Chapter 12: Recommendations for boards of directors of investor owned firms from the co-operative model
Restricted access

Co-operatives are defined by the International Co-operative Alliance as 'an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise'. Under the name co-operative, very different organisations coexist: consumer co-operatives, worker co-operatives, producers' co-operatives, co-operative banks, etc. However, in spite of different contexts and businesses, co-operatives share the same principles. Their goal is triple: to defend their values; to ensure the sustainability of the organisation in a long term approach; and to ensure an equitable distribution of profits. Being a co-operative involves answering requirements such as implementing a democratic management and defining terms of membership, but also appointing a board of directors that will represent members and defend their interests in a simultaneously individual and collective perspective. Few studies exist on the specific components of the role of directors in co-operative organisations and none explores the best practices of cooperative boards that could provide lessons for other kinds of organisation. The board of directors is a key player in governance. The role of the board is to monitor management (Baysinger and Hoskisson 1990; Jensen and Zajac 2004) and to provide guidance for strategy and decision-making (Walsh and Seward 1990; Finkelstein and Hambrick 1996; Golden and Zajac 2001).

You are not authenticated to view the full text of this chapter or article.

Access options

Get access to the full article by using one of the access options below.

Other access options

Redeem Token

Institutional Login

Log in with Open Athens, Shibboleth, or your institutional credentials

Login via Institutional Access

Personal login

Log in with your Elgar Online account

Login with you Elgar account
Monograph Book