Sample News Article
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[Items in italics should be modified/ filled-in by
author]
[NOTE: This sample is drafted as a generic news story. Use this
format, but make your story as specific as possible. All information
in italics should be filled in to localize the story
for your community.]
Product: Sample News Story
Co-op Type: Consumer Co-ops
Use: Run in Internal Member Newsletters, Newspapers,
Magazines
Audience: Members
National Survey Shows Consumers Trust, Prefer Co-ops
October is National Cooperative Month, and as cooperatives across
the country celebrate their contributions to our nation’s
economy, America’s consumer-owned co-ops have something new
to trumpet.
A recent national survey of 2,031 adult Americans, released during
press conference on October 1, found that two-thirds of consumers
believe businesses that are owned and governed by their customers
(as co-ops are) and have consumers on their boards of directors
(as co-ops do) are more trustworthy than other types of businesses.
A majority also said companies that are locally owned and controlled
and allow customers to democratically elect the board of directors
are more trustworthy.
The survey was conducted during a time of rising public distrust
of corporate America. In response to high-profile accounting scandals,
many publicly traded corporations are being required to implement
new accountability practices that address lax governance processes.
And the Securities and Exchange Commission also is considering requiring
corporations to give shareholders a greater voice in board elections.
Meanwhile, consumers express a greater preference for the significantly
more democratic governance practices of cooperatives. Consumer co-ops
include credit unions, childcare co-ops, rural and urban electric
and telephone co-ops, retail food co-ops, mutual insurance companies,
housing cooperatives, and many others. Like [insert name of
your co-op], all consumer co-ops are owned by their members—the
people who use their services or buy their goods.
“It’s clear that consumers want to do business with
companies they can trust,” said [co-op CEO first and last
name], reacting to the new survey results. “In the co-op
world, we’ve known for a long time that member ownership and
control is the most accountable business structure. And at [insert
co-op name], we’re committed to our members, to our community,
and to our co-op principles—the most important of which is
member ownership and control.”
Consumers Rate Co-ops Higher than Publicly Traded Corporations
Survey respondents were given nine positive business attributes
and asked if they agreed or disagreed whether each attribute described
co-ops and investor-owned corporations
More than two-thirds of Americans agreed that consumer-owned co-ops
are ethically governed, while just 45 percent said the same of publicly
traded corporations. More than 75 percent agreed that these co-ops
run their businesses in a trustworthy manner compared to just 53
percent for publicly traded firms.
Asked whether consumer co-ops have the best interests of consumers
in mind when conducting business, 77 percent of Americans agreed
they did. Fewer than half said the same of investor-owned counterparts.
Co-ops also outscored publicly traded corporations by wide margins
on questions of value, quality, price, and commitment to their communities.
Co-op Awareness Needs to be Raised
“Regardless of how you measure it—in terms of cost
savings, value or satisfaction—consumers can get more for
their money at cooperatives,” said Paul Hazen, National Cooperative
Business Association President and CEO [or insert co-op spokesperson
for your industry co-op association], who joined other national
co-op association leaders and the Consumer Federation of America
in releasing the survey results during the October 1 press conference.
“The challenge is in raising consumer awareness of and access
to cooperatives,” Hazen [or appropriate spokesperson]said.
He and the coalition of cooperative organizations urged state and
federal consumer bureaus to include information about cooperatives
on their consumer-targeted web sites and pushed federal and state
governments to make more resources available to help develop new
cooperatives.
According to the Credit Union National Association (CUNA), the
average credit union household saves $149 per year by belonging
to a credit union rather than a bank or a thrift. In housing, University
of Minnesota research found that owners of cooperative housing save
$16 per unit per month in operating costs compared to a similar
rental unit. And retail consumer co-op members receive savings through
member discounts at the register or through end-of-year dividends.
Members of other cooperatives also receive end-of-year dividends,
sometimes called patronage refunds.
Consumer Preference for Cooperatives
Asked whether they would be more or less likely to buy products
or services from a business if they knew it to be a cooperative:
- 73% were more likely to buy products from a food cooperative
- 71% were more likely to use a credit union
- 69% were more likely to patronize independent, local businesses
that belonged to a buying co-op
- 69% were more likely to purchase food produced by a farmer-owned
cooperative
- 67% were more likely to buy electricity and telecommunications
from a local utility co-op
- 56% were more likely to use day care services provided by a
parent-owned co-op
- 55% were more likely to prefer health care services offered
by a consumer-owned provider
- 51% were more likely to hold policies with a mutual insurance
company
Methodology/Sponsorship
The survey was conducted by Opinion Research Corporation, a Princeton,
N.J. polling company, during July 24-28, 2003. At a 95 percent confidence
level, the maximum expected error is plus or minus two percent.
The survey was sponsored by a coalition including CUNA, the National
Assn. of Federal Credit Unions, the National Cooperative Bank, the
National Cooperative Business Assn., the National Milk Producers
Assn., the National Rural Electric Cooperative Assn., the National
Rural Telecommunications Cooperative, the National Rural Utilities
Cooperative Finance Corporation, and the National Telecommunications
Cooperative Assn.
-end-
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