature review if
  there are any commercially available software
  available for preference cones. But because
  simple linear programming is used it is likely
  that Excel and be used to model the preferences
  using the method.
• Learning needs for the modeller or decision maker
• Preference Cones method is easy to learn but the
  interaction of the decision maker to the problems
  increases with size.

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Outranking Methods

• The type of problems that need to be solved
• Outranking methods are used to reduces the number
  of alternatives solutions to a smaller number and
  to rank the subset selected to a small specific
  set of criteria.
• Collection and types of information requirements
  needed.
• Information requires that weightings and values
  are placed into the model, also information about
  criteria.
• Technical problems associated with models
• The model is limited as to the amount of criteria
  that the alternatives can be ranked with.
• If the alternatives require different criteria
  for ranking each of them with then this will
  cause error.
• Advantages and disadvantages of the model
• The models are simplistic in nature and hence
  tend to be limited in that they do not
  incorporated a large amount of preferences or
  criteria.
• However the model is simple to use and can be
  used to form simple matrices and ranks the
• The assumptions are non restrictive .
• Decision making preferences structure is captured
  as a partial ordering.
• The availability of commercially available
  software
• Several outranking models exist including Electre
  1,2,3,4,5, Promethee,1,2, Gaia Output
• Learning needs for the modeller or decision maker
• The models are quite simple to use and can be
  learned in a short

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Types of Information required for different
Decision Making Models
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Decision Making Sub Models for Environment,
Social, Economics, Culture

• Economic Models
• Investment Decisions (Capital Budgeting)
• Investment decisions (also called capital
  budgeting) is the allocation and reallocation of
  capital and resource to projects and products
  assets and division of an organisations.
• Finance Decisions
• Financing decisions are concerned deterring the
  best capital structure for the firm and includes
  examining various methods by which the firm can
  raise capital (eg, issuing stock, increasing
  debt, selling assets or combination). Short and
  long term decisions must be considered for the
  working capital. Financial ratios are the most
  widely used method for determine an organisation
  strengths and weakness in investment, financing
  and dividend. Financial ratios can signal
  strengths and weakness in management, marketing,
  production, research and development, and
  computer information. The key ratios are debt to
  equity, and debt to total asset ratio (David,
  1995).
• Financial ratios are important in business
  because they will indicate the level of financial
  risk involved with an investment. However, not
  all risk is reported, and companies may have
  different accounting systems making it difficult
  to make comparisons.
• Dividend Decisions
• Dividend decisions are concerned with the
  earnings paid to stockholders the stability of
  dividend paid over time and the repurchasing or
  issuing of stock (David, 1995)

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Financial Ratios

• __________________________________________________
  _________________
• Financial ratios are divided up into six types
• 1.    Industry ratios
• 2.   Growth ratios- sales, price-earning ratio,
  dividend per share, income, earnings per share
• 3.    Leverage ratio- debt to total asset, debt
  to equity, long term debt to equity, Time-
  interest earned ration
• 4.   Activity ratios- inventory turnout, fixed
  asset turnover, account receivable turnover,
  average collection
• 5.    Profitability ratios- gross profit margin,
  return on stockholder equity, operation profit
  margin, net profit margin, return on total
  assets, earning per share.
• 6.     Liquidity ratios- current, and quick
• __________________________________________________
  ________
• (Source David, 1995)
• Rivett (1972) said that cashflows can be at any
  one time positive or negative. A positive flow of
  cash means cash is being returned to us from the
  investment and a negative flow of cash means that
  at that moment money is flowing out from us to
  the investment.
• The number expresses the attractiveness of the
  flow of cash. There are four such single numbers
  that are commonly used
• Average rate of returning- estimates the rate at
  which the investment is yielding money to use in
  terms of its initial cash input.
• Payback period is the time that elapses between
  making the decision and receiving back the amount
  of the investment. We may look at the time at
  which money is returned.
• The present worth criterion discounts future
  returned of cash, it does this by assuming a rate
  of interest which can be earned by the money
  which is yielding form an investment once we have
  got it back (called Present Value).
•  
• Present value PV ?ai/(1r)i
• ( Equation 17)

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Environmental Decision making Models

• Environmental Impact Assessments aid
  decision-making by looking at the impacts of
  certain developments, projects or policies on the
  environment.
• Environmental Impact Assessment (EIA) can be used
  in town, environmental, or project planning, but
  also in selecting the viability of development
  projects or business investments (for example
  life cycle assessments). An EIA can be used to
  identify impacts from various alternative
  developments of proposals, and look at what can
  be done to mitigate the impacts of various
  alternatives.
• Overlay maps can be used in respect to spatial
  analysis through spatial decision support systems
  (such as Geographic Information Systems) to
  display information and assist in decision making
  by helping a decision maker to visually
  understand the problems that the decision maker
  is faced with. Overlays are a common tool in
  planning and for quickly identifying decision
  problems.
• Overlays can be transparencies or computer
  generated map layers on a geographical
  information system, and also can be used in
  forming plans for areas that are to have zones
  for land use capability, vegetation, population,
  geology, water resources, and infrastructure.
  Proposed developments can be analysed to is
  suitability for the receiving environment if the
  natural resources have been clearly demarcated.
  For some decision-makers overlays can be a useful
  tool to convey information visually.
• Associated with and EIA will be a cost-benefit
  analysis that will convert all the impacts of the
  project or business into monetary terms.
• Ecological population models come in three forms
  exponential, logistic, and discrete time
  analogues (Sharov, 1997). Generally a population
  models uses information from initial population
  size, birth rate, death rate, longevity, and the
  percentage of males to females to for a fair
  understanding about future population sizes and
  population dynamics. Geographical information
  systems (GIS) can use statistical data formed
  from a census to spatially track the dispersal of
  humans over time and to analyse the position of
  new customers, markets, and distribution routes
  (ESRI, 2001). GIS systems also can be used to
  identify the iwi population/group clusters that
  may require additional help in certain
  geographical areas. The United Nations (1996)
  have developed a computer based information and
  decision support system called PopMap to help
  governments and non government organisations for
  planning purposes.

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Social Decision Making Models

• Social Impact Assessment
• Social Impact Assessments are used to determine
  the impact of a development, project or policy on
  a group of people. The World Bank and the United
  Nations use social impact assessments when
  developments are controversial, significant, or
  have a huge impact on society. A social impact
  may analyse information regarding population
  demographics, relationships, governance,
  politics, culture, norms, beliefs, values,
  health, education, history, and customs. Social
  Impact may cover issues to do with environmental
  and social justice, social responsibility,
  resettlement policies, environmental/social
  refugees, and to look at the intergenerational
  effects of certain proposals and policies.
• Stakeholder Analysis
• Freeman (1984) describes stakeholders as any
  group or individual who can affect or is affected
  by the organizations objectives. The
  organization shows notions of caring for
  stakeholders by asking them what they can do to
  help to keep the organization from harming them,
  so the organization can keep their contract or
  proposed invested project (Burton and Dunn,
  1996). Stakeholder Analysis essentially
  identifies they stakeholders (who will affect the
  organizations objectives) and what they want, For
  some academics, the stakeholder theory is flawed
  with differences of power between the dominating
  party( ie. the government, agency, or government)
  and the stakeholder ( eg. the people who will be
  affected by the development). These differences
  in power is to a point where decision making is
  biased towards the dominating party, because they
  construct the rules on how decisions are made and
  who makes them. The dominating party will decide
  who will be selected from a range of stakeholders
  to attend a forum for discussions on the issues.
  At the forum, communications will be carefully
  managed to allow more time for the dominating
  power to use a range of persuasion techniques to
  influence the stakeholders.
• Participatory Planning (see later)

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Cultural Decision Making Models

• Cultural standards and norms on what is
  acceptable or unacceptable behavior or conduct.
• Prioritization based on values and ethics
• Cultural Audits and Accounting
• Values Frameworks using objectives hierarchies
• Systems Dynamics- interelationships
• Contingent Valuation of Culture
• The value culture brings in to economy in
  relation to tourism, product and service
  knowledge, technology, communication
• Value in Social Cohesion and costs in family
  breakdown.

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DIRECTION AND FOCUS GROUPS

• Participartory Planning
• Participatory planning relates to planning that
  involves the community in the planning process.
  Resource management organizations have been using
  this process to operate because few agencies
  funded unless they contain substantial components
  of community involvement in planning, design and
  implementation. Participatory planning has been
  used in health, nutrition, poverty and livelihood
  development programs. Where these participatory
  initiatives have worked it is because individual
  communities and groups have shown the benefits of
  working collaboratively, and developed a
  collective vision and learning and adapting their
  management practices together. The process uses
  the concepts of "learning by doing" or "adaptive
  management", and have been fairly widely accepted
  in environmental management situations for nearly
  20 years.
• Focus groups
• Focus groups are a small reference group used to
  identify view points, potential trends, and
  gather information for research.
• Focus groups are selected based on the population
  to be studied and according to a scientifically
  valid selection process.
• Stakeholder analysis
• Stakeholder analysis was mentioned earlier. The
  next page will outline how to undertake a
  stakeholder analysis

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Stakeholder Analysis-A type of risk management

• Identify and define the characteristics of key
  stakeholders.
• Draw out the interests of stakeholders in
  relation to the problems that the project is
  seeking to address (at the identification stage)
  or the purpose of the project (once it has
  started) and determine what motivates them.
• Identify conflicts of interests between
  stakeholders, to help manage such relationships
  during the course of the project
• Help to identify relations between stakeholders
  that may enable "coalitions" of project
  sponsorship, ownership and cooperation
• Assess the capacity of different stakeholders and
  stakeholder groups to participate
• Help to assess the appropriate type of
  participation by different stakeholders, at
  successive stages of the project cycle, e.g.
  inform, consult, partnership -- all of these have
  different possible models.
• Table Matrix for Stakeholders Analysis

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VALUES FRAMEWORKS

• Ontology or world view
• Identifying values, values in culture
• Objectives hierarchy
• Objectives, criteria, attributes
• Prioritisation
• Encroachment of other peoples values

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Values in Decision Making

• Values and decision constantly go hand in hand.
  Value judgements influence the outcome of a
  decision or frame what constitutes desirable or
  undesirable criteria (for example, a company may
  value profit and structure all the day-to-day
  decisions in order to reach a profit. Maori may
  value cultural identity and make decisions that
  will enhance cultural identity). Values form
  ethics or a code of behaviour, which can frame
  value frameworks (eg. laws, business ethics,
  bible, CERES-Valdeze Principles etc.).

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VALUES FRAMEWORK
MAORI SUSTAINABLE DEVLEOPMENT Te Ao MaoriTe
AoturoaWairuatanga RangitiratangaTikanga
MaoriKotahitanga
ENVIRONMENTAL STABILITY
SOCIAL STABILITY
ECONOMIC STABILITY
CULTURE
Criteria
Criteria
Performance
Criteria
Performance
Criteria
Performance
Performance
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GOVERNANCE for Sustainable

• Identifying types of governance structures
• Maori TB, Incorporations, Land based Trusts,
  Companies
• Identifying institutional barriers
• Identifying values and direction
• Values framework for decision making
• Must pan over many governance structures and
  assist with decision making

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GOVERNANCE for Sustainable Development
Pan Tribal Economy
Upoko Forum Leaders from each institution To
consult on issues that need addressing
Tribal Economy
MTB
Company
Land based Trust
Land based Trust
Sustainable Development Company/Trust or
Department Action Team-assisting in skills in
Sustainable technical knowledge to trusts, MTB,
companies, organisations- Can in fact be a
department within the Maori Trust Board or Runanga
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Typical Structure for a Sustainable Development
Company/Trust/Department
Sustainable Development Manager
Communications -Environmental Cultural
Education document design -Environmental and
Cultural Marketing -Quadruple bottom line
Reporting -External relations and Governance
Advising -Corporate Social Responsibility
Policy and Finance -Treaty Issues -Planning -Polic
y Analysis -Values integrity -Environmental,Cultur
al, Social, and Financial Accounting
People Department -Beneficiary Database, census,
and voting -Education and Te Reo
Development -Co-operative Education
/Apprenticeship/voluntary placements
advice -Social Need-housing, health, education,
and social services
Sustainable Business Development -Environmental
and cultural education to businesses and
trusts -Social Enterprise -Networking -Co
Management, cooperatives, and partnership
development
Sustainable Consumption -Resource monitoring for
iwi -Advice on environmental and cultural
procurement -Advice on tribal and environmental
marketing
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Organisational Learning for Sustainable
Development

• Make information readily available through email,
  newsletters, notice boards etc
• Encourage staff and beneficiary input on ways to
  make the Trust Board and iwi more sustainable
• Resource monitoring, learning, business
  development, volunteering etc can be for both
  young and old.
• Reward good ideas and achievement with praise.
• Make learning fun for both staff and beneficiaries

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HISTORICAL GOVERNANCE IN MAORI INSTITUTIONS

• Traditional versus Modern
• Legislation history
• Capital flows in Maori institutions
• Leadership

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Legislative History

• The Treaty of Waitangi of 1840
• "Her Majesty the Queen of England confirms and
  guarantees to the Chiefs and Tribes of New
  Zealand to the respective families and
  individuals thereof the full exclusive and
  undisturbed possession of their Lands and Estates
  Forests Fisheries and other properties which they
  may collectively or individually possess so long
  as it is their wish and desire to retain the same
  in their possession "

40
Legislative History

• New Zealand Settlement Act
• Suppression of Rebellion Act
• Native Land Act of 1865
• Maori Social and Economic Advancement Act of 1945
  
• Maori Trustee Act 1953
• Maori Affairs Act 1953
• Maori Trust Boards Act 1955
• Maori Community Development Act
• Runanga a Iwi Act 1990
• Te Ture Whenua Maori Act 1993
• Maori Purposes Bill 1999
• Te Ture Whenua Maori Amendment Bill 1999
• The Companies Act
• The Incorporated Societies Act
• The Charitable Trusts Act
• The Trust Act

41
Issues surrounding governance in New Zealand
42
(No Transcript)
43
Capital Flows in Maori Institutions

• Government legislation has affected the flow of
  capital (economic, social, environmental,
  cultural) in Maori Institutions through either
  one of these process
• Double taxation resulting in loss of economic
  wealth
• Removal of powers affecting the the decision
  making capacity over resources owned by iwi
• Removal of iwi from their land through
  privatisation, urbanisation, and perpetual leases
  resulting in a major loss of economic, social,
  environmental, and cultural capital
• Read
• Iremonger, C. (2001) Governance and Management
  of Maori Institutions.

44
Leadership

• Leadership is required for implementing
• Sustainable development policies
• Encouraging staff and beneficiaries to partake in
  their own sustainable development
• Knowledge transfer to staff and beneficiaries on
  particular skills such as
• Census monitoring
• Resource inventory monitoring
• Business and market monitoring
• Sustainable development practice

45
Iwi Leadership and Decision making

• Maori tend to make decisions based on a team or
  group situations.
• Decisions can also be made by kuia and kaumatua
  head of a whanau group on smaller house keeping
  issues.
• Group decision-making can be influenced by group
  dynamics, persuassion techniques, and group
  voting rules.
• IVM Model
• On the IVM model decision making can be made
  democratically and allow for group decision
  making, or through representatives of the
  beneficiary (ie Trustees) who are statutory
  responsible.
• This can be done through pairwise questionaires
  on the criterion questions or the model in order
  for weightings to be calculated.

46
What makes a good leader?

• Leaders are the charismatic, big-picture
  visionaries, the ones who change the whole ant
  farm
• Communication is the real work of leadership
• Take complete responsibility if something goes
  wrong.
• Leaders are pragmatists who can deal with
  difficult realities but still have the optimism
  and courage to act.
• Effective leaders help others to understand the
  necessity of change and to accept a common vision
  of the desired outcome.
• Empowerment is also vital to managing the change
  process
• Leaders design good systems of reporting, hire
  the right people, and put together the proper
  multidisciplinary advisory groups.
• Hoarding knowledge ultimately erodes your power.
• The people in power are the people who are
  constantly able to discover new and relevant
  knowledge, which is really tied to the capacity
  to learn,
• Importance of creativity in leadership
• The ability to recognize and make the most of new
  opportunities is highly prized
• Many people have the potential for leadership,
  but they havent developed it.
• Leaders are people who do the right thing
  managers are people who do things right.

47
Specific characteristics of leadership

• VISION - being able to articulate the future in
  clear simple language
• Next the leader should be able to FOCUS. There
  are always distractions and personality conflicts
  but leaders should be able to see beyond them to
  what it will take to get the job done
  effectively.
• Leaders must be willing to take RISKS and learn
  from their successes and failures.
• You must be TRUSTWORTHY. No-one will follow with
  enthusiasm a dishonest or unscrupulous leader.
  Don't play favorites or act hypocritically your
  staff will be the first to notice.
• You must be able to EMPOWER others with the
  ability to help themselves. Teach people how to
  accomplish a task - don't do it for them (even if
  you can do it faster or better, you don't have
  the time to do everyone's job). Part of the
  empowerment process in an organization is to
  ensure that you listen to everyone's suggestions,
  incorporate ideas as needed and give credit to
  those who deserve recognition. Learning to give
  positive feedback is crucial!
• You must learn what MOTIVATES people and then act
  accordingly. Praise (tell folks they've done a
  job well - it is hard to overdo this one!),
  appreciation (a simple "thank you" regularly will
  earn you respect), recognition (awards, credit on
  a report, a letter of commendation), or the truth
  about problems (being clear about consequences)
  are all motivators.
• And finally, but certainly not last - it helps to
  have a sense of HUMOR. The ability to laugh at
  oneself is the easiest way to bring others along
  with you. Humor is a great tension breaker and,
  while inappropriate if used too often or to
  belittle someone, humor shows that

48
Succession Planning of Leaders

• Leaders lives are finite
• New leaders must be developed to succeed old
  leaders in various fields of expertise
• This is done through succession planning
• It is a good idea to train more new leaders than
  what is required, as some may lose interest, or
  endure mortality.
• The numbers of leaders trained will depend on
  current leadership life span, the number of
  births in the last 5 year cohort, plus a
  mortality rate for those who fall away from
  training.
• Mentoring is a good practice

49
Socially Responsible Investment .Fiduciary
Issues for Maori Trustees

• Purpose and objects
• Duties of trustees
• Duties relating to investment
• Features of different types of trusts relevant to
  investment powers
• Cases relevant to SRI investment
• Other observations
• Practical guidance for trustees

50
To what extent can trustees take SRI
considerations into account?

• Purpose and objects of the trust
• Trustee duties
• Investment duties
• Preserve capital
• Increase real value of trust fund
• Prudent person considerations
• Process is critical.
• Trustees must
• Comply with their duties
• Can only exercise their powers
• in accordance with the objects and purposes of
  the trust.

51
Maori Trust Board Act 1955

• 24. Functions of Board---
• (1) The functions of each Board shall be to
  administer its assets in accordance with the
  provisions of this Act for the general benefit of
  its beneficiaries, and, for that purpose, a Board
  may, in its discretion, provide money for the
  benefit or advancement in life of any specific
  beneficiary, or of any class or classes of
  beneficiaries.

52
Cont

• (2). Without limiting the general provisions
  hereinbefore contained, it is hereby declared
  that each Board may, from time to time, subject
  to the provisions of this Act, apply money
  towards all or any of the following purposes
• (a) The promotion of health
• (b)The promotion of social and economic welfare
• (c) The promotion of education and vocational
  training
• (d) Such other or additional purposes as the
  Board from time to time determines.

53
Cont

• (3) Nothing in this section shall be deemed to
  preclude any Board from applying money for the
  general benefit of a group or class of persons,
  notwithstanding that the group or class of
  persons includes persons other than
  beneficiaries but no grant or loan shall be made
  to any individual for his exclusive benefit
  unless he is a beneficiary.

54
Additional grants and payments by Boards

• 24A. Additional grants and payments by
  Boards---Any Board may from time to time, in its
  discretion--- (a) Make grants to the Maori
  Education Foundation established by the Maori
  Education Foundation Act 1961 (b) Make payments,
  not exceeding in the aggregate the sum of
  400 in any financial year, for any purposes
  not otherwise specifically authorised by this
  Act,--- whether or not any such grants or
  payments are of a direct or indirect benefit to
  the beneficiaries of the Board, or any of them.

55
Trusts for charitable purposes

• 24B. Trusts for charitable purposes---
• (1) Any Board may from time to time, in its
  discretion, execute under its seal a declaration
  of trust declaring that it shall stand possessed
  of any of its property, whether real or personal,
  upon trust for charitable purposes.
• (2) Any income derived by the Board from any
  property to which the declaration relates shall
  be applied for such purposes referred to in
  section 24 or section 24A of this Act as may be
  specified in the declaration of trust and, for
  the purposes of the Income Tax Act 1976, any
  such income shall be deemed to be income derived
  by trustees in trust for charitable purposes.
• (3) No declaration of trust under this section
  shall have any force or effect unless it has been
  approved by the Commissioner of Inland Revenue.

56
Loans by Board

• Loans by Board---In any case where a Board grants
  a loan to any person, it shall take such security
  and fix such terms and conditions in respect of
  the loan, and for the repayment of the principal
  sum and for the payment of interest thereon, as
  the Board decides at the time of the granting of
  the loan.

57
Boards may make trustee investments

• 25A. Boards may make trustee investments---Any
  Board may from time to time, in its discretion,
  invest any of its funds not required for other
  purposes in any securities in which trust funds
  may be invested by trustees in accordance with
  the Trustee Act 1956. This section was inserted
  by s. 19 (2) of the Maori Purposes Act 1961.

58
Power to acquire lands and to farm

• 26. Power to acquire lands and to farm---
• (1) Each Board, with the prior consent of the
  Minister, may acquire any land or any interest in
  land, whether by way of purchase, lease, or
  otherwise, and, with the same prior consent, may
  sell, lease, sublease, or otherwise dispose of
  any such land or interest.
• (2) Each Board may
• (a) Occupy and manage any land acquired under
  this section for farming, reclamation, or other
  purposes, or may permit any person to occupy any
  such land, whether for the purpose of farming or
  reclamation or for any other purpose
• (b) Make any such land available for common use
  by Maoris for any purpose, or use it for the
  physical, social, moral, or pecuniary benefit of
  Maoris or for any purpose having for its object
  the benefit, betterment, or welfare of Maoris or
  the promotion of any tribal or communal object.
• (3) For the purpose of farming any land acquired
  under this section, each Board may, from time to
  time, purchase or otherwise acquire such stock,
  implements, and chattels as it deems necessary
  and may sell or otherwise dispose of all or any
  stock, crops, produce, or chattels grown or held
  in the course of farming and for the purpose of
  any such farming business may, from time to time,
  raise such money as it deems necessary on the
  security of any of its stock, crops, produce, or
  chattels.

59
Cont.

• (4) A Board may appoint an agent to exercise on
  its behalf the powers conferred on it by
  paragraph (a) of subsection (2) of this section
  to occupy and manage land for farming,
  reclamation, or other purposes, and the Board may
  authorise any such agent-
• (a) To exercise such of the powers of the Board
  as the Board may from time to time in writing
  direct and
• ( b) To receive, notwithstanding anything to the
  contrary in this or any other Act, money
  otherwise payable to the Board into an account
  kept by the agent, and, without further
  authority, to disburse any such money in the
  course of and for the purposes of the operations
  conducted by the agent.
• (5) Without limiting the authority of a Board to
  appoint an agent, it is hereby declared that the
  Board may, with the consent of the Marginal Lands
  Board established under the Marginal Lands Act
  1950, appoint that Board as its agent, and the
  Marginal Lands Board if so appointed---
• (a) May, in the performance of its functions as
  agent of a Board, exercise the same powers of
  delegation as are conferred on it by section 6 of
  the Marginal Lands Act 1950 in respect of its
  functions under that Act, and the provisions of
  that section shall, with the necessary
  modifications, apply accordingly
• (b) May direct any officer or officers to whom it
  has delegated any powers under paragraph (a)
  hereof to establish a separate banking account at
  any trading bank for the purposes of such
  operations as are conducted by it as agent of a
  Board.
• Subss. (4) and (5) were added by s. 20 (1) of the
  Maori Purposes Act 1961. An undivided freehold
  interest in Maori freehold land may be
  transferred to a Maori Trust Board by a vesting
  order under s. 213 of the Maori Affairs Act 1953.
  See s. 213 (1) (d) of that Act.

60
Power to borrow money and guarantee loans

• 27. Power to borrow money and guarantee
  loans---With the prior consent in writing of the
  Minister and for any of the purposes of this Act,
  each Board may, from time to time,--- (a) Borrow
  money from any bank, person, or body corporate on
  the security of a mortgage of or charge upon any
  lands vested in the Board, or a charge upon any
  money payable to the Board (b) Guarantee to Her
  Majesty the Queen or to any other person or body
  corporate the repayment of any principal sum or
  interest thereon by any person.

61
Accounts

• 28. Bank accounts---(1) Subject to any express
  provisions in this or any other enactment, all
  money belonging to each Board shall, within 14
  days of receipt, be paid into an account at such
  bank as may from time to time be approved by the
  Minister, to be called The Name of Board
  Maori Trust Board Account''. (2) No money shall
  be withdrawn from a Maori Trust Board Account
  except with the authority of the Board and by
  cheque or other instrument signed by 2 members
  or by one member and the Secretary Provided that
  nothing in this section shall be construed to
  limit the exercise by the Minister of the powers
  conferred on him by section 29 of this Act as to
  the appointment of countersigning officers.

62
Minister may authorise countersigning officer

• 29. Minister may authorise countersigning
  officer
• (1) The Minister may at any time authorise in
  respect of any Board, any person to countersign
  cheques or other instruments drawn on the bank
  account of the Board, and in any such case the
  Minister shall give notice in writing of the
  authorisation to the bank at which the account is
  kept.
• (2) Upon receipt by the bank concerned of a
  notice under subsection (1) of this section of
  the authorisation of any person in respect of a
  Board, no money shall be paid out of the Board
  account except by cheques or other instruments
  countersigned by the person so authorised.
• (3) Where it appears to the Minister that there
  is some irregularity in the administration of the
  affairs of a Board, he may direct any person
  authorised in respect of the Board not to
  countersign any cheque or other instrument or
  class of cheques or other instruments until
  further notice.
• (4) Any such direction shall be binding on the
  person to whom it is given until modified or
  revoked by the Minister who shall revoke the
  direction when the irregularity is remedied or
  explained to his satisfaction.

63
Books of account

• 30. Books of account---(1) Each Board shall cause
  full and accurate accounts to be kept of all
  money received and paid by it. (2) Any member or
  any duly authorised officer of a Board, or any
  person duly authorised in that behalf by the
  Minister, or any beneficiary, may at all
  reasonable times inspect the books of the Board
  and take copies of or extracts from them free of
  charge.

64
Yearly statements of account and report

• 31. Yearly statements of account and report---
• (1) At the close of each financial year, each
  Board shall cause to be prepared and sent to the
  Audit Office a balance sheet showing the assets
  and liabilities of the Board, an account of its
  income and expenditure, and a statement of
  receipts and payments, together with such other
  statements of account as may be necessary to show
  fully the financial position of the Board and its
  financial operations during that year.
• (2) The balance sheet, accounts, and statements
  shall be audited by the Audit Office, which for
  that purpose shall have and may exercise all such
  powers as it has under the Public Finance Act
  1977 in respect of public money and public
  stores and the audit of local authorities'
  accounts.
• (3) The balance sheet, accounts, and statements,
  when certified shall be transmitted by the Audit
  Office to the Minister and the Minister shall
  forward them, with such comments as he thinks
  necessary, to the Board.
• (4) The financial year of each Board shall end
  on the 31st day of March in each year Provided
  that the Minister may from time to time in
  respect of any Board fix a financial year ending
  on some other date.
• http//rangi.knowledge-basket.co.nz/gpacts/reprint
  /text/1955/an/037.html

65
Te Ture Whenua Maori Act 1993 Maori Land Act
1993  

• 223. General functions of responsible
  trustees---Every person who is appointed as a
  responsible trustee of a trust constituted under
  this Part of this Act shall be responsible for---
  
• (a) Carrying out the terms of the trust
• (b) The proper administration and management of
  the business of the trust
• (c) The preservation of the assets of the trust
• (d) The collection and distribution of the income
  of the trust.

66
Maori Land Trusts

• 226. General powers of trustees
• (1) The Court may, in the trust order, confer on
  the trustees such powers, whether absolute or
  conditional, as the Court thinks appropriate
  having regard to the nature and purposes of the
  trust.
• (2) Subject to any express limitations or
  restrictions imposed by the Court in the trust
  order, the trustees shall have all such powers
  and authorities as may be necessary for the
  effective management of the trust and the
  achievement of its purposes.

67
Maori Incorporations

• 268. Maori incorporations to have
  constitution---(1) Every Maori incorporation
  shall have a constitution governing its internal
  management. (2) The constitution of every Maori
  incorporation shall be that prescribed by
  regulations made under this Act.

68
Maori Incorporations

• 270. Manner in which powers are to be
  exercised---
• (1) Except as provided in this Part of this Act
  or in its constitution, a Maori incorporation
  shall act by and through its committee of
  management.
• (2) The powers of the committee of management may
  be exercised by a majority of the members for the
  time being in office, but no decision of the
  committee shall be effective unless at least 3
  members concur in it.
• (3) The common seal of the incorporation may be
  affixed to any instrument in the presence of any
  2 members of the committee of management.
• (4) The 2 members of the committee of management
  shall sign the instrument to which the seal is
  affixed.
• (5) The provisions of section 42 of the Companies
  Act 1955 as to the form of contracts shall apply
  to a Maori incorporation as if the incorporation
  were a limited liability company duly
  incorporated under the provisions of that Act.
• (6) The committee of management of a Maori
  incorporation shall comply with the terms and
  conditions of any resolution relating to the
  powers and functions of the incorporation passed
  at a general meeting of the shareholders of the
  incorporation.
• (7) No loan shall be granted by a Maori
  incorporation to any person who is a member of
  its committee of management.

69
Maori Incorporations

• 276. Accounts and balance sheet---
• (1) Every Maori incorporation shall cause to be
  kept proper books of account in which shall be
  kept full, true, and complete accounts of the
  affairs and transactions of the incorporaton.
• (2) The committee of management of every Maori
  incorporation shall, within 18 months after the
  making of the order of incorporation, and
  subsequently at least once in every calendar
  year, submit to a general meeting of shareholders
  a profit and loss account made up to a date not
  earlier than 6 months before the meeting,
  together with a balance sheet as at the date to
  which the profit and loss account is made up.
• (3) Every balance sheet of a Maori incorporation
  shall, when read in conjunction with the
  statement required by paragraph (c) of subsection
  (4) of this section, give a true and fair view of
  the state of affairs of the incorporation as at
  the end of its financial year, and every profit
  and loss account of an incorporation shall give a
  true and fair view of the profit or loss of the
  incorporation for the financial year.

70
Maori Incorporations

• (4) The profit and loss account shall be annexed
  to the balance sheet, and there shall also be
  annexed or attached to the balance sheet--- (a)
  The auditor's report made pursuant to section 277
  of this Act and (b) A report by the committee of
  management with respect to the state of the
  incorporation's affairs and the amount, if any,
  that it has determined is available for the
  purposes of section 259 (1) (c) of this Act and
  (c) With respect to the assets of the
  incorporation, a statement setting forth the
  estimated current market value of the assets,
  together with a statement of the liabilities, if
  any, of the body corporate charged on or relating
  particularly to those assets.
• (5) Notwithstanding subsection (4) (c) of this
  section, where the balance sheet is prepared on a