In a very politically-charged year, co-operatives have consistently showed their difference.
Despite uncertainty with the economy, Brexit and increased right-wing activism, co-operatives have always brought themselves back to their roots; the community.
The co-operative economy itself is strong. Sales have had a steady climb from £33.6bn to £34.1bn from 2012-16, while the number of members has increased by two million in that same timeframe.
Globally, the picture is looking better. Over five years, the turnover of the top 300 co-ops has jumped from $1.9tn to $2.5tn.
This important economic data shows that in a time of crisis co-operatives are the right option. Plus it helps strengthen the case for co-operation.
There is growing interest in co-operatives. The United Nations sent a delegation of high-level representatives to the International Summit of Cooperatives to tell the sector that co-ops should be the businesses that embrace the UN’s Sustainable Development Goals.
These 17 goals all link in with our principles in someway – and is a way to help us tell our story.
In rural and developing countries, a UN Commission on the Status of Women backed the notion that co-operatives can help to empower women in those regions.
Recognition from agencies such as the UN, including the International Labour Organization and the Food and Agriculture Organization, brings more credibility to the way we do business.
But it’s important that co-operatives continue to push their difference. Whether it is the expansion of housing co-operatives or the plight of farmers being satisfied through the co-op model, there are so many areas of the economy that co-operatives are touching.
An obstacle facing businesses in 2016 has been the power of consumer choice – which is amplified at a quick rate through social media. It’s mainly been against companies that have been lax at paying tax or giving workers a raw deal.
This year, there’s been many opportunities where co-ops have jumped in as the good guys. The Community Impact Index showed that co-ops give more than 10% of profits back to communities, as opposed to 4.5% from non-co-op retailers. In addition, the Co-operative Economy report showed the five largest co-ops paid 50% more tax than retail rivals.
This is a consistent story from co-operatives. There are no large shareholder payouts, so any surplus that co-ops generate go back to members or its community. It’s a simple narrative. And it’s one that’s been picked up by the Co-operative Group, which relaunched as the ‘Co-op’ and made a promise to give members 5% back on own-brand goods, while donating 1% to the community.
But, consumer choice can also bring pressure for co-ops. One of the obstacles for 2017 must be looking at how co-operatives can work more closely and smarter together.
Some in the credit union sector have expressed fear about the power of customer choice. With hundreds of tiny and individual financial outlets, it’s important that credit unions work together. Many are alone, but 2017 will see the ramping up of the sector working together through its Cornerstone model, which will see credit unions becoming more efficient.
There are other areas of the co-op sector that is fragmented, in both sectors and across the movement in general. It is through the power of co-operation that the public will know about and engage with the co-operative difference.
