MSC on co-operatives: from ‘Equity and equality are key to a sustainable economy’
Taken from Equity and equality are key to a sustainable economy
Molly Scott Cato: The Western Mail, 2003
What is a co-operative? The two basic requirements are equity and equality.
People working in a business should have equal say in determining the decisions that are taken, and should share the profits generated fairly. In the era of corporate globalisation such a model has much to offer the small businesses that dominate the indigenous Welsh economy.
With a co-operative, capital is anchored locally because it belongs to the employee-owners of the firm. Such businesses are not vulnerable to multinational take-over or capital flight.
The profits generated are also more likely to be kept in the local economy, generating further wealth for local people, rather than being sucked out to distant shareholders.
The local link reduces the likelihood that businesses will display the worst excesses of corporate business by polluting the environment or unfairly exploiting employees.