The Cooperative Difference, Private Governance, and the Law

Abstract

This chapter focuses on cooperative private governance and public law to show how values and principles shape legal design for social enterprises. It explains that cooperatives are a form of enterprise that are distinct from investor-owned corporations, such as the cooperative identity of values and principles being shared by cooperatives across the world in all business sectors. It also mentions the corollary for investor-owned corporations that maximizes shareholder value. The chapter assesses the extent to which the cooperative identity is understood as a system of private governance based on shared values and principles. It outlines critical factors in maximizing cooperatives' potential for multiple benefits, such as incorporating identity into legislation and promoting it by cooperative federations.