Lecture Notes: Business Ownership Models

Importance of Ownership and Control

• Ownership and control in business determine who benefits from a business and its activities.

Publicly Listed Companies

• Owned and controlled by investors.
• Purpose: To make a financial return for investors.
• Issue: Ownership and control can become concentrated in the hands of a few.

Cooperative or Mutual Enterprises (CME)

• Ownership and control are shared equally among members.
• Purpose: To provide benefits back to its members.
• Members can include stakeholders such as customers, employees, or local community members.
  • Example: In a credit union, members are the customers.
  • Example: In a producer co-op, members are farmers.
  • Example: In a worker co-op, members are employees.
• Economic Impact: Returns stay with members and are reinvested in the local community.

Historical Context of CMEs in Australia

• CMEs have a longstanding history in Australia.
• Early co-ops: Friendly societies, retail co-ops, dairy co-ops, motoring organizations, building societies, and credit unions.
• Current Statistics:
  • Over 80% of Australians are members of a CME.
  • 1 billion co-op members globally.

Global and Local Impact

• Some well-known brands and organizations are member-owned.
• Even famous football teams can be owned as cooperatives.

Cooperative Principles

• Operate under international principles of cooperation which include:
  • Democracy
  • Self-help
  • Economic participation
  • Concern for the community

Further Information

• For more information on cooperatives in Australia, visit the Business Council of Cooperatives and Mutuals' website.