The Cooperative Difference in Challenging Times: Why Cooperatives Matter J Tom Webb NFCA 4 th Annual Fall Gathering // 27 th Sept 2014 Coop Food Stores // Hanover, New Hampshire
May 22, 2015
The Co-‐operative Difference in Challenging Times:
Why Co-‐operatives Matter
J Tom Webb NFCA 4th Annual Fall Gathering // 27th Sept 2014 Co-‐op Food Stores // Hanover, New Hampshire
J. Tom Webb Co-‐op board member, senior manager, consultant and educator
Co-‐operative Management Education program at Saint Mary’s University
Global Co-‐operation, Inc.
Neighboring Food Co-‐ops Fall Gathering, 2014
OUR GUEST SPEAKER
Global Co-operation Inc
The Co-operative Difference
in Challenging Times:
Why Co-operatives Matter
Neighboring Food Co-ops Fall Gathering, 2014
Global Co-operation Inc
The Context
Neighboring Food Co-ops Fall Gathering, 2014
The long view…
Energy Crisis
Environment Crisis
Rate of Change Technology Crisis
Urban Rural Crisis
Financial Melt Down
Food Crisis Income
Distribution
Inter Related Problems of a Market Driven Investor-owned Economy
Erosion of Democracy
Neighboring Food Co-ops Fall Gathering, 2014
Trickle up theory of economics
Neighboring Food Co-ops Fall Gathering, 2014
Global Co-operation Inc
Why Co-operatives Matter
Can a people centered democracy coexist with a capital centered economy?
Neighboring Food Co-ops Fall Gathering, 2014
Neighboring Food Co-ops Fall Gathering, 2014
Capitalism Works – For 20%
1996
Neighboring Food Co-ops Fall Gathering, 2014
Crisis of the Environment
Neighboring Food Co-ops Fall Gathering, 2014
Global Co-operation Inc
Why Co-operatives Matter
Our economy needs an alternative.
Neighboring Food Co-ops Fall Gathering, 2014
Global Co-operation Inc Why Co-operatives Matter
Our Planet needs an alternative
Global Co-operation Inc
Why Co-operatives Matter
Human Society needs an alternative
Neighboring Food Co-ops Fall Gathering, 2014
Global Co-operation Inc
Why Co-operatives Matter
Economy Economy
Natural World
Human Society
Can Capitalism and democracy coexist?
Neighboring Food Co-ops Fall Gathering, 2014
All serves
Capital
All depends
On Nature
The Natural
world
Humanity
Humanity
Capital Is a Tool
Can we imagine: Co-operative Economics
Neighboring Food Co-ops Fall Gathering, 2014
Theory of why capitalism works
Neighboring Food Co-ops Fall Gathering, 2014
Key Beliefs of Neoclassical Economics
Financial Gain is central Motivation
Assumed Market Perfection Progress =
Growth = Scale
“Free Trade” No barriers
for Corporations Lower
Taxation and Minimal Government
Regulation Voluntary by Market
Players
Global Co-operation Inc
Depressing ?
Hope springs from facing reality not
hiding from it.
Here comes the hope Neighboring Food Co-ops Fall Gathering, 2014
Global Co-operation Inc
Why Co-operatives Matter We can change the way we think about:
• Our co-operative’s operations
• Our economy, • Our society • Our planet
Neighboring Food Co-ops Fall Gathering, 2014
Neighboring Food Co-ops Fall Gathering, 2014
Values
Purpose
Principles
Justice
Understanding the Co-operative Difference
The four pillars of co-operation
Global Co-operation Inc
Understanding the Co-operative Difference Co-operative
Investor Owned
Values & Principles
DNA
Clothing of convenience
Purpose DNA
Maximize return to mainly wealthy
Ethical stance Justice Charity
Bottom line(s) Multiple goals One overriding Others optional
People Members and workers just people
Workers are just people
Global Co-operation Inc
Neighboring Food Co-ops Fall Gathering, 2014
Neighboring Food Co-ops Fall Gathering, 2014
Global Co-operation Inc
Why Co-operatives Matter
A Lot of
HOPE
100 Million work in Co-ops
US Food Co-ops NFCA
CDS
NCGA
Environment! Healthy Food!
Local Food! Co-operative values!
Fair Trade!
Global Co-operation Inc
NFCA Co-operative Links
NFCA
Low income access
Public Profile Saint Mary’s University
UMASS Co-op Certificate New England Farmers Union
Organic Farmers
Anti Hunger
Valley CBA
CFNE Workshops
HOPE!
And more…
Neighboring Food Co-ops Fall Gathering, 2014
Global Co-operation Inc
So what can you do?
Neighboring Food Co-ops Fall Gathering, 2014
Co-operative Economics
An economy inspired by the co-op business model.
A new definition: The economy is the complex set of relationships that people use to provide themselves with the goods and services they need to live meaningful lives in their communities.
There is an alternative:
Global Co-operation Inc
Neighboring Food Co-ops Fall Gathering, 2014
Neighboring Food Co-ops Fall Gathering, 2014
Co-operative Economics
An economics inspired by the co-op business model.
A new definition: Economics is the study of how effective the economy is at meeting human need in a manner that allows people meaningful happy lives as an integral part of a healthy planet.
There is an alternative:
Global Co-operation Inc
Creating the Co-operative Difference
Community
Operations
Values Principles Purpose Justice
Operations Financial
Personnel
staffing
education
Marketing
Accounting
Product
Service
Buildings
Planning
Everything else
Community • Environment
• Justice
• Responsibility
• Economic
• Social
• Co-operatives
• Global Co-operation
Global Co-operation Inc
Educate by doing and explaining
Neighboring Food Co-ops Fall Gathering, 2014
Global Co-operation Inc Co-operative Accounting – Why Measure?
Total Annual Revenue Purchases of Local Products Purchases of Regional Products Purchases of Organic Products Purchases of Fair Trade Products Purchases from Supplier Co-ops Donations to Community
Organizations Total Members New Members Total Employees Total Payroll Percent Full-Time Employee Benefits Contribution to Local Taxes
You can’t manage what you do not measure
You can’t inform without accountable information
Neighboring Food Co-ops Fall Gathering, 2014
Global Co-operation Inc
Key Opportunities Co-operative Accounting - Measure your differences: • Sales per member per year • Community income equality • Member engagement • Member satisfaction • Kilos of CO2 per member • Community health impact • % Local food
Neighboring Food Co-ops Fall Gathering, 2014
Global Co-operation Inc
Key Opportunities
Co-operative Accounting - Measure your differences: • Bigger the co-op the more sophisticated • Share with others • Start simple and build year by year • Think of measures during the day and
send them in to NFCA to share
Neighboring Food Co-ops Fall Gathering, 2014
Neighboring Food Co-ops Fall Gathering, 2014
Global Co-operation Inc
Key Opportunities
Limits to Co-operative Growth? • Market share • Governance • Competing amidst rampant materialism Social Media and participation in planning • If 250,000 can create Wikipedia then?
Neighboring Food Co-ops Fall Gathering, 2014
Global Co-operation Inc
Key Opportunities Explore Solidarity Co-operative model • Consumers, workers, community, suppliers • Interdependence vs Stakeholders
Vertical and horizontal co-operation • Buy from, sell to and share with co-ops • NFCA’s “Go Co-op!” Program
Co-op development resources that work Funeral, Phone, Internet, Worker, etc.
Global Co-operation Inc
Collective NFCA Challenges: Imagine a better world
Imagine 100 ideas for measuring the co-operative difference Imagine 10 co-operative differences your members want Imagine 80% of your members engaged beyond shopping Imagine 5 ways to get members to ask questions Imagine your co-op as the most trusted information source Imagine creating 100 workplaces/year – How? Imagine increasing co-op sourcing by 10 percent
Neighboring Food Co-ops Fall Gathering, 2014
Global Co-operation Inc
Closing Questions
How many co-ops do you know that failed because they put too much effort into co-op purpose, values and principles? How many do you know that failed or are in trouble because they lost their co-operative identity? What is your greatest risk?
Neighboring Food Co-ops Fall Gathering, 2014
Global Co-operation Inc
Why Do Co-operatives Matter? Because you are the
best hope my grandchildren have.
Thank you
Tom Webb
Neighboring Food Co-ops Fall Gathering, 2014
Neighboring Food Co-‐ops // Fall Gathering, 2014
THANK YOU!
Thank you to the co-‐operative community for your partnership & support.
THANK YOU!
Thank you to the co-‐operative community for your partnership & support. Neighboring Food Co-‐ops // Fall Gathering, 2014