PANAMA CITY, October 8, 2026 — Cooperatives need to strengthen member participation in decision-making and deepen their engagement with local communities if they are to remain distinct from conventional businesses, a new report has found.
The report by the International Cooperative Entrepreneurship Think Tank [ICETT] says cooperatives can no longer rely mainly on financial and material benefits to retain members, as conventional businesses increasingly offer discounts, loyalty schemes, personalised services and corporate social responsibility programmes.
Instead, cooperatives should place greater emphasis on democratic governance, education, training and long-term community development, according to the report, Cooperatives and their members: the opportunities and benefits of collective ownership.
The study, authored by Gianluca Salvatori and Chiara Carini of the European Research Institute on Cooperative and Social Enterprises [EURICSE], is based on a survey of 10 ICETT members representing about 64 million members across different sectors and regions.
The report found that cooperatives provide members with both direct and indirect benefits, including financial returns, discounts, insurance, training, management support, networking opportunities and participation in governance.
It also found that cooperatives contribute to local communities through employment, support for local businesses, redistribution of profits, knowledge-sharing and initiatives aimed at addressing wider social and environmental challenges.
“All the ICETT organisations interviewed extend a range of non-financial benefits to all members,” the report says, citing services such as management support, operational and marketing assistance and opportunities for peer networking.
The study found that all surveyed organisations prioritise education and training for their members, while 70 percent help members access resources and knowledge that enable them to secure better deals from third parties.
The report also highlights democratic participation as a key advantage of cooperative membership, allowing members to elect representatives to boards and councils and participate in decisions concerning the use of cooperative resources.
According to the researchers, the ability to participate in decisions affecting an individual’s economic life is becoming increasingly important at a time when social cohesion is weakening in many societies.
The report warns, however, that cooperatives face growing competition in demonstrating their social value as conventional companies increasingly promote corporate social responsibility, environmental, social and governance initiatives and community engagement.
“Cooperatives are required to enhance the quality of their relationship with their members,” the report says, arguing that member participation should remain a fundamental feature of the cooperative model rather than an optional engagement strategy.
The study identifies democratic governance and community relations as two areas where cooperatives should concentrate their efforts to preserve their distinctive identity.
It recommends that large cooperatives, in particular, find innovative ways of involving members in decision-making, including through digital tools.
The report says democratic governance is one of the strongest features distinguishing cooperatives from other businesses because members have a direct role in determining the strategic direction of their enterprises and the allocation of resources.
On community engagement, the researchers argue that cooperatives should move beyond occasional donations or corporate social responsibility projects.
Instead, they should involve communities in identifying problems, designing interventions and assessing results, making community development a long-term strategic activity.
The survey found that all the participating cooperatives were involved in local networks and redistributed part of their profits to communities. Eight out of the 10 also shared knowledge and helped create connections within their communities.
The report cites several examples of how cooperatives are delivering wider social benefits.
In South Korea, the National Agricultural Cooperative Federation [NACF], which represents about 2.1 million farmers, has implemented rural welfare programmes including community centres, elderly care facilities, healthcare services and initiatives supporting migrant and multicultural families.
In the United States, National Co+op Grocers [NCG], a network linking 165 food retail cooperatives, supports local producers and helps cooperatives achieve economies of scale while maintaining strong links with their communities.
In Belgium and other European countries, SMART Cooperative provides self-employed workers with administrative services, risk protection, training and opportunities for collaboration.
The report argues that such initiatives demonstrate how cooperatives can provide benefits extending beyond their individual members to wider communities.
It says the traditional role of cooperatives in helping disadvantaged people overcome limited access to markets, finance and essential goods remains important in some parts of the world.
However, in countries where access to goods and services has improved, the cooperative advantage increasingly lies in social cohesion, collective decision-making and community development.
“Benefits centred on material and individual advantage must be complemented by intangible benefits offered to a community,” the report says.
The researchers caution cooperatives against assuming that community concern is automatically enough to distinguish them from conventional companies, noting that large businesses are increasingly presenting themselves as agents of social change.
They therefore urge cooperatives to clearly communicate what makes their model different, particularly the fact that members are owners with democratic rights rather than simply customers or consumers.
The report concludes that cooperatives have an opportunity to respond to growing inequality and declining social cohesion by combining economic benefits with stronger democratic participation and community engagement.
It says the cooperative model must evolve with changing social and economic conditions while retaining its core principles of collective ownership and member participation.
The ICETT was established in 2018 by the International Cooperative Alliance to promote cooperation among large cooperatives and cooperative groups, support peer-to-peer learning and strengthen the entrepreneurial performance of cooperative enterprises.
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
-
-
-
-
