The Co-operative Difference in Challenging Times: Why Co-operatives Matter

The Co-‐operative Difference in Challenging Times:

Why Co-‐operatives Matter

J Tom Webb NFCA 4th Annual Fall Gathering // 27th Sept 2014 Co-‐op Food Stores // Hanover, New Hampshire

J. Tom Webb  Co-‐op board member, senior manager, consultant and educator

 Co-‐operative Management Education program at Saint Mary’s University

 Global Co-‐operation, Inc.

Neighboring Food Co-‐ops Fall Gathering, 2014

OUR GUEST SPEAKER

Global Co-operation Inc

The Co-operative Difference

in Challenging Times:

Why Co-operatives Matter

Neighboring Food Co-ops Fall Gathering, 2014


The Context


The long view…

Energy Crisis

Environment Crisis

Rate of Change Technology Crisis

Urban Rural Crisis

Financial Melt Down

Food Crisis Income

Distribution

Inter Related Problems of a Market Driven Investor-owned Economy

Erosion of Democracy


Trickle up theory of economics




Can a people centered democracy coexist with a capital centered economy?



Capitalism Works – For 20%

1996


Crisis of the Environment




Our economy needs an alternative.


Global Co-operation Inc Why Co-operatives Matter

Our Planet needs an alternative



Human Society needs an alternative




Economy Economy

Natural World

Human Society

Can Capitalism and democracy coexist?


All serves

Capital

All depends

On Nature

The Natural

world

Humanity

Humanity

Capital Is a Tool

Can we imagine: Co-operative Economics


Theory of why capitalism works


Key Beliefs of Neoclassical Economics

Financial Gain is central Motivation

Assumed Market Perfection Progress =

Growth = Scale

“Free Trade” No barriers

for Corporations Lower

Taxation and Minimal Government

Regulation Voluntary by Market

Players


Depressing ?

Hope springs from facing reality not

hiding from it.

Here comes the hope Neighboring Food Co-ops Fall Gathering, 2014


Why Co-operatives Matter We can change the way we think about:

•  Our co-operative’s operations

•  Our economy, •  Our society •  Our planet



Values

Purpose

Principles

Justice

Understanding the Co-operative Difference

The four pillars of co-operation


Understanding the Co-operative Difference Co-operative

Investor Owned

Values & Principles

DNA

Clothing of convenience

Purpose DNA

Maximize return to mainly wealthy

Ethical stance Justice Charity

Bottom line(s) Multiple goals One overriding Others optional

People Members and workers just people

Workers are just people






A Lot of

HOPE

100 Million work in Co-ops

US Food Co-ops NFCA

CDS

NCGA

Environment! Healthy Food!

Local Food! Co-operative values!

Fair Trade!


NFCA Co-operative Links

NFCA

Low income access

Public Profile Saint Mary’s University

UMASS Co-op Certificate New England Farmers Union

Organic Farmers

Anti Hunger

Valley CBA

CFNE Workshops

HOPE!

And more…



So what can you do?


Co-operative Economics

An economy inspired by the co-op business model.

A new definition: The economy is the complex set of relationships that people use to provide themselves with the goods and services they need to live meaningful lives in their communities.

There is an alternative:




Co-operative Economics

An economics inspired by the co-op business model.

A new definition: Economics is the study of how effective the economy is at meeting human need in a manner that allows people meaningful happy lives as an integral part of a healthy planet.

There is an alternative:


Creating the Co-operative Difference

Community

Operations

Values Principles Purpose Justice

Operations Financial

Personnel

staffing

education

Marketing

Accounting

Product

Service

Buildings

Planning

Everything else

Community •  Environment

•  Justice

•  Responsibility

• Economic

• Social

•  Co-operatives

•  Global Co-operation


Educate by doing and explaining


Global Co-operation Inc Co-operative Accounting – Why Measure?

Total Annual Revenue Purchases of Local Products Purchases of Regional Products Purchases of Organic Products Purchases of Fair Trade Products Purchases from Supplier Co-ops Donations to Community

Organizations Total Members New Members Total Employees Total Payroll Percent Full-Time Employee Benefits Contribution to Local Taxes

You can’t manage what you do not measure

You can’t inform without accountable information



Key Opportunities Co-operative Accounting - Measure your differences: •  Sales per member per year •  Community income equality •  Member engagement •  Member satisfaction •  Kilos of CO2 per member •  Community health impact •  % Local food



Key Opportunities

Co-operative Accounting - Measure your differences: •  Bigger the co-op the more sophisticated •  Share with others •  Start simple and build year by year •  Think of measures during the day and

send them in to NFCA to share




Key Opportunities

Limits to Co-operative Growth? •  Market share •  Governance •  Competing amidst rampant materialism Social Media and participation in planning •  If 250,000 can create Wikipedia then?



Key Opportunities Explore Solidarity Co-operative model •  Consumers, workers, community, suppliers •  Interdependence vs Stakeholders

Vertical and horizontal co-operation •  Buy from, sell to and share with co-ops •  NFCA’s “Go Co-op!” Program

Co-op development resources that work Funeral, Phone, Internet, Worker, etc.


Collective NFCA Challenges: Imagine a better world

Imagine 100 ideas for measuring the co-operative difference Imagine 10 co-operative differences your members want Imagine 80% of your members engaged beyond shopping Imagine 5 ways to get members to ask questions Imagine your co-op as the most trusted information source Imagine creating 100 workplaces/year – How? Imagine increasing co-op sourcing by 10 percent



Closing Questions

How many co-ops do you know that failed because they put too much effort into co-op purpose, values and principles? How many do you know that failed or are in trouble because they lost their co-operative identity? What is your greatest risk?



Why Do Co-operatives Matter? Because you are the

best hope my grandchildren have.

Thank you

Tom Webb


Neighboring Food Co-‐ops // Fall Gathering, 2014

THANK YOU!

Thank you to the co-‐operative community for your partnership & support.

THANK YOU!

Thank you to the co-‐operative community for your partnership & support. Neighboring Food Co-‐ops // Fall Gathering, 2014

The Co-operative Difference in Challenging Times: Why Co-operatives Matter

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