BUSINESS COUNCIL OF CO-OPERATIVES AND MUTUALS
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1 BUSINESS COUNCIL OF CO-OPERATIVES AND MUTUALS
2 Our vision Introduction The Business Council of Co-operatives and Mutuals (BCCM) exists to promote the role of co-operatives and mutuals in the national economy and to provide leadership in the important areas of research, education and advocacy to build a strong sector. We believe that an economy with a greater diversity of business models is a more resilient, productive and fairer economy for all Australians, therefore, the BCCM works to increase the number of co-operatives and mutuals operating in the economy. The BCCM also provides a national networking platform for co-operative and mutual businesses to share best practice and to foster business partnerships and an enterprising culture. By fulfilling these objectives, the Business Council of Co-operatives and Mutuals will help create an environment where our members can grow stronger in their markets and advocate effectively for their sectors, Greg Wall, Chair, BCCM and Capricorn Group CEO - Founding Partner BCCM Award winning Harmony Village developed by Common Equity Housing Limited (CEHL) The Business Council of Co-operatives and Mutuals (BCCM) is the national association, led by the chief executives, of Australia s leading co-operative and mutual businesses. Formed in 2013, the BCCM represents the first time the CEOs of member-owned businesses have come together with the single, common objective of increasing awareness of co-operative and mutual businesses and their contribution to the national economy and community development of Australia. As the only organisation uniting the entire, diverse range of member and customer owned businesses including grain handlers, dairy producers, motoring organisations, mutual insurers, health funds, customer owned banks and credit unions, member-owned retailers, purchasing and marketing co-operatives, housing developers, and farmer-owned agribusiness, the BCCM provides a unique platform for business networking and commercial collaboration within the sector. With an estimated 13 million members, Australia s co-operative and mutual businesses are already an important part of the economy but the potential for further development is significant. Whilst 79 per cent of Australians are members of a co-operative or mutually-owned enterprise, only 16 per cent of the population believe that they are, and only three in ten people can name one. Raising awareness of our business models is not a stand-alone activity. The BCCM provides leadership in the important areas of education, research, promotion and advocacy, necessary to build a strong sector.
3 Birth of a Council The CBH Co-operative has provided unique value for over 80 years and the co-op model has enabled CBH to make long term strategic decisions that help ensure the ongoing prosperity of the grains industry. CBH has long understood the value and benefits a co-operative model can bring, that s why we support the establishment of a business council to promote our way of doing business, Dr Andrew Crane, CEO, CBH Group Founding Partner BCCM 2012 was a watershed year for co-operative and mutual businesses. The United Nations gave its imprimatur to our business models and declared 2012 the International Year of Co-operatives recognising their contribution to economic and social development (the only time a business structure has received this accolade). Internationally co-operatives and mutuals emerged from the global financial crisis as commercially focused, people-centred businesses with the right balance of fiscal restraint and commercial discipline, saying everything about the benefits of member-owned businesses, especially in a downturn. In the wider commercial arena the growing focus on membership loyalty programs and corporate social responsibility shows the relevance of our fundamental business values (they are not add-ons). Increasingly, Australian communities and governments are looking for proven, commercially strong and responsible business solutions. Co-operatives and mutuals have a proven track record delivering on profitability, productivity and purpose. They generate higher economic and community returns on investment and sustainable dividends over the long term. Australia has a rich heritage of co-operatives and mutuals and the opportunity is here to invigorate the sector for a greater balance and diversity in the forms of business ownership in the economy. The Council is now open for business and we invite you to join with other visionary co-operative and mutual leaders as we embark on the journey.
4 Why we matter Co-operatives and mutuals exist to make profits but it is who they serve and their objectives that make the difference. Australians investing in co-ops and mutuals (equivalent to the number of Australians investing on the ASX). Progressive economies are making greater use of co-operative and mutual ownership models. Co-ops and mutuals are being used to deliver public services at scale on behalf of governments, ensuring that there is community involvement in the design and provision of the services people need. Co-ops and mutuals are some of our leading national businesses and iconic brands, like Australia s major exporter of dairy products, Murray Goulburn; Australian premium wheat exporter, Co-operative Bulk Handling; and our largest memberowned retailer, The Co-op (formerly the University Co-operative Bookshop). They include Australia s motoring associations like NRMA, RAC WA and RACV; and member-owned health funds such as HCF and Westfund. Economies where co-ops and mutuals are expanding their presence are becoming more competitive, generating more sustainable jobs and have a more equitable income distribution. Economies demonstrating higher levels of business diversity are more resilient and stable being less subject to market volatility. Our members and the community are at the heart of everything we do. As a founding member of the Business Council of Co-operatives and Mutuals we are committed to protecting and enhancing the interests of the members and communities we represent, Terry Agnew, Group CEO, RAC WA Founding Partner BCCM An estimated 13 million memberships are held in Australian co-operative and mutual businesses. At least half this number represents individual Co-operatives and mutuals are active in new markets including renewable energy and wholesale foods and increasingly they deliver public services like health, housing and childcare. There are 4.5 million members of customer-owned banks, credit unions and building societies in Australia.
5 About Structure Policy priorities The Business Council of Co-operatives and Mutuals was formed The BCCM is incorporated as Business Council of Co-operatives The BCCM provides leadership in the areas of education, Promotion and advocacy in 2013 as a legacy of the International Year of Co-operatives to increase awareness of co-operative and mutual business models and to foster business diversity in Australia. It is an association of Australia s member and customer-owned businesses representing a sector with a combined membership of 13 million. It provides a national networking platform for co-operative and mutual businesses, where the entire sector of member-owned businesses can foster innovation and closer business ties. Members of the BCCM believe that an economy with a higher proportion of co-operative and mutual businesses will lead to a more diversified and resilient economy better able to withstand challenging and untimely economic circumstances, and build a more inclusive, prosperous and sustainable Australia. Our members also recognise the role of co-operative and mutual businesses in contributing to informed and balanced public policy debate. and Mutuals Ltd and has an open membership structure with individual co-operatives and mutuals as well as industry peak bodies eligible to join. Businesses, individuals and organisations that support the objectives of the BCCM, can also join as associate, rather than full members. Associate members may be invited to sit on special-issue task forces at the invitation of the Board. The Board, comprising the CEOs and senior executives of member organisations, oversees the work of the BCCM, putting forward the policy agenda and making recommendations on issues concerning membership and appointments to task-forces. We support the Business Council of Co-operatives and Mutuals because Australia is better off when there is a diverse range of strong and successful businesses, including those from the cooperative and mutual sector. The time is right to come together to demonstrate the many benefits of our business models, Damien Walsh, CEO bankmecu, Australia s first customer-owned bank Founding Partner BCCM research, promotion and advocacy, necessary to build a strong sector. Research Investing in research will enable the sector to demonstrate to the broader community how co-operatives and mutuals underpin a more resilient and competitive economy. The BCCM supports commissioning a productivity report to show how co-operatives and mutuals drive productivity and innovation in the economy, contribute to local economic development and create wealth and prosperity for more Australians. Education There is little by way of teaching support for our business models. We believe that by working together we can ensure that our business structures are taught in Australian business and law schools, with the effect of not only raising our sector profile and improving the provision of professional services but also enabling our staff to develop their careers and aim at bachelor, postgraduate and masters level qualifications relevant to our sectors. We have a great story to tell. Co-ops and mutuals are businesses that the public trusts. They engage with their communities, are locally based and support local economic development. They offer consumers choice in the markets in which they operate. As a genuine self-help model, they empower people to work together to solve their own economic and social needs, and thereby build community resilience. The BCCM will communicate with the public, government and media on the value of our business models. The council will encourage public policy consultation processes to be more open to co-operative and mutual businesses. Regulators need a deeper understanding of the unique characteristics of co-ops and mutuals and politicians have a responsibility to develop their understanding about how member-owned businesses contribute to a more balanced economy. A voice in cabinet is a starting point for ensuring a level playing field for our businesses.
6 Business development and networking The BCCM will convene industry events and undertake activities to strengthen industry ties and networking opportunities, including: National conferences Awards Seminars and guest speakers Websites and social networking Newsletters, publications and online resources The Co-op is passionate about the tertiary education sector, after all, this is the foundation of our 55 year old business. Unfortunately, there are no tertiary level courses in co-operative and mutual business management in Australia and the co-op and mutual legal forms are not taught to law students or students of commerce or accounting. My belief is that a powerfully represented business council can apply a focus to this neglected area and achieve the twofold aim of raising awareness of our sector and developing our future leaders. Peter Knock, CEO The Co-op Founding Partner BCCM Australia s co-operative and mutual business sector at a glance 1600 businesses 13.5 million members (est.) $83 billion, total combined assets of financial mutuals $17 billion, turnover of the Top 100 co-ops and mutuals $7 billion, combined revenue of the 10 largest agricultural co-ops
7 Top 10 Australian co-operatives and mutually owned businesses (by annual turnover) 8 in every 10 Australians are members of a co-operative or mutually owned enterprise Motoring organisations are owned by more than 7 million members Customer owned banks, credit unions and building societies have 4.5 million members Mutual insurers and friendly societies provide insurance to more than 2.3 million Australians The first Australian consumer co-operative was registered in 1859 $3 billion $ $1 billion $400 million 1. CBH (WA) 2. Murray Goulburn (Vic) 3. RACQ (Qld) 4. HBF (WA) 5. Capricorn Society (WA) 6. Australian Unity (Vic) 7. CUSCAL (NSW) 8. RAC WA (WA) 9. Dairy Farmers Milk Co-operative (NSW) 10. NRMA (NSW)
8 Well-known national and global co-operative and mutual brands Membership The BCCM is an association of business leaders co-operating to provide leadership to the sector of co-operatively and mutually owned businesses. It is funded via the annual fees of its members. Full Membership and Associate. of the Council is available at two levels Full and Associate. For information on becoming a member please contact Melina Morrison, Executive Officer BCCM P M + 61 (0) E info@bccm.coop W The BCCM involves business leaders, co-operating to provide leadership to the sector of co-operatively and mutually owned businesses. It is funded via the annual fees of its members. Membership of the Council is available at two levels Founding Partners The BCCM was formed with the support of these inspiring Founding Partners Community First became a Founding Partner of the BCCM because it recognised the need to promote awareness of a business model built on much more than shareholder profits. The co-operative and mutual sector is the only real example of community-focused member-owned businesses that help build social capital, environmental sustainability and financial fairness for customers. John Tancevski, CEO Community First Credit Union Founding Partner BCCM
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