The Governance of Co‐operatives under Competitive Conditions: Issues, Processes and Culture

Abstract

Reviews the contemporary debate on governance within the co‐operative sector and makes an analysis of the traditional approach taken by the movement. Critiques the view that democratic structures are an effective mechanism for governance in a co‐operative. Process and structure rather than purpose and culture inform the terms of the debate. Argues that professional management is inevitably gaining ground against lay directors. Explores the option of developing professional management as the guardians of co‐operative values and purpose – not to replace democratic governance structures but to support and supplement them using co‐operative value‐based adaptations of modern management methodologies to make consumer co‐operatives more responsive to their customers and members. When people identify with co‐operative purpose and values they will want to be involved. Good governance in co‐operatives is more a problem of management culture than it is a problem of democratic structures.