The co-operative brand and model of doing business has taken
a bashing in the public and media realms recently – the co-op bank being bought
out by private investors; its board being found to lack the skills and
awareness needed to manage such an enterprise; the co-op groups' collaboration
with Thomas Cook over the future of its travel business turning sour, and
plenty more besides… all things which anyone who's a member of any co-operative
enterprise will feel shamed, embarrassed, upset, and angry about because they
show that our ideals and hopes for this alternative model of doing business
have been 'betrayed' by one of our largest number...
Many are commenting and writing elsewhere on the
implications and reasons for these fall-outs, but I find myself wondering about the question it raises about the dangers of a co-op enterprise of any type becoming 'too
big' and in doing so, too distant and removed from its members who are the
reason for its existence, and if by extension that means that there might
therefore be an ideal size for any co-operative enterprise?
Anyone who's been involved with any co-op will know that
people become members of it for all sorts of different reasons: ideology, need,
economic gain, community, employment, … and with those different motivations
come different expectations as to how they want to be involved in, and influence, that co-op's trading and development.
Sometimes co-ops can focus on their members' interests over
maintaining a profitable enterprise which leads to trouble, but conversely
those co-ops who neglect their members' interests in pursuit of a profitable
business also find themselves in danger...
But does this mean that as well as an ideal size, there
should also be an 'ideal type' of co-op member? After all, doesn't it get too
messy otherwise to be able to manage? But pursuing this line of thought likely
leads to madness: we live in a wonderfully diverse world, and its because not
everyone thinks the same that new expressions and ideas and opportunities can emerge.
So – back to the original question: should we limit the size
of a co-op? I know of several worker and housing co-ops who've wrestled with
this question in the past, and decided that 'yes', there are natural limits to
how large a co-op should be allowed to become before it has to enact formal
democratic structures that would dilute and stifle their members' voices and
influence to levels that they deem to be
too low to be acceptable.
But conversely, scale brings advantages despite its
governance and regulatory challenges, the Co-operative Group has been able to
support thousands of local community projects with grants, campaign globally on numerous issues, and
help hundreds of existing and new startup co-ops across the UK through its Enterprise Hub
initiative solely because its large enough to be able to generate the levels of
trading surpluses it needs to commit itself to these national programmes as
part of its manifestation of the defining co-op values.
Co-ops exist for the benefit of their members.
Co-ops need
to be answerable to their members.
Co-ops should be informed by their members.
Co-ops should therefore regularly review how well and appropriately they are
ensuring this in light of changes to their business models, marketplaces and
wider societal expectations and pressures. If not, then co-ops fail to properly
evolve, and just like dinosaurs will quickly become extinct after an
all-too-brief parade and flurry of excitement.
Thanks for this Adrian. I've often considered this question and personally drawn the conclusion that if a co-operative becomes 'too big' member engagement will ultimately suffer, community and charitable involvement starts to look like blue chip CSR, and the society and wider movement suffer.
ReplyDeleteThe Co-op Group has ~7million members but how many are active consumers, and how many actually know what membership really means? Members are the life blood of co-ops and the big boys should consider this in every decision - mergers, acquisitions and otherwise.