Democratic Governance And Engagement

It is important for co-operative democracy to take advantage of technological developments. Advances in modern mobile and internet communication technology are making it easier to develop strategies that actively engage members in a co-operative's democratic processes.

However, the value of members meeting physically in general assemblies before voting should not to be underestimated. Members' interactions with each other - to permit consideration and discussion before exercising their democratic rights to vote on key issues - is a vital part of the democratic process. Democratic engagement of members in accordance with a co-operative's rules and by laws is a qualitative not just a quantitative process.

There is no pre-ordained way to organise the governance of a co-operative. Each co-operative will need to structure its own democratic governance and bylaws to be fit for purpose given the nature of its business, the scale of its operations, its geographical area of operation and national laws1. The arrangements made should ensure that democratic control by members is real and effective rather than a notional democracy controlled by management or a self-perpetuating elite. In any democracy there is a risk of democratic control being usurped by an elite group and this must be guarded against by actions that respect the rights of all members to participate and be engaged in a co-operative's democratic processes and stand for election. Low levels of participation make it relatively easy for articulate groups, be they staff, middle and senior managers, or electoral groupings, to gain disproportionate control and influence, which is often reinforced by the group then becoming the body that sets the qualifications and rules for elections.

Making membership meaningful and encouraging member participation is a task facing all co-operatives regardless of their size or stage of development. In some co-operatives the sense of members owning and controlling their co-operative enterprise may be diminished if members are too removed from decision making and control without appropriate and effective information sharing, training and educational opportunities and effective channels for member engagement. This risk grows if membership is promoted without new members having the opportunity to understand the nature of the co-operative they are joining or where they are granted membership without making a personal capital investment in the co-operative. Smaller co-operatives or those in their 'start-up' phase may find it easier to make membership meaningful, but making membership meaningful and encouraging member participation is a task facing all co-operatives regardless of their size or stage of development. It is a challenge that reinforces the importance of the 5th Principle of continuous education and training. In large co-operatives, which have subsidiaries and group structures, consideration should be given to ensuring that supervision by the members and accountability to them is global for all organisations in the group, notably by ensuring that a majority of the board of directors come from member primary co-operatives.

In most co-operatives, membership has traditionally been composed of a single type of stakeholder. Historically, this homogenous nature of members, particularly in consumer co-operatives, was a significant influence when the Co-operative Principles were formulated. New types of co-operatives with multiple stakeholders face a particular challenge and responsibility to make membership meaningful to all their members. The key driver for membership engagement in all co-operatives is the relevance of the co-operative's mutual purpose to meet members' needs and aspirations.