IDK what makes Eric Bailey prefer a cooperative to a non-profit, the article doesn’t explain it.
Unlike corporations, co-ops don’t have to be motivated by profit. Not needing to focus growth at all costs means co-ops can instead prioritize and incentivise things like preservation and cultivation. It is also a successful model of operation [links to a page titled “employee ownership”], one that even already exists and flourishes in the tech space [links to a page about a specific software consultancy coop that doesn’t publish a knowledge website].
I might be jumping the gun here, but… it would seem he doesn’t really know what the point of a cooperative is?
Corporations only have to be motivated by profit due to shareholders. There is no law requiring corporations to put profits first.
In the US, corporate structure provides legal protections to individuals. (Aside: I am convinced that these protections give corporations more rights than individuals but that’s for another post.)
Corporations only have to be motivated by profit due to shareholders. There is no law requiring corporations to put profits first.
The CEO’s yacht fund isn’t a law either, but sure as heck the sort of person who wants a yacht tends to end up in that sort of position.
