Some businesses have succeeded with a unique social structure that pulls staff together into collective activities. The cooperative structure has roots in countries that organise their societies on collectivist ideas and activities. One Australian clothing business, Fletcher Jones and Staff, grew very rapidly during the twentieth century after its namesake founder, inspired by Japanese cooperatives on a business trip, returned to convert his company into a cooperative in Australia. This structure enabled staff to become contributors and co-owners essentially sharing the profits among them as the company grew its networks and reputation for particularly durable and stylish fashion and workwear. Fletcher Jones and Staff had an opening goal that one third of the company would be owned by the staff. This eventually raised to more than three quarters of company shares belonging to staff, and the balance by the Jones family. Shares were sold to staff at their nominal value and could be traded only at this value. If retiring early, a staff member had to sell their shares back to a nominee of the company. Retired employees kept their shares or left them to their spouse. A nominal dividend came in from their shares, plus each year part of the dividends were paid as a bonus enabling them to buy more shares. Although globalisation of the clothing industry in Australia and outsourcing to cheaper labour countries ultimately decimated Fletcher Jones and Staff, along with other manufacturers, the fond stories from former staff are legendary. The shared growth and success, comradeship, and the economic binding together of networks of people in the local communities were a feature of the cooperative structure. Other collectiveminded communities to this day embrace the cooperative structure. Farming and mining communities often have cooperative stores established for supplying local operators with many kinds of goods and services for those industries. First Nations communities in Australia also embrace collective leadership and often favour cooperative structures to organise and supply their needs. Cooperative structures have been recognised as appropriate for emerging social enterprises in the way collective social objectives can be supported through community networks.
Questions
1. How would working for a cooperative enterprise be different from working at a traditional, bureaucratic company? What would be the most positive and most negative aspects of the experience?
2. Do you think the cooperative structure is best for all types of businesses?
3. Under what circumstances do you think this type of cooperative structure would be ineffective, inappropriate or difficult to implement?