Submitted by its-chilly-up-here t3_z4nze3 in explainlikeimfive
How are these company models different from one another?
Comments
its-chilly-up-here OP t1_ixrv5cn wrote
So shareholders vote on major company decisions, and corporations dictate. They both have boards though no?
e-sea1 t1_ixrwnme wrote
Corporations make money for people who do not work at the company, and do not work for the company. The people who pull in the profits are shareholders-- outside investors who own shares in that company. At a corporation, workers are paid a fraction of the value of their labor.
Co-operatives make money for the people who work directly in that store, at that company. There are no outsiders who pump the profits away from the workers. At a co-op, workers are paid close to the full value of their labor.
e-sea1 t1_ixrxis0 wrote
In corporations, shareholders hand down decisions from above. People who work at the corporation do not have a say in what decisions are made. If the decisions negatively affect the workers, the workers have no way to make things better for themselves unless they're in a union.
In a co-operative, workers vote on decisions that affect them directly. People who work at the co-op have an intimate say in what decisions are made. If the decisions negatively affect the workers, they are able to have their voices heard, and make positive changes.
jx962tw t1_ixruta7 wrote
A corporation is ran by a board and owned by shareholders, a cooperative is owned by all members/employees and is run in a more democratic fashion.