Co-op Month 2003 Messages with Talking Points
Message 1
Amid increasing federal scrutiny of governance practices
of large, publicly traded corporations and growing public skepticism
about the integrity of corporate America, new national survey results
demonstrate that consumers have a trustworthy and accountable alternative
to the companies making national headlines for fraud and mismanagement:
Cooperatives.
Supporting Points:
- More than 48,000 cooperatives do business in both rural and
urban America. They include credit unions, childcare co-ops, food
co-ops, farmer-owned cooperatives, electricity and telecommunications
cooperatives, housing co-ops and many others.
- Co-ops outnumber publicly traded companies by more than three
to one.
- Four in ten Americans, or 120 million people, are members of
cooperatives.
- Cooperatives are businesses that, by their very nature, are
directly accountable to their member-owners. They are structured
to ensure that the business serves only the best interests of
its members.
- Co-ops are owned and governed by the people who use their
services or buy their goods—their members.
- Co-op members directly and democratically elect their board
of directors from within the membership.
- Co-op management does NOT serve on the board of directors.
- Co-op board members serve on a volunteer basis and are largely
uncompensated for their service.
Message 2
Americans believe the democratic business structure of cooperatives
is more trustworthy and ethical than other types of business. Most
say that knowing a business is a cooperative increases the likelihood
that they will buy its goods or use its services. This holds true
for both consumer-owned co-ops and farmer-owned cooperatives.
Supporting Points:
- The survey of 2031 adult Americans found the democratic co-op
business structure to be more trustworthy
- More than two-thirds of Americans believe that businesses
that are owned by the people who use their goods and services
are more trustworthy that those that do not. (Cooperatives
are, by definition, owned by their members who use their goods
and services.)
- Sixty-two percent of Americans said that businesses governed
by a board of directors made up of its customers were more
trustworthy than those that were not. (Co-op boards are made
up of the members (users) of the cooperative.)
- More than two-thirds of Americans said that companies that
have consumers on the board of directors are more trustworthy
than those that don’t. (Consumer co-op boards are made
up of their consumer-members.)
- Sixty-two percent of Americans said businesses that are
locally owned and controlled are more trustworthy than those
that are not. (Co-ops are locally owned and controlled by
their members living in that community.)
- The survey found that consumers rated co-ops higher than large,
publicly traded corporations on questions of trustworthiness,
ethics, quality, service, value and commitment to community.
- 81% agreed that co-ops can be counted on to meet their customers
needs, compared to 65% for publicly traded companies;
- 78% agreed that co-ops are committed to providing the highest
quality service to their customers, compared to 58% for publicly
traded companies;
- 77% agreed that co-ops have the best interests of consumers
in mind when conducting business, compared to 47% for publicly
traded companies;
- 76% agreed that co-ops run their businesses in a trustworthy
manner, compared to 53% for publicly traded companies;
- 68% agreed that co-ops are ethically governed, compared
to 45% for publicly traded companies;
- More than 80% agreed that farmer-owned co-ops strengthen
rural communities and help farmers succeed.
- The survey found that knowing that a business is a co-op increases
a consumer’s likelihood of purchasing its goods and services
- 73% were more likely to buy products from a food cooperative
- 71% were more likely to use as 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
services from a local, member owned 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 co-op
- 51% were more likely to hold policies with a mutual insurance
company
Message 3
Consumers who already belong to co-ops rate them even more highly.
But to benefit from the service that existing members enjoy, more
consumers need information and access to co-ops.
Supporting Points:
- Though a majority of those surveyed said they were more likely
to do business with a company if they knew it to be a cooperative,
those who said they were already a member of a cooperative were
even more likely than non-members to rate them higher and prefer
to do business with them.
- That’s because co-op members benefit from better service,
high quality products, cost savings on products and services and
from their direct control of the co-op business. That makes members
more loyal.
- Consumers can benefit substantially from belonging to a cooperative.
- According to the Credit Union National Association, the
average credit union household saves $149 per year by belonging
to a credit union rather than a bank or a thrift. Savings
come from lower fees, higher interest on savings, and lower
interest rates on loans.
- University of Minnesota research found that owners of cooperative
housing save $16 per unit per month in operating costs compared
to rental units.
- Retail co-op members save money through member discounts
or through end-of-year dividends.
- Members of other cooperatives also receive end-of-year dividends.
- Members, not Wall Street investors, enjoy the benefits of
co-op success.
- But consumers need more information about cooperatives so they
can benefit from their products and services.
- National Cooperative Month is about raising awareness of
cooperatives.
- As cooperatives work to better educate the public, state
and federal consumer bureaus should conduct increased outreach
to consumers to inform them about cooperatives and provide
consumers with more information about how consumers can locate
them.
- Consumers need access to the businesses they trust.
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