Manuel Mariño
Governance in Cooperatives (Third part)
Finally, continuing the two previous articles, we describe below some of the general guidelines for cooperative governance as well as some conclusions.
Guidelines for cooperative governance
The practice of cooperative values and principles mentioned in the previous articles, becomes the highest expression of government in cooperatives. Cooperatives use their resources effectively, stimulate relationships with members based on trust and relying on the transparency of their activities. However, beyond the transparent economic benefits that cooperatives pursue, they should also aim to generate well-being within the organization and the environment in which they operate.
Cracogna and Uribe [1] recommend that members, managers and employees of the cooperative should comply with the following guidelines, in addition to others that may be defined by each cooperative, according to what is approved internally and their own organizational culture:
Prudence
Act with full knowledge of the matters submitted for consideration, in addition to the diligence that a good manager or administrator would use in their own activities.
Avoid actions that could jeopardize the purpose, the patrimony or the image of the cooperative before the community.
Justice
Always have a fair and equitable disposition for the fulfillment of functions, granting each person what is due.
Probity
Act with rectitude and honesty, trying to satisfy the general interest without obtaining personal benefit or advantage, directly or through an intermediary. Also show honest behavior.
Temperance
Carry out responsibilities with respect and sobriety, using the prerogatives inherent to the position and the resources available specifically to carry out the functions and duties.
Responsibility
Faithfully fulfill the duties assigned.
Obedience
Comply with the orders issued by the Assembly, to the extent that they meet the formalities required and are intended to produce acts of service that are linked to the respective functions, except in cases of arbitrariness or manifest illegality.
Independence of judgement
Avoid getting involved in situations, activities or interests incompatible with your functions.
Refrain from any conduct that may affect the independence of judgment in the performance of duties.
Aspects to take into account in Good Cooperative Governance
When analyzing the aspects that make up good governance, the following, among others, deserve to be mentioned, which due to a limitation in the length of this article we are not going to develop, but which it is necessary to specify in the organization manual and in the code of ethics of the cooperative:
a) Rights of members
b) Duties of members
c) Representativeness of the members
d) Control and supervision
e) Conflicts of interest
f) Accountability
g) Transparency
h) Anti-bribery provisions.
Conclusions
Cooperative governance refers to the way in which a cooperative is run and controlled, the power relations between members, the board of directors, management and staff, as well as other stakeholders. Good governance in cooperatives is a comprehensive evaluation of cooperative management, defined as a systematic process of directing, organizing and controlling the cooperative enterprise in accordance with cooperative principles and values. The minimum standards of reliable and efficient performance must also be taken into account, with rules and procedures to make correct decisions, evaluating risks and with an effective internal and external control system, which is correlated with a code of conduct that generates values such as transparency, trust and credibility at all levels.
Good cooperative governance allows to analyze, verify and demonstrate if a cooperative company is being managed in the right direction, in terms of rectitude and transparency (ethics) while remaining efficient in offering its products or services to its members. A model for good cooperative governance seeks to reflect an image of high prestige in every way, in order to generate trust and added value for its members. Compliance with cooperative principles and values is the basis for adequate cooperative governance, and should be the normal way of conduct and action for members, directors, managers and staff working in any cooperative.
Good Cooperative Governance should not be based only on the use of a code of ethics and/or conduct as the only management tool. It is necessary to propose an integral model of ethical management in which the fundamental pillar is an organizational culture in which all the collaborators of the organization carry out their functions in such a way that there are no doubts about their integrity and ethical values. In this context, the cooperative values and principles that typify the Cooperative Identity, linked to business efficiency, will be the source of renewable energy that should characterize a GOOD COOPERATIVE GOVERNANCE.
[1] Cracogna Dante, Uribe Garzón Carlos (2003), Buen Gobierno Cooperativo, CONFECOOP, 1st Ed.
NOTE: The views and opinions expressed in these articles are those of the author only and do not necessarily reflect the views of PromoCoop and its partners.
Share