New Year, New Capitalism

When the Prime Minister keeps his speech so hidden that even Robert Peston can’t get a sneaky peek, you know he’s got something important to say.

And when the leader of the opposition is making a speech on the same subject on the same day, you know they’re talking about a hot topic.

Today, David Cameron and Ed Miliband will be talking very loudly about responsible business. They’ve seen the opinion polls, and they know that the public is ready and waiting to see political and corporate leadership in building sustainability into our economy, post-financial crisis.

‘But what will the government actually do?’, we all say. Rumour has it that Cameron plans to announce new policy to make it easier to set up co-operatives. With their typical partnership model of democratic management and shared profits between members, co-operatives find it easy to create shared value. So much so that the UN has declared 2012 to be International Year of Co-operatives, hoping to “raise public awareness of the invaluable contributions of cooperative enterprises to poverty reduction, employment generation and social integration”.

Co-operatives are certainly gaining a lot of attention – but it’s not just because they’re ‘nice’. It’s because they’re successful.

In the UK, John Lewis has announced bumper profits for the Christmas period, while The Co-operative has grown to such strength that in December it was announced as the preferred bidder to take over the 632 branches that Lloyds is being forced to sell. Overseas, in the economic powerhouses of Brazil, Russia, India and China, there are now four times as many co-operative members as direct shareholders. Globally, the top 300 co-operative businesses turnover $1.1 trillion a year – that’s equivalent to a top 10 economy of the world.

The growth and successes of co-operatives are, of course, influenced by a myriad of factors from sound financial management to marketing, from the appeal of the products to the appeal of the brand.

But what’s interesting (and what the PM and the UN seem attracted by) is that successful cooperatives embed responsible activities throughout the business, building trust in the brand.

I know that the mango I bought from the Co-op has been traded fairly, that it was grown in an environmentally sound way, and that the staff in the store will be helpful and positive. I know, because I trust them. I know, even if I didn’t read The Co-op’s new ‘radical’ ethical operating plan.

The fact that co-operatives are increasingly successful poses an interesting challenge – or rather an opportunity – for other business. It suggests that taking into account the values and the best interests of all those touched by the business is more than fluffy niceties. It’s something that consumers choose, something that builds value for those with a stake in the company, something that the government supports, something that employees value; it’s something that can drive success. And if the growing strength, credibility and popularity of co-operatives is anything to judge by, a more positive business approach might well prove itself to be a key ingredient for the winners of 2012.