Article An investigation into the aspirations, governance and management challenges of M ¯ aori farming trusts Tom Phillips 1 , Christine Woods 2 and Billie Lythberg 3 Abstract This article investigates areas for possible improvement in the governance and management of large New Zealand M¯ aori dairy farm businesses. Building on the innovative practices of their t¯ upuna (ancestors), M¯ aori are defining their own aspirations, realities and goals in the dairy farming world and their accompanying challenges, as expressed by individuals and collectives currently engaged in M¯ aori dairy farm businesses. The M¯ aori way of doing business is described in this study as having a ‘quadruple bottom line’ of profit, people, environment and community business objectives. M¯ aori are genuine leaders of dairy farm environmental management, due in part to their attitudes to land ownership, business values and holistic world views. The top tier of M¯ aori farming trusts comprises fast growing enterprises, which are rapidly improving business performance. The expertise and governance of large corporate farms have much to offer other farming businesses. Keywords strategic management, indigenous business values, large farm business, New Zealand, dairy farming, quadruple bottom line Introduction Farm business governance is concerned with strategic lead- ership (to achieve the purpose or mission of the business), whereas management controls tactical and operational decision-making. Governance is about effective collective decision-making to enhance business performance and is based on the process of getting advice to provide a better perspective (Tapsell and Woods, 2010). Business failure is often attributed to poor governance. M¯ aori agribusiness is being criticized for underperformance. Is this a governance issue? M¯ aori farming trusts provide a unique case study into the governance of large farming businesses. Today, M¯ aori freehold dairy farms produce 8–10% of New Zeal- and (NZ) dairy production. Large management entities (greater than 1500 ha) make up 60% of M¯ aori land; there are 50 incorporations and 92 trusts. The majority of M¯ aori land quality is generally low, with lower than average nat- ural fertility and more challenging terrain. A number of recent studies (Bird, 2012; Clough, 2011; Kingi, 2000; Ministry of Agriculture and Forestry (MAF), 2011; Te Puni Koriri, 2010, 2011; White, 1997) have sought to better understand how M¯ aori freehold land is currently governed, managed and operated. These studies illustrate that the reasons for underperformance are complex. M¯ aori trust farms are in business to make money; how- ever, the long-term and intergenerational ownership places considerable emphasis on both developing their people and protecting the environment in which they farm. Maintaining and strengthening one’s ‘cultural development and traditions’ as part of farm business mission statements are perhaps unique to indigenous peoples rather than Eur- opean/P¯ akeh¯ a farmers. The performance of NZ M¯ aori agri- business is not solely related to financial decisions but includes the social construct of social, environmental, cul- tural and spiritual objectives which at times are in compe- tition. The aspiration is that M¯ aori businesses such as dairy farms can be seen as value creating, but to be effective requires leadership and communication. There is much to learn from better understanding the relational wisdom of indigenous M¯ aori family/collective business (Nicholson et al., 2012). This article foregrounds the importance of the quadruple bottom line identified by participants, as opposed to a dominant Anglo-NZ business of ‘profit/production-maxi- mizing’. This preliminary scoping study investigates areas for possible improvement in the governance and 1 Centre of Excellence in Farm Business Management, Massey University, Palmerston North, New Zealand 2 Business School, University of Auckland, Auckland, New Zealand 3 Mira Sza ´szy Research Centre for M¯ aori and Pacific Economic Development, University of Auckland, Auckland, New Zealand Corresponding author: Tom Phillips, Centre of Excellence in Farm Business Management, Massey University, Tennent Drive, Palmerston North 4474, New Zealand. Email: tiphillips564@gmail.com Outlook on Agriculture 2016, Vol. 45(4) 246–253 ª The Author(s) 2016 Reprints and permission: sagepub.co.uk/journalsPermissions.nav DOI: 10.1177/0030727016676713 oag.sagepub.com