Can co-ops still survive in the current socio-political climate?

One headline from the BBC today reads: 

"Co-op Group members approve sweeping reforms to board"

What is the background to this change to an organisation that has its foundations in working class, Victorian Rochdale over 130 years ago? And why is it important? The principle of shared ownership didn't feature highly outside of the retail sector in the UK, as Britain emerged from the challenges of World War II. However some organisations (John Lewis for example in the UK and New England Biolabs) have employee ownership or shared bonus schemes hard wired into their operations. In addition, many venture capital funded businesses use stock options as an incentive to senior employees and early stage recruits. The concept is very simple: if you own a stake in the company that employs you, you are more likely to contribute to its success. You should take a look at examples of companies and how they manage their employee remuneration and rewards. You might be interested in the history of Unilever (originally Lever Brothers) in this respect.

The Rochdale Pioneers

The Co-operative movement in the UK (and similar overseas organisations exist) is run through a large number of members (8 million in the UK alone), who take decisions ranging from the distribution of local funds to good causes, to management of the funeral service fleet for example. It is this structure that is perceived to have led to the current financial crisis at the Co-op. I wonder whether this model, which in my view combines elements of socialism, philanthropy and fair trade ideologies, is viable in today's world? Is it something that could work best in developing countries? Or is it a threat to those global corporates that operate on stretch sales targets for maximising economic growth, often at the expense of employee satisfaction. Read about the many ways that businesses can operate and decide what mode of governance you feel most comfortable with and how you feel it might impact on financial viability in the short and long term of your virtual business.