Co-oppundit 2012

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Control

Enterprise model

CONTROL
– how control is exercised and retained by the members

MEMBER-CONTROL

OVERSIGHT

Providing adequate oversight (a system of structural checks and balances), which is crucial in order to prevent organizational drift away from the common purpose. Whenever those running an enterprise on a day-to-day basis are not the same people who own it a vigorous system of oversight becomes essential. In member-controlled enterprises without adequate systems of oversight the main benefits often accrue to those running the enterprise rather than to members.

Genuine member-control

Controlled democratically by members and financed in a manner that sustains member control. The overall direction and policy-making is in the hands of members appointed by, and responsible to, the membership. All significant decisions about the purpose, objectives and the constitution of the organization are made by the membership as a whole and the majority of the persons directing the affairs of the enterprise are appointed by and from the membership

Member-control is essential
Sometimes, misinformed perceptions need to be replaced by approaches that can ensure that co-ops & mutuals deliver the outcomes wanted by ordinary members. What the majority of members really want from their co-ops & mutuals are in the first place real economic benefits but at the same time they want to deal with an organization that they can truly trust to put their members’ interests first; What they don’t want is any organization that will 'rip them off'' given the opportunity to make a quick profit. Unless co-ops & mutuals remain ultimately under genuine member-control they cannot be relied upon to deliver the benefits that members need from them, this is why many of them need to adhere to the a comprehensive set of practices such as are set out within the member-controlled enterprise model.

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