Novel ideology, but business first?

The article contributes to the co-op theory by exploring a current understanding of the dual nature at the core of co-op ideology that summarises its original purpose. The literature review examines this dual nature, highlighting its importance in the context of democratic governance. The empirical study focuses on exploring the significance that members of the governing bodies attach to the dual nature, and the effect the two roles have on putting the duality of a co-op into practice today. Based on the research, we argue that co-ops’ business role determines their operation along with the financial benefits to their members. In particular, the social objectives associated with the member association role are subordinate to the co-op’s business role, and this creates conflicting expectations and practices in co-ops’ management. The article highlights how business plays a dominant role and undermines co-ops’ democracy and social goals. We suggest that finding a balance between the member association and the business roles reflects a new co-op ideology, in which business dominates. We also argue that the governing body members’ deep understanding of the dual nature reinforces the fulfilment of the co-ops’ member association role, and thus its ultimate and original purpose.