1. Revival and renewal Implications for corporate governance in co-operatives Mervyn Wilson London 8 February 2007

2. Corporate Governance and Co-operatives In the UK, the development and adoption of a Corporate Governance Code of Best Practice followed a series of high profile governance scandals in the early 1990s

3. Tackling democratic degeneration Building and renewing the membership base “We consider that an active and involved membership has available to it open and fair information is the absolute essential ingredient of good co- operative governance”

4. Tackling agency conflicts Clarity in roles Boards direct & managers manage Strengthen accountability mechanisms Managers to Boards Boards to members Secondary co-operatives to primary co-operatives

5. Facing the governance challenges Clarity on the Co-operative identity Autonomous and independent member owned enterprises Clarity by the Board – Vision and Mission Clarity by managers and employees – the operational practice Clarity by members – loyalty and sense of ownership

6. Tackling agency conflicts - gender Values & Identity training “Co-operative organisation, democracy, transparency, leadership and woman’s participation were all major issues, and an important part of learning was how to facilitate constructive discussion on these very sensitive issues within the co ‑ ops using values as a base to empower trainers” Participant in a producer co ‑ operatives training programme – Tanzania June 2006

7. Tackling agency conflicts Use ILO Recommendation 193 to review co-operative legislation Learn what is needed to support Para state co-operatives become member owned and controlled enterprises Withdrawal without support = governance failure!

8. Strengthening stakeholder engagement Raising expectations from all stakeholders Supply chain engagement Key role of apex bodies and co-operative peer pressure “The Code will be ineffective and redundant without strong leadership from within the sector to set good governance practices and set standards” Singapore National Co-operative Federation

9. The sixth principle – education training and information Need to refocus provision towards autonomous and independent co- operatives New needs – new capacity required Training trainers – especially to deliver Director, member and Co- operative Identity training

10. Corporate Governance and Co-operatives Key issues (and actions) similar to PLC and public sectors Fundamental value based culture change needed Raise expectations Strengthen the role of national and international bodies to develop self regulation – e.g. certification Share good practice – co-operative governance champions – and share the lessons of governance failings Robustly assert and defend co- operative identity Build capacity for Co-operative Board Development and member education