What is a Cooperative?
A cooperative, or co-op, is a business organization owned and operated by its members for their mutual benefit. Cooperatives are structured to provide goods or services to their members, and any profits generated are typically distributed among the members according to their level of participation in the co-op. This can include consumer cooperatives, where individuals pool their buying power to purchase goods and services at lower cost, worker cooperatives, where employees own and operate the business, and producer cooperatives, where farmers or other producers pool resources to jointly market their products. Cooperatives often operate in industries like agriculture, finance, insurance, and retail, but can exist in any industry.
What is an employee-owner in a cooperative?
An employee-owner in a cooperative is a worker who is also an owner of the cooperative. This means that they have a stake in the business and are invested in its success. As an owner, employee-owners have a say in the decision-making and share in the profits of the cooperative. They have voting rights, have the ability to run for and serve on the Board of Directors, and can participate in other ownership decision. Employee-ownership allows employees to have a voice in the direction of the business and to share in its financial success. It also tends to create a sense of investment and loyalty among the employees.
