Commerce with a bit of ethics or ethics with a bit of commerce? The conundrum of British consumer co-operation 1863-1990

Abstract

Purpose This paper is concerned with the historical record of one business in the UK, which has long laid claim to the moral high ground in the conduct of its affairs – the amalgam of consumer co-operative business organisations, which eventually merged to become the Co-operative Group at the beginning of the 21st century. This paper aims to offer an assessment of the record of the British consumer co-operative movement’s efforts to abide by and promote its values and principles during the first 137 years of its existence (1863 to 1990). Design/methodology/approach The paper is developed using largely qualitative research methods and a variety of sources. These include archival resources and business-historical materials such as committee minutes and correspondence. These materials have been complemented by several semi-structured recorded interviews with senior members of the Co-operative Group. Findings The authors develop several conclusions. First, where ethical choices were possible and no serious commercial interests were impaired, the co-operative movement could and usually did do its best to adhere to its principles. Second, in several instances, commercial interests did frequently trump ideals. Finally, the organisational structure of the movement made it very difficult to ensure that co-operative principles and values were adhered to. Originality/value This paper presents a unique case-study that examines the inherent tension between commerce and ethics in the co-operative movement.

Cooperative values and the development of the credit union movement in Australia

“…Much of the inspiration for cooperative ideals can also be traced to important developments in Great Britain, such as the Rochdale Pioneers formation of a cooperative store in 1844 (Lewis, 1996). As Webster et al (2020, p. 3) note, the Rochdale principles became not only an ethical template for the British consumer cooperative movement but also formed the basis of many of the international principles of co-operation, as outlined in the International Cooperative Alliance’s Statement on Cooperative Identity in 1995. Cooperatives are required to operate according to the values of self-help, self-responsibility, democracy, equality; and interest in the community (Birchall, 2011).…”

“…This research contributes to the literature on the co-evolution of organisations by focusing on the key features and emerging values that shaped the identity of credit unions and that were arguably critical to their development and survival over time. Webster et al (2020Webster et al ( , p. 1752) note that the cooperative movement in the UK emerged as a champion of consumer rights, promoting ethical commitment to cooperative values. Similarly, Komulainen andSiltala (2018, p. 1081) argue that the 21st-century cooperative renaissance is based on the reassertion of cooperative core values.…”