Spotlight on ACCORD

'Co-operation is a powerful force' said ACCORD Research Fellow, Dr Jo Barraket who spoke at the ACCORD seminar in Bathurst on 11 April. The seminar, attended by community, business and government representatives, academics, co-operative researchers and others interested in the wider social economy, was rated highly. Regional radio and television coverage in the lead-up to, and on the day of the seminar was also quite extensive.

ACCORD's Co-Director, Kay Plummer expressed the hope that such seminars would make a difference in the bush. Research and dissemination of findings on community and regional development using co-operative structures is a prime objective of ACCORD. We hope that these ideas will be adopted and promoted by regional communities. With this aim, several such seminars are being planned, to be held in regional areas.

Contents in this issue

Public Policy

1. Community development finance needs further research and policy options

The recent media attention for the National Australia Bank's decision to close many regional banking offices, and replace them with high fee electronic or Internet facilities, shows that the banks and the government continue to ignore community and business banking needs.

ACCORD's research on world-wide community development finance institutions (CDFIs) indicates that communities and businesses are looking for innovative financial institutions. This means organisations that reinvest locally, understand community and social needs, have friendly staff, low cost solutions and alternative lending practices. These financial institutions in turn stimulate local jobs and investment. ACCORD's research on overseas CDFIs shows that they have social and community objectives written into their constitutions and that they are supported by government in various ways including, tax incentives and favourable policy environments, particularly in the USA, the UK and in many parts of Europe.

Communities in many parts of metropolitan and regional Australia are investigating, developing and establishing their own financial institutions to meet social and business needs. To some extent, credit unions and co-operatives are filling the gap created by the exodus of banks, particularly in regional and country areas including, provision of face to face banking, commercial loans and local reinvestments. However, banking regulations governing their operations may impede their future development and efforts to assist local business and employment growth.

We would welcome your input to the ACCORD research on community finance needs and institutions. Please contact Kathryn Parker on (02)95145755 or e-mail: kathryn.parker@uts.edu.au. To read more, please click here.

2. Social entrepreneurs attract business and government criticism

Early in April the Sydney Morning Herald ran a major feature by one of its senior journalists claiming that business was subject to unfair competition for nonprofits; the consequence of $9 billion worth of tax concessions received by the nonprofits sector. It claimed that the government was looking to curb these concessions. Such a move could threaten the growing social entrepreneurs movement.

Mark Lyons, Professor of Social Economy and Co-Director of ACCORD points out that concessions are not more that $1billion. He suggest that the story may have been designed to prepare the ground for an enquiry into nonprofits tax concessions and worries that the level of ignorance and misinformation about the sector in government and business circles, reflected by these articles, will vitiate such an enquiry. To read more, click here.

Development of Co-operatives

3. Co-operative and Regional Development Strategy

The Co-operative and Regional Development Strategy (CARDS), is an initiative of the Registry of Co-operatives, a unit of the NSW Government's Department of Fair Trading. CARDS seeks to identify opportunities in regional areas where a co-operative arrangement may enable local communities to achieve economic or social objectives.

The Registry is seeking to build networks with representatives at each level of government as well as peak industry and professional groups. The project also aims to assist in identifying opportunities where the co-operative model may be the most appropriate business vehicle to address the needs of various communities.

A major component of the project is a proposal to focus on a particular regional community in which to pilot a co-operative solution. The pilot will involve consultation with community leaders to identify opportunities where a co-operative approach may provide the most appropriate business model by which the community can achieve its social and economic goals. For more details about CARDS, please click here.

The Co-operative Difference

Two of the more interesting marketing ploys of some businesses over the past two or three decades have been the rewarding of frequent users (with free travel or club memberships) and the provision of discounts to shareholders. These are known generically as customer loyalty schemes.

In effect, the managers of a business are offering owners of the business and/or frequent purchasers of the business's services a benefit commensurate with their use of the business. This is precisely the most common way benefits accrue to members of co-operatives or other mutuals, such as clubs.

One consequence of the business pillaging of parts of the "co-operative (or mutual) difference" has been to further water down the public's perception of the advantage of membership of an organisation over purchasing its services as a customer. It may have contributed to the dramatic decline in membership in most organisations, and in numbers of mutual organisations, over the past two decades. For more information, please click here.

Co-operative Profile

5. Just an idea - Independent Liquor Group (Suppliers) Co-operative Ltd (ILG)

In 1975 there was "just an idea" with the Independent Liquor Group (Suppliers) Co-operative Ltd having, as its genesis, a small contingent of liquor retailers buying as a group. From what the industry would term modest beginnings, ILG has become a significant player in the business of wholesaling and distribution of wine and spirits, and other merchandise, to members across New South Wales.

When this buying group became a co-operative in 1977, it had 30 members who owned 50 retail outlets consisting of liquor stores, hotels and a small number of restaurants. It began operations with four staff. In its first year of trading, ILG realised $1 million in sales, with assets of around $300,000 and a market share of one per cent. Today, 25 years on, the co-operative has 600 members who own 650 outlets. The business is operated by 75 staff. In its most recent financial year, ILG's assets totalled $37.6 million with an annual turnover of $134 million and a market share of 12 per cent.

The co-operative attributes its success to its members and the realisation that people respond to the idea of helping themselves and other smaller independent operators who have similar experiences. The primary focus of the co-operative model is to respond to members' needs (as distinct from other business models where maximising profits is the goal).

ILG's vision for the future is positive. ILG 's priority continues to be the welfare of its members and managing the ever-increasing competitive pressures in the market place. To read this case study by Bernadette Denman of the NSW Registry of Co-operatives, please click here. Our thanks to Bernadette for preparing the article.

ACCORD Events

6. ACCORD Seminar in Bathurst

'Co-operation is a powerful force' according to ACCORD Research Fellow, Dr Jo Barraket who spoke at the recent ACCORD seminar in Bathurst on 11 April.

At a time when banks are again deserting the bush, the seminar titled, Co-operative initiatives to strengthen regional communities generated strong media and community interest. Delegates heard about what the government is doing to help regional and country Australia and how people can help themselves by sharing creative ideas, knowledge and expertise not only to survive but to re -invigorate their own communities.

The seminar was attended by community, business and government representatives, academics, co-operative researchers and others interested in the wider social economy. Other speakers were: ACCORD Associate and Co-operative Historian, Dr Gary Lewis; David Hill, Premiers Department, Office of Regional Communities; Jon Robinson, Registry of Co-operatives, Dept of Fair Trading; and Ray Hynes, Economic Development Officer, Murrurundi Shire Council and bio-dynamic farmer.

Regional radio and television coverage in the lead-up to, and on the day of the seminar was excellent, including interviews on Bathurst 2BS, Star FM (which goes to 17 radio stations) and ABC Western Plains 2CR. Highlights of the seminar were broadcast in the evening news across Western NSW on Prime and Win TV channels on 11 April. To read more, please click here.

International Developments

7. Co-op Experts Meeting

ACCORD's General Manager and Senior Research Fellow, Garry Cronan, has been invited to address an International Co-operative Experts workshop in mid-May 2002.

The workshop titled, The Supportive Environment for Co-operatives: A Stakeholder Dialogue on Definitions, Prerequisites and Process of Creation, is jointly sponsored by the United Nations (UN) and the Committee for the Promotion and Advancement of Co-operatives (COPAC). The primary purpose of the meeting is to provide support to governments of member states of the UN and national, regional and international co-operative organisations in their efforts to create a supportive co-operative environment and to promote an exchange of experience and best practices.

Garry's paper is entitled Creating a Supportive Environment for Co-operatives through a Framework of Regional Ministerial Conferences. The paper draws on the conclusions of the research recently completed for the 2nd Critical Study on Co-operative Legislation and Policy which Garry co-authored with Ravi Shankar of the National Co-operative Dairy Federation of India Ltd.

8. International Co-operative Registry launched

The British Columbia Institute for Co-operative Studies (BCICS) and its partners has launched the new International Co-operative Registry (ICR), a new on-line database of researchers and co-operative publications. Its purpose is to help researchers and others learn what research is being done on co-operatives around the world and to provide a forum for discussion. It will be an essential component in the further development of Co-operative Studies as an interdisciplinary field of inquiry.

ICR is a co-operative venture between BCICS at the University of Victoria, Canada, and the following partners:

• ACCORD
• Centre for Co-operatives, the University of Wisconsin
• Consumer's Co-operative Institute of Japan (CCIJ)
• International Co-operative Alliance
• United Kingdom Society for Co-operative Studies

Researchers and co-operative practitioners are invited to register and add any research publications to the database. For details about ICR, please click here.

9. What is a Social Enterprise? - A lively debate

A lively discussion about the definition of a social enterprise was seen on Co-opNet - the UK-based e-mail list - over the past few weeks.

While there was no agreement among participants that led to an explicit definition of a social enterprise, the debate generated lots of interesting comments on the emergence of social enterprises. The general consensus was that a social enterprise is indefinable; and that co-operative principles and their underlying values provide a unique identity for co-operative organisations.

The debate about social enterprises raises some interesting questions. There has been unanimous acknowledgment that the co-operative structure needs to be modified from its traditional image to an organisational form that suits the needs of the 21st century. One approach has been the creation of social enterprises; totally reconstructing an organisational form using currently accepted doctrines as the foundation. Thus, the current emphasis on entrepreneurship is given prominence, albeit modified with social objectives. To read more, please click here.

10. ACCORD study to examines Member Based Organisations

Throughout the history of European Australia, Australians have organised collectively in order to achieve goals they could not achieve alone. These goals range from, organising a sporting competition, to increasing workers' bargaining power in the labour market. In many cases, organisations are democratically controlled and are not run to make a profit for their members. Non-profit member based organisations manifest today in a myriad of ways and names; friendly societies, trade unions, sporting clubs, registered clubs, credit unions, mutuals, co-operatives and lobby or advocacy groups to name some. Economically, they exist as a result of both market and government failure and are an important part of Australia's third sector, accounting for 38% of third sector turnover in 1995/96. They continue to play an important role in Australian life.

ACCORD has recently begun a two-year study examining Member Based Organisations (MBOs). Titled, The Challenge to Member Based Organisations and their Responses, the project will explore participants' construction of the meaning of membership in MBOs. It will involve a comparative analysis of MBOs' responses to membership decline, in order to identify common challenges and innovative solutions.

Industry partners include: Clubs NSW, Sports Industry Australia, NSW Department of Land and Water Conservation (providing access to Landcare groups) and the Australian Friendly Societies Pharmacies Association. Negotiations are currently taking place to include a fifth industry partner. It is envisaged that the study will enhance Industry Partners' knowledge of members' motivations and disincentives to membership. It will also highlight examples of good practice in other fields. The results will offer practical strategies for improved member recruitment and retention in MBOs, which continue to play a significant role in Australian economic and social life. The research will also contribute to existing knowledge and theories about social capital and voluntary associations.

11. ACCORD reviews

It is our intention to regularly review current international research in ACCORD Bytes, which we believe has relevance for Australian audiences. In this issue we look at the work of the Plunkett Foundation in the UK.

The Plunkett Foundation is an educational charity, with 80 years practical experience and research, working with partners from the public and private sectors, to promote economic self-help solutions to rural problems.

Three recent projects and activities are of particular interest:

• Plunkett is working with the UK Co-operative Union and a number of other co-operative partners on a $1M (Aus) UK government funded project Growing rural businesses through collaborative solutions. The 2-year project is described as being about people working together and finding agreed ways forward for their common business needs. It is about collaboration and collaborative structures - co-operative solutions of various kinds.

• Plunkett also recently held a conference on the theme Social Enterprise in Rural Communities. The conference was an initiative to focus on the role of social enterprise in rural areas.

• As part of its research into the state of social enterprise in rural Oxfordshire, Plunkett found that whilst the formal sector is developing rapidly, there are many more informal, social enterprise-type activities, 'swimming below the surface'. The report related instances of social exclusion and how community-owned village stores and transport schemes are the only providers of certain services.

Plunkett is now teaming-up with think-tank organisation Mutuo to systematically research the impact that rural social enterprise is having on service access, and to consider how public policy should fully support this emerging sector. You can read more, please click here.

We would welcome your comments on our newsletter and any suggested topics or items for inclusion in the next issue due for publication on 18 June 2002. If you have any items of interest please ensure that these are forwarded to us by 12 June 2002.

Disclaimer & Confidentiality Notice: The information contained in this newsletter is intended for the named recipients only and may include privileged and confidential information. If you are not the intended recipient, you must not copy, distribute, or take any action in reliance on it. Every care has been taken to ensure that the information contained in the newsletter is accurate but ACCORD, any of its Directors, staff, agents or associates, the University of Technology, Sydney, Charles Sturt University, staff, agents and associates of these universities, shall not be liable for loss or any other consequence, which may arise acting or refraining from acting as a result of material contained in this newsletter.