Traditional Social Economy Organisations

1. TRADITIONAL SOCIAL
ECONOMY
ORGANISATIONS
doc.dr.sc. Tea Golja
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2. Lecture Content
 Main characteristics
 Organisational forms
 Governance and
Management Issues
 Financing Issues
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3. Traditional Social Economy
Organisations (1)
 Different from traditional
organisations that operate in
the market
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4. Traditional Social Economy
Organisations (2)
 Main difference = the
ultimate goal, the ownership,
democratic decision-making
process
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5. Traditional Social Economy
Organisations (3)
 Generation of profit is not in the
main focus of doing business
 Sharing of profits is not the one
and only aim of doing business
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6. Traditional Social Economy
Organisations (4)
 Production of products and
provision of services to the
benefit of all the interested
stakeholders
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7. Traditional Social Economy
Organisations
1. Cooperatives
2. Mutuals
3. Associations
4. Foundations
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8. Cooperatives (COOPs)
 Autonomous association of
persons united voluntarily to
meet their common economic,
social and cultural needs and
aspirations through a jointly-
owned and democratically-
controlled enterprise (ICA,
2016)
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9. COOPs in Croatia (1)
 1.302 active COOPs (41%
agricultural; 17% fishing)
 almost 40% are war veteran
COOPs
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10. COOPs in Croatia (2)
 2.744 employees
 67% of COOPs with no
employees
 21.462 members
 0,5% of GDP
 Compare with MONDRAGON,
Spain!!!
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11. International Cooperative Alliance
(ICA)
 An independent, non-
governmental organisation
established in 1895 to unite,
represent and serve coops
worldwide
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12. International COOP principles (1)
 Voluntary and open
membership
 Democratic member control
 Member economic
participation
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13. International COOP principles (2)
 Autonomy and independence
 Education, traning and
information
 Co-operation among COOPs
 Concern for community
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14. Mutuals (1)
 Associations that provide
insurance services for the
benefits of the members
 Reciprocal contracts
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15. Mutuals (2)
 Revival of mutuals in Europe
 Can cover wide range of
risks, health risks, death,
funerals etc.
 Not much recognized in
Croatia
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16. Associations (1)
 Group of people that join
together for a particular
purpose/interest (non-profits)
 Oldest forms of organisations
 No intentions of gaining profit
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17. Associations (2)
 Protection and promotion of
issues of public or mutual
interest, environmental,
economic, humanitarian,
informative, cultural,
educational, social, sports etc.
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18. Associations in Croatia
 More than 51.000
 Sports, cultural, technical etc.
 Registry Book of Associations
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19. Foundations
 INDEPENDENT
 STATE FOUNDATIONS
 CORPORATE
 COMMUNITY
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20. Foundations in Croatia
 More than 200
 Still underdeveloped
(restrictive law on the
establishment, lack of
programs to encourage the
development)
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21. Governance and Management
Issues
 Mostly dual system of
governance in Croatia
(Committee and Supervisory
Bord
 Director – manages the
organisation
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22. Governance and Management
Issues
 Co-operative Governance Fit
to Build Resilience in the
Face of Complexity published
by ICA in 2015
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23. Governance and Management
Issues
 Mostly dual system of
governance in Croatia
(Committee and Supervisory
Bord
 Director – manages the
organisation
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24. Governance and Management
Issues
 Democratic governance and
transparency
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25. Financing Issues
 Business
 Market
 EU funds
 Crowdfunding
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26. THANK YOU
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