On 16 December 2024, the ICA-AP organized a virtual capacity building training on ‘Principles of Good Governance’ as a part of its series – Empowered Leadership, Thriving Cooperatives: Strengthening Governance for Better Tomorrow, aimed at equipping cooperative leaders with the skills and knowledge necessary to navigate the complex challenges of the modern world.   The webinar series was organized as part of the ICA-EU Financial Framework Partnership Agreement (FFPA) Phase 2, with the core objectives of:

• Enhancing understanding of good governance principles and best practices to ensure transparency, accountability, and democratic decision-making within their organizations;
• Promoting effective governance structure that supports sustainable business models, ethical practices, and community-driven approaches, ensuring cooperatives create a positive impact on their members and society;
• Providing an understanding of innovation and technology in cooperative governance.

The training on 16 December was organized in partnership with the Business Council of Co-operatives and Mutuals (BCCM), the peak body representing cooperatives and mutuals (CMEs) in Australia.   BCCM brings together these businesses with a shared goal of enhancing awareness of CMEs and highlighting their significant contributions to the economy and community well-being.

The training session began with greetings and introductions by Ms. Monalisa Kashyap, Program Coordinator. She shared the background of the training program and introduced the theme of the second training on the Principles of Good Governance. The session aimed to provide insights into governance principles from an Australian perspective while fostering engaging discussions and active participation among attendees. Attendees from Iran, Bhutan, Malaysia, Nepal, Cambodia, the Philippines, and Kiribati participated in the webinar.

Mr. Anthony Taylor led an interactive discussion using the Menti tool for warm-up questions before diving into the principles of good governance in cooperatives. He emphasized that strong governance, through systems, mechanisms, and controls, is key to achieving a cooperative’s purpose. He outlined the board’s critical role in strategy and policy-making, stressing the need to balance representation, expertise, and member voice. Addressing common challenges in cooperative businesses, such as the free rider, horizon, portfolio, control, and influence cost problems, he highlighted how effective governance can help mitigate these issues. He also referenced the Australian Cooperative and Mutual Enterprise Governance Principles as a valuable benchmark for cooperatives.

The training session explored key aspects of cooperative governance through case studies and interactive discussions. Using the Capricorn Society as a case study, participants examined the importance of creating, protecting, and returning member value while maintaining a strong focus on identity and purpose. The discussion highlighted the need for clear roles and responsibilities, due diligence in board appointments, and structured evaluation processes. For smaller cooperatives, implementing a self-assessment process—overseen by the board chair—and using a board skills matrix to ensure expertise and experience were also emphasized.

The session also covered the application of technology in governance, with case studies from Yenda Producers Co-op and The Co-op Bank (UK). Participants discussed the importance of having a clear strategy and a long-term vision for cooperative banking ensuring its alignment within a broader financial portfolio.

The training concluded with a case-let discussion on governance challenges in a cooperative with two regions, A and B. Participants explored strategies to address concerns from Region B, including board representation, equitable resource allocation, and transparent communication. Suggestions included open nominations for regional representatives, ensuring board diversity, and offering job opportunities in Region B. The session reinforced the need for member-centric governance and a standardized measurement tool for cooperative governance effectiveness.

The third and final session of this training series, focusing on Cooperative Leadership, is scheduled for February 27, 2025, and will be facilitated by the NATCCO Federation from the Philippines.