DEMOCRATIC GOVERNANCE
Worker cooperatives are built on a framework of democracy, but this does workers little good unless the means to
exercise rights and enjoy the protections this framework provides are in place – this is what an effective governance system does. The governance system primarily focuses on how a democratic firm’s policy is established, how this information is communicated throughout the firm, and works to protect the personal rights of the members. It provides the means for matters of organizational direction and policy to be dealt with democratically.
A properly functioning governance system clearly articulates the roles of the members, the Board of Directors (including a grievance council), and the management. If the governance system is to function well, the responsibilities of these groups must be clear, and the groups must have real decision-making power. While each co-op and its culture is unique, the roles of each of these groups fall into this general form.
The Writer Membership
The Board is responsible for all policy and governance matters not handled by the membership. Specifically, they select key managers, approve the budget, and set the strategic direction of the firm.
The Board of Directors
Management is responsible carrying out the regular business of the firm. Management has influence and will often generate or review policy proposals for the board and membership, but they do not have the authority as managers to set policy.
Management
Management is responsible carrying out the regular business of the firm. Management has influence and will often generate or review policy proposals for the board and membership, but they do not have the authority as managers to set policy.