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Caroline Gijselinckx PhD Research Manager Research Institute for Work and Society (HIVA) University of Leuven

Co-operative answers to societal challenges 9 insights from 2 x 9 cases Researchers Seminar International Summit of Cooperatives, Québec City, October 8-11, 2012. Caroline Gijselinckx PhD Research Manager Research Institute for Work and Society (HIVA)

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Caroline Gijselinckx PhD Research Manager Research Institute for Work and Society (HIVA) University of Leuven

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  1. Co-operativeanswers to societalchallenges9 insightsfrom 2 x 9 casesResearchers Seminar International Summit of Cooperatives,Québec City, October 8-11, 2012 Caroline Gijselinckx PhD Research Manager Research Institute for Work and Society (HIVA) University of Leuven (KU Leuven), Belgium
  2. Recognition of cooperativeanswersto societalchallenges International recognition 2012 UN Year of Co-operatives ILO (2002) Promotion of CooperativesRecommendationNo. 193 EuropeanCommission COM(2004)18 Greenbookon CSR (July 18, 2001) National laws and policymeasures to support the development of (social) coops Flanders: Strategic Plan Co-operativeEntrepreneurship (2011) and Action Plan Cooperation in Agriculture (2005) Italy: SocialCo-operatives Act (1991) France: SociétésCoopérativesd’IntérêtCollectif (2002) UK: Community Interest Company (2005) Québec: SolidarityCo-operatives (2007), Co-operativeInvestment Plan (since 1985) Canada: Co-operativeDevelopmentInitiative (Canada, since 2003), Policy forum onCo-operatives (2010) … Caroline Gijselinckx
  3. Search forcooperativeanswers to societalchallenges Search for innovativeforms of organisation, governance and financing Answerringsocietalchallenges (health care, child care, sustainableenergy, housing, elderly care, home care, mobility, sustainablefoodproduction & distribution,…) Answerringlocalneeds of consumers/beneficiaries and producers/workers Sustainable and qualitative jobs Economicdemocracy Primacy of service quality, accessibility and continuity over short term financial profit; Alternativeway of findingcapital in the market & securinglocalanchorage / sustainableinvestment in real (and local) economy Caroline Gijselinckx
  4. Types of coops According to the type of members Consumerco-operative Producer co-operative Workersco-operative Multi-stakeholderco-operative: At leasttwo different types of members: Clients Workers and/or Supportingmembers (communitystakeholders / memberswho want to invest money, time, expertise,… in the co-op, without directlymakinguse of its services) Especially in field of social services, care, health care, culture & arts,… Caroline Gijselinckx
  5. Types of cooperatives According to the level/degreeof co-operative: Primaryco-operatives : offer primaryservices Second tier co-operatives (consortia, federations, networks): offer services to organisationsthat offer primary services, in order to strengthenthem: e.g. joint purchasing of inputsand services (cleaning, maintenance, administration, HRM, accountancy, qualitycontrol, financing, marketing, training of employees, … ) Caroline Gijselinckx
  6. Types of cooperatives According to capitalstructure: In all cooperatives, memberscontributeeconomically and build up cooperativecapital Therefore: members are ‘owners’ (economic and social) But: not in all types (all) members are/canbe ‘shareholders’ Shareholdingcooperativesociety: member= shareholder Associationalform: membership fee or even simple ‘declaration’ Mixed forms: Different types of membercontributions Emergence of multistakeholderforms Broadening the concept of membership Caroline Gijselinckx
  7. 9 insightsfrom2 x 9 cases 1 Efficiency in coops: Aim is to realiseanoptimalprice-qualityrelation of the services/productsoffered to members through Economies of scale and market power Sympatheticcapital Equitycapitalthrough non distribution of surpluses Gifts and subsidies (non profit coopswithan ‘assetlock’) Volunteering / co-production Low staffturnover Low wage gap Horizontal labourorganisation Caroline Gijselinckx
  8. 9 insightsfrom 2 x 9 cases 2 Membership In traditional shareholdingcoops: Member=user=shareholder Different categoriesaccording to different amount of shares In socialcoops: Oftenassociationalform Different categoriesaccording to Financial capacity Relationshipwithcoop: multistakeholdership, supportivemembership (notdirectlylinked to use) Different economic ‘contributions’ as access to membership Share Membership fee Pricepaidfor service Paidwork Voluntarywork / co-production Other support (donations, gifts, low interest loans, realestate, …) Caroline Gijselinckx
  9. 9 insightsfrom 2 x 9 cases 4 Coops are ‘empowering’ Accessibility to services that are notavailableelsewhere, ornotunder the sameconditions/with the samequality Education and training of members, and participation in decisionmaking True voice, basedonsufficient, transparant and simpleinformation Development of skills, alsouseful in othercontexts Also for peoplewithlessfavourablelifechances Financial anchorage and localembeddedness Caroline Gijselinckx
  10. 9 insightsfrom 2 x 9 cases 3 Socialcoopscancounton ‘sympatheticcapital’ Coopcapital is cheaperthancapital in the market Shareholders are alsousers (primacy of user value) Shareholders are personallyorsociallyinterested in the coop A lower (even zero) return oninvestment is accepted In coopswheremembers have an important user interest In coopsthat have an important value for the community In coopsthat are establishedby interest orreligiousgroups In non profit coops Caroline Gijselinckx
  11. 9 insightsfrom 2 x 9 cases 5 Coops are instruments for economicdemocracy Memberparticipation in governance Votingrights are notrelated to shares Transparant information Tailor made communication and interaction Measurement of satisfaction Caroline Gijselinckx
  12. 9 insightsfrom 2 x 9 cases 6 Cooperationamongcoops is strengtheningcoops Second tier coops Consortia Co-operativedevelopmentagencies Co-operativefunds for development of (social) co-operatives Financial and professional backstopping Serving the operation of primarycoops Networkeconomy: diversification in combinationwith focus on core competences Perfect co-operativeentrepreneurship Caroline Gijselinckx
  13. 9 insightsfrom 2 x 9 cases 7 High quality jobs Goodwages Education and training Value led Horizontal division of labour Supportedbymembers/clients/consumers (co-production) and/orvolunteers Lessturnover in socialcoops and workercoops Caroline Gijselinckx
  14. 9 insightsfrom 2 x 9 cases High quality services service is the alpha & omega of the coop (its ‘raisond’être) Motivedstaff Co-productionbymembers Volunteering High member/client/consumersatisfaction is measured in socialcoops Caroline Gijselinckx
  15. 9 insightsfrom 2 x 9 cases 9 Governments are partners Care, health care, social care, social services… cannotbeoffered without financial support bygovernments Governments are stakeholders: Buy services / outsources services Qualitycontrol Financingthrough direct payments, subsidies, low interest loans,… Put buildings… at the disposal of the coop to offer the services in Fiscal and socialincentives for (social) coops Regulatoryframework Allowgifts, donations, voluntarywork,… to bedonated to socialcoops (like in non profits, unlike in for profit companies) Caroline Gijselinckx
  16. Sources Gijselinckx, C. (2012), ‘Cooperative answers to societal challenges: 9 insights from 2 x 9 cases’ In: Brassard, M.J. & E. Molina (eds), The amazing power of cooperatives. Texts selected from the international call for paper proposals. Publication presented at the International Summit of Cooperatives 2012, October 8-11, Québec Gijselinckx, C. Coates, A. & P. Deneffe (2011), Co-operativeanswers to societalchallenges. Synthesis report. Leuven: HIVA – KU Leuven (www.hiva.be). Gijselinckx, C. (2011), Co-operativeanswers to societalchallenges: 9 lessonsfrom 2 x 9 cases. E-note 9 from the Cera Centre forCooperativeEntrepreneurship. Leuven: HIVA – KU Leuven in collaborationwithCera en CES-ULg. ALSO IN FRENCH (www.cooperatiefondernemen.be) Caroline Gijselinckx & Bénédicte Fonteneau (2010), Au coeur de la coopérative: les sociétaires. E-note 9 du Cera Steunpunt Coöperatief Ondernemen. Leuven: HIVA – K.U.Leuven en collaborationavec la ChaireCera en Entrepreneuriat et Economie Sociale, HEC-Ulg (ALSO IN DUTCH: De vennoten: in het hart van de coöperatie) Gijselinckx, C. (2009), Co-operative stakeholders: who counts in co-operatives, and how? Paper presented at the 2nd EMES International Conference on Social Enterprise, 1-4 July, Trento, Italy. Caroline Gijselinckx (2009), Membership coopérative et loyauté. E-note 7 du Cera Steunpunt Coöperatief Ondernemen. Leuven: HIVA – K.U.Leuven en collaborationavec la ChaireCera en Entrepreneuriat et Economie Sociale, HEC-ULg Caroline Gijselinckx & Patrick Develtere (2008), “The co-operative trilemma. Co-operatives between market, state and civil society” Working Paper on Social and Co-operative Entrepreneurship 08.01, 25p. Van Opstal W., Gijselinckx, C. & Develtere, P. (2008), Entrepreneuriatcoopératif en Belgique: théories et pratiques. Leuven: ACCO. Caroline Gijselinckx
  17. Contact Dr. Caroline GIJSELINCKX Research Manager Civil Society, SocialEconomy & Co-operativeEntrepreneurship Research InstituteforWork and Society (HIVA) University of Leuven (KU Leuven) Parkstraat 47 3000 Leuven BELGIUM Tel. 00 32 16 32 33 28 (direct line) Tel. 00 32 16 32 31 35 (secretary) E-mail: caroline.gijselinckx@hiva.kuleuven.be www.hiva.be Caroline Gijselinckx
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