multistakeholder cooperation
DESCRIPTION
There is an inevitable tension in co-operatives between the interests of stakeholders: consumers, workers and producers. A multi-stakeholder structure can address this tension by giving all member types a place at the boardroom table and a share of patronage, leading to a more satisfactory discussion and resolution of issues.TRANSCRIPT
![Page 1: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/1.jpg)
MultistakeholderCo-operation
Vermont Co-op Summit14th Oct. 2010 // Burlington, VT
Don Jamison // VT Employee Ownership CenterErbin Crowell // Neighboring Food Co-op Association
![Page 2: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/2.jpg)
Agenda
Development of Co-op FormsMultistakeholder ModelsSome ExamplesOpportunities & ChallengesDiscussion
![Page 3: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/3.jpg)
New & Renewed Approaches
“Changing times make it critical to find newand renewed ways of understanding andexpressing co-operative approaches tobusiness and society. Such new and
renewed approaches are best developedon the basis of a deep comprehension of
past and present experience. At the sametime, imagination is critical.”
Brett Fairbairn, Three Strategic Concepts for Co-operatives
![Page 4: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/4.jpg)
Evolution of Co-op Forms
Holistic Vision of a Co-operative Economy Integrated Development of Co-op
Enterprise “Co-Partnership” with WorkersShift to Single Stakeholder Focus:
Philosophical: Primacy of a Single StakeholderPragmatic: Increasing Competition - Focus on
Primary ActivityExternal Influence
![Page 5: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/5.jpg)
Development of Forms
Food Co-ops Agricultural Co-ops Co-op Financial
Organizations Worker Co-ops Fishery Co-ops
Credit Unions Artisan Co-ops Housing Co-ops Utility Co-ops Health & Insurance
Co-ops, etc.
![Page 6: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/6.jpg)
Stakeholder & “User”
Co-op as based on “User”: A user-owned, user-controlled enterpriseorganized for the benefit of the user:The Producer or SupplierThe ConsumerThe WorkerThe Community Member
A Stakeholder: A person, organization orcommunity that is affected by or has aninterest in an organization.
![Page 7: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/7.jpg)
Single Stakeholder Co-ops
Advantages Focus Articulate Stakeholder
Interest Appropriate Systems Simple Structures _________ ?
Disadvantages Isolation Divided Movement Limited Ability to
Influence Systems Marginalization of
other Stakeholders(Users)
Diminished Difference _________ ?
![Page 8: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/8.jpg)
Why (Re)Consider Structure?
Opportunity of the MomentArticulate Advantages of Co-op ModelAddress Question of Marginalized
StakeholdersEngage Stakeholder Loyalty as
Competitive Advantage for Co-ops Innovate!__________ ?
![Page 9: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/9.jpg)
Multistakeholder Approach
Some Combination of…The ConsumerThe Producer or SupplierThe WorkerThe Community MemberOther Co-ops or Organizations
![Page 10: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/10.jpg)
Multistakeholder Models
Advantages Engage Stakeholder
Interest(s) Loyalty of Core
Stakeholders Access to Capital,
Information Innovation &
Flexibility
Challenges Relative Power of
Stakeholders Complex Structures Division of Patronage What if Interests
Diverge?
![Page 11: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/11.jpg)
Multistakeholder Structures
MEMBERS
BOARD OF DIRECTORS
STAFF
Elect
Hire
Hire
MANAGEMENT
Worker Co-op
CONSUMERS, PRODUCERS,or OTHER “USER”
Consumer orProducer Co-op
Product or ServiceA MultistakeholderCo-op includes acombination of
member classes.
![Page 12: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/12.jpg)
Mondragón, Spain
Multisector Co-op Corporation Founded 1956 85,000 Employees 2009 Sales: $20.54 billion Assets: $45.87 billion 256 Co-ops & Subsidiaries Four Areas: Finance, Industry,
Retail and Knowledge “Sovereignty of Labor”…
QuickTime™ and a decompressor
are needed to see this picture.
![Page 13: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/13.jpg)
Multistakeholder Areas
Sovereignty of labor alongside other stakeholders: Caja Laboral (Credit Co-op)
Workers, Account Holders, Co-ops
Agricultural Co-opsFarmers, Workers
Mondragón UniversityStudents, Workers, Co-ops
Retail SectorConsumers, Workers
![Page 14: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/14.jpg)
Eroski
2009 Sales: $11.68 billion Largest Domestic Grocery
Chain in Spain 2,400 Outlets 2004: 30,000+ Staff Consumer/Worker Co-op Board: 3 Consumers, 3
Workers President is a Consumer Extending model to
subsidiaries
QuickTime™ and a decompressor
are needed to see this picture.
QuickTime™ and a decompressor
are needed to see this picture.
![Page 15: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/15.jpg)
Eroski Governance Structure
MEMBERSWorker Members // Consumer Members
BOARD OF DIRECTORS3 Worker Directors // 3 Consumer Directors
STAFFUse: Employment, Benefits, Infrastructure
Elect
Hire
Hire
MANAGEMENT
WorkerMembers
CONSUMERSUse: Products, Services, Infrastructure
ConsumerMembers
Core stakeholders or“users” of theenterprise are
represented by twodistinct membership
classes.
Elect
![Page 16: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/16.jpg)
Social Co-ops in Italy
Provision of Social Services Type A: Healthy, Social Services or
Education. B: Employment Members: Workers, Beneficiaries,
Family Members, Volunteers, OtherCo-ops, etc.
Legally Formalized in 1990s -Dramatic Expansion in a decade
2001 Statistics: 7,100 co-ops 267,000 members $6.95 billion combined revenue
![Page 17: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/17.jpg)
Examples in the U.S.
FEDCO Co-op Seeds, MEWeaver Street Market, NCOklahoma Food Co-op, OKFifth Season Co-op, WI
![Page 18: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/18.jpg)
Profile: Fedco Seeds Year founded: 1978 2 classes of members – worker and “customer” –
but just one class of shares. Share price: $1. Board: 7 members. 4 elected by customer
members, 3 elected by worker members. Patronage: Customers (all, not just members) get
60% of patronage dividends; worker membersget 40%, to be distributed in accordance withhours worked.
Re-examination of structure now taking place.
![Page 19: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/19.jpg)
Profile: Weaver Street Market Year founded: 1988 2 classes of members: worker and consumer Share prices: $500 for workers; consumer prices
vary by HH size ($75 for 1, $135 for 2, $175 for 3 ormore).
Board: 7 members. 2 elected by worker members, 2elected by consumer members, 1 (the President)appointed by the above four, 2 appointed by theabove five.
Patronage: This has changed recently. Nowallocated on basis of total hours worked (workers) ortotal amount of purchases (consumers). Boardneeds to set policy re: division.
![Page 20: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/20.jpg)
Profile: Oklahoma Food Co-op Year founded: 2003 2 classes of members – producer and consumer –
but one class of shares Share price: par value ($50) or actual value,
whichever is greater. Board: Officers serve on the board. One VP for
Producers and Customers is elected by each group.One board member is elected by employees. 5 or 6at-large board members are elected by all members.
Patronage: “the surplus from the member patronage business ofthe association shall be allocated to member-patrons in theproportion that the patronage of each member bears to the totalpatronage of all the members of the association.”
![Page 21: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/21.jpg)
Profile: Fifth Season Cooperative Year founded: 2010 6 classes of members: producers, producer groups,
processors, distributors, buyers, workers. Two classes of shares: one for members, the other
for investors. Different equity contributions requiredfor the different member classes.
Board: 7 members. 3 member classes (producer,buyer, worker) elect 1 each. 4 elected by allmembers.
Patronage: distributed “in accordance with the ratio ofeach member’s patronage (business transactions) to thetotal patronage (business transactions) by all members.”
![Page 22: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/22.jpg)
Opportunities in the Economy
Production and Distribution Co-opsValue-AddedSocial Services & Employment Co-opsHealthcareShared Marketing__________ ?
![Page 23: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/23.jpg)
Discussion
Is the multistakeholder approach relevantto our opportunities and challenges?
What are your concerns about such amodel? What is most interesting?
What are some opportunities you see forexploring the model?
![Page 24: Multistakeholder Cooperation](https://reader033.vdocuments.site/reader033/viewer/2022052523/555ee803d8b42ab6408b55cd/html5/thumbnails/24.jpg)
Contact
Erbin Crowell
Neighboring FoodCo-op Association
Don Jamison
Vermont EmployeeOwnership Center