By Ian Reid, Executive Director, New Zealand Co-operatives Association

Over a period of many years 'co-operatives' was almost in the 'dirty word' category for businesses and indeed, amongst many journalists who set the agenda for business articles. In the past year or so, the tolerance towards co-operative businesses has improved and some mainstream journalists are now writing about the successes of co-operatives, acknowledging their valuable economic contribution. Recent articles in the NZ Herald ("Co-op the way to go" 24 March 2003) and the Dominion Post ("Alliance shows how co-ops can foot it with the best" 3 February 2003) are examples of this.

These changes in perception happened in the midst of the publicity given to the formation of Fonterra Co-operative Group in the dairy sector, as well as the prolonged and, sometimes bitter legal battles associated with changes in the meat industry, which involved a co-operative company.

What has brought about this mini renaissance in the acceptability of co-operatives in New Zealand? It seems that after many years favouring the investor-driven business model, in the belief that it could do no wrong, many people want more than just a money-hungry approach to business. Co-operatives can, and do provide the framework for a balanced approach to pursuing profits, while still holding other key values. The 'triple (or multiple) bottom line' approach to business is something that many people find more acceptable now that there is a greater awareness of the long-term implications of strategic issues that were previously ignored in the interests of short-term profits.

In recent times it has even become almost 'fashionable' in New Zealand to be a co-operative, because those who understand them, see how they work and achieve multiple goals. And there is now a faint hint that government may be giving a little more practical support to co-operative businesses, including making information about the co-operative business model publicly available.

The New Zealand Co-operatives Association has had a steady flow of enquiries from individuals and groups who want to know more about becoming a co-operative, and how they work. The Association has enjoyed a 30% increase in membership during the past year and the use of its web site continues to grow.

At last there are signs that the pendulum of favour or acceptability is swinging towards the co-operative business model. It is up to those in the sector to build upon that trend to underpin the improved perceptions towards co-operatives.

Visitors are welcome to visit the NZ Co-operatives Association web site at: www.nzco-ops.org.nz