/cloudfront-ap-southeast-2.images.arcpublishing.com/nzme/VY4IUTBLUFDKXIJLK5YJLXN3HY.jpg "Do firms have honest dealings with politicians? Openly launches disclosure platform")
The app will ask if companies engage any consultants to lobby the Government, and if they make political donations, among other questions. Photo / Getty Creative
Are businesses behaving ethically as they interact with the Government, and push for policy changes?
Openly, which launched today, aims to champion corporate integrity, and honest dealings with politicians, by publishing firms’ responses to 14
questions to gain “accreditation”.
Questions include whether companies engage any consultants to lobby the Government, and if so whom, and whether they or a related party has made donations to politicians and if so to whom.
The new site’s Sydney-based founder, Nick Booth, was formerly head of government affairs for British American Tobacco (Bat) in Australia. Today, on top of Openly, he runs his own lobbying firm.
“Engaging government is the bedrock of democracy – but it should be undertaken ethically, openly and accountably. And those with greater resources have a greater responsibility,” Booth said.
“Reflecting recent scandals, New Zealanders are also starting to take notice – with investors and consumers indicating that they will reward good conduct in private-public engagement.”
It seems most Kiwis agree with his sentiment.
Openly commissioned research from Curia, focusing on reports that tobacco firms lobbied MPs over the repeal of the smoke-free law and potential changes around vaping rules.
It found that of a representative sample of 1000 people surveyed, 75 per cent of respondents supported greater transparency when companies and MPs discussed policy changes, with only 11 per cent opposed.
Booth’s site has launched with Southern Pastures – the sustainable dairy firm that bought Lewis Road Creamery in 2020 – plus four smaller firms ( Almighty Beverages, Enpot, Yu Mei and Engage Advocacy).
Some of the responses are on the minimal side. In response to a question about whether it applied for or received any government grants, Southern Pastures had a one-word response: Yes.
What’s the incentive for larger, more lobbying-intensive companies to sign on and spill the beans?
Similar initiatives have started at the small-to-medium business level then become an expectation for firms higher up the food chain, Booth said.
“Look at where modern slavery [disclosure] started off. That started with more progressive, sustainability-minded organisations and then the big end of town just had to jump on board because it became an expectation from investors and consumers.”
The Herald asked Sealord, Robert Walters, Philip Morris and Bat if they would sign up for Openly and answer its questions. None immediately responded.
AI in the frame
Information uploaded to Openly will be reviewed by experts before publication, Booth said. An AI is also used to scan company reports and other public data for any contradictions.
Annual audits will follow to make sure each organisation’s processes and controls are still good enough.
The start-up also has a four-strong advisory board.
Its members currently include former parliament speaker David Carter; Holly Bennett, the founder of kaupapa Māori government relations firm Awhi; Michelle Henderson, who sits on the boards of Meridian Energy, Fulton Hogan and South Port; and Jennie Galbraith, the ESG director of a London-based private equity firm, who, like Booth, has worked for Bat.
Voluntary code on the way
Transparency was an issue with the previous government as it continued the long-standing practice of issuing swipe cards to lobbyists, and former ministers Kris Faafoi and Stuart Nash joined a lobbying firm (Agenda Partners) and government services provider (executive recruitment firm Robert Walters) respectively without any stand-down period, as required in most Western countries.
In the outgoing government’s final months, then-Prime Minister Chris Hipkins ordered swipe cards be removed from about 80 lobbyists.
In February this year, new Speaker Gerry Brownlee said he disagreed with a blanket ban. Swipe cards had been re-issued to several lobbyists, with new privacy rules protecting their identity.
The Ministry of Justice is working on a new code of conduct for lobbyists, initiated by the previous government, which includes new rules around transparency and a “cooling-off” period for departing ministers.
As things stand, the code will be voluntary.
Does Booth want regulatory change? He won’t go that far, but he offers:
“New Zealand – and probably Australia, to a certain extent, have had a reputation for being transparent, but we’ve perhaps rested on those laurels a bit too much.
“And the environment is changing. So the civil society response of business and government needs to lift up a notch.”
Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.
