Forming a cooperative provides a unique avenue for individuals to address their collective needs collaboratively, fostering a sense of community and shared success. Cooperatives, known for creating stable, fair-paying jobs, adopting environmentally sustainable practices, and reinvesting in local communities, prioritize holistic measures of success beyond mere profit.
Co-ops benefit society as a whole
Local Ownership
Typical large corporations are owned by shareholders who do not live in the communities in which the business operates or from where it sources its products. These shareholders are usually less concerned about maintaining healthy workplaces and making sure the business does not harm its community than the worker-owners of a local cooperative business.
Environmental Responsibility
The people who own and run worker cooperatives also tend to live, work, and play in the neighborhood where the business is located. Because worker cooperatives are deeply rooted in the local community, they are less inclined to engage in environmentally destructive business practices than companies controlled by outside investors. Using toxic chemicals, squandering natural resources, or damaging open spaces would have a negative impact on the very people in control of the business, as well as on their families, friends, and neighbors.
Contribution to Community
Worker cooperatives help build community wealth through local ownership. Workers who own their jobs have a direct stake in the local environment, and the power to decide to do business in a way that creates community benefit. Worker cooperatives are likely to form relationships with other local businesses, hire local workers, and reinvest their profits back into the neighborhood.
Co-ops benefit individual workers
When efficiently organized and managed, worker cooperatives convey the following benefits to the people who work there.
Economic Independence
Employment, and the ability to generate income. A worker cooperative gives groups of people an opportunity to become economically independent in a mutually-beneficial way.
Worker Health and Happiness
Co-ops offer workers control over the way their work is organized, performed, and managed. Worker cooperatives provide an opportunity to balance workers’ needs and concerns with the need for profits and efficiency. Worker cooperatives also emphasize the training and development of the worker members.
Job Security
In economic downturns job security is prioritized, most corporations are narrowly focused on maintaining value for their shareholders, rather than maintaining employment for their workers. By contrast, because worker-owners call the shots in their cooperative, they value preserving jobs foremost, rather than maintaining shareholder value.
Ownership Stake
Co-ops offer workers a financial ownership stake in the enterprise in which they work. Worker–members contribute directly to building the enterprise and sharing in its success.
Democratic Workplace
Worker members participate directly in decisions that affect them in their workplace as well as those that determine the growth and success of the business.
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