Co-op Businesses Benefit Clients and Exemplify Trust

Studies show that a significant portion of the public is growing increasingly skeptical about the way business gets done and consumers are treated in America.

As a result, consumers are turning to an approach to business that many consider a more trustworthy, accountable, responsive and ethical alternative to large publicly traded corporations. They are embracing co-ops.

A cooperative business belongs to the people who use it-people who have organized to provide themselves with the goods and services they need.

A cooperative operates for the benefit of its members. While October is National Cooperative Month, anytime can be a good time to learn how they work.

Over 120 million people are members of 48,000 U.S. cooperatives. These people have organized to provide themselves with goods and services in nearly every sector of our economy. Their cooperatives may be organized in a number of ways and for many purposes.

Members invest in shares in the business to provide capital for a strong and efficient operation. All net savings left after bills are paid and money is set aside for operations and improvements, are returned to co-op members.

Cooperatives may be organized to provide just about any goods or service such as: business services, child care, credit and personal financial services, employment equipment, hardware and farm supplies, utilities and cable TV services, food and food services, funeral planning, health care, housing, insurance, legal and professional services, marketing of agricultural and other products.

According to a recent survey consumers prefer the co-op structure and are more likely to do business with co-ops if given the opportunity. Consumers who have direct experience with co-ops rate them even more highly. But consumers also report they need more information about co-ops in order to take advantage of them.

For most cooperatives, a majority of consumers say they'd be more likely to do business with a cooperative if given the opportunity. For credit unions, utilities, small business members of purchasing co-ops and food co-ops, more than two-thirds of Americans prefer them.

Courtesy of NAPSnet.