Anu Puusa: The case for co-ops, the invisible giant of the economy | TED | Summary and Q&A

TL;DR

In this content, the speaker discusses the cooperative movement and its impact on communities and the economy.

Key Insights

• 🏫 The speaker's students are frustrated with the negative impact of businesses on the environment and wealth inequality, and are excited about the potential of cooperatives to create positive change.
• 🤝 Cooperatives are organizations owned by members who are also the customers and decision-makers, with equal voting power for all members. This model challenges traditional power structures in business.
• 🌍 Cooperatives provide a unique blend of for-profit and nonprofit elements, prioritizing economic, social, and cultural goals to benefit regular people. They aim to make decisions with long-term impact and to anchor wealth in communities that may otherwise struggle to attract investment.
• 🇫🇮 Finland has a strong cooperative movement, with over 5.5 million people holding over seven million memberships in cooperatives that cover various sectors, such as groceries, banking, and insurance. Members receive bonuses and discounts based on their cooperative involvement.
• 💰 Cooperatives distribute their surplus among members, supporting both individual financial benefits and contributing to the greater good of local communities. They can make decisions that align with community needs, such as funding sports facilities or considering the long-term interests of their widespread membership.
• 🌱 Cooperatives have the potential to contribute to environmental goals, with examples such as the S Group aiming for carbon negativity and energy cooperatives promoting community energy to address climate change and social inequalities.
• 🌎 Cooperatives have a global presence, with over three million cooperatives around the world and a billion members. They employ more people than multinational companies and generate significant economic activity, with sales surpassing the GDP of Canada.
• 🤝 Emphasizing participation and inclusion, cooperatives offer a different approach to business, recognizing that economic interests alone are not the only motivation for individuals. They prioritize creating sustainable businesses that benefit both people and communities, lasting for generations.

Transcript

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Questions & Answers

Q: What is a cooperative and how is it different from other businesses?

A cooperative is an organization that is owned by its members, who are also its customers and decision-makers. Unlike most businesses, where certain owners can buy more power and influence, in a cooperative, every member has one vote.

Q: How are cooperatives unique compared to for-profit and nonprofit organizations?

Cooperatives exist in a sweet spot between the for-profit and nonprofit worlds. They have two distinct but complementary roles. On one hand, they act like any other business and try to make money. But on the other hand, cooperatives are people-centered enterprises run by and for their members, aiming to achieve not just economic goals but also social and cultural ones.

Q: How have cooperatives made a positive impact on communities?

Cooperatives have proven to make decisions with a long-term perspective, benefiting more people and anchoring wealth in communities that might not otherwise attract investment. They support not only taxes and employment but also young people, sports, arts, universities, and cultural events. Cooperatives contribute to the greater good of their communities, providing various benefits to their members and society as a whole.

Q: What is the global reach and magnitude of the cooperative movement?

Today, there are more than three million cooperatives worldwide, with over a billion members and employing 280 million people, which is 20 percent more than multinational companies. Cooperatives sell more than two trillion dollars' worth of goods and services, surpassing the GDP of Canada. It is a significant global phenomenon that resonates well with regular people and aligns with their values of creating sustainable businesses and benefiting communities.

Summary & Key Takeaways

• The speaker is married to a man named Ted and is from Finland, where the name Ted is uncommon.

• The speaker is a business professor whose students are frustrated with the negative impact of business on the environment and wealth inequality. They are particularly angered by the hidden potential of cooperatives.

• Cooperatives are organizations owned and run by their members. They prioritize both economic and social goals, benefiting regular people and communities. Cooperatives have a significant global presence and outperform multinational companies.