Cooperatives are an essential mechanism for community wealth-building and local job creation. Through co-operative ownership of workplaces, retail businesses and value-adding infrastructure, communities can retain stakeholder control and keep wealth and employment opportunities local. Profits that once went to financial centres now go to co-operative members, who are more likely to spend it in their local community. This creates a local community “multiplier effect”. Co-operatives work by actively engaging members as stakeholders and participants in a democratic process, providing an inclusive organisation.
The largest and most successful co-operative in the world is Mondragon. The cooperative group operates in over 150 countries with 95 cooperatives, employing 80,000 people and 14 research and development centres. They have shown us that cooperatives can operate globally while advancing the seven cooperative principles.
In Australia, eight in ten people are members of at least one co-operative-owned organisation. Cooperatives can come in many different forms. Australian Co-operative Links has a database of the many diverse co-operatives that operate in Australia.
Producer Owned Co-operatives
- The purpose is to provide value to its enterprise members
- Membership consists of individual enterprises
- Members contribute capital and access administration and marketing functions
- Members benefit from rebates and services
- Examples: Norco, CBH Group, Victorian Stonemasons Co-operative
Customer Owned Co-operatives
- The purpose is to provide value to customers
- Membership consists of individual customers
- Members do not contribute capital
- Members buy and sell goods at competitive prices
- Examples: Great Southern Bank, Bank Australia, RACQ
Worker Owned Co-operatives
- The purpose is to provide value to employees
- Membership consists of individual employees
- Members contribute to capital
- Members participate in decision-making and share the profits and risks
- Examples: Cooperative Life, Wicked Elephants,
Community Owned Co-operatives
- The purpose is to provide social care to vulnerable members of the community.
- Membership consists of members of the community
- Members do not contribute capital
- Members provide and receive services
- Examples: Nundah Community Enterprises Co-operative, Be Caring, Maggies Rescue
Housing Co-operatives
- The purpose is to provide affordable housing
- Membership consists of individuals/families
- Members contribute capital to full ownership of their home and share ownership of the land.
- Members democratically participate day to day management and decision making.
- Examples: Common Equity, Karabar Housing, Narara Ecovillage
Enterprise Cooperatives
- The purpose is to assist specialist organisations to increase productivity and market power while retaining local input and jobs.
- Membership consists of other cooperatives, not-for-profits, social enterprises
- Members do not contribute to capital
- Members access support and shared services at reduced rates to remain competitive
- Examples: Coop UK, SILC
Multi-Stakeholder Cooperatives (MSC)
- The purpose is to align the social and economic interests of otherwise competing stakeholders
- Membership consists of producer/consumer cooperatives, volunteers, workers and general community supporters
- Members do not contribute capital
- MSCs use a flexible governance structure to improve services by each of the members at reduced costs
- Examples: Fifth Season Cooperative
Mutuals
- The purpose of mutual is provide goods and services to its members on an equitable basis.
- Membership consists of individuals
- Members do not contribute capital
- Members buy the services to support the mutual
- Examples: Australian Unity, HCF
Co-operatives and mutual structures can increase diversity and choice in health, community and social services with positive outcomes for accountability, innovation, quality and productivity.