1 / 13

Unit #2 Co-operatives As a Business Model

Unit #2 Co-operatives As a Business Model. Co-op Structure: Roles & Responsibilities. Members Are the owner/investors and have ultimate control of the co-op Participate in decision making relating to; Policy development Appointment of auditor & annual financial reports

liz
Télécharger la présentation

Unit #2 Co-operatives As a Business Model

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unit #2Co-operativesAs a Business Model

  2. Co-op Structure: Roles & Responsibilities Members • Are the owner/investors and have ultimate control of the co-op • Participate in decision making relating to; • Policy development • Appointment of auditor & annual financial reports • Distribution of profits • Election of the board of directors • Members participate through the co-op’s AGM & other membership meetings • Member shares are the basis for the co-op’s long term financial stability • Member use of services is the co-op’s primary source of revenue

  3. Co-op Structure: Roles & Responsibilities Board of Directors • Elected by & take direction from the members • Pro-actively directs co-op operations based on co-op principles, legislation, by-laws & policies • Selects, supervises & provides direction to management • Manages & protects the assets of the co-op • Provide membership with full accounting of co-operative activities and directions

  4. Co-op Structure: Roles & Responsibilities Committees • Appointed by members and/or board • Delegated authority for specific tasks or projects • Reporting relationships outlined in by-laws & terms of reference • Standing Committees: Finance & Audit, Member Communications, and Staff Relations • May be appointed for short terms, to address specific issues as they arise

  5. Co-op Structure: Roles & Responsibilities Management • Hired by and reports directly to the Board • Responsibilities & powers similar to those of private sector manager • Hires, directs and evaluates all other staff • Responsible for successful management of the co-op business • Understands co-op business structures & governance processes • Provides operational reports at board & membership meetings

  6. Smaller Co-operatives • Smaller co-ops may rely on part-time/seasonal staff or none at all • Member responsibilities remain the same as larger structures • Board and committee members may be more involved in day-to-day operations • Rely more on volunteer member and/or other community resource support

  7. Comparison with Other Sectors Public Sector: federal, provincial & municipal governments that provide public services, paid for by tax revenues Private Sector: businesses & organizations that provide services for the public to maximize profits for individual gain Social Economy Sector: non-profit organizations & businesses that respond to socio-economic needsof communities. Co-ops are part of this sector

  8. Co-ops are Unique Different Purpose • Private Sector:seeksto maximize profitability for investors • Co-operatives: seeks to provide members with needed services at the lowest possible cost Different Control Structure • Private Sector: amount of invested capital dictates the level of voting control • Co-operatives: each member has one vote, irrespective of amount of capital invested

  9. Co-ops are Unique Allocation of Profits • Private Sector: profits distributed as dividends on invested capital, regardless of use of products or services • Co-operatives: profits allocated to members as rebates on proportional use of products and services, not on the amount of capital invested

  10. Member Benefits & Obligations Benefits • Access to quality services at reasonable cost • Control of a business that places priority on their needs • Sharing of surplus profits that remain in the community • Stable service delivery & and longer business life • Priority on local employment Obligations • Use their co-op’s services • Buy shares & maintain their equity investment • Attend AGMs and other membership meetings • Be informed and engage in the decision making process

  11. Co-op Facts • Operate in a wide variety of business sector • Not just grocery stores or credit unions • They are subject to co-op legislation • But not controlled by government • Have a higher survival rate than other businesses • Not “last resort” enterprises operating in marginal business situations • Make profits, employ local people and contribute to local economies • Not charities or non-profit organizations

  12. Essential Conditions for Success • A co-op must: • Meet the needs of its members • Be economically viable with secure financing • Have strong member patronage & participation • Deliver top quality services at reasonable cost • Make board/staff/member education a priority • Hire competent & committed management/staff • Have strong leadership and a succession plan. • Have a positive relationship with the community • Buy & hire local as much as possible • Be adaptable to changing business environments

  13. Preview of Other Co-op Modules • Unit 3: Co-operative Principles, Legislation & Governance • Unit 4: The Existing Co-operative System • Unit 5: Developing a Co-operative

More Related