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Business LibreTexts

5.4: Summary

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  • Cooperatives and mutual continue to thrive globally. These forms of collective action are not the solution to every economic or social problem. Changes in how various forms of collective action utilize these models is to be expected and, as discussed earlier, cooperatives that move from strictly a social purpose to an economic purpose tend to succeed over time. It is important to maintain some social purpose within the collection action to help members understand their membership roles and responsibilities. Periodically, some academics and practitioners become concerned that cooperatives and mutuals are outdated or have lost their way. The measurable evidence is quite clear that this is not the case. Legal business forms change over time as policy and legislation change often in response to tax treatment of income. Mutual benefit organizational forms such as cooperatives and mutuals continue to play an important role in the global economy.