A caring, sharing and co-operative way to success

A do-it-yourself manual for creating and running a co-operative will help people to understand this form of business enterprise, and why it has been so successful, for so long.

Co-operatives were first established over 500 years ago and are one of the oldest types of business. Co-operative members believe in the ethical values of honesty, openness, social responsibility, equality, solidarity and caring for others.

Despite there being over a billion members of co-operatives worldwide, they are not well understood, nor are they given much attention by academics or the general public.

Car-owners clubs, like the NRMA and RACV, and credit unions are examples of successful co-operatives in Australia. Some of the biggest local co-operatives are involved in agriculture.

Eight out of ten Australians are a member of a co-operative or mutual, yet only 30 per cent know they are a member, or can actually name a co-operative.

Above: The co-operative circle (courtesy The Mercury Centre)

Co-operatives in Australia – A Manual was published by the NSW Federation of Co-operatives to help bridge this information gap. The manual will help people to understand the pros and cons of the co-operative structure.

In essence, a co-operative is operated by, and for its members. They can be contrasted to large public companies that can be operated in the interests of distant shareholders, who have very different objectives to the actual communities in which the companies operate.

Co-operatives can provide a more intimate link between community and business and can be operated in the long-term interests of both.

“It is time to support and strengthen a practical and democratic alternative to large corporations and a lack of basic services – socially responsible co-operatives,” the manual says.

The Goulburn Valley Co-operative is a case in point. The co-operative formed after Heinz closed down a factory in 2011 as they moved production off-shore. The factory supported 600 locals so a co-operative as created as an alternative way to keep local framers and workers employed producing Australian food.

In July this year the Goulburn Valley Co-op launched their first product lines including tomato paste and spaghetti sauce.

The DIY manual follows the life cycle of a co-operative. It has sections to help readers: to understand what co-operatives are; how to start new co-operatives; understand how a co-operative is planned and managed; and how to deal with changes, including ending membership and the co-operative itself.

Importantly, Co-operatives in Australia – A Manual has been written in plain English.