Cooperative governance, and how it could be better

Pauline Green, who has just stepped down as President of the International Co-operative Alliance, gave me a moving and inspiring interview yesterday for a feature I am writing for one of my clients, the International Co-operative and Mutual Insurance Federation. Pauline mentioned in passing the dire straits in which the ICA found itself at the start of this century, starved of funds and losing members fast. The achievement of Pauline and her colleagues since those dark days not only in stabilising the ICA but in making it an increasingly powerful and respected voice globally deserves proper recognition.

One sign of the ICA’s renewed energy is the determination with which it is trying to implement its current strategy, the Blueprint for a Co-operative Decade. This is represented among other things by the publications emerging from within the ICA. I enthused last week about the new Guidance Notes on the Co-operative Principles. Today I want to mention a second useful publication, on cooperative Corporate Governance.

As Pauline Green puts it in the foreword, “Governance is a key component of the co-operative difference. The cooperative values and principles call for an open, voluntary and democratic process of decision-making, and cooperative governance is an essential tool in applying those values and principles.” But as I think we all know, cooperative governance is not always all it might be. In fact, it can be pretty appalling.

Rebuilding the cooperative movement means among other things encouraging better governance, appropriate to the size and purpose of each individual coop. This new publication aims to start a debate. Among other things there’s a thoughtful account by Johnston Birchall on governance in large coops, and a (perhaps deliberately) provocative chapter from Cliff Mills, who criticises the old approach in the Co-op Group and calls for adequate professional expertise to be harnessed. And there’s a delightful account from Bob Cannell on Suma’s egalitarian – and highly successful – approach to governance and management. You’ll find the report here.

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