These companies with no CEO are thriving

Summary

The Park Slope Food Co-op in Brooklyn exemplifies the cooperative business model, where 10,000 members jointly own and democratically operate the store, achieving high sales without a CEO. Co-ops, which number over 3 million globally, prioritize member service over profit maximization and are owned by their members, often requiring member participation. They foster a more equitable environment, with leadership roles that implement member-voted policies, and studies show co-ops have higher start-up survival rates and worker satisfaction.

Takeaways

• 🛒 The Park Slope Food Co-op in Brooklyn is a highly successful grocery store with sales per square foot four times higher than other stores in the area.
• 👥 It operates without a CEO and employs 10,000 people, highlighting the cooperative business model's efficiency.
• 🌐 There are over 3 million cooperatives worldwide, contributing significantly to the global economy with 280 million people employed and over $2 trillion in annual transactions.
• 📚 The concept of co-ops originated in 1844 with the Rochdale Society of Equitable Pioneers in England, emphasizing collective ownership and democratic management.
• 🏪 Co-ops come in various forms, including consumer co-ops like REI and S-Group, financial sector co-ops like credit unions, producer co-ops, and worker co-ops such as Mondragon and The Cheeseboard.
• 👩‍💼 Some consumer co-ops require members to work shifts, offering them reduced prices on goods and a say in the store's product offerings.
• 🤝 Co-ops are jointly owned by their members, who may be consumers, producers, or workers, and there are no outside shareholders.
• 💰 Unlike traditional companies, co-ops are not primarily focused on maximizing profit but rather on serving their members' needs.
• 🗳️ Decision-making in co-ops is democratic, with leadership roles implementing policies agreed upon by members through voting.
• ⚖️ Co-ops often have different policies from traditional companies, such as salary caps for management relative to the lowest-paid worker, as seen in Mondragon.
• 📊 Co-ops tend to be more stable and successful, with studies showing a lower likelihood of closure within five years compared to traditional businesses.
• 😄 Workers in co-ops report higher job satisfaction, with one study finding co-op workers to be about 40% happier with their jobs than those in traditional companies.

Q & A

What makes the Park Slope Food Co-op unique among grocery stores?

The Park Slope Food Co-op is unique because it has sales per square foot four times as high as any other grocery store in the area, employs 10,000 people, and operates without a CEO.

How many cooperatives, or co-ops, are there globally according to the script?

There are around 3 million cooperatives, or co-ops, around the world.

What percentage of the world's workforce does the co-op sector employ?

The co-op sector employs 280 million people, which is 10% of the world’s workforce.

What is the historical significance of the Rochdale Society of Equitable Pioneers?

The Rochdale Society of Equitable Pioneers is significant because it was the first co-op to publicize its principles, which continue to guide co-ops today.

What are the different types of co-ops mentioned in the script?

The script mentions consumer co-ops like REI and S-Group, financial sector co-ops like credit unions and mutual insurance companies, producer co-ops, and worker co-ops like Mondragon and The Cheeseboard.

Why were the original co-ops founded, as illustrated by the example of the 28 weavers in Rochdale, England?

The original co-ops were founded to allow members to buy in bulk directly from suppliers, negotiate prices, and afford goods they couldn't otherwise, all while running the store collectively and democratically.

How do consumer co-ops like Park Slope benefit their members?

Consumer co-ops like Park Slope benefit their members by allowing them to pay 15 to 50% less for groceries and influence the products sold in the store in exchange for working shifts.

What are the three crucial characteristics of co-ops mentioned in the script?

The three crucial characteristics are: 1) Co-ops are jointly owned by their members, 2) They are not founded to maximize profit but to serve their members, and 3) They are democratically controlled by their members.

How is leadership different in co-ops compared to traditional companies?

In co-ops, leadership roles implement policies agreed upon by members or worker-owners through voting, and there is no single person with top-down power like a CEO in a traditional company.

What is the difference in voting rights between a traditional company and a co-op?

In a traditional company, voting rights come with shares of stock, and the more shares one owns, the more votes they have. In a co-op, every member has the right to vote, and typically, every member gets one vote.

Why are co-op workers generally happier with their jobs compared to workers in traditional companies?

Co-op workers are generally happier because they have more democratic control over their workplace, influence over company policies, and a sense of ownership and community.