ICA Americas Newsletter - Issue 17

The Editor’s Pen p. 2

Cooperatives as agents of economic, social and

environmental sustainability

p. 3

Challenges for cooperatives in their management of sustainability in all its

dimensions p. 6

Report reveals the ten most sustainable co‐operatives

p. 8

ICA‐Americas promotes sustainability through its

products and services p. 10

Elevating members’

participation and governance to a new level

p. 12

Cooperative Social Audit: ICA‐Americas’ tool

to contribute to sustainability

p. 14

ICA launches website for 2013 Conference and

General Assembly p. 15

Inside

ICA-AMERICAS PROMOTES SUSTAINABILITY THROUGH ITS PRODUCTS AND SERVICES (page 10)

REPORT REVEALS THE TEN MOST SUSTAINABLE CO-OPERATIVES The world’s most sustainable co‐operatives have been ranked by Corpo‐rate Knights, the same organisation that publishes the Global 100 report. (page 8)

ALEXANDER VARGAS: CHALLENGES

FOR COOPERATIVES IN THEIR

MANAGEMENT OF SUSTAINABILITY

IN ALL ITS DIMENSIONS (page 6)

MANUEL MARIÑO: PARTICIPATION AND GOVERNANCE: ONE OF THE AXES TO DEBATE AND TAKE ACTION IN THE COMING YEARS (page 12)

ICA LAUNCHES WEBSITE FOR 2013 GENERAL ASSEMBLY South Africa will host the first General Assembly of the International Coopera‐tive Alliance in the African continent, which will be focused on the Blueprint for a Co‐operative Decade. (page 15)

CERTIFICATION IN COOPERATIVE SOCIAL AUDIT: A STRATEGY FOR SUSTAINABLE DEVELOPMENT For the first time a Mexican cooperative ‐Federación Alianza‐ has applied the So‐cial Audit using the official tool of ICA‐Americas. (page 14)

COOPERATIVES AS AGENTS OF ECONOMIC, SOCIAL AND

ENVIRONMENTAL SUSTAINABILITY

VISION 2020

ICA-Americas Newsletter Issue Nº 17 // May 2013

ICA-Americas Newsletter is an e-publication of the

International Co-operative Alliance for the Americas

[email protected]

Phone: + (506) 2296 0981 Fax: + (506) 2231 5842 PO BOX: 6648 -1000

INTEGRaciON COOPERATIVA // Número 11 // Mayo 2013

{ The Editor’s Pen }

Building a Possible Better Word

"“Cooperative Enterprises Build a Better World” stated the 2012 International Year of Cooperatives. That slogan is, at the same time, reality and challenge be-cause it is not only important to be that kind of enterprise but also to be able to show it to the public.

We are at the dawn of what we have called “Blueprint for a Cooperative Dec-ade”. The Blueprint strategy comprises five interconnected themes: participation, sustainability, identity, legal frameworks and capital. It is a plan for the global co-operative movement spanning the decade we are in. It aims to:

1. Elevate participation within membership and governance to a new level.

2. Position co-operatives as builders of sustainability.

3. Build the co-operative message and secure the co-operative identity.

4. Ensure supportive legal frameworks for co-operative growth.

5. Secure reliable co-operative capital while guaranteeing member control.

We aim at generating a debate about these themes through our ICA-Americas Newsletter. In order to do that, we invited specialist in these fields, not necessar-ily from the co-op movement, to help us think together the best way to put the challenge we are facing into practice. It is about finding different paths towards the achievement of the stated goals through an adequate action plan possible in the context we live in.

This issue focuses on two of the core focuses established in the Vision 2020: governance and participation and cooperatives as builders of economic, social and environmental sustainability. I’m convinced about the fact that, it is mostly about remaining people-centered in order to cater for their needs.

It’s time to change and the cooperative movement can be an important agent of the necessary changes. The contribution of cooperatives is fundamental to design a new economic and social cycle, both necessary and possible.

Manuel Mariño

ICA Americas Regional Director

ICA-Americas Newsletter // Issue Nº 17 // May 2013 2

INTEGRaciON COOPERATIVA // Número 9 // Setiembre 2012

The Blueprint for a cooperative Decade defines in a very simple way the relationship between cooperatives and sustainability. “A co-operative is a collective pursuit of sustainability”. This is, and must be, true since the cooperative principles and val-ues which have guided the co-operative work for more than 150 years are in perfect har-mony with the current demand for a more sustainable develop-ment paradigm. Cooperatives have been aware of this for a very long time. It is time they started to be acknowledged as “sustainability agents” world-wide.

A sustainable development model implies the efficient use of the economic, social and environ-mental resources to meet the needs of the present without compromis-ing the future generations to meet their own needs. The dominant model of capitalism has neglected sustainable development and has led a large proportion of the world to a scenario of economic, finan-cial, employment and environ-mental crisis. If the traditional en-terprise has been unsustainable so far, how can we entrust it our fu-ture?

Gianluca Salvatori from the Euro-pean Research Institute on Coop-

eratives and Social Enterprises, in a r e c e n t w o r k e n t i t l e d “Cooperative Economy: An inno-vative Approach to Sustainability” said: “An approach to economics willing to address the critical is-sues that we will have to face in the upcoming years – population growth, scarcity of natural re-sources, new urban migration, re-distribution of income and social inclusion – cannot disregard coop-eratives, as a part of a new vision of economic and social develop-ment”.

According to Salvatori: “In order to seize this opportunity, the agents involved in the cooperative economy should be innovative and develop their model in a non-dogmatic way, enhancing the adaptability of this organizational form and the ability to manage their diversity. Cooperative enter-prises, indeed, reflect the belief that human actions are not driven only by the pursuit of self-interest, but by a variety of motivating forces, amongst them the sense of reciprocity and the search for jus-tice and fairness”.

Sustainability as an axis of the Blueprint for a Cooperative Decade

The ambitious plan in the Blue-print for a Cooperative Decade - the “2020 Vision” -is for the coop-

erative form of business by 2020 to become:

■ The acknowledged leader in economic, social and environ-mental sustainability

■ The model preferred by people

■ The fastest growing form of enterprise

The document states that: “Cooperatives have always set out to enable people to have access to goods and services without exploi-tation. This has meant trading in accordance with a set of values based on what we would today call sustainability (…) The goal to position co-operatives as builders of sustainability should include establishing a wide public under-standing of the business sustain-ability of cooperatives as busi-nesses. There are continuing ten-sions within any business between economic, social and environ-mental interests, but through seek-ing to satisfy the needs of ordinary citizens, cooperatives tend to pur-sue a convergence between these interests. This results in greater organisational sustainability”.

At present sustainability is not a term that is universally associated with cooperatives. This is what needs to change by 2020 – to posi-tion cooperatives as builders of sustainability. The cooperative

COOPERATIVES AS AGENTS OF ECONOMIC, SOCIAL AND ENVIRONMENTAL SUSTAINABILITY

VISION 2020


sector needs to demonstrate con-vincingly that sustainability is in the intrinsic nature of coopera-tives, and that these enterprises make a positive contribution to sustainability.

In 2012, the World Cooperative Monitor showed that despite the crisis cooperatives have grown all over the world. The top 300 co-operative and mutual enterprises accounted for USD 1,975.6 billion (USD 2.0 trillion) in turnover of which USD 158,7 billion is de-rived from the banking and finan-

cial services sector and USD 977,2 billion from the insurance sec-tor. "At a time when the world is at risk of falling back into reces-sion, this new data provides a great message for the general public: there is a way to pursue sustainable business and at scale," said Charles Gould, ICA Director-General.

Also, a study carried out last year by the ICA-Americas and the In-ternational Labour Organization (ILO): El cooperativismo en América Latina: Una diversidad

de contribuciones al desarrollo sostenible (Cooperatives in Latin America: a diversity of contribu-tions to sustainable development), shows how cooperatives contrib-ute to sustainable development in this diverse part of the world. The study highlights that cooperatives have help alleviate poverty in vari-ous countries in the region. “Cooperatives have a long history and are part of the present of Latin America, generating income for their members, employment and contributing to economic and so-


cial development in every coun-try” said Alberto Mora, one of the authors of the book.

The contribution of cooperatives to sustainability has also been ac-knowledged in important interna-tional forums. 2012 was a mile-stone for cooperatives in this re-gard, when the final declaration of the United Nations Conference of Sustainable Development Rio+20 included a strong affirmation on the importance of cooperatives to the development of agriculture, work, social development and poverty alleviation.

It is important to highlight how cooperatives make a positive con-tribution to sustainability in three senses:

Economic:

■ There is considerable evidence that a diversity of ownership forms contributes to a more sta-ble financial sector as a whole.

■ Co-operatives act in the inter-ests of their members, not shareholders.

■ They do not suffer from the problem of ‘financialisation’ that has afflicted capitalism over the past twenty years, in which financial performance is the central indicator of good busi-ness.

■ By their nature and form of ownership, they are less likely to reduce the quality of products or services in the pursuit of profit.

Social:

■ The study of ‘social capital’ suggests that societies with higher levels of membership associations also do better eco-nomically, in addition to enjoy-ing higher levels of trust and democratic participation.

■ Co-operatives aren’t simply market operators, but also de-liver services that would other-

wise come from private insur-ance or the state.

■ Membership and association are goods in and of themselves, while also acting as important resources on which successful societies –and economies– thrive.

Environmental:

■ Co-operatives have a superior environmental record.

■ As participatory organisations, concerns about future environ-mental outcomes can simply be voiced democratically by mem-bers, without needing to be cal-culated in terms of return on investment.

■ Where co-operatives are multi-stakeholder, the capacity for businesses to push negative en-vironmental externalities (i.e. waste and pollution) upon par-ticular stakeholders is dimin-ished.

HOW CAN COOPERATIVES BE POSITIONED AS THE ACKNOWLEDGED LEADERS OF SUSTAINABILITY?

The Blueprint for a Cooperative Decade says that to strengthen sustainability cooperatives should commit themselves to measuring their non-financial performance via different tools as well as by means of social au-dits.

Also, it points out that although cooperatives are making a great contribution to lower carbon consumption, this effort should be recorded, analysed and highlighted.

In terms of innovation the cooperative sector should aim to become leaders in the development and use of technologies and social systems which specifically deliver human benefits, without despoiling the ecosystem.

The co-operative sector needs to do more to develop and promote distinctive management practices which reflect the democratic values and long term horizon of the co-operative business model, and which will fully exploit the potential cooperative advantage.

Finally, the cooperative sector should identify and remove barriers to inter-co-operation, including, where possible, integrating systems, such as procurement, using the principle of subsidiarity.


Cooperatives are the kind of or-ganizations which have social re-sponsibility, sustainable production and values “in their genes”. They have had these qualities long be-fore these concepts were turned into marketing tools.

However, the cooperative universe offers various possibilities, dimen-sions and areas in which coopera-tives work, and the particular con-text in every country has its own identity. Even every cooperative sector has its own character.

In philosophical aspects coopera-tives can be considered the busi-ness model which aims at greater

sustainability. However, it is not always the case.

The productive context has always been very fast and nowadays this is even more noticeable due to the diversification of markets, seg-ments and niches, which open up a myriad of new possibilities but also risks. The productive sectors modify the way they work forming clusters, networks, chambers, cross-border associations and interna-tional agreements, leading the way business are done.

At the same time, there is a need to strengthen local economies with support to micro, small and me-

dium enterprises. It is a very dy-namic scenario where all the pro-ductive sectors play a role as well as political and economic stake-holders.

From the experience of coopera-tives in the agricultural and agro industrial sector, thinking of in-creasing the capacity of coopera-tives to generate results in terms of sustainability would mean facing the following basic challenges:

Being sustainable themselves: Cooperatives need to be sustain-able themselves in an integral way, but particularly in their responsi-bility of being profitable not only

CHALLENGES FOR COOPERATIVES IN THEIR MANAGEMENT OF SUSTAINABILITY IN ALL ITS DIMENSIONS By Alexander Vargas

Cultures and Development in Central America (CUDECA)


in financial terms, but also in terms of complying with the re-sponsibilities brought about by the cooperative principles. There are cooperatives that hardly keep their financial balance and others which need financing via donors.

Overcoming generational reno-vation: Most cooperatives in the agricultural sector are run by the founding generations. They do not integrate the younger generations and in this way the social base that legitimates a cooperative is lost.

Strengthening cooperative iden-tity: Cooperatives have their origin

in the pursuit of solutions for col-lective problems. However, there have been experiences in which the group caters for individual needs instead of collective ones. An example of this is when coop-eratives have turned into collection or storage and distribution centres, where they collect the production of their members and pay them for it. In this example the cooperative sense disappears.

Development of a business vision for technological change: This refers to changes in the know-how, both in the productive stages as well as in development activities such as education, health and in-frastructure.

Investment in the areas which arise from the cooperative prin-ciples: education, health, infra-structure, equity and justice.

Cooperation among coopera-tives: There are cooperative sub-sectors that generate surplus which can be used as local support re-sources for cooperative sectors that could be developed but have been left behind.

Markets: Cooperatives must un-derstand the different markets that exist nowadays to be able to spot niches where the cooperative sec-tor can advance and contribute to

development.

Seeing the cooperative as a whole: It is very noticeable in some cooperatives that the techni-cal, political and managerial units are separated from the grass-roots. However, the grass-roots are also part and parcel of the cooperative. When everyone sees themselves as an integral part of the cooperative, this has a very positive effect par-ticularly in the decision-making process which involves all the par-ticipants.

Cooperatives need to be sustainable themselves in an integral way, but

particularly in their responsibility of being profitable not only in

financial terms, but also in terms of complying

with the responsibilities brought about by the

cooperative principles.

“

”

Alexander Vargas Garro is a con-sultant member of the Capacities, Organization and Sustainability

Team of the Costa Rican organiza-tion CUDECA-ECOS Cultures and Development Central America. He

has ample experience in institutional sustainability and capacity genera-tion with different kinds of stake-holders in all the Centro American

region and Mexico. He is a consult-ant and facilitator of the Model of Managerial Capacities Strengthen-ing for associations and coopera-

tives involving small scale farming, organic produce, fair trade and sus-

tainable agriculture.


http://www.aciamericas.coop/conferencia2013

The world’s most sustainable co-operatives have been ranked by Corporate Knights, the same organisation that publishes the Global 100 report. The top ten rankings are based on a more extensive report, which includes the world’s largest 35 co-operatives from Canada, United Kingdom, France, Ger-many, United States and Japan and recognises the recognition of the contribution co-operatives have in terms of social and envi-ronmental responsibility.

Corporate Knights named The Co-operators, a Canadian insurance company, as the world’s most sus-tainable co-operative, while the UK’s largest mutual business, the Co-operative Group, came second and Desjardins Group, the largest association of credit unions in North America, was ranked third.

The criteria used to assess co-operatives were productivity, board gender diversity, resource usage, sustainability mandate and senior level compensation ties to sustainability. Corporate Knights uses the same methodology for its Global 100 report, a corporate sus-tainability assessment published every year during the World Eco-nomic Forum in Davos.

Following publication of the re-sults, Corporate Knights said it would like to see more co-ops publishing data on social indica-tors such as employee turnover. It also called for an increase in dis-

closure requirements for co-operatives to enable experts to bet-ter evaluate co-operatives.

Corporate Knights also recognised the ICA's desire to collect this type of social and environmental data on cooperatives through its World Cooperative Monitor. From this month, co-operatives can sub-mit relevant data to the ICA's data-base through the relaunched WCM survey.

THE MOST SUSTAINABLE CO-OPS

The Co-operators, serve approxi-mately 375 credit unions with a total of more than five million members. The organisation offers a wide variety of services across Canada, rewarding their custom-ers’ sustainable behaviour. The Co-operators also has a significant percentage of women in leadership positions, either executive man-agement (30 per cent) or the board of Directors (18.2 percent).

Kathy Bardswick, President and

CEO of organisation and ICA Board director, said: “Our employ-ees and advisors are to be con-gratulated for the efforts they have made to help our organisation be-come more sustainable, and act as a catalyst for sustainability”.

“Co-operatives prioritise long-term value creation over short-term profit maximisation, and take into account a broad range of stakeholder interests in their deci-sion-making. It’s a business model that naturally embeds sustainabil-ity principles into its operations” she added.

Another leader in terms of sustain-ab i l i ty, the Co-opera t ive Group has made positive steps with its renewable energy pro-grammes. The Group powers more than 4,000 outlets powered by re-newable energy, and finances the development of many solar energy schemes. The Group is also work-ing with 3,000 schools across the UK to bring sustainability educa-tion programmes on the school

REPORT REVEALS THE TEN MOST SUSTAINABLE CO-OPERATIVES


curricula for children between five and 16. It also has a high percent-age of women in the Board of Di-rectors (26.3 per cent) and Execu-tive Management (18.2 per cent).

Desjardins Group, Canada’s larg-est co-operative financial group, offers financial products to low-income households that would otherwise not be able to afford such financial services. Home in-surance packages are offered for any level of income, while small 24-month interest-free loans are available to those in desperate need for access to finance. Desjar-dins currently has over $831m in-vested in socially responsible products. The organisation also has a large number of women in

leadership positions, with 26.9 % as Board Directors and 21.4 % in Executive Management roles.

Click here to read the full report on the world's 35 most sustainable co-operatives.

Rank Company Country Industry Group Score

1 The Co-operators Group Ltd Canada Insurance 60.68%

2 The Co-operative Group Ltd United Kingdom Food & Staples Retailing 55.76%

3 Desjardins Group Canada Banks 53.34%

4 Groupe BPCE France Banks 47.07%

5 ReWe Group Germany Food & Staples Retailing 37.59%

6 Liverpool Victoria United Kingdom Insurance 30.51%

7 Liberty Mutual Insurance United States Insurance 30.23%

8 Zen-Noh Japan Food Beverage & Tobacco 30.05%

9 John Lewis Partnership PLC United Kingdom Food & Staples Retailing 26.98%

10 Nationwide Mutual Insurance Co. United States Insurance 24.00%

THE WORLD’S MOST SUSTAINABLE CO-OPERATIVES


Cooperatives, as social and eco-nomic enterprises, must deci-sively take up the challenge of being recognized as sustainabil-ity leaders. In this regard, ICA-Americas plays an important role making use of a number of tools to meet this sustainability demands.

ICA-Americas Regional Office entrusts its environmental audits to independent third parties who are experts in the field. It also takes measures to compensate and miti-gate the environmental impact its work causes.

In conjunction with these efforts, a number of services are offered by ICA-Americas in favour of eco-nomic, social and environmental sustainability, namely, Good Coop-erative Governance, Cooperative Social Audit and Cooperative Green Office. Good Cooperative Governance helps cooperatives self-evaluate the governance of the organization in accordance with

the cooperative principles and val-ues. Cooperative Social Audit is an important tool to keep membership and other cooperative stakeholders informed about the work done by the organization. Finally, Coopera-tive Green Office, the Regional Office latest launch, is particularly useful to increase the eco-efficiency of the administrative en-vironment of the organizations.

In terms of environmental sustain-ability the degree of interest and commitment is becoming increas-ingly higher. For instance, several cooperatives announced ICA-Americas that they have a genuine interest in participating in the train-ing process and certification of the Cooperative Green Office.

In order to be walk the talk, ICA Americas Regional Office applied a number of carbon reduction and compensation measures in compli-ance with its environmental com-mitment to the 7th Co-operative Principle, including an increase of

electronic communication and the reduction of international trips. In 2011 ICA-Americas was certified by external auditors as a Carbon Neutral organisation and Coopera-tive Green Office, and in 2012 it has renewed its certification,

In Ecuador, the Cooperativa de Ahorro y Crédito Santa Rosa Ltda. (COOPACS) is one of the first or-ganizations which is studying this proposal. Caja Popular Mexicana (CPM) is evaluating ICA-Americas’ proposal for its more than 400 subsidiaries in the coun-try. The Organización de Coopera-tivas de Brasil (OCB) is analysing how to articulate the Cooperative Green Office with it National Ser-vice of Cooperative Learning (SESCOOP) as part of its profes-sional training and as a way of monitoring the cooperatives throughout the country. Likewise, in Colombia, the Promotora Coop-erativa de Proyectos Ambientales e Industriales (Ecoop) is designing a

ICA-AMERICAS PROMOTES SUSTAINABILITY THROUGH ITS PRODUCTS AND SERVICES


model to include the Green Office in the list of services they provide to cooperatives.

There are other organizations in Argentina, Costa Rica, Honduras, Panama and Uruguay which have already received the basic informa-tion for their preliminary studies.

And, in every single case, ICA-Americas adopts a flexible ap-proach bearing in mind the national circumstances. It also keeps a basic training and verification methodol-ogy to safeguard the legitimacy of Cooperative Green Office.

GREEN PACT

ICA-Americas also promotes the Cooperative Green Pact, a tool of environmental promotion, ap-proved in the I Cooperative Sum-mit of the Americas (Guadalajara, 2009). Adherence to the Pact is voluntary and free and it is avail-able to all the cooperatives in the Americas which want to make their environmental commitment more visible.

The Cooperative Green Pact stimu-lates cooperatives to take measures to reduce the impact of their ac-tions on the environment.

The number of cooperatives which adhere to the Pact has kept grow-ing, because every cooperative that adheres is in charge of promoting and spreading the word about this

initiative in its country. The last four cooperatives which joined the Pac t a r e : Coop-Rec i c l a j e (Dominican Republic), Coopera-tiva de Trabajo en Seguridad Inte-gral “UFA” Ltda. (Argentina), Co-

operativa Asesoría y Servicios de Sus ten tab i l idad Ambien t a l (Mexico) y Cooperativa el Buen Samaritano (Bolivia). Again, ICA-Americas calls all cooperatives to adhere to this Pact.

WHAT? OFICINA COOPERATIVA VERDE PACTO VERDE COOPERATIVO

WHAT FOR? Eco-efficiency in the

administrative environment Visibility and interchange in environmental commitment

HOW? Training and certification by independent experts

Voluntary Adhesion

CONTACT? For more information send us an e-mail: [email protected]


Governance is crucial for the suc-cess of any enterprise, organiza-tion or government. During the last years we have been able to verify the existence of great prob-lems of governance at every level: governments, private companies, political organizations or even so-cial organizations. I bring up this issue, because as I think it is closely linked to the global finan-cial and economic crisis that we are facing nowadays.

Back in 2004, the report “Por una globalización justa: crear opor-tunidades para todos” (A Fair Globalization: Creating opportuni-ties for All) suggested an urgent change in the policies and institu-tions of global governance. It also pointed out that The current proc-ess of globalization is generating unbalanced outcomes, both be-tween and within countries. Wealth is being created, but too many countries and people are not

sharing in its benefits. They also have little or no voice in shaping the process. Seen through the eyes of the vast majority of women and men, globalization has not met their simple and legitimate aspira-tions for decent jobs and a better future for their children”.

However, in all these years, noth-ing has been done to modify this deficient functioning and the cor-ruption has kept growing, reaching unimaginable levels.

ELEVATING MEMBERS’ PARTICIPATION AND GOVERNANCE TO A NEW LEVEL

PARTICIPATION AND GOVERNANCE: ONE OF THE AXES TO DEBATE AND TAKE ACTION IN THE COMING YEARS By Manuel Mariño ICA-Americas Regional Director

One of the reasons why we know cooperatives are a better alternative is that they allow people’s participation through ownership. Democratic member participation is the best-known feature of the co-operative way of doing business, and a major part of what characterises a co-operative in contrast to investor-owned businesses. In its Blueprint for a Cooperative Decade the International Cooperative Alliance raises the challenge of elevating par-ticipation within membership and governance to a new level. In this issue, Manuel Mariño, Regional Director of ICA- Americas analyses the importance of Governance for the success and survival of any enterprise, organiza-tion or government.


Administrative and financial cor-ruption has brought about a cycli-cal fluctuation in the United States, Europe and other parts of the world which has produced a profund and transcendental eco-nomic crisis. The ones to blame are the banks and financial institu-tions that very totally out of con-trol for several years.

Those who led their enterprises to bankruptcy, those who defrauded or created unsustainable schemes, those who irresponsibly made profits using someone else’s capi-tal, should take responsibility for their excesses and their mistakes so that consumers can recover the trust that an environment of order and respect for the rights of the others provides.

GOVERNANCE, ETHICS AND LEADERSHIP

Cooperatives are not immune to the problems of governance. They are generally perceived in the growing disenchantment of the loss of interest of the members of the cooperative.

Cooperatives are by definition de-mocratic and participative organi-zations. Hence, is it fundamental that cooperatives governance is promoted and controlled by the grass roots, namely their members. If there is not involvement from the grass roots, the risk of ungov-ernability is huge and even the ex-istence of the organization is at stake. Needless to say, not only the members should be engaged in the cooperative but also all the stake-holder of it political and adminis-trative structure, i.e. the board, the management and the personnel.

Ungovernability is seen by means of abuses and privileges in certain levels of the organization; in a bad management of financial re-sources; a bad service to the mem-

bers; and the perpetuation of the executives in their positions for many years, without receiving any kind of training to contribute to the good governance of their co-operatives.

When it comes to cooperatives, governance is the ability to inter-relate and keep a balance among the General Assembly, the Board of Directors, the Oversight Board, the General Management and the administrative and operation staff, in order to safeguard the members’ interests.

An indispensable condition to reach good governance within co-operatives is to have an ethical leadership. Thus, it is necessary to develop and promote the basic competences, abilities and apti-tudes to promote a more participa-tive leadership. Every cooperative needs to have a code of good prac-tices as a starting point to achieve good governance. This is impor-tant for the well-being of its mem-bers but also to foster economic and social development in its com-munity.

GOVERNANCE IN COOPERATIVES

Cooperatives differ from tradi-tional enterprises mainly because they are created with the aim of satisfying the needs of their mem-bers. People who opt for coopera-tives are driven by the solidarity, transparency, democracy and eq-uity.

Good governance in cooperatives must contribute to an efficient use of resources and strengthen the trust derived from transparency. This guarantees that the directors are responsible for their actions before their members.

The Organization for Economic Cooperation and Development (OECD) and other multilateral

agencies such as the World Bank, have identified that the principles for good corporative governance are:

■ Respect for the rights of the stakeholders and equal treat-ment, no matter how important their capital participation is.

■ Clear definition of the responsi-bilities and the functions of the administration.

■ Transparency, fluency and in-tegrity of information.

■ Effective communication with the different publics who are interested in the enterprise and its governance structure.

■ Promotion of the satisfaction of the people who make up the or-ganization.

There is no doubt that coopera-tives are different to traditional capital-centred companies in their values, principles and procedures, however, it is not enough to say it, organizations needs to validate this in practice to make it credible. The application of these govern-ance principles contribute to this end.

The cooperative sector has had nothing to do with this crisis nor has been responsible for it. In this context, we have the opportunity to demonstrate that we are a dif-ferent business model, that we can be part of the solution as long as we are given the opportunity to do so. We should be allowed to oper-ate under the same conditions of traditional companies so that we can prove that we are even better because, among other things, we create social capital. But we should be aware of the fact that cooperatives cannot be used to solve the crisis and allow them to be dismissed when the economic situation is buoyant.


The Federación de Cajas Popu-lares ALIANZA from México be-lieves that the implementation of the Cooperative Social Audit is a way of looking into our coopera-tive business essence. It will lead us to strategic development in the long run and it is not just about obtaining a certificate that praises our action, it is about fulfilling our objectives and institutional poli-cies.

The application of the Cooperative Social Audit of ICA-Americas is guiding us to self-discovery of our service and practice; it is showing us clearly a series of areas of im-provement which represents a huge opportunity of understanding us better, which is the real “profit” of this interesting process.

Federación ALIANZA acknowl-edges that cooperative social re-sponsibility is an axis that guides cooperative work, posing new challenges and producing a win-win situation for all the associate cooperatives.

This year, the experience of the Cooperative Social Audit is pro-fessionally coordinated by the auditors of ICA-Americas: Liliana González y Juan Carlos San Bar-tolomé, who, from the very begin-ning, have sensitized us on the im-portance of analysing data, actions and figures that tend to be lost in the daily run of our operations. Using this information we will prepare a report with a high sense of transparency and responsibility and take every step to fulfil our

objectives and our organizational mission.

It is a fantastic experience to be able to discover that the coopera-tives that make up the Federación and the Federación itself, will un-dertake voluntary actions in the areas of community development, environmental protection, finan-cial inclusion, human rights pro-motion and growth of our human potential.

There is no doubt, that coopera-tives undertake actions that effec-tively benefit people. We are pio-neers in the practice of “real” So-cial Responsibility and not the “fake” one which takes place in neoliberal organizations. We just do it by sticking to our own es-

COOPERATIVE SOCIAL AUDIT: ICA-AMERICAS’ TOOL TO CONTRIBUTE TO SUSTAINABILITY

CERTIFICATION IN COOPERATIVE SOCIAL AUDIT: A STRATEGY FOR SUSTAINABLE DEVELOPMENT

By Ramón Cortés Sánchez Training and Education Manager in Federación ALIANZA (Mexico)

In May 2013 cooperative social auditors made their first visit to the Federación de Cajas Populares Alianza, in Ciudad de León, Mexico, to start the process of elaboration of the Cooperative Social Audit of the organization. This is the first time a Mexican cooperative has applied the Social Audit using the official tool of ICA-Americas. The objective of the visit was to train a team which will work in the report of the Cooperative Social Audit for the organization, in a process that will finalize when Federación de Cajas Populares Alianza receives the certifi-cation of the report for 2013 issued by ICA-Americas.

ICA-Americas Social Audit now in Mexico

FEDERACIÓN ALIANZA TESTIMONY


sence and nature.

The Cooperative Social Audit is making us evaluate the economic and social impact of all the aspects that cannot be measured by means of monetary wealth, and which bring about more collective sense of belonging and integration with the community. The main goal of this Project is to identify the added values that are inherent to the business operation of the Fed-eración so as to discover areas of improvement to guide our plan-ning process. The result will be a crucial input for the strategic plan-ning of the institution.

ICA LAUNCHES WEBSITE FOR 2013 CONFERENCE AND GENERAL ASSEMBLY The official website for this year’s biggest global gathering for co-operators has been launched. Two thousand co-operators from around the world are expected to attend the Inter-national Co-operative Alliance’s Global Conference and General Assembly from November 1-5 at the Cape Town International Convention Centre.

South Africa will host the ICA’s first General Assembly on the con-tinent, which will be focused on the Blueprint for a Co-operative Decade.

The event’s theme, Co-operative Decade: Growing the Co-operative Movement, will be the common thread throughout the week of meetings of ICA bodies, plenary sessions and the General Assembly.

On the website, the programme outlines a series of meetings be-

tween ICA committees and sectoral organisations, alongside a youth conference and the main confer-ence followed by breakout ses-sions. Also listed are details about booking hotels and organising trips.

During the week there will also be

a number of booths selling co-operative books and goods, provid-ing information about co-operatives, showcases, and a num-ber of other side meetings.

To find out more information about the Cape Town event, visit: http://www.capetown2013.coop.


I C A - A m e r i c a s N e w s l e t t e r / / I s s u e N º 9 / / M a y 2 0 1 1 An e-publication of International Co-operative Alliance for the Americas (ICA Americas) ICA is an independent, non-governmental association which unites, represents and serves co-operatives worldwide

Editor: Manuel Mariño // Realization team: Natalia Acerenza, Virginia Pérez Auza and Jorge Cabrera (jcse)

© ICA Americas // Contents can be reproduced without authorization on condition that the source is indicated

ICA-Americas Newsletter // Issue Nº 17 // May 2013

An e-publication of International Cooperative Alliance for the Americas (ICA Americas)

ICA is an independent, non-governmental association which unites, represents and serves co-operatives worldwide

Editor: Manuel Mariño // Realization team: Natalia Acerenza, Virginia Pérez Auza and Jorge Cabrera (jcse)

© ICA Americas // Contents can be reproduced without authorization on condition that the source is indicated

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At the end of May, the content of ICA’s official message on the 91st ICA International Co‐operative Day and

the 19th UN International Day of Cooperatives was released. It will be celebrated this year on July 6th and its

central theme will be “Cooperative Enterprise Remains Strong in Times of Crisis”. The message highlights the

vitality and the distinctive resilience of the cooperative business model in times of global economic crisis, in

comparison to other forms of business which measure up when faced with global economic struggles.

The International Cooperative Alliance in conjunction with the European Research Institute on Cooperative

and Social Enterprise (EURICSE) have re‐launched a second survey for the World Co‐operative Monitor ‐ a

statistics study on the cooperative movement worldwide. The 2012 report included data about 2.192 coopera‐

tives from 61 countries. This time the participation is expected to be higher. To take part in the study, please

visit http://www.monitor.coop and fill in the online form (available in Spanish). It will take less than 30 min‐

utes. The results of the study will be presented at the Global Conference and ICA General Assembly in Novem‐

ber.

The General Assembly of Cooperatives Europe ‐regional European representation of the ICA‐ gathered in the

city of Istanbul on 6th May, where the German Dirk Lehnhoff was elected as its new president. Before, the

delegates accepted a revision of its statute which determined the creation of only one presidency. Dirk

Lehnhoff is a member of the Administration Board of the German Cooperative Confederation (DGRV) and has

contributed to creating more than 600 cooperatives especially in the sector of renewable energies.

Co‐operators paid tribute to Ada Suleimane Kibora, former ICA Africa Regional Director who passed away on

26 March, at the age of 66. He dedicated his whole life to the co‐operative movement, having worked for the

ICA for more than 23 years. Kibora studied co‐operative economics at Marburg University in Germany, from

1971 to 1975. Soon after he had returned to his native country, Burkina Faso, he became head of the branch

for Community Development of the Ministry for Rural Development. He joined the International Co‐operative

Alliance in 1984, as an officer in charge of the research projects led by ICA’s Regional Office in West Africa in

Abidjan, Ivory Coast. In 1989 he became Director of ICA’s Regional Office for West Africa and from 2004 to

2007 he was ICA’s Regional Director for Africa. ”The entire co‐operative movement in Africa will forever re‐

member him for his valuable contribution to the development of the movement,“ said Former ICA Regional

Director, Vincent Lubasi.

At present, the International Cooperative Alliance has 271 member organizations from 96 countries. To‐

gether they reunite and represent more than 1 billion of members around the world.

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All of your suggestions and proposals regarding the newsletter’s contents are very important for us, since our primary

goal is to provide a publication enriched by your opinions.

Please send your comments to: [email protected]

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