An insight into co-operativism

Abstract

The concept of co-operativism is analysed in this report. As an introduction to the subject, the values that socially friendly businesses work with are mentioned, as well as, the basic differences with regard to capitalist companies. In order to broaden the model, seven basic principles that drive such companies are analysed. Recently, due to the economic crisis, many capitalist companies have changed their way of running the business and have opted for cooperatives. Therefore, the steps they have to follow to become part of this view will be considered. So as to introduce a more critical view, benefits and drawbacks of cooperative companies will be borne in mind. In addition, no theoretical model is complete if real examples are not provided, thus in the final part, four companies will be studied. The first one being a company that has always been part of a group of cooperatives and which has enjoyed positive results all over; the second one, a company that has experienced the benefits of leaving the group; the third one, the cornerstone of such group, whose effort to relaunch the company have failed; and the final one, an acquired company whose future is uncertain due to its parent company's decline. To conclude, the final section is going to be devoted to heighten the problems that cooperatives have and which may have compromised their status as alternative models to capitalism.