Co-operative Development and Corporate Governance Structures in German Co-operatives - Problems and Perspectives

The tasks as well as the types of co-operatives within an economy have continuously been discussed for nearly two hundred years. Since the days of Owen, the principles as well as the appearance of co-operatives have been heavily disputed. This became evident by the controversy between Huber, Schulze-Delitzsch, and Lassalle (Faust 1977: 255ff) on whether co-operatives are self-help instruments and whether or not governmental help should be applied for or avoided. So far, this question has not been answered in a generally accepted way. During the last thirty years, however, the discussion on the optimal cooperative model has not only lost some momentum, but has changed very much in substance. In the meantime, fundamental decisions dating from the very beginning of co-operative history have been accepted far and wide. Namely the disappearance of socialist co-operatives that was caused by the failure of socialist economies has led to a certain harmony. Even on this basis, however, there exist differences of opinion on the optimal structures within the accepted framework. The controversy within the discussion is increased by the requirements imposed on co-operatives that have been changed by the development of markets and competition within a capitalist society. Currently, two facets of co-operatives are simultaneously regarded as problematic: the corporate governance system within German co-operatives and the promotion principle - the obligation of a co-operative to improve the economic situation of its members with the help of its services. If these two focal points are considered simultaneously, the question arises whether German cooperatives are still member-driven and -oriented organisations. At the same time it needs to be asked, what steps can be taken to bring organisational requirements and members' interests closer together.