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Norfolk Island Needs New Governance Model

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Introduction This essay is inspired by the article “Norfolk Island needs new governance model” (Brodtmann, 2015), which highlights the issues surrounding the ideologies and reality of ‘self governance.’ Brodtmann discusses how successive administrators for the Island had not been able to broaden and diversify the economic or revenue base, which currently relies on an unpredictable tourism industry. The article states, “there is no point in having self-government for self-government’s sake” (Brodtmann, 2015), and presently the forecast of Norfolk Island’s public finances suggests that the administration will not hold sufficient funds to cover operations to diversify and broaden the economy in the upcoming years. Thus administration will continue …show more content…

These core concepts can be seen in the article by Brodtmann (2015). Social Responsible Corporate Governance Norfolk Islands self-governance arrangement has only met the most basic social and economic needs of the local residents, according to federal representative Gai Brodtmann. The author states how with each occurrence when she visits the island, there is a further deterioration of the economy with 40% of shops closing since 2013, 25% of males aged 25-50 leaving since 2011, and no access to commonwealth services such as Medicare, pharmaceutical benefits. This reality of the current self- governance arrangement can be linked to ‘agency theory’, which considers responsible leadership actions mainly in the context of profit maximization and within the parameters of compliance with rules and regulations, addressing the needs of shareholders. (Hill and Jones, 2007) To further support this theory, Scherer and Palazzo (2011) indicate that mangers have a responsibility to shareholders and societal responsibilities may be assumed ‘only’ if it advances the short and long terms value of the firm; in this case Norfolk Island. Administration does not have the financial capacity to develop long-term sustainable strategies, which could be implemented for the benefit of stakeholders, rather relying on Commonwealth

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