hey are a unique blend of traditional knowledge and business savvy, of local culture and international commerce, of the past, present, and future. They offer a sense of home for their people anywhere in the world. They are Alaska Native corporations (ANCs).
On the surface, ANCs may appear quite similar to most investment companies, with familiar management structures and boards that set the vision for their corporations. In those respects, they compete and succeed at the highest levels globally. However, while typical companies have a fiduciary responsibility to their shareholders, which ANCs certainly do as well, that’s usually where the corporate obligations end—but not for ANCs.
Passed by Congress and signed into law late in 1971, the Alaska Native Claims Settlement Act (ANCSA) resolved Indigenous land claims with the federal government in Alaska largely through the establishment of the 12 regional and more than 200 village ANCs.
ANCSA placed not only a fiduciary duty on ANCs to their shareholders, who are the Alaska Native people of a respective region or village, but also the responsibility to work for the betterment of shareholders’ social and cultural well-being. The landmark law further allocated roughly 44 million acres collectively across Alaska for ANCs to own, steward, and develop in a manner consistent with their shareholders’ values.
It all adds up to organizations that are “far more than businesses,” according to Koniag Chairman and CEO Ron Unger. “The bond between Alaska Native corporations and their shareholders goes so much deeper because it’s ultimately a tie to our ancestors, elders, children, diverse cultures, and lands—and our land is sacred. Land ties us to generations of families and traditions and the way of life of a given region,” Unger says.
Koniag’s roughly 4,400 shareholders are the Alutiiq people originally from Kodiak, the surrounding islands, and part of the Alaska Peninsula. For them, the connection to Koniag land and their region goes back at least 7,500 years.
“At the heart of being a shareholder of an Alaska Native corporation is that you belong to something so much greater than yourself that’s thousands of years in the making and that’s continuously evolving. As a community, we’re creating our future by building from the wisdom of our elders and empowering our youth to be leaders,” Unger says. “That heritage, that history, that legacy to ultimately make things better for our Native peoples for thousands of years to come—that’s the expectation.” It’s a future focus on a scale that is unparalleled in the for-profit business world. “ANCs have an extraordinary ability and responsibility to help our people and communities not just on a quarter-by-quarter basis, but for many, many generations to come,” says Unger.
Several consecutive years of consistent growth at Koniag resulted in record revenues of more than $800 million last year. “Koniag is culturally-centered and mission-driven, and we are fiercely competitive; we want to win wherever we compete,” says Unger. Using a long-term investment approach, Koniag has developed its business strategy, infrastructure, and employees to generate lasting value for the customers and communities they serve. This success has enabled the corporation to increase not only more traditional shareholder returns, such as dividends, but also a meaningful array of services and benefits that go well beyond what even the most giving companies would consider.
Still, the value to shareholders doesn’t stop there. Shareholder-based internship programs are often the start of long and rewarding careers for employees of ANCs because of deep connections that go beyond the workday and grow leaders from within. “ANCs can help ensure our Native people are leading wherever we are. We have the opportunity to shape leaders by how we behave, in leading by example, and in how we support each other,” says Unger. “I can say firsthand, with nineteen years serving Koniag, our elders invested in my future by mentoring me and teaching me the skills and traits that I utilize in every part of my life.”
“It’s incredibly humbling to be one of 4,400 shareholders and to be serving as the chairman and CEO. It really can be daunting,” he acknowledges. “Every day we’re formulating strategies, making decisions, learning from successes and failures, creating positive pressure, allocating our time, sharing our energy and emotions, and so on. In setting the course for the company and knowing that if we’re successful, if the strategies work, if we’re able to execute, if folks are inspired and work every day excited about why we’re here, I feel that I’m honoring our heritage, our elders, and my family.”
There is a duality to the mission of ANCs that is unique in the corporate world, and according to Unger, fulfilling both sides of that mission requires not only inward confidence but also the leadership ability to instill confidence in all those who are connected to ANCs. He feels his role is to always listen with an open mind to shareholders and employees (many of whom are both) and take what he learns from them to make himself a better leader. In turn, he helps continue to grow Koniag for the betterment of its shareholders, employees, and customers.
“I feel I’ve been very fortunate that folks have believed in me all these years, and every day I’m working to exceed their expectations; I have to make sure they made the right choice,” he says.
Unger emphasizes that leadership opportunities and the myriad benefits an ANC can provide come full circle when corporate leaders work to support others in the company to reach higher, just as they were supported.
“That is why it is more important than ever for ANCs to work to engage with their shareholders,” Unger says. Similarly, ANCs benefit from engaged shareholders by ensuring the corporations are focused on the right priorities, benefits, and services. That in turn helps ANCs like Koniag better fulfill their mission.
While there are some very practical and direct ways for shareholders to engage with their ANC, Unger stresses that there are countless ways shareholders can stay involved with their corporation for mutual benefit.
“You can choose the path that provides the right engagement for you and your family. It can be as simple as reading a newsletter or other materials from the company to talking to board members and learning their views for your corporation. Taking it further, you can serve on a shareholder committee, and, if they feel they can put the time and energy into it,” he says, “I always encourage shareholders to run for the board. At that point, serving your Alaska Native corporation is really a calling.”
Ultimately, simply voting one’s proxy is one of the most important ways to stay involved.
“ANCs provide a connection to culture and a place of belonging for Alaska Native people wherever they are,” Unger adds. He explains that is why it’s so important for the companies’ leaders to find new ways to engage new and younger shareholders who may not live in the region. It’s about connecting with their Native people and getting them excited about just one of the many benefits their ANC can offer them. For some, it’s a scholarship or an internship to start a career; for others, it’s learning their traditional language.
It can also be as simple, yet important, as a place to belong. “You might have grown up in a village; you might have grown up in Anchorage; you might have grown up in another part of the world, but knowing you have a place—you have a people—is essential,” Unger says. “Everyone needs that.”