Why merging First Nations and corporate governance is a win for all

Thursday, 01 August 2024

Domini Stuart & Denise Cullen photo
Domini Stuart & Denise Cullen
Journalists
    Current

    Encouraging the development of First Nations governance to the point where it can comfortably merge with corporate governance is a win for all concerned. 


    Corporate governance refers to the rules, systems and processes that control and monitor an organisation. First Nations governance emphasises relationships and connections between people, places and things across time. On the surface, they’re worlds apart. In reality, they have much in common.

    “Both focus on running an organisation effectively, so that it achieves its purpose,” says Australian Indigenous Governance Institute (AIGI) CEO Jessica Bulger MAICD. “Effective governance relies on accountability, integrity and transparency — qualities inherent in First Nations governance because our shareholders are our communities.”

    Emma Garlett, director of the Garlett Group, a First Nations-owned sustainability and communications agency, describes First Nations governance as deeply rooted in cultural values, community consensus and a holistic approach. A few years ago, this may have been at odds with a system of governance built on shareholder primacy. Now, measures such as the Modern Slavery Act 2018 and mandatory climate reporting are propelling directors towards a more holistic mindset by introducing social and environmental considerations into their decision-making.

    Brad Welsh GAICD, CEO and MD at Energy Resources of Australia and an nib board member, also sees a strong First Nations theme running through the director’s role. “Directors are custodians of the company,” he says. “A company has an endless life, in the sense that you want to leave it in better shape than when you joined. That’s a very First Nations trait. We believe we’re born as custodians of the land and we want our next generation to be better off than the last. If you understand that you’re on a board for a point in time, whether that’s one year or nine, it can give you a different perspective.”

    Garlett believes the benefits of understanding and integrating First Nations governance practices can extend beyond the boardroom. “It effectively assists with self-determination, amplifying First Nations voices and closing any barriers for community-led initiatives of Australia’s First Nations peoples. Learning about First Nations governance will foster greater cultural competency and enhance collaboration with First Nations communities. It isn’t a matter of forcing one system or structure onto another — this is an important message carried in the terms ‘culture matching’ and ‘legitimacy’. Both parties can benefit from a two-way learning model of respect and knowledge as they move towards a shared purpose or goal.”

    A different context

    Where differences do exist between the two approaches, they’re mostly matters of historical and cultural context. This isn’t surprising, given that First Nations governance stretches back over 65,000 years while the concept of corporate governance only began to take shape about 400 years ago. There is also a question of whether First Nations governance can be treated as a single entity when many First Nations communities have their own protocols and priorities. “Yes, we have unique differences, but First Nations governance can be recognised in the structure and function of our communities and families, the way lore and ceremony exist and operate, and how we operate our businesses,” says Garlett. “This incorporates a strong sense of community and interconnectedness, rather than the more individual and hierarchical modes of corporate governance.”

    The AIGI envisions a future where an Australian governance system works well for everyone. “Positive change requires a departure from the persistent colonial narrative of how do we help First Nations people, or what do they need from us?” says Bulger. “The conversation we need to be having is what Australian governance can learn from First Nations governance success. We’re starting to see a shift, but I believe we must keep agitating until First Nations people are accepted as intellectual equals, where power and value is shared. Only then can we all work together for the good of the whole community.”

    Directors who are First Nations

    Appointing a First Nations director to the board of a non-First Nations company is one way of introducing diverse thinking, although not the only way, and not always the best.

    “Well-meaning organisations may believe they simply need First Nations representation,” says Bulger. “Representation is fantastic, but not enough on its own. My advice is always for the organisation to identify the business challenge or opportunity and then consider the alternatives to appointing one First Nations individual to the board. For instance, it might be more beneficial to engage broader advice via some type of advisory board, hire a First Nations organisation to complete a piece of work or undertake some kind of education within the organisation.”

    Welsh is deliberate in his choice of words when he says he would like to see more directors who are First Nations on the boards of non- First Nations companies. “You’ve got to be a director first — a director who is First Nations rather than an First Nations director,” he says. “Indigeneity brings the added value of diversity of experience and thinking but, like everyone else on the board, you must be able to deal with the full extent of the organisation’s affairs and fill a gap in the skill set.” 

    Gaining a better understanding

    There are many resources available to help boards build their understanding of First Nations governance.

    “Reconciliation Action Plans (RAPs) are probably the most recognised,” says Welsh. “Over 2700 Australian organisations now have a RAP in place. They’re designed to stretch and grow an organisation, so it’s important to be ambitious.”

    The Garlett Group hosts online and in-person workshops on cultural competency to help participants understand First Nations history, values and governance structures.

    “Learning from a First Nations organisation is a great way to understand the topic, build relationships and develop strategies and tools to support capacity building in First Nations governance systems,” says Garlett.

    Meanwhile, the AIGI is working with First Nations organisations and communities to strengthen governance in line with their priorities.

    “At AIGI, we aren’t just focused on knowing the legislation or what the regulator requires,” says Bulger. “We work on how organisations can respond to the wider governance environment while holding true to the cultural protocols and priorities of the nation they serve. We offer professional development and advisory services, and we also manage the First Nations Governance Toolkit. This is a free, web-based resource with lots of information including success stories, practical guides, self-reflection tools and checklists.”

    Welsh points out that increasing the number of directors who are First Nations requires two courses of action — the push of a strong pipeline of talent and the pull of an increase in demand.

    To help build the pipeline, the AICD recently launched the second round of its First Nations Director Scholarship Program, funded by the National Indigenous Australians Agency (NIAA).

    AICD First Nations Sector Lead Justin Agale MAICD noted the program would offer 135 scholarships over three years.

    “Through our AICD First Nations scholarship program, we aim to create and develop a director pipeline to provide for a diverse First Nations community of director-ready people to provide stewardship for organisations both First Nations and non-First Nations,” he said.

    The AICD also launched its First Nations Governance Advisory Forum in June this year. Under the AICD’s Innovate RAP program, the organisation is committed to improving representation of First Nations people in Australian boardrooms and building a community of First Nations governance leaders.

    Agale says the forum will meet twice a year, position itself as a unique voice on First Nations issues in the governance community and develop strategic engagement within the sector.

    Forum members include Agale, Garlett, Welsh, Ian Hamm MAICD, chair of the First Nations Land and Sea Corporation and First Nations Foundation, and a board member at the AICD and ACNC, Steve Rossingh, GAICD, CEO of Miwatj Health Aboriginal Corporation, and Lauren Ganley GAICD, head of Telstra’s First Nations Strategy and Engagement and a member of the AICD’s NT Division Council.

    Organisational representatives on the forum include Indigenous Business Australia, the Office of the Registrar of Indigenous Corporations and the Australian National University.

    Stimulating demand could be as simple as giving more serious thought to the value a director with an First Nations background would bring to the board.

    “Being curious about the right things is an important skill for directors,” says Welsh. “You’ve got nothing to lose by getting curious about Indigeneity and First Nations thought.”

    First Nations health

    550+

    Number of First Nations Community Controlled primary healthcare sites 

    1971

    The first First Nations medical service established in Redfern 

    1 million

    Episodes of care delivered in remote regions each year 

    2000

    Estimated lives saved due to protective action during COVID-19 pandemic 

    1997

    Miwatj Health opened its first clinic in Nhulunbuy/Gove 

    Source: NACCHO Annual Report 2022–23

    Case study: Miwatj Health Aboriginal Corporation

    Rheumatic heart disease has been eliminated in much of the developed world, but in the Northern Territory’s East Arnhem Land, rates of this killer disease remain high.

    “Most people think of rheumatic heart disease as a Third World disease, but it’s rampant in the top of Australia,” says Steve Rossingh GAICD, CEO of the Miwatj Health Aboriginal Corporation. “We have one of the sickest populations in the country... with some of the highest levels of chronic diseases, such as type 2 diabetes, renal failure and other coronary diseases.”

    Rossingh, a Kamilaroi man based in Nhulunbuy/Gove, says this and other diseases such as type 2 diabetes are becoming almost normalised in the local Yolngu population, and exist alongside a significant life expectancy gap between First Nations and non-First Nations Australians. He is seeking to bring about change through his work with the Miwatj Health, which operates seven health centres across East Arnhem Land.

    In line with the federal government’s co- design in health principles, and the Closing the Gap initiative, Rossingh is keen to strengthen the community-controlled healthcare sector.

    “There’s been a history of poor and ineffective policy development, and also poor funding decisions that haven’t really achieved the outcomes that governments have wanted them to,” says Rossingh. “That’s because they haven’t understood the issues or the priorities.”

    Stepping out

    Miwatj Health is one of 145 First Nations Community Controlled Health Organisations (ACCHOs) across Australia that provide a combined 3.1 million episodes of care a year for some 410,000 people across Australia. ACCHOs specialise in providing comprehensive primary healthcare consistent with clients’ needs, including chronic disease, medical, public health and health promotion services, allied health, nursing services, and drug and alcohol services. Collectively, they make up the National First Nations Community Controlled Health Organisation (NACCHO), which exemplifies the power of community-controlled healthcare in improving outcomes for First Nations and Torres Strait Islander people.

    NACCHO secured $111m in 2022 and $238.5m in 2023 for various health initiatives, including cancer treatment and family safety. Its work has been instrumental in bridging health and funding disparities, advocating for inclusive decision- making processes and championing health equity on a global scale.

    In October, the federal Minister for Health and Aged Care, Mark Butler, underscored the crucial elements of accountability, collaboration and attentiveness to local and regional perspectives in enhancing health outcomes for First Nations and Torres Strait Islander communities. He highlighted the imperative for systemic reforms to combat discrimination, bureaucratic hurdles and structural challenges within the health domain.

    Butler pointed to the deaths of three women from rheumatic heart disease in Doomadgee as a clarion call for action, emphasising the glaring disparities in health outcomes and the pressing need for enhanced service integration. He also unveiled plans to elevate the First Nations and Torres Strait Islander health roundtable to facilitate yearly dialogues among health ministers.

    New governmental endeavours will include a twofold increase in funding to combat rheumatic heart disease, a review of healthcare provisions in correctional facilities and a focus on amalgamating child protection and health services.

    The inaugural First Nations and Torres Strait Islander Cancer Plan was also announced, noting a broader commitment to advancing First Nations health, with substantial funding allocated to diverse programs aimed at tackling smoking and nicotine addiction.

    The partnership between NACCHO and the federal government was highlighted as a key step towards community-led healthcare, noting local empowerment and tailored health strategies.

    More work to do

    Rossingh says working in remote areas presents unique challenges, such as the attraction and retention of staff. Of Miwatj Health’s 280 staff, 70 are based in Darwin, which is 13 hours by road or one hour by air from the healthcare provider’s core service delivery areas. Obviously, this is a substantial logistical problem.

    “Half those staff would come to East Arnhem Land in a heartbeat if staff housing was available, but it’s not... so the only way we can grow the organisation and meet the growing need is to have people off Country,” says Rossingh. “Certainly, there are some professions that you’re just not going to attract remotely.”

    Funding restrictions and limited consultation in relation to the suitability of premises and infrastructure also hampered the organisation’s ability to deliver its services optimally. And much more work remains to be done on the social determinants of health.

    “It’s estimated that only about 10 per cent of the improvements that can be made to people’s health can be made through the health system,” says Rossingh.

    The other 90 per cent is achieved through addressing environmental issues such as clean water, air quality, sewerage, housing and the impacts of colonisation. Reforming government attitudes and approaches remains a challenge, with continued resistance to the notion of handing control back to communities.

    “The rock-solid test is when a community- controlled organisation comes up with a proposal, which someone within government doesn’t agree with,” says Rossingh. “Will they back it up? In my experience, more often than not, they won’t.”

    He adds that the international evidence is “indisputable” that when genuine and authentic community control is exercised — not just in health, but in other areas, including justice, education and employment — the outcomes for First Nations people are so much better.

    “It’s based upon the principle that a client group knows what the issues are [because] the closer you are to a problem, the closer you are to the solution,” says Rossingh. 

    This article first appeared under the headline 'First Nations Governance’ in the August 2024 issue of Company Director magazine.  

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