Co-operatives are democratic organisations, but what exactly does this mean? Firstly it means democratic governance, which is a defining feature of co-ops; members own and control the organisation; and they have certain... [ view full abstract ]
Co-operatives are democratic organisations, but what exactly does this mean?
Firstly it means democratic governance, which is a defining feature of co-ops; members own and control the organisation; and they have certain control rights which can be specified. Typically this involves a representative form of democracy where members elect a board annually, and this controls managers.
But this is not the only model: Weber (1968, and Thomas, 1984) provides a framework for exploring more direct forms of democracy – also discussed in depth by Rothschild-Whitt (1979) in relation to the radical collectives of the 1970s. An important theme to be addressed is how centralisation/ decentralisation provide a basis for differentiating between different forms of control. And another theme to be considered is the empowerment literature, and the extent to which this informs democratic practices in co-ops, including from the member perspective ie what do members want to control?
This paper is concerned with exploring different models of democracy within co-operatives – some of which may be more engaging and participative for the members. Its focus is mainly on worker co-operatives, drawing on some empirical cases; but it also considers some cases from other sectors (consumers) where innovations in democracy have taken place.
References:
Heller, Frank (1980) Managing Democratic Organizations, Ashgate.
Rothschild-Whitt, Joyce (1979) The Collectivist Organization: An Alternative to Rational-Bureaucratic Models. American Sociological Review. Vol. 44, No. 4 (Aug., 1979), pp. 509-527
Spear R & A Thomas (forthcoming) Can workers in worker co-operatives control their jobs? Journal of Co-operative Studies.
Spear, R. (2004) "Governance in Democratic Member Based Organisations", Special issue of Annals of Public and Co-operative Economics: Governance in the social economy, 33-60
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