Social cooperatives exist to provide social services such as the care of children, elderly and disabled people, and the integration of unemployed people into the workforce. The phenomenon is most developed in Italy, but exists in various forms in many countries. In countries such as Sweden and Britain they exist without any special legislation, while elements of the Italian model have been legislated for in Belgium (société à finalité sociale / venootschap met sociaal oogmerk) and Poland.
An Italian social cooperative is a particularly successful form of multi-stakeholder cooperative, of which over 11,000 exist. [1] A "type A" social cooperative brings together providers and beneficiaries of a social service as members. A "type B" social cooperative brings together permanent workers and previously unemployed people who wish to integrate into the labour market.
Social co-operatives are legally defined as follows:
A cooperative is "an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-controlled enterprise". Cooperatives are democratically controlled by their members, with each member having one vote in electing the board of directors. They differ from collectives in that they are generally built from the bottom-up, rather than the top-down. Cooperatives may include:
Ownership is the state or fact of legal possession and control over property, which may be any asset, tangible or intangible. Ownership can involve multiple rights, collectively referred to as title, which may be separated and held by different parties.
A housing cooperative, or housing co-op, is a legal entity, usually a cooperative or a corporation, which owns real estate, consisting of one or more residential buildings; it is one type of housing tenure. Typically housing cooperatives are owned by shareholders but in some cases they can be owned by a non-profit organization. They are a distinctive form of home ownership that have many characteristics that differ from other residential arrangements such as single family home ownership, condominiums and renting.
A utility cooperative is a type of cooperative that is tasked with the delivery of a public utility such as electricity, water or telecommunications to its members. Profits are either reinvested for infrastructure or distributed to members in the form of "patronage" or "capital credits", which are dividends paid on a member's investment in the cooperative.
A mutual organization, also mutual society or simply mutual, is an organization based on the principle of mutuality and governed by private law. Unlike a cooperative, members usually do not directly contribute to the capital of the organization, but derive their right to profits and votes through their customer relationship.
A worker cooperative is a cooperative owned and self-managed by its workers. This control may mean a firm where every worker-owner participates in decision-making in a democratic fashion, or it may refer to one in which management is elected by every worker-owner who each have one vote. Worker cooperatives may also be referred to as labor-managed firms.
Employee stock ownership, or employee share ownership, is where a company's employees own shares in that company. US employees typically acquire shares through a share option plan. In the UK, Employee Share Purchase Plans are common, wherein deductions are made from an employee's salary to purchase shares over time. In Australia it is common to have all employee plans that provide employees with $1,000 worth of shares on a tax free basis. Such plans may be selective or all-employee plans. Selective plans are typically only made available to senior executives. All-employee plans offer participation to all employees.
The Phone Co-op was an independent consumer co-operative in the United Kingdom. It provided landline, mobile telephone and Internet services, including web hosting and broadband. In April 2018, the Phone Co-op board agreed for its operations to be transferred to the Midcounties Co-operative, with the Phone Co-op legal entity ceasing to exist. The brand continued to be operated until 1 June 2018, when it was rebranded to Your Co-op following the completion of the transfer.
A social enterprise is an organization that applies commercial strategies to maximize improvements in financial, social and environmental well-being. This may include maximizing social impact alongside profits for co-owners.
The social economy is formed by a rich diversity of enterprises and organisations, such as cooperatives, mutuals, associations, foundations, social enterprises and paritarian institutions, sharing common values and features:
Cooperative banking is retail and commercial banking organized on a cooperative basis. Cooperative banking institutions take deposits and lend money in most parts of the world.
Active labour market policies (ALMPs) are government programmes that intervene in the labour market to help the unemployed find work, but also for the underemployed and employees looking for better jobs. In contrast, passive labour market policies involve expenditures on unemployment benefits and early retirement. Historically, labour market policies have developed in response to both market failures and socially/politically unacceptable outcomes within the labor market. Labour market issues include, for instance, the imbalance between labour supply and demand, inadequate income support, shortages of skilled workers, or discrimination against disadvantaged workers.
Cooperativeeconomics is a field of economics that incorporates cooperative studies and political economy toward the study and management of cooperatives.
Social firm is the British term for a work integration social enterprise (WISE), a business created to employ people who have a disability or are otherwise disadvantaged in the labour market. Its commercial and production activities are undertaken in the context of a social mission, with profits going back into the company to further its goals. A significant number of the employees of social firms will be people with a disability or disadvantage, including mental health issues. The firms grew out of disillusionment with mainstream businesses, and the failure to recognise or enable everyone's potential. All workers are paid a market-rate wage or salary appropriate to the work. All employees are intended to have the same employment opportunities, rights and obligations.
CAP Märkte are medium-sized neighbourhood supermarkets in Germany employing disabled people. Each unit is typically run by a local disablement association, but the brand is owned by a co-operative of sheltered workshops. As well as good working conditions, they provide a cherished community service. The chain of CAP Märkte has grown steadily since 1998 and in 2022 reached 105 shops.
RepaNet is an environmental and employment creation project based in Graz, Austria. It combines three complementary goals: the ecological goal of cutting waste by repairing and reusing things instead of throwing them away, the social goal of providing jobs for long-term unemployed people and the local economy goal of supporting small firms and building regional value.
Social protection, as defined by the United Nations Research Institute for Social Development, is concerned with preventing, managing, and overcoming situations that adversely affect people's well-being. Social protection consists of policies and programs designed to reduce poverty and vulnerability by promoting efficient labour markets, diminishing people's exposure to risks, and enhancing their capacity to manage economic and social risks, such as unemployment, exclusion, sickness, disability, and old age. It is one of the targets of the United Nations Sustainable Development Goal 10 aimed at promoting greater equality.
Economic democracy is a socioeconomic philosophy that proposes to shift ownership and decision-making power from corporate shareholders and corporate managers to a larger group of public stakeholders that includes workers, consumers, suppliers, communities and the broader public. No single definition or approach encompasses economic democracy, but most proponents claim that modern property relations externalize costs, subordinate the general well-being to private profit and deny the polity a democratic voice in economic policy decisions. In addition to these moral concerns, economic democracy makes practical claims, such as that it can compensate for capitalism's inherent effective demand gap.
The Co-operative and Community Benefit Societies Act 2014 is an Act of the Parliament of the United Kingdom. It consolidates existing legislation relating to industrial and provident societies, as well as introducing some reforms.
A platform cooperative, or platform co-op, is a cooperatively owned, democratically governed business that establishes a two-sided market via a computing platform, website, mobile app or a protocol to facilitate the sale of goods and services. Platform cooperatives are an alternative to venture capital-funded platforms insofar as they are owned and governed by those who depend on them most—workers, users, and other relevant stakeholders.