MAY 2018

Governance and the
co-operative difference
When the Rochdale Pioneers set up shop in 1844, they laid the foundations
for today’s global co-operative movement. The Rochdale Principles set
a benchmark which still sets co-operatives apart from competitors in the
increasingly crowded arena of ethical business.
ETHICAL BUSINESS Other forms of social enterprise have been inspired
by the founding principles of the co-op movement
BY SUSAN PRESS
and in recent years corporate business is pitching
to be a force for public good. One of the ways they
are doing this is through B Corps certification.
The community of B Corps certified in the UK
launched at the end of September 2015 with 62
founding members. There are now 150 signed up to
B Corps certification, which requires high standards
of verified social and environmental performance,
transparency, and legal accountability. Leading
UK B Corps brands grew on average 21% in 2017,
compared to a national average of 3% across their
respective sectors.
The UK community includes household names
like Ella’s Kitchen, Pukka Teas, Divine Chocolate
and Lily’s Kitchen. Globally, there is now a
community of over 2,400 B Corps claiming purpose
Why this matters: Your company wants to
beyond profit.
attract and retain Mark the Cuddigan, best talent, chief and talented executive of Ella’s
q B Corps Handbook people want Kitchen, to bring said their recently: whole selves “I am to excited that the
details the benefits work every B day. Corps movement is growing and that UK consumer
of certification
brands are leading the way in driving positive
change and inspiring other businesses to join us
on this global mission to redefine the meaning
of success in business. Ultimately, the more likeminded
businesses who certify as B Corps, the more
we can ensure that businesses can come together
to inspire change and be a force for good
for people and the planet.”
But, however
welcome the
Worker Ownership boom in a more
ethical private
sector, it is the
co-op movement which
still offers something
unique in terms of
collective working
Work Environment
and positive
impact on the
wider community. And its governance is key to
making that happen. A co-operative boardroom
is very different from those of investor-owned
corporations or businesses run for shareholder
profit – however ethical they may be.
Linda Barlow is co-operative governance advisor
for Co-operatives UK, which offers advice and
support to thousands of co-operatives in the UK
currently contributing £36bn to the economy.
She says: “Co-ops have to operate within the
structures available to any other business. It’s what
is in their governing documents and articles that
p Linda Barlow
makes them different, embracing the principles of
co-op values and enshrining them in governance.
The biggest difference is that when you become
involved in a co-op you are on the same democratic
level as anyone else. Regardless of how much you
put in yourself you still only have one vote.
“Members’ motivations in getting involved
are also different than being a shareholder in a
commercial entity. There, the main motivation
is because you want to see capital grow and get
a return on investment, whereas in a co-op you
become involved because it meets your cultural,
social or economic needs. Some co-ops share a
financial dividend but not all do. The rewards are
different, it’s not to make money for yourself. It is
more that if your relation to it is as a worker you
shape that by being a worker but also an owner.”
38 | MAY 2018
Compensation, Benefits
and Wages