Ross Buckley
Auckland, October 5, 2024
Institute of Directors invites applications for its Mentoring for Diversity Programme
Open-Ed (Exclusive)
“Good governance leads to great companies – and successful, sustainable communities.”
Standfirst: As corporate governance in New Zealand evolves, there are unique considerations for Indian Directors and Chairs who play an increasingly significant role in guiding organisations within Aotearoa New Zealand’s diverse business environment.
The relationship between New Zealand and India has strengthened considerably over recent years, not just through trade and investment but also through cultural and people-to-people connections. Insights into emerging governance trends, particularly in light of this growing connection, are vital for Indian business leaders to position their organisations for long-term success.
Trade and investment
India is one of New Zealand’s most important trade partners, with bilateral trade valued at more than $2.89 billion annually. India ranks as our 11th largest trading partner, with the two countries actively exploring free trade agreements (FTAs) to deepen our economic ties.
Key exports from New Zealand to India include dairy products, wood and education services, while India exports textiles, pharmaceuticals and IT services to New Zealand. The large Indian Diaspora in New Zealand, estimated at over 240,000, represents a valuable connection for trade, investment and cultural exchange.
For Indian Directors and Chairs, this expanding trade relationship presents opportunities to drive board discussions around cross-border investments, joint ventures, and strategic partnerships. With India emerging as a global economic powerhouse, Directors should be considering how their businesses can leverage trade and collaboration opportunities with Indian markets, and how to integrate these into long-term strategies.
Sustainability and ESG Reporting
Sustainability is not only a global priority but is increasingly important in the India-New Zealand context. Indian companies and investors are paying closer attention to environmental, social, and governance (ESG) factors, particularly as the Indian government pushes for sustainable growth and renewable energy development.
New Zealand, with its strong environmental regulations and commitment to climate change mitigation, offers Indian business leaders the chance to learn from best practices in sustainable governance.
As highlighted in the NZX ESG Guidance Note 2023, businesses in New Zealand are expected to provide transparent ESG reporting, and this will be critical for Indian Directors looking to strengthen ties with investors and stakeholders in both countries. Indian-origin directors in New Zealand can play a leading role in promoting sustainability by implementing ESG frameworks that address both New Zealand’s strict environmental standards and the growing demand for responsible investment in India.
The IoD’s Chapter Zero initiative – part of a global network of Board Directors committed to taking action on climate change – provides free resources and hosts events for directors to upskill their climate knowledge and effectiveness.
Diversity and Inclusion
For Directors, promoting diversity goes beyond the boardroom – it is about embracing both the New Zealand and Indian cultural landscapes. With New Zealand being home to over 213 ethnic groups, Indian Chairs and Directors are uniquely positioned to champion cultural diversity in governance. Indian Directors can leverage their deep cultural understanding and experiences from India to foster inclusive leadership practices that reflect both local and global perspectives.
The IoD has a strong focus on encouraging diversity in boardrooms. Our Mentoring for Diversity programme, launched in 2011, pairs Directors with experienced Senior Director Mentors. We welcome applications based on diversity including gender, ethnicity, LGBTQIA-plus affinity, age, culture, disability, background, sector and experience.
The programme aims to:
- Increase mentees’ understanding of how boards of large organisations work
- Enhance the connections between senior directors, adding to the diversity of the director pool and making board-ready talent more visible
- Assist mentees to gain knowledge and skills to help them achieve director appointments, particularly in large companies or organisation
For Indian board members, this means encouraging boards to reflect a broader range of perspectives, including insights from Indian, Pasifika and Māori cultural contexts. Boards should also be focused on succession planning that includes younger Directors and embracing the 40:40:20 concept.
In short, this ratio is about aiming for diversity of gender in workplace leadership, be it senior leadership teams or on the board. It refers to 40% men, 40% women, with the remaining 20% flexible to any gender.
Technological Disruption and Cybersecurity
India’s IT sector is globally renowned, and Indian businesses have been leaders in adopting and developing cutting-edge technology. For Indian directors in New Zealand, technological disruption presents both challenges and opportunities. Cybersecurity remains a top risk for organisations, as identified in the IoD’s Director Sentiment Survey, and Boards must ensure that robust frameworks are in place to protect against cyber threats.
As India advances in areas such as AI, fintech, and digital transformation, Indian Directors can help New Zealand businesses stay ahead of technological trends and ensure that cybersecurity strategies are robust.
Board Capability and Continuous Learning
As global trade and cross-cultural ties expand, Directors and Chairs must stay up to date with governance practices.
The IoD provides and encourages Continuous Professional Development (CPD) to ensure that Directors remain effective in their roles. For Indian-origin Directors, this involves not only understanding New Zealand’s governance frameworks, regulations and legislation but also keeping pace with global trends and best practice solutions.
Given the increasing focus on global trade and investment between India and New Zealand, board members should be skilled in managing complex international relationships. Directors should encourage their boards to undertake formal evaluations and strategic succession planning that reflect both local requirements and global opportunities.
Stakeholder Engagement
Effective and honest stakeholder engagement is essential for every organisation.
Businesses must engage not just with shareholders but also with a wide range of stakeholders, including employees, customers and broader communities.
This increased engagement requires transparency, particularly in how Boards manage relationships and communicate their strategy. As Indian Directors play a key role in fostering stronger business connections between New Zealand and India, they can help ensure that stakeholder management processes are not just compliant but also inclusive of diverse cultural perspectives.
Risk Management
As economic and environmental uncertainty continues globally, resilience will remain a priority for boards in 2025.
Given that New Zealand and India are expanding trade and collaboration in sectors such as IT, Agriculture and Education, Boards need to account for risks such as supply chain disruptions and regulatory changes that could impact cross-border business. Strong risk management frameworks will allow boards to mitigate these challenges while leveraging growth opportunities in both countries.
The Road Ahead
As we look ahead to 2025, all Directors and Chairs in New Zealand can play a pivotal role in shaping the future of governance and business. The expanding trade relationship between New Zealand and India offers significant opportunities for cross-border investment, technological collaboration and sustainability leadership.
By integrating New Zealand’s governance best practices with India’s dynamic market trends, Indian directors can position their businesses for long-term success.
AI assisted in drafting this article.
Ross Buckley is the Chair of the Institute of Directors New Zealand. He also chairs Service Foods (a food manufacturing and logistics group owned by the Balar family), an Independent Director of ASB Bank, and two listed NZX 50 companies, Stride Property and Investore Property.
