ABSTRACT
The co-operative’s governing bodies play an important role in decision-making, bringing forward the needs of the membership, monitoring the efficiency of the operations, supervising the operational management, and, above all, overseeing the realisation of the co-operative’s purpose, which is characterised by its dual nature. Therefore, co-operative management – governance and operational – requires people with specific knowledge and education.
This chapter discusses some critical issues of co-operative governance, particularly highlighting the topics of member participation, competence requirements of co-operative management, and the roles of co-operative boards and managing directors. The chapter considers who truly wields power in our jointly owned co-operatives.
The governance of cooperatives faces challenges as the co-op grows larger, with members potentially becoming less connected and more reliant on professional management. This may lead to a shift towards a representative model with professional managers in control. Power concentration within cooperatives is a key topic, where the managing director’s role should prioritise fulfilling the co-operative’s purpose and meeting member expectations. Ultimately, the member-owners grant operational management authority, making the member the managing director’s ultimate superior. Co-operative management should aim to maximise long-term member benefits, beyond just financial gains, and perceive their role as a co-operative leader as a service job.
