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The lives of more than 100 million Americans are improved by nearly 48,000 cooperative private businesses that generate more than $100 billion in annual economic activity. Co-ops enrich our communities, large and small. Through co-ops, those who work together to build a business can attain all its benefits and those who need service can receive it on their terms. There are critical differences -advantages of the cooperative way of doing business. As co-op members, we should understand and appreciate the co-op difference. No matter how big or small they are, co-ops were built by and for the members. Co-op boards of directors are elected from and by the members. Co-ops are accountable to their members. Cooperatives have principles; core values that all co-ops use as their foundation. They are: voluntary and open membership; democratic member control; member economic participation; autonomy and independence; education, training and information; cooperation among cooperatives; and concern for community. Americans have lost a great deal of faith in corporate America. The accounting scandals of late have demonstrated that the goal of some corporate executives is to get rich quick, regardless of who pays the tab. And, sadly, too many corporate directors have looked the other way. But America's 48,000 cooperative businesses, like the GROWMARK system of FS and grain marketing cooperatives, are a more accountable alternative to the 120 million consumers who belong to them. These successful businesses operate in every sector of the economy, competing head to head with publicly traded companies, which co-ops outnumber by four to one.
Why are co-ops different? They are owned and governed by the people who buy the company's products or use its services, such as farmers, credit union members, the customers of the grocery store, the homeowner who buys electricity, the resident of a housing co-op, and so on. And they are different because those owners rely on the business to meet their needs. Sure, when stock prices fall, investors in a publicly traded company lose money. But if a co-op fails, its members lose access to goods and services they need. That's why co-op members have a real, long-term stake in the business. The lack of director accountability and independence and the failure of corporations to directly involve shareholders in meaningful elections are core causes of the recent corporate scandals. But again, co-ops are different. Co-op member-owners directly elect the board of directors from among the membership in competitive, democratic elections. That democracy creates built-in accountability. Fundamentally, co-ops lack any incentive to misrepresent the financial position of the company because they are not about generating short-term return to shareholders or producing riches for management. Instead, co-ops are about service to members - it is their only reason to exist. That creates an entirely different set of motivations for management, directors and member-owners. At this time of heightened attention to corporate accountability, cooperatives are businesses people can trust because they are businesses they can own and control. I'm proud to be a member of a cooperative system started by Farm Bureau members 75 years ago, and still governed by Farm Bureau members today. To remain effective and responsive the co-ops you belong to need your active participation. Go to the annual meeting. Read the newsletter. Support the products and services your co-op provides. And finally, if you are really interested, run for the board of directors. You can. You're a co-op member.
4 ILLINOIS COUNTRY LIVING www.icl.coop |
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