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The purpose of this paper is to utilize legitimacy theory to test the association between the governance of credit unions and their social and environmental disclosure in a developing country, Kenya. A further examination of institutional pressures due to regulatory forces on the association between co-operative governance and credit union social and environmental disclosure (CSED) is performed.

Using a sample comprising of 1,272 credit union observations over the period 2008-2013, panel OLS regressions are performed to establish the association between co-operative governance and CSED. A comparison of the pre- and post-regulatory influences on co-operative governance and CSED is also performed.

The findings, which are in support of both legitimacy and institutional theories, depict a positive and significant association between co-operative governance and CSED. The significance of the co-operative governance score improves from the pre-regulation period to the post-regulation period. Other significant variables influencing the volume of CSED by credit unions in Kenya include credit union size and financial performance as measured by the return on assets.

The study examines CSED practices in a developing country and in organizations in a single sector. Further, CSED is measured using a self-constructed index with data being obtained from audited annual reports only.

The study highlights the need to develop CSED guidelines tailored for credit unions, and a focus on co-operative governance as a way of improving disclosure practices.

The study utilizes a sector-specific governance variable and a CSED index to examine the association between the two variables by credit unions in a developing country. The study also attempts to investigate the role of regulation on the association between co-operative governance and the volume of CSED.

Reviews the contemporary debate on governance within the co‐operative sector and makes an analysis of the traditional approach taken by the movement. Critiques the view that democratic structures are an effective mechanism for governance in a co‐operative. Process and structure rather than purpose and culture inform the terms of the debate. Argues that professional management is inevitably gaining ground against lay directors. Explores the option of developing professional management as the guardians of co‐operative values and purpose – not to replace democratic governance structures but to support and supplement them using co‐operative value‐based adaptations of modern management methodologies to make consumer co‐operatives more responsive to their customers and members. When people identify with co‐operative purpose and values they will want to be involved. Good governance in co‐operatives is more a problem of management culture than it is a problem of democratic structures.

Purpose – The aim of this study is to examine the impact of co-operative governance structures on citizen participation in public service provision.Methodology – Using a multiple case study-approach, we analyse and compare five examples of co-operative public–citizen partnerships in Austria and Germany.Findings – The study clearly shows that co-operatives can be a tool for both, (1) the bottom-up self-organization of citizens (co-operative as ‘contested space’) and (2) the top-down organization to canalize citizen participation (co-operative as ‘invited space’). Co-operative public–citizen partnerships therefore represent a balancing act between dependency through public funding and autonomy through community-based decision making.Research implications and limitations – The chapter underlines the importance of context-sensitive qualitative research. Limitations might stem from the fact that municipal areas might differ in other countries than Germany and Austria, for example, due to legal prerequisites.Practical implications – If regional government representatives are supporting a bottom-up initiative, they are more inclined to provide crucial resources for the public–citizen partnership and tensions between different stakeholders involved are weakened.Social implications – Co-operative public–citizen partnerships might enhance participatory democracy and seem to strengthen solidarity and social cohesion on the neighbourhood level.Originality/value of chapter – In showing that co-operatives are a suitable governance structure for community organizations, which enhance democratic decision making and foster social innovation in public service delivery, we support the findings of other studies. The chapter suggests that in order to enhance our understanding of citizen participation, context-sensitive research that goes beyond merely descriptive governance analysis is needed, taking into account the historical trajectories of public–citizen partnerships.

The financial crisis of 2008 resulted in calls for change. Commentators suggested that co-operatives, in particular credit unions, could provide accountability and sustainability through their open governance and mutual status. However, such suggestions assumed that co-operative principles and practice continued to underpin the efficacy of co-operative banking, and that credit unions, one of the most prevalent forms of co-operative banking, could offer a viable financial alternative. Instead, in the case of Cyprus, the financial crisis and the associated aftershocks triggered the nationalisation and demutualisation of credit unions. This prompted the researchers to question both the viability of a co-operative banking future and the extent to which co-operative principles were shaping decision making, governance, accountability and sustainability. The paper aims to discuss these issues.

A case study approach was adopted to explore the degree to which co-operative principles still shaped credit union thinking and stakeholder relationships.

As is the case elsewhere within the co-operative movement, the findings point the fact that governance is weaken by the low membership participation and that the principles are no longer universally applied. Credit unions, if not co-operative banking, may not offer the financial assurances that commentators have called for. Moreover, the guiding principles may no longer be embedded within the fabric of the movement.

Findings are important for practitioners/supervisory body as they highlight possible impacts on co-operative’ future and especially on their governance model and level of autonomy and independence in case of state intervention.

The research undertaken is original as it is the first time credit unions in Cyprus were examined for adherence to co-operative principles.

The purpose of this paper is to evaluate the accountability practices of the directors in New Zealand and Australian dairy co-operatives. An interpretation of their practices, which focus on the relationship between directors and their farmer-shareholders, is informed by Roberts’ (2001a) understandings of a socializing accountability.

The fieldwork consists of interviews with 23 directors, including all chief executive officers and chairmen, of six dairy co-operatives together with observations and document analysis. These co-operatives together comprise a significant portion of the regional dairy industry. The methodology draws from Eisenhardt’s (1989) qualitative approach to theory formation.

The authors find that these directors engage in a discourse-based, community-grounded and egalitarian form of socializing accountability. As such, their practices adhere generally to Roberts (2001a) hopes for a more considerate and humble relationship between an accountor and an accountee.

Findings add to the small pool of research on the lived experiences of co-operative boards and to a parsimonious literature in socializing accountability practices. The contributions of the study are in advancing real understandings of alternative forms of accountability, in evaluating the conditions in which these alternatives may be likely to arise and in anticipating the challenges and opportunities that arise therefrom.

The originality of the project arises from accessing the views of these industry leaders and, through their frank expressions, coming to understand how they achieve a form of a socializing accountability in their relationships with farmer-shareholders.

While recent changes to Fairtrade's governance structures aim to facilitate “stronger voices” for producers, relatively little is known about the impact on individual farmers. This paper aims to consider the nature of participation and representation, assessing the role of Fairtrade International (FLO) in representing the interests of its members through an exploration of collaborative governance.

The author utilizes Fung and Wright's framework of empowered participatory governance to explore the nature of individual participation in Fairtrade governance.

This paper finds that, while FLO has demonstrated a commitment to improving producer participation and its governance structures appear to be evolving accordingly, much remains to be done in order to ensure that individual producers are genuinely engaged in decision making and have a voice. The concept of countervailing power may provide a means of achieving this.

This paper highlights gaps in the literature that future research might serve to fill. It also finds that there are practical implications for FLO's structures and policies that aim to encourage individual participation and representation, particularly with regards to capacity building and leadership. In addition, the notion of countervailing power is outlined as a useful concept for further addressing diversity and heterogeneity in Fairtrade participation.

This paper focuses on Fairtrade's emerging agenda related to producer voices, while applying EPG in a novel manner. This theoretical framework allows for an original interpretation of the existing empirical material on Fairtrade, and the introduction of countervailing power as a useful concept within Fairtrade may be of interest to both practitioners and researchers.

Co-operative managers must invest appropriately to strengthen member relationships, such as by initiating corporate social responsibility (CSR) actions or providing members with more relational benefits. This paper aims to investigate how members’ motives (collectivistic vs individualistic) might influence the effectiveness of these investments in terms of enhancing members’ trust and loyalty intentions.

This research combines an exploratory approach, based on six focus groups, with a confirmatory approach based on a field study and two scenario-based experiments.

Members tend to regard the two motives in contest and infer a “more CSR versus more benefits” arbitration effort by co-operatives, such that they appear to prioritize one motive over the other. Members with individualistic motives principally support co-operatives’ arbitration toward relational benefits, so the positive effects of CSR initiatives on their trust and loyalty intentions are weaker (Study 1). Both CSR and relational benefits can be more or less efficient, depending on members’ motives (Study 2).

Reflecting their contrasting motives, members infer arbitration by co-operative managers, reflected in their “more CSR versus more benefits” belief. This insight and the related implications for trust and loyalty intentions have not been addressed in prior research.

Managers can avoid the negative consequences of “more CSR versus more benefits” inferences by ensuring a good fit between their investments and their members’ prevailing motives. If members have more collectivistic (cf. individualistic) motives, CSR initiatives (cf. relational benefits) enhance their trust and loyalty intentions more effectively.

This research builds on previous work on members’ relationships within co-operatives and on members’ motives. Results find that the effectiveness of co-operatives’ investments to strengthen members’ loyalty intentions depends on members’ prior motives.

The purpose of this paper is to present findings from a large-scale survey of members of co-operative and mutual enterprises (CMEs) that examines the factors influencing members’ intentions to remain loyal to the enterprise and to provide word of mouth (WOM).

A model was suggested and tested to examine the interrelationships between constructs measuring emotional, functional and financial value, affective and continuance commitment, intention to remain loyal to a CME and WOM communication. A large sample was drawn from a range of co-operative and mutual enterprises, and the suggested model was estimated using a partial least squares approach.

Significant relationships were found between all constructs. However, emotional value and affective commitment were found to have particularly strong relationships. Emotional value had a strong influence on both affective and continuance commitment, while affective commitment had a strong influence on loyalty and WOM.

This paper provides empirical support for suggestions about the factors that influence member loyalty within CMEs and the relative importance of non-financial motivations. It also provides a strong foundation upon which directors and executive managers of CMEs can build more effective member marketing and communications strategies.

The purpose of this paper is to reconsider commonly held views on the ownership and management of private property, contrasting capitalist and simple property, particularly as it relates to the impact of the firm shareholder governance model on the shape of society.

The author contrasts an exchange value standpoint with a use value perspective to explicate current conditions under which neither the state nor the market prevail in organizing economic activity (i.e. the co-operative form of governance and community-created brand value).

This paper offers mechanisms and recommendations regarding the formalized conditions for collective action and definitions of common guiding principles to facilitate new expressions of the principles of co-ordination. Such behaviour will allow for the development of common resources the purpose being a re-appropriation of the world.

This consideration is motivated by the scale and scope of the modern global crisis which combines financial, economic, social and cultural dimensions to produce world disenchantment. Dismissing the alternative of individuals simply forsaking engagement with society as it stands, it becomes necessary to revisit at this historical moment, the ideals on which modern societies are built, including the philosophy of freedom for all. This utopian concept has produced an ideology limited by capitalist notions of private property, motivating this inquiry.

This article analyses how the MONDRAGON Group has overcome the barriers that the literature identifies in the creation of employee owned companies (Mygind and Poulsen, 2021), and how it has managed to grow over the last few decades.

To this end, based on an analysis of the legislative framework and the internal documentation of the MONDRAGON Group and its cooperatives, the case of what is often considered the most successful and highly developed network of co-operative firms is studied.

The study leads us to conclude that MONDRAGON has had sufficient capacity to overcome the barriers faced by worker-owned companies and has known how to adapt to the economic and social demands of each moment, despite the fact that at certain times it has had to act flexibly in its principles.

The work is limited to the analysis of the Group's internal documentation. It would be interesting to complement this vision with the perceptions of MONDRAGON's partners.

The MONDRAGON Group's study can show other cooperative experiences what the keys to success are.

MONDRAGON has been analysed from different perspectives, but how it has overcome the specific barriers presented by employee-owned companies has not been specifically studied. This perspective makes it possible to identify some of the group's success factors.