Co-operatives and mutuals prioritise staff and service over profits

25 September 2024

Research commissioned by the Business Council of Co-operatives and Mutuals (BCCM) and conducted by Per Capita Australia reveals that Co-operative and Mutual Enterprise (CMEs) are more likely to employ staff at lower profit levels compared to equity-owned firms.

The new report, Co-operative Employment Economics: Sustaining Employment and Community Prosperity, shows that the business purpose of co-ops and mutuals, of delivering services for members leads to a different balance between revenue gains and employment.

While equity-owned firms might make higher profits, co-operatives and mutuals often provide more stable, long-term employment, partly due to a stronger focus on long-term community, member and employee welfare.

In Australia, eight in 10 people are members of at least one CME and the sector generates direct employment of at least 76,000 people.

“Co-ops and mutuals play a unique and important role in the local Australian and global economy, particularly in terms of employment and economic impact. They have a stronger focus on job creation and retention, particularly in sectors like agriculture, retail, finance, and social services. Their localised approach to business often leads to more stable employment opportunities, especially in rural or underserved areas.”

Melina Morrison, CEO BCCM

“Co-operatives and mutuals are recognised for their capacity to create and sustain jobs. Unlike equity-owned companies, which are primarily driven by the pursuit of shareholder profits, CMEs prioritise the welfare and needs of their members, communities and staff. They bring a different business purpose into the mix, and that’s good for the diversity and dynamism in the Australian economy.”

Emma Dawson, Executive Director, Per Capita Australia

Read the full report

For more information please contact

BCCM: Adrian Thirsk, P&L Corporate Communications +61 410 287 609.

Per Capita: [email protected]