Values, Identity and Social Practices The Co-operative Context for FairShares

1. Croatia PresentationDr Rory Ridley-Duff, Reader in Co-operative and Social Enterprise, Sheffield Hallam UniversityThe FairShares Model – Reviving Co-operativismZagreb, 9th December 2013 • Values, Identity and Social Practices • The Co-operative Context for FairShares • The FairShares Model – core concepts • Applying FairShares to Banking / Public Service Delivery www.fairshares.coop r.ridley-duff@shu.ac.uk Founding Members Geof Cox Emma Green Nicola Dickins Dr Rory Ridley-Duff Morgan Killick Cliff Southcombe

2. Values, Identity and Social Practices • Where do ‘business values’ come from? • Dominant class or group(s) in society? (Cornforth, 1959) • Liberal democratic notions of fairness and equity? (Rawls, 1999) • Marxian view is that ‘business values’ change as relations of production change: • Primitive society changes to a feudal system with landlords • Feudal system changes to a capitalist / state socialist system based on private / state property rights • How will existing systems change as property-rights are supplanted by membership rights? • A ‘revolution’ occurs when people previously subordinated establish their values as dominant. • The FairShares Model helps to replace property rights with membership rights so that human values become dominant.

3. The Co-operative Context for FairShares Robert Owen ('father of co-operation') Social Entrepreneurs Fr Arizmendiarietta ('activist for worker co-operatives') Rochdale Pioneers ('activists for consumer co-operation') John Spedan Lewis ('activist for employee-ownership') David Ellerman ('The Democratic Firm') George Holyoake ('The History of Co-operation in England') John Lewis Partnership Mondragon Co-operatives Co-operative Group David Erdal ('Beyond the Corporation') Consumer Co-operation Social Entrepreneurship Worker Co-operation

4. Immediate antecedents of FairShares Ridley-Duff, R. J. and Bull, M. (2011) Understanding Social Enterprise: Theory and Practice, London: Sage Publications, see Chapter 7

5. Immediate antecedents of FairShares

6. The FairShares Model – Core Concepts Consumer Co-operation Social Entrepreneurship Worker Co-operation Founder Shares FairShares Model User Shares Labour Shares Investor Shares / Accounts Supporting Institutions • Intellectual Property: managed as an intellectual commons. It is either: • Created in-house: owned by groups of workers, available to all members • Bought/acquired: owned collectively by the workforce, available to all members. • Labour cannot be alienated from the IP it creates (even when workers leave). Ridley-Duff R. J. and Bull, M. (2013) The FairShares Model: a communitarian pluralist approach to constituting social enterprises?, paper to ISBE Conference, Cardiff, 11th-12th November, Figure 6

7. Applying FairShares to Co-operative Banking Co-operative Body and/or Social Entrepreneurs Bank Staff Account Holders Founder Shares FairShares Model User Shares Labour Shares Investor Shares / Accounts Co-operatives / Mutuals / Associations / Foundations • Intellectual Property: managed using Creative Commons licences. • Created in-house: owned by one or more members, available to all members. • Bought/acquired: owned by Labour Shareholders, available to all members. Based on: Ridley-Duff R. J. and Bull, M. (2013) The FairShares Model: a communitarian pluralist approach to constituting social enterprises?, paper to ISBE Conference, Cardiff, 11th-12th November

8. Applying FairShares to Community Enterprise Social Enterprise / Social Entrepreneur(s) Residents/Users orLocal Businesses Service DeliveryStaff Founder Shares FairShares Model User Shares Labour Shares Investor Shares / Accounts Public Bodies, Social / Ethical Investors • Intellectual Property: managed using Creative Commons licences. • Created in-house: owned by staff (groups), available to residents / businesses. • Bought/acquired: owned by Labour Shareholders for residents/business members. Based on: Ridley-Duff R. J. and Bull, M. (2013) The FairShares Model: a communitarian pluralist approach to constituting social enterprises?, paper to ISBE Conference, Cardiff, 11th-12th November

9. Four Benefits of a FairShares Constitution • Increase the voice of labour and service users by entrenching rights in Articles of Association. • Labour unions / social entrepreneurs can be co-founders: their voice is always at board meetings and they can block rule changes that harm labour and/or public interests. • Collective bargaining rights can be written into Articles of Association (see sample FairShares Public Service Co-operative, Clause 34(g)). • The workforce and consumers participate in governance as primary stakeholders. • Wage ratios (highest to lowest pay) are under labour shareholder control – prevents runaway management salaries. • These are in addition to existing labour rights under EU Employment Law. • During the 1900s, investors could not challenge labour rights without damaging their own rights (Fox, 1974). • By developing a robust social enterprise model, ‘labour’ and ‘users’ rights can be reframed as equivalent in law to ‘capital’ rights.

10. Learning More about FairShares • Useful Reading • Fox, A. (1974) Beyond Contract: Work, Power and Industrial Relations, London: Faber & Faber. • Ridley-Duff, R. J. and Bull, M. (2011) Understanding Social Enterprise: Theory and Practice, London: Sage Publications, Chapter 7. • Ridley-Duff, R. J., Southcombe, C. and Dickins, N. (2013) The FairShares Model: An Introduction, Sheffield: FairShares Association: http://shura.shu.ac.uk/6635/ Ridley-Duff R. J. and Bull, M. (2013) The FairShares Model: a communitarian pluralist approach to constituting social enterprises?, paper to ISBE Conference, Cardiff, 11th-12th November Other Source of Support FairShares Wiki http://www.fairshares.wikispot.org / http://www.fairshares.coop Community Shares http://www.communityshares.org.uk/resources Co-operatives UK http://www.uk.coop/publicservices / http://www.uk.coop/advise/modelrules Employee Ownership Association (UK) http://employeeownership.co.uk/services/public-sector-services/ Mutuo http://www.mutuo.co.uk/