How does the flow of power and profit fundamentally differ in a cooperative compared to a traditional business?
Answer
Power and profit flow back to the members who use or work for the entity.
The structure of a cooperative shifts the center of gravity so that power and profit return to the members who are actively using or working for the organization.
Related Questions
How does the flow of power and profit fundamentally differ in a cooperative compared to a traditional business?What voting principle defines control in a cooperative, contrasting it with typical shareholder-owned corporations?Which group forms the membership base for a consumer cooperative?Upon what metric are surplus earnings, or patronage refunds, returned to cooperative members?What educational requirement is mandated under Cooperative Principle 5?What does the cooperative structure inherently value over rapid decision-making in times of change?In worker cooperatives, how might performance reviews potentially differ from traditional employment structures?What is the role of a newer, non-member employee during the deliberation stage of a major proposed operational change?What consequence risks the erosion of a cooperative's democratic foundation if members become disengaged?Who are the typical members in a producer cooperative?What practical impact might flatter pay scales in a worker cooperative reflect?