Organic, cage free, grass fed, locally sourced, fair trade, these are all monikers that have grown in response to movements by consumers to shop responsibly. When given an option, many people prefer to make the more ethical choice when spending their money, and it’s time cooperatives take advantage of this.
There is a growing awareness of the unethical practices that so many corporations engage in while pursuing profits above all else. Companies are more visible now than in the past. Due to social media, consumer reviews, cell phone footage, etc., it is increasingly difficult for companies to hide their misdeeds from the public. Every day a new story pops up about large companies like Nestle pulling some nefarious acts to help their profits at the expense of others. Boycotting campaigns are growing, ranging from Coca-Cola, to Amazon, and even Caterpillar. People are demanding ethically run companies making ethical products. People want change, so let’s give it to them.
The Ethical Solution
Cooperatives can be the ethical answer consumers are looking for. The Rochdale Principles, the 7 principles created in 1844 that form the basis for cooperative enterprises, even include concern for community. Ethical practices are at the core of what cooperatives are. They focus on the collective good rather than a drive for profits, they share value and resources, and they take care of their employees because a co-op is the employees.
Consumers demand accountability. The boycotts of unethical companies come from a call for accountability for large entities that make poor decisions resulting in detrimental effects to living beings. They seem to do what they want and get away with it at the expense of others. Well accountability is at the forefront of cooperative values. A co-op’s board of directors answer to the members, and board members can often be removed far easier than in a traditional business. This leads to a built-in system that keeps the co-op in check. This can work not just for worker co-ops, but for consumer co-ops as well.
While social movements are difficult to create and often start organically, there are some steps that cooperative organizations can take to up their chances of the model catching on and going mainstream.
Some companies already advertise that they are cooperatively owned. Enterprises such as Bob’s Red Mill and Equal Exchange, say it right on their packages. This is a great start, but taking it a step further could be the needed push to propel co-ops into the public zeitgeist. Something like a universal, recognizable seal stamped on all cooperatively made products, or a dedicated co-op section of a grocery store would make it easy for consumers looking for companies with ethical business practices to find those from cooperatively owned enterprises.
One major problem standing in the way of the growth of cooperative economics is the lack of widespread awareness about it. Most people might have a vague idea of what a cooperative is, but might not know the specific details of how they work or the benefits that they bring. This needs to be fixed if the number of worker owners is to increase.
Another of the 7 Rochdale Principles is Education, Training, and Information. This applies not just to cooperative members, but the general public as well. Awareness of the model and how it can bring about change is key. Marketing is important for any business, but should be doubly so in the effort to create a social movement advocating for worker cooperatives. Democratic organizations by design, collectively decide where the surplus profits are allocated. Now without seeing the books for such organizations, one cannot know how much of that money is spent of advertising and awareness, but in this writer’s opinion, it needs to be more. Not just for individual businesses, but for the model as a whole, we need dedicated social media campaigns, advertisements, and sponsorships in order to make the average person more aware of the viability and success of these types of companies.