I intend to make my presentation on a few organizations in my country which are doing a good job at value creation for their shareholders, customers, employees and overall society but are not doing what they are expected to do. The very nature of these organizations called “co-operatives” is to serve a particular sector.
A co-operative is defined 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. A cooperative is a legal entity owned and democratically controlled equally by its members. The defining point in a cooperative is that the members have a close association with the cooperative as producers or consumers of its products or services, or as its employees. Cooperatives are based on the values of self-help, self-responsibility, democracy and equality. Membership is open, meaning that anyone who satisfies certain non-discriminatory conditions may join.
In Nepal, many co-operatives are behaving more and more like any other financial institution (banks and finance companies). Loans are decided before memberships and there is no feeling of community for which co-operatives stand. Although some co-operative may claim to be established to develop a particular sector, say agriculture, less than 1% of their customers might be from this sector. There is a concern about their sustainability if they act as they are typically expected to by the governing body- the Central Bank.
Are these co-operatives doing a greater good to their stakeholders by behaving more like a financial institution and less like a co-operative? May be a Utilitarian would agree, but what about standing for what you are? That, we will discuss during the presentation, I hope!
A co-operative is defined 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. A cooperative is a legal entity owned and democratically controlled equally by its members. The defining point in a cooperative is that the members have a close association with the cooperative as producers or consumers of its products or services, or as its employees. Cooperatives are based on the values of self-help, self-responsibility, democracy and equality. Membership is open, meaning that anyone who satisfies certain non-discriminatory conditions may join.
In Nepal, many co-operatives are behaving more and more like any other financial institution (banks and finance companies). Loans are decided before memberships and there is no feeling of community for which co-operatives stand. Although some co-operative may claim to be established to develop a particular sector, say agriculture, less than 1% of their customers might be from this sector. There is a concern about their sustainability if they act as they are typically expected to by the governing body- the Central Bank.
Are these co-operatives doing a greater good to their stakeholders by behaving more like a financial institution and less like a co-operative? May be a Utilitarian would agree, but what about standing for what you are? That, we will discuss during the presentation, I hope!
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